What You should Know about Medical Travel and the Potential Impact on the Cost of Your Healthcare Benefits!

Transcription

1 What You should Know about Medical Travel and the Potential Impact on the Cost of Your Healthcare Benefits! PRESENTED BY Terry W. White March 12, 2009

2 Presentation Overview Problem: US Healthcare system Economic impact Major problems in the system Single payer, gov t. run systems What will Obama do? Growth in Medical Travel Locations and Services Could it be for you? Stem Cells How to Make it Available Plan design A variety of options Perceived Barriers Malpractice Follow-up care Quality

3 Problem: The US Healthcare System Cost!

4 Problem: The US Healthcare System Cost Leads to uninsured (50 Million Americans)

5 Problem: The US Healthcare System Cost Leads to uninsured (50 Million Americans) Restricted access/limited benefits

6 The Economic Impact Eroding Competiveness Worldwide Lower Wages Higher Taxes (Medicare and Medicaid) People assume risk for catastrophic events more bankruptcies Sense of waste leads to dissatisfaction and then Malpractice suites

7 Gov t. Single Payor: The solution? Canadian Experience Long waits Two Tiered System: those who can travel to US European Experience Long waits Deferred care Two Tiered System: Travel within EU and/or Asia

8 The Obama Solution We don t know what it will be yet: It will be very expensive! And can we afford it? Likely to be regulation oriented! That usually adds to the underlying costs!

9 Medical Travel History How & Why did it begin?

10 Infusing Competition

11 Study & Survey Responses The Acceptance 88% of surveyed participants would consider going out of their community for care and treatment if outcomes are better and cost no greater. - Deloitte Center for Health Solutions 50% of Americans say the cost of health care is their number one economic concern. - The Wall Street Journal, August 2, , ,000 patients a year travel for care with savings on the order of $20 billion. -McKinsey Report 2008 Cost Advantage for Medical Tourism is 28-88%. Solutions -Deloitte Center for Health The Need Since 2000, employment based health insurance premiums have increased 100%, compared to cumulative inflation of 24% and cumulative wage growth of 21% during the same period. - Kaiser Family Foundation The current state of the world economies demands innovation and solutions.

12 When competition works Two major competitive successes in US Healthcare: Lasik Surgery Extremely high quality, dropping prices Plastic Surgery High quality, very competitive prices

13 Benefits of Medical Travel Significant Savings High Quality Transparent Costs Complements Consumerism

14 Medical Travel challenges Quality of institutions After care coordination Malpractice

15 Accreditation Joint Commission International, based in the U.S., is a division of Joint Commission Resources (JCR) and a subsidiary of the Joint Commission designed to improve and regulate the quality and safety of healthcare services. About 200 and growing foreign hospitals now accredited

16 BridgeHealth International Centers of Excellence U.S. & International Locations Brazil China Costa Rica Hong Kong India Mexico New Zealand Puerto Rico Panama Singapore South Korea Taiwan Thailand Turkey U.S. Additional locations in Europe and elsewhere are under evaluation.

17 Medical & Dental Procedures Cardiology Cardiothoracic CyberKnife (cancer) Dental Detox/Rehab ENT Executive Health Physicals Gastroenterology General Surgery Gynecology Infertility Internal Medicine Neurosurgery Oncology (selective) Ophthalmology Orthopedics Pain Management Pediatrics Plastic and Reconstructive Surgery Urology Male/Female Vascular Weight Loss/Obesity Surgery

18 All-Inclusive Transparent Pricing Plan Which Includes: Surgery/procedure costs Airfare Lodging Transfers 24/7 Concierge Service

19 Care Coordination Consultation with Travel Care Coordinators HIPAA compliant, including medical records Coordination of pre-travel communications are made for client to host country hospital and physician After care needs can be coordinated Client outcomes are tracked and monitored

20 World-class Facilities Great facilities staffed by highly skilled physicians and support staff Many of the Physicians are trained in the West (US/Europe/Canada) Thailand Mexico India Singapore Turkey

