Global operations--global benefits.

If you plan to send any of your employees overseas, you can cover them for health, dental and vision benefits in a number of ways:

Coverage under host country's plan: Depending on the country's eligibility rules, it is possible for expatriates (overseas employees) to be covered under a host country's plan. However, there can be gaps and shortfalls because socialistic-based health systems generally ration care, which is the opposite of how care is provided in the United States. The U.S. health-care industry is a unique system and, for the most part, Americans expect excellent care immediately. These expectations would not align well with the care philosophy in most other countries.

Maintain coverage under the plan offered to employees in the United States: Many medical carriers will pay for care received out of country, but it will be important to manage expectations if this is the route your organization takes. Expatriates will most likely be required to pay for care up front at the time of service. If possible, your expatriate should request bills in English. The claim will take extra time to process because other countries do not use the same coding systems, and the claims processor will need to determine which codes apply to the treatment received.

Secure international benefit plan: Several vendors offer special plans to cover the medical, dental and even vision expenses of expatriates. These vendors focus on the payment of health-care benefits abroad and devote significant resources to assisting expatriates in securing appropriate health care. These plans can often be implemented with as few as two expatriates covered on the plan.

In reviewing your benefit options, don't forget about life benefits or disability benefits. Your should address these important issues:

* Is your employee covered while living abroad? Many carriers will not cover employees living abroad. Coverage may depend upon the volatility of the political situation in each country. Your organization should not assume coverage will be extended under your current plans. Your carriers need to be contacted each time you send an employee abroad for a short- or long-term assignment and coverage approval should be secured in writing.

* What are your plan exclusions? If a carrier extends coverage, it will be important to review plan exclusions to make sure your organization is comfortable with the coverage provided to the expatriate.

* How will benefits be paid? It is important to understand if benefits under the contract will be paid in the currency of the host country to manage employee expectations.

How is a Payroll Dollar Spent?

Wages                      63%
Medical Benefits           11%
Time Not Work               9%
Legally Required Payments   9%
Retirement and Savings      7%
Other Benefits and Costs    1%

Source: Us Chamber of Commerce, 2002 Employee Benefits Study

Note: Table made from pie chart.

This information was supplied by Bill Wentworth, a principal at McGraw Wentworth, a member of the Detroit Regional Chamber.

This page is brought to you by the Detroit Regional Chamber's Health Care Central--the hub for all business-related health-care issues.

To learn more about this exciting new initiative, visit www.detroitchamber.com or call (866) MBR-LINE.