Jonathan Edelheit President Medical Tourism Assn.
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When Newt Gingrich recently suggested that in the future, consumer healthcare is going to look more like Travelocity and that
consumers are going to go where the best care is and shop for the best price for drugs and services, Jonathan Edelheit, president
of the Medical Tourism Assn., couldn't have agreed more.
Edelheit sees countries such as Thailand, Singapore, Costa Rica and Korea becoming leaders in delivering healthcare services.
With costs 50% to 80% less than their U.S. counterparts with comparable quality of care, medical tourism more and more has
become a viable option.
COST OF PROCEDURES: UNITED STATES AND ABROAD
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"When people begin to understand that 25% of doctors in the United States have been trained [overseas], it's not that big
of a step to begin traveling for care," Edelheit says. By 2009, he believes "there will be a significant jump in insurance
plans offering the option to travel overseas."
In fact, according to the Noblis Center for Health Innovation, which assists private-sector and government health organizations
in achieving their missions through an integrative and collaborative approach, more U.S. healthcare organizations are opening
offshore hospitals to compete and capture this market segment. 
PROCEDURES PERFORMED ABROAD
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"The popularity of medical tourism will continue to grow, putting more stress on U.S. healthcare providers as they face increased
competition here and from abroad," says John Vitalis, senior principal at the Center's Chicago office. "In response, some
providers will explore new offshore market opportunities, resulting in the need to address new challenges related to patient
confidentiality and the ability to share and integrate clinical data internationally."
Q. What percentage of U.S. medical tourism overseas is being covered by health insurance, versus out of pocket non-covered
charges, and how has this trended during the past few years?
A. Probably less than 5% is being covered by insurance, while 98% is being paid 100% by individuals out of their own pockets.
This trend will change significantly in 2008 as several insurance companies and third-party administrators [TPAs] are lining
up to make this option available. It is our hope that by 2008, 10% to 15% of people traveling overseas will be covered by
insurance and by 2010, possibly 25%.
Q. Have any of the major U.S. health plans taken a position on medical tourism, and are any proactively encouraging or accommodating
it?
A. There are several major health insurance carriers that are about to launch their plans in this arena. Several are joining
the association to work with us at the beginning stages of this industry to resolve any issues they may have before getting
into medical tourism. We are getting the hospitals, U.S. insurance carriers, TPAs and reinsurers to work together with the
hospitals to build from the ground floor up. This is the reason we believe in 2009 plans will be offering the option to travel
overseas within their insurance plans. BCBS of South Carolina is allowing members to go overseas, but they are giving no incentives
to their members. Without an incentive an employee would have no reason to go overseas. Several TPAs and reinsurance carriers
recently have told us of their plans to implement medical tourism within their self-funded plans and give employees cash incentives
to go overseas. In 2008, we see the major players in medical tourism to be self-funded employers and TPAs who tend to move
faster in cutting-edge industries than insurance carriers.
