With remote working looking to be a mainstay for many global organisations, having globally mobile employees is just another reality of running a growing international business. However, delivering good healthcare protection benefits is becoming even more costly and complex around the globe1, highlighting the urgent need for international employers to start looking for smarter solutions that allow them to more efficiently deliver great healthcare benefits to their people around the world.
In this article, one of our international benefits consultants, Rachel Trevena, outlines why a global medical plan could be your key to greater operational efficiency, delivering better healthcare outcomes for your global workforce, and gaining a competitive edge around the world.
Key takeaways
By reading this article, you will:
- Learn how global medical plans can simplify healthcare delivery and reduce complexity in international operations
- Understand the differences in care quality, access, and flexibility between global and local plans
- Discover how consistent, international coverage can give your company a competitive advantage in attracting and retaining talent
What is a global medical plan?
Global medical plans (also known as international private medical insurance, or IPMI) are a type of health insurance policy specifically designed for your people who live and/or work outside their home country. When an employee needs medical care, whether at home or abroad, an effective global medical policy gives them access to healthcare providers and treatment without worrying about being covered only in one country.
Global vs local plans: 4 key business benefits of making the switch
Despite the widespread difficulties global employers are facing when it comes to healthcare benefits, many businesses are creating unnecessary issues for themselves by continuing to wrestle with the operational headache of managing separate local health plans in each country they operate in, unaware that there’s a smarter solution.
Aside from the peace of mind that your people have access to excellent medical care wherever they are, a global medical plan can bring a whole host of commercial benefits and help alleviate some of the time, hassle, and cost of running an international business:
1. Reduced operational disruption
Administering multiple local plans can quickly become an operational headache. Each plan brings its own pricing, legal nuances, coverage limits, and renewal cycles. By centralising your global medical cover in one comprehensive plan, you can:
- reduce the administrative burden on HR
- avoid delays caused by inconsistent local processes
- prevent or minimise the disruption to productivity caused by illness or injury
2. Greater cost efficiency
Global medical premiums are rising by an average 10% worldwide¹, but maintaining separate local health plans can further compound this cost increase by leading to duplicated efforts and unnecessary spending. By consolidating these local plans into one global solution, you could enjoy:
- more control over premium spend
- greater leverage in insurer negotiations
- a reduction in overall claims volatility
3. Stand out as an employer of choice
Many employers choose to implement a global medical policy because it allows them to offer richer benefits to their people, and in today’s globally competitive talent market, benefits can be a powerful differentiator. Offering a high-quality, internationally portable health plan can help you:
- attract the best talent in all your global locations
- foster loyalty and productivity by demonstrating your commitment to health wellbeing
- cement your global reputation as a caring, People First employer
4. Better strategic consistency
A well-designed global medical plan can offer better international consistency, bringing all employees under a single umbrella of care—no matter where they live or work. In turn, this can help you:
- implement the same benefits even in countries with smaller headcount
- better align your global HR and benefits strategies
- more easily identify health trends and risks across your workforce, helping inform better long-term planning
The value of a global benefits broker
While you may think you’re able to manage and oversee the implementation and management of your global medical plan yourself, we understand how tough and time-consuming this can be. From designing the right policy to ongoing management and governance, creating a global medical plan that is both effective and compliant long-term requires a level of resource that can detract your focus from what’s really important – the growth of your business.
