International Health Insurance for Employees

Do My Employees Need Worldwide Medical Insurance?

If your employees live abroad for work or simply spend a great deal of time travelling, then it’s likely you’ll need to provide them with some element of Health Insurance overseas to cover their travels. This is in case they fall sick while abroad.

This is because the health systems in other countries aren’t like the NHS, where treatment is free at the point of use. In many countries you may have to live in the country for a certain period of time to qualify for state-backed healthcare or commit to paying into the system for a set time before you get access to it.

Of course, that’s if access to state healthcare is available at all — in many common locations for expat Brits, such as the US, there’s little to no state-funded healthcare and almost everything medically must be taken care of privately.

Is Travel Insurance the Same as Global Health Insurance?

In some ways yes, Travel Insurance is similar to International Health Insurance for employees.

However, there are some major differences that mark important distinctions between the two types of cover and make Travel Insurance fairly unsuitable for those living abroad or even those merely travelling overseas if they have particular medical needs.

Travel Insurance largely focuses on providing treatment after accidents and emergencies while overseas. What such policies rarely cover include instances of pre-existing conditions, routine medical care (e.g. checkups) or maternity cover.

This could lead to a situation where an employee abroad needs medical assistance as a result of a flareup of a pre-existing condition but finds they’re unable to claim under a standard Travel Insurance policy. (Note that there are specialist insurance policies which will agree to cover pre-existing medical conditions, but most providers will automatically exclude a pre-existing condition from Travel Insurance coverage.)

Travel Insurance is also rarely designed to cover someone living abroad — the longest you can usually be abroad per trip before needing to return to the UK is 30 days for most Travel Insurance policies.

However, there are some benefits to Travel Insurance that International Health Insurance for employees lacks. For instance, Travel Insurance will usually cover emergency evacuation and repatriation should the individual become catastrophically ill and require a medical evacuation from their host country.

While Group International Health Insurance may cover this in some instances, this is usually only if the treatment the employee needs is not available locally. This could mean a sick employee is stuck abroad in hospital away from friends and family for a considerable length of time because the treatment they require is available in that country.

Employers that want to give their travelling employees comprehensive cover may want to consider giving them Travel Insurance as well to plug the gaps that worldwide healthcare coverage can’t.

Nadeem Farid
Head of Employee Benefits at Drewberry

The Cost of Healthcare Overseas

As mentioned, the cost of healthcare abroad varies depending on the country you’re in and the medical care you require.

For instance, a night in hospital in Italy could cost you £501, although that’s nothing compared to Canada, where a night in hospital may cost as much as £2,193! Meanwhile, even within the EU costs can vary wildly. Fixing a broken ankle in Germany would cost £4,747, while in Italy the same procedure would cost £2,926.¹

Of course, all healthcare costs globally pale in comparison to the USA, where treatment is astronomically expensive.

A heart attack requiring a heart  bypass could set you back £115,000, while even something as simple as bout of food poisoning could cost you £5,000 if medical intervention is required.²

As you can see, the costs of healthcare abroad can be huge, making International Health Insurance for employees an important consideration if they’re going to be living or working overseas.

^{1 https://www.axaglobalhealthcare.com/en/wellbeing/global-access/unexpected-health-costs-abroad-infographic/}

^{2 https://www.admiral.com/cost-of-getting-ill-abroad}

How Much Does International Employee Health Insurance Cost?

The cost of International Health Insurance varies depending on a number of factors.

Given the above, the biggest variation in cost will be where the employee is based (if living abroad) or where they travel to most frequently. If there’s an intention to reside or travel a great deal in North America, the cost of International Health Insurance will be far higher than within Europe due to the highest cost of care in the US and Canada.

In fact, Health Insurance is typically split into ‘tiers’. Starting at the cheapest, these are generally:

• UK only
• UK and Europe
• Worldwide (excluding North America)
• Worldwide (including North America).

Thereafter, there are various other points to consider when it comes to the cost of cover, such as the individual themselves. This includes their age and previous medical history.

Given the huge number of variations when it comes to securing International Health Insurance for your employees, including the variation in premiums, we recommend seeking advice before going forward to ensure the policy you choose is the most appropriate for your circumstances.

Joseph Toft
Employee Benefits Consultant at Drewberry

How is Business International Health Insurance Taxed?

For employers, premiums for International Health Insurance are typically paid from pre-tax earnings, meaning there are potential savings in corporation tax on the premiums.

Employees, however, will find that Health Insurance is a P11d benefit or a taxable benefit in kind. This refers to a benefit your employees receive that’s not counted as part of their salary but is nonetheless has a cash value and so HMRC will levy tax against it.

As such, employees see their annual income tax allowance reduced by the same amount of the premiums paid on their behalf, meaning they can earn less before becoming subject to tax.

HMRC views company paid Health Insurance as part of employees’ remuneration, which means companies usually have to pay employer’s National Insurance on the premiums, also.

Of course, all this assumes that the employee in question hasn’t moved abroad permanently and is being taxed in their home country. If they are being taxed abroad, the tax rules will be different and it’s best to seek advice from a specialist in international tax.

Nadeem Farid
Head of Employee Benefits at Drewberry

Get Expert Independent Advice

Our experts are available to help you find the best International Health Insurance protection for your employees that will give both employees and employers the best possible benefits and rewards.

To learn more about worldwide health cover for employees and compare quotes from across the UK insurance market, get in touch with our experts on 02074425880.

Why Speak to Us…

We started Drewberry because we were tired of being treated like a number and not getting the service we all deserve when it comes to things as important as protecting our health and our finances. Below are just a few reasons why it makes sense to let us help.

• There is no fee for our service
• We are independent and impartial
  Drewberry isn’t tied to any insurance company, so we can provide completely impartial advice to make sure you get the most appropriate policy based solely on your needs.
• We’ve got bargaining power on our side
  This allows us to negotiate better premiums for you than you going direct yourself.
• You’ll speak to a dedicated expert from start to finish
  You will speak to a named expert with a direct telephone and email. No more automated machines and no more being sent from pillar to post – you’ll have someone to speak to who knows you.
• Benefit from our 5-star service
  We pride ourselves on providing a 5-star service, as can be seen from our 3900 and growing independent client reviews rating us at 4.92 / 5.
• Gain the protection of regulated advice
  You are protected. Where we provide a regulated advice service we are responsible for the policy we set-up for you. Doing it yourself or going direct to an insurer won’t provide this protection, so you won’t benefit from these securities.
• Claims support when you need it the most
  You have support should you need to make a claim. The most important thing when it comes to insurance is that claims are paid and quickly. We are here to support you during the claims process and make sure it’s as smooth and stress free as possible.