21 Malpractice Jurisdiction in country of treatment Policy available for US adjudication

22 Malpractice Jurisdiction in country of treatment Policy available for US adjudication Customer service is extremely important in managing risk

23 Exciting New Services Stem Cell Therapies IVF Also: Access to uncovered services at about 1/3 of the cost in the US

24 Three Program Cell Lines 1. Neurodegenerative 2. Sight Restoration Stroke/Brain Trauma* Spinal Cord Alzheimer s 3. Skin, Bone & Soft Tissue Diabetic Retinopathy Macular Degeneration* Scars* Burns Bone Ulcers Significant Efforts Underway To Establish Regulatory Pathway in US Manufacturing sites presently in Moscow and San Diego

25 Stem Cell Treatment Locations China Russia Soon to be in Mexico and Bermuda

26 Insured: Will they travel? 30% of the insured US population under age 65 will travel internationally for a healthcare procedure if: 1. Quality is comparable 2. There is at least a $5000 benefit

27 Sample Estimated Costs Mitral Valve Replacement of Surgeries Typical US Pricing Domestic COE Pricing International COE Pricing $119,000 $45,000 $10-30,000 Cardiac Bypass $100,000 $37,000 $8-30,000 Hip Replacement $50,000 $20,000 $7-14,000 Knee Replacement $45,000 $20,000 $7-14,000 Cholecystectomy $26,000 $10,000 $3-6,000 Note: These prices are inclusive of Hospital, Surgeon, Lab, Radiology, Anesthesiology, etc. Prices will vary by location, severity, co-morbidity and are approximate for comparative illustration. COE examples do not include travel costs, but the savings more than offsets them.

28 Example: Decision for Hip Replacement Underlying Cost of Procedure, including Airfare and Hotel Hospital A Hospital B Hospital C Local US Hospital $25,000 $15,000 $12,000 $50,000 Complication Rate for Procedure 0.5% 1.8% 1.1% 1.2% Travel time from home (showing flight transfers required.) 4 hrs (0) 22 hrs (2) 30 hrs (1) 0.5 hrs (0) Patient Satisfaction Score (5 point scale) Impact to Employee* Patient co-payment and deductible $500 Waived Waived $5000 Incentive paid by ER by EE $0 $1500 $3000 $0 Net benefit to employee with variable incentive $4500 $6500 $8000 -$5000 Assumes a $5000 copay/coinsurance at a US hospital and a variable incentive paid by employer (ER) to employee (EE) based on provider selected.

29 Sample Benefit Design & Savings HYPOTHETICAL COMPANY EXAMPLE: CURRENT INN INT L INN BENEFIT SAVINGS to Employer* 0 $38,000 DEDUCTIBLE $1,000 WAIVED COINSURANCE 80/20 WAIVED MAX. OUT OF POCKET $5,000 WAIVED ADD L BENEFITS: TRAVEL INCENTIVE N/A $3,000 Travel costs, air & hotel N/A $4,000 Partner air N/A $2,000 * Hip replacement done in Asia: U.S. cost ~ $50k, Int l cost ~$9,000 Cost to the Employer: $14,000 ($5k OOP, + $9k incentives & costs) Net Savings to Employer: $29,000. A Domestic Network would yield savings in between.

30 Who is interested Brokers & Consultants Insurance Companies Union trust funds ASOs Self-insured companies TPAs Reinsurers Individuals

31 Self Insured Plans Ideal for Fully Insured for uncovered benefits Dental Care Cosmetic Bariatric Surgery Infertility Limited Benefit Plans Procedures not available in U.S - Stem Cell Timely access to care - Canada & UK wait times

32 Opportunity The American healthcare system has become so expensive that companies are dropping coverage. Healthcare is virtually unaffordable for those without insurance. American businesses are increasingly unable to compete in a global marketplace due to high costs of health insurance. The declining current world economies

33 Medical Travel Forecast Reduce corporate costs Reduce employee costs Sustain or increase benefits Offer a new innovative service More U.S. competition & transparency

34 The Trusted Bridge to World-Class Healthcare Discussion

35 Contact Information The Trusted Bridge to World-Class Healthcare Terry W. White, President O: C: