Health care tourism, now covered by insurance?
Free-marketers like to talk about health-care reform in terms of empowering consumers to spend their dollars in more efficient ways -- for example, by letting them see what different doctors and hospitals charge for the same procedure, and how their results vary. Paying more doesn't guarantee getting better health care; in fact, there may be no relationship at all. Just look at the United States, which spends far more than any other country on health care but still trails in some key indicators.
But the wide variation in the cost of health care also creates opportunities for those willing to travel in search of a better deal. And now, the nation's largest health insurer, WellPoint, is starting to pay their way.
WellPoint is conducting a pilot with Serigraph Inc., a specialty graphics company with operations in Wisconsin, Mexico and Asia, that gives U.S. employees the option to travel to India to have surgery on a non-emergency basis, said WellPoint's Paul McBride, vice president of health care management and services. McBride was speaking at a panel on health-care economics at the Milken Institute's Global Conference today in Beverly Hills. The India option makes sense for Serigraph, McBride said, given that a number of its employees come from that country. The cost of care is about 80% lower, largely because of dramatically lower charges for labor, drugs and medical devices, McBride said. Yet he contended that the results of the care were at least as good.
One conference attendee -- Dr. Sally Andriamiarisoa, vice president of advancement at Riverside Community Health Foundation -- questioned the morality of the arrangement, arguing that the U.S. shouldn't be consuming other countries' scarce health resources. Andiamiarisoa, who is from the Indian Ocean island nation of Mauritius, said the practice wasn't fair to countries that, to conserve their meager health-care dollars, do much more to promote wellness than the United States does.
But the globalizing health-care industry is already positioning itself to take advantage of the national differences in treatment costs. McBride said Apollo Hospitals, India's largest health-care delivery system, is actively seeking deals with insurers in higher-cost countries to attract patients from overseas. He couldn't say whether Apollo was trying to fill excess capacity or simply increase profit margins.
There has long been a global market for cosmetic surgery, with patients traveling far and wide for deals on liposuction, gastric bypasses and dental work. What's different now, McBride said, is that traveling for medical care is starting to move into mainstream insurance coverage. WellPoint, which is looking to expand its pilot program, is focusing on cardiac and joint-replacement surgeries that require about a two-week hospital stay. The choice to travel will be the patient's, and he or she they won't have to go to India, McBride said; there may be significant savings available from hospitals within the U.S.
More and more employers are investigating Medical Tourism as a way to shave significant money off their expenses for health benefits, but we're increasingly asked about quality of care...The main thing an employer/benefits manager MUST do is careful research on companies that provide them with facilitation services. A reputable facilitator, Worldmedassist.com will assess the doctors and hospitals allowed into their network with extreme care, looking for those with US-like accreditation, board-certified doctors, state-of-the-art facilities, intense focus on patient care and satisfaction levels...and so forth. Visit WorldMed Assist to learn more about this: www.worldmedassist.com/employers/medical-tourism-for-employers.htm. The potential to expand employee options while employers save money doesn't come along very often during a downturn like this.
Posted by: li deng | May 08, 2009 at 03:45 PM
Perhaps the advent of medical tourism will encourage our U.S. healthcare system to make the necessary changes to become more competitive in the global healthcare arena. After all, we are no longer the only country qualified to perform high quality surgery, at accredited hospitals, with board certified surgeons, using state-of-the-art equipment and technology.
Medical tourism will continue to grow until U.S. health providers can offer affordable options to allow the average American consumer to stay within the U.S. -- unfortunately, this could take quite a while.
In the meantime, let's try to remember...if there are no other options to receive affordable, high quality surgery at home, people will seek other means to alleviate their pain and improve the quality of their lives. To date, traveling abroad for surgery (medical travel) appears to be the best alternative.
Posted by: PMarsek | May 06, 2009 at 12:19 PM
It's called competition. It highlights how non-competitive the medical industry in the US has become. Blame the AMA, and their government enablers, for limiting the supply of doctors. Blame the FDA for limiting the supply of drugs. Don't blame capitalism, or competition.
Posted by: Willl McBride | April 30, 2009 at 05:42 AM
Destination healthcare offers significant benefits for those seeking medical care, but it is more than cost alone. The Business Roundtable, a group comprised of major US companies, reported that American medical care trails other developed nations in overall quality and value by as much as 46%.
Destination healthcare, or medical tourism as some call it, is a new concept for many, but we already make many of the underlying decisions when we choose to go to a speciality hospital such as the Mayo Clinic, MD Anderson Cancer Center or other premier facilities. In this case, however, that outstanding medical care is in another country rather than another state.
