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Jul
31

Self-insured employers’ drastic measures

Self-insured employers are beginning to take the drastic step of sending patients overseas for expensive, complex medical procedures. While there are likely just a few employers doing this now, there are several companies formed expressly to provide these services to employers. And, at least three large employers have contracted with benefits consulting house Mercer to research medical services offshoring.
The rationale behind these decisions is obvious – greatly reduced expenses. Procedures done in India or Thailand commonly cost one-tenth to one-fifth what they do here. And this is in facilities that have been likened to five-star hotels, with very high staffing ratios and round-the-clock pampering of American patients.
Hospitals, at least American ones, are not happy about this. Private-pay patients (those covered by private insurance) overpay for care, and that overpayment helps cover the cost of indigent care. As hospitals are required by law to provide care to all, they have relied on this cost-shifting to help balance the books.
Some employers are no longer willing or able to pay this hidden tax
What does this mean for you?
Another thread is being pulled from the worn fabric that is the US health care system.


2 thoughts on “Self-insured employers’ drastic measures”

  1. Where can one find more data, please on medical services offshoring, please? Costs? Benefits? Companies formed to provide these services to employers by name and location?

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Joe Paduda is the principal of Health Strategy Associates

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A national consulting firm specializing in managed care for workers’ compensation, group health and auto, and health care cost containment. We serve insurers, employers and health care providers.

 

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