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Graham Macdonald MBMG International Ltd. Nominated for the Lorenzo Natali Prize |
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Health insurance - How much is enough? Part 1
Almost all expats need some sort of medical cover. The old
expression, you have made your bed now lie in it, feels somewhat curmudgeonly.
And yet, provided the terms and conditions are fully understood, there is no
reason not to make a good bed from your policy selection. The following
principles could bring greater certainty and peace of mind to your selection
process.
Five golden rules
* Read up about the general issues surrounding health and
medical insurance for expatriates and familiarise yourself with the types of
cover available within the local and international sectors.
* Double check with your employer on the extent to which you
may be already be covered for healthcare insurance. Once you are aware of all
the different types of cover you believe will be necessary for you and your
family, concentrate on selecting top-up cover to obtain those benefits not
included in the employment contract.
* When researching policies, always compare like with like in
order to judge accurately maximum levels of medical charges. To do this make
sure the policy labels relate to the same level of cover. For example, some will
cover sports injuries and others will not.
* Equally, when comparing premiums, only look at plans which
apply to similar geographical zones, age bands, benefits. Remember to compare
the costs of including other family members.
* Select policies which are most suited to your
circumstances. For example, if you know you will never need maternity cover or
will never take up complementary therapies, these inclusions will be a waste of
your money. But be careful not to throw the baby out with the bath water. By
pushing aside what could be coined ‘fringe benefits’, you could end up throwing
away essentials such as emergency evacuation or other vital necessities.
Five basic terms
Ceilings : A ceiling refers to the
maximum amount of money the policyholder is covered under any one benefit. There
will also be a per annum ceiling for the policy as a whole. Were you, as a
patient, to incur a bill above the ceilings it would be up to you, as the
policyholder to fund the difference. It is worth comparing benefit ceilings of
several plans. Some are generous with cover, matching the sum offered to the
current cost of medical care, while others offer ceilings which are decidedly
pinched.
Excesses: Excesses are the percentage of expenses, or
one-off deduction, that a policyholder elects to pay under any one benefit claim
heading. It is quite usual for plans to have a claim excess where the first ฃ50
of any benefit is paid for by the policyholder and not the insurer.
Policyholders sometimes elect to pay increased levels of excess in return for a
discounted annual premium figure - up to fifty percent reduction with certain
providers.
Exclusions: The term ‘Exclusions’ refers to a list which
will be written in the small print of every healthcare insurance policy. This
will itemise what is not covered by the Policy under any circumstances.
Exclusions may refer to medical conditions or certain types of benefits which
will not be included in the cover. For example, under the former category expect
to find psychiatric illness, drug or alcohol abuse and HIV-related illnesses.
Under the latter category do not be surprised to find the following exclusions
listed: alternative medicine, infertility, GP fees, cosmetic surgery and sight
tests.
Moratorium: A moratorium refers to a defined time which
may have occurred before, or will occur after, the policy commenced. A
moratorium usually relates to a pre-existing condition with the policyholder.
Say a back problem after falling from the roof or some medical condition which
exists before or at the time of taking out the policy. A moratorium can stretch
up to two years or more. If, within this period, the pre-existing conditions
flare up, causing a problem which requires medical attention/treatment/surgery,
you will not be covered. However, once this period has passed without a problem
then the condition is generally never mentioned or referred to again. If the old
injury was in the back, problems occurring thereafter in this region will be
viewed as new and should be eligible for cover. Any policy which includes words
along these lines, ‘all conditions pre-existing before enrolment are excluded in
perpetuity’ is not offering a moratorium.
Fifth and final term next week when we continue…
The above data and research was compiled from sources
believed to be reliable. However, neither MBMG International Ltd nor its
officers can accept any liability for any errors or omissions in the
above article nor bear any responsibility for any losses achieved as a
result of any actions taken or not taken as a consequence of reading the
above article. For more information please contact Graham Macdonald on
[email protected] |
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