China Connection Global Healthcare, a leader in destination healthcare, has contracted with an exclusive network of hospitals in China, several of which are acknowledged by the World Health Organization as among the best in the world. Medical outcomes are excellent and they experience lower rates of medical complication and post-surgical infection than most American community hospitals. The company has established working procedures with several insurance carriers to pay benefits without the experimental restrictions WellPoint has with Serigraph.
There is much more to destination healthcare than is reflected in this opinion piece. We would look forward to working with you on future stories and commentaries.
Posted by: David Mair | April 29, 2009 at 07:52 AM
America spend millions and do the research, India and other countries reap the fruits. It is the legal system here which makes it so expensive to get good treatment here.
When you go to India with the dollars, the doctors in India are very careful not to make any mistakes. Even if ghe doctors make mistakes no body will sue you. So there are two sides to the coin.
Posted by: Dr. Abraham | April 28, 2009 at 07:36 PM
I had my hip replaced at CIMA Hospsital in Costa Rica. The service was outstanding, my surgeon and the entire staff that I interfaced with spoke perfect English, the food was great, my hip has felt better than it has in 15 years, and I saved a ton of money. Would highly recommend it.
Posted by: Grace DeBold | April 28, 2009 at 03:00 PM
Dr. Sally Andriamiarisoa, vice president of advancement at Riverside Community Health Foundation -- questioned the morality of the arrangement, arguing that the U.S. shouldn't be consuming other countries' scarce health resources.
Well, the US probably shouldn't be skimming off smart people, like Dr. Andriamiarisoa, (not a medical doctor, BTW) from third world countries either. Intelligent, educated folks are a pretty scarce resource, too.
Posted by: Mitchell Young | April 28, 2009 at 02:52 PM
I am a physician from India and I provided primary care for 1/5th of a dollar per patient. Once I came to the US I realized that I am getting similar care, but at 500 times more cost to me.
As an MD MBA I think medical tourism is a positive change for us, the people of the US. I think this is one more step in the improvement of the health care system in the US. Like many other industries, where prices of the products came down, medical tourism will bring down the cost of medical care in the US. In a capitalistic economy like ours, this is an inevitable change at some point. Glad the change is coming now, we cannot bear this ridiculous cost-inefficient health care system any longer.
Posted by: Dr. Sunil Thummala | April 28, 2009 at 12:24 PM
As this article mentioned, this may be cost effective option for many people, especially for some of those from India who may be comfortable being treated in India and paid by their US insurance. But it is unfortunately a bad direction for US healthcare which already has a bad system, but excellent in medicine and healthcare itself. If government do not reform it by loosening the grip of iron trianle (providers, insurance and suppliers), healthcare will be another Detroit story. US policy makers need to wake up. I am from India, I am also concerned about domestic care in India. Medical tourism will shift focus to international care ignoring people in India who are already suffering with lack of care and raising costs. Doing work for and taking care of world health problems for finanical benefits of private sector, will only shift focus away from domestic issues with internal work and health.
Posted by: kdimar | April 28, 2009 at 12:11 PM
I have spent some time in India and have had the pleasure of being treated for an ear and respiratory infection by an Indian physician. He was courteous, knowledgeable and did everything an American doctor would. The fee was 400 rupees or about $9. My prescriptions (5 in total) cost less than $15. A friend broke her ankle & total treatment at the Maxx Hospital was less than $150 - x-rays, orthopedic doctor's bill included, casting, crutches and drugs. I saw nothing wrong with the treatment we received - but we were cash customers. What bother's me is that WellPoint & others will exploit India's low costs and outsource us as medical patients to the cheapest bidder, much like our US corporations are doing with jobs going to India's cheap youth market. India allows it as they need jobs in all sectors and the US (world) feasts on India like the British did - except today it's business. I call it Economic Imperialism & we should be ashamed of ourselves. Make health care affordable here and help India & other developing nations build a solid infrastructure so that they can help themselves.
Posted by: KRobins | April 28, 2009 at 11:42 AM
Did India develop the surgeries or develop and manufacture the drugs for which it is charging less?
This is a typical example of exporting American knowhow. Like any industry, the innovators and developers will find other industries in which to apply their talents if their rewards diminish because of practices like this one. India doesn't contribute much to medical knowledge and Wellpoint is a minor player in the larger scheme of things. But this shows how we have lost so many American jobs in many great American industries.
Posted by: jerald brodkey | April 28, 2009 at 06:04 AM