Affording Expatriate Health Insurance

Domestic and expatriate health insurance premiums have been rising in double digit percentage increments for the past ten years and as a result many domestic policy holders are tearing up their policies in disgust and frustration.

For the expatriate health insurance policy holder, not only is such action out of the question but their premiums started out being far more expensive than domestic premiums in the first place.  Nowadays many expatriates are paying the same a month as a British resident pays in a year for health cover.

With health insurance companies universally banding together to inform their frustrated customers that increases are in line with and to offset medical inflation, it’s obvious that the situation is not going to change for the better.  So for most people the bottom line comes down to budgeting to afford expatriate health insurance or risking going without. 

But for the lucky few there is another alternative.

Some expatriates who are relocated abroad to take up a particular employment assignment may be lucky enough to negotiate membership of a corporate international medical insurance scheme as part of their relocation package. 

Corporate schemes offer the individual employee a benefit in kind which is likely to be taxable, but the taxation of the benefit will be far ‘cheaper’ than if the individual had to pay directly and in full for the benefit of health cover.  As a benchmark for comparison, usually a corporate domestic scheme will see the employee paying the equivalent of 1/3 of the original premium via taxation. 

Even if the employee in question is asked to pay a part of the premium, corporate schemes obviously enjoy far reduced premium rates as they have the purchasing power to negotiate with.  A further value added feature of such a scheme is that often key employee’s benefit by having their entire family covered by the scheme.

If you’re relocating abroad and hoping to find employment when you’ve finally expatriated it might be possible for you to find work with an employer who offers corporate membership of a domestic scheme in your chosen country of choice.  If this is a key requirement of yours before you go you should do some research to see whether your particular employment sector offers such benefits as par for the course or whether you will be hunting for the impossible, namely an employer who offers such a scheme.  Usually membership of such a scheme is based upon the employee paying part of the health care premium with the employer paying the rest.

If you’re not fortunate enough to benefit from membership of an international corporate health insurance scheme when you expatriate, you’re going to have to weigh up the pros and cons and costs and risks associated with expat health insurance and the medical services and costs in your particular overseas destination of choice. 

If you would like more information about the likely premiums you and your family will incur based on your own personal circumstances relating to location, state of health, age etc., please complete our offshore advice form with your requirements and we will endeavour to find a range of the best quotations available.