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European Health Insurance Card sees Changes

Issuing of the European Health Insurance Card (EHIC) will no longer be the responsibility of the state of residence of a person linked to the Social Security System of an EU Member State. This change in the European Law becomes effective on 01 May 2010.

The European Commission (EC) has as one of its objectives the free movement of people within the European Union (EU). Workers and pensioners who are linked to the Social Security System of any State can receive healthcare in any other Member State at the cost of the home State. Holders of the EHIC are entitled to necessary healthcare in the public system of any EU/EEA (European Economic Area ) Member State and Switzerland, should they become ill or injured whilst on a temporary stay in that country.

Up until now, an entitled person would be issued with an EHIC by the state of residence. Once the new law takes effect, the State where a person is paying to or benefiting from the Social Security System will be responsible for issuing the EHIC in cases where that person resides in another EU/EEA State.

As an example of this upcoming change, from 01 May 2010 the Health Service Executive (HSE) will have to issue the EHIC for all Irish insured persons or pensioners and their dependants resident in other member States. Meaning that a retired person receiving a contributory pension from the Department of Social Welfare living in Spain will have the EHIC issued by the Irish authorities, and not by the Spanish authorities as it is the case now.

Relieving the issuance of the EHIC by the state of residence of an entitled person may help resolve misunderstandings related to the entitlement of services in other countries, such as the case of Spanish Doctors calling for a re-evaluation of the EHIC scheme.

Organisation mentioned:

Health Service Executive

With an annual budget of over €15 billion, the HSE is one of Ireland’s largest purchasers of supplies and services. The HSE produces a wide range of reports and publications on health issues and developments, including Annual Reports, Guidelines for Nursing Home Subventions and Local Health Office Guides. The HSE also operates a major online repository of health-related reports, research and official publications from the HSE, former Health Boards and other health agencies.

Globalsurance International Health Insurance - Expat Medical insurance products for you and your family no matter where in the world you live.

Spanish Doctors Call for Reevaluation of EHIC Scheme

Politicians and Doctors in Spain have recently joined forces to speak out against certain British ‘health tourists’ who are receiving free-of-charge medical treatment which is ultimately being paid for by taxpayers.

The SiMAP Union, representing public health doctors in Spain, criticized travelers holding the European Health Insurance Card (EHIC) for misusing the provision of emergency care and treatment destined for troubled holidaymakers. This criticism is not directed to expats with rightful residency who pay taxes.

Out of the thousands of British expats and tourists alternating residence between UK and Spain there is a percentage who time their visits to coincide with their needs for medical treatment. An approximate estimate by SiMAP puts this figure at 20 percent of all hospital admissions in Alicante, a favoured tourist destination.

Health professionals for years have kept silent about what politicians labeled as “freeloading” by these expats, and it’s possible that this rare support is instigated by the Doctors’ first-hand perception of the issues; issues which include  ‘medical tourists’  jumping queues, draining the Spanish healthcare system of their limited resources and depriving local people of medical attention they are rightfully entitled to receive.

One point of contention is the definition of ‘emergency treatment’ which has meant that in most instances Doctors do not question the alleged illnesses claimed by these foreign patients.

Addressing the above issue from a different angle, UK-based International healthcare and insurance firm PMI Global recently found that up to 20 per cent of companies are not procuring the correct health insurance for their expat employees in long-term foreign assignments.

In a report compiled by PMI Global, it was also revealed that up to 48 percent of companies didn’t carry the appropriate health assessments for the destinations their expat employees are sent to, and almost 50 percent of the companies neglect organizing the necessary vaccinations. Other problems identified include the level of access to psychological assistance and proper advice on where to receive medical attention.

According to comments by the operations director for PMI Global, too many employers are relying on the European Health Insurance Card (EHIC) in lieu of a proper international health insurance cover to ensure the medical attention their staff may require whilst on overseas assignments.

“While the EHIC entitles any resident in the UK to receive emergency healthcare treatment while traveling in the European Economic Area (EEA) and Switzerland, restrictions mean it isn’t a substitute for standalone international health insurance,” Rachael Floyd, operations director for PMI Global stated.

Given the looming healthcare budget shrinkage for both Spain’s SiMAP and the UK’s NHS, a possible target for cost-cutting measures would be the resources currently allocated for non-essential treatments and such action could potentially solve the perceived ‘medical care freeloading’ problem.

Insurance company and union mentioned:

PMI Global

PMI Global is a pioneering service offering an integrated package of insurance and healthcare support for employees abroad. The service is operated by PMI Health Group, the UK’s largest independent specialist provider of employee healthcare and insurance services.

SiMAP (Spanish)

SiMAP is a union of doctors in Valencia working in the public healthcare sector, covering the 3 provinces in the community. With essential presence in the Health Sector Roundtable, without favouritisms, to achieve greater quality of care and decent working conditions.

Globalsurance International Health Insurance - Expat Medical insurance products for you and your family no matter where in the world you live.

International Health Insurers Expanding Overseas Operations

Both Bupa and Allianz are making moves to expand their international operations this year. Bupa has added a sales and support center in Fuengirola, Spain to provide administrative support for Bupa International and IHI Bupa customers. The 12 person service center will also aid distributors in Europe, Africa and the Middle East.

Allianz, on the other hand, is opening new gateways in China. It has recently been given approval from regulators to change the status of their fully-owned Allianz Insurance Co. Guangzhou Branch from a branch office to a subsidiary of Allianz Versicherungs A.G.

Previously, China only allowed foreign joint-venture companies to enter two new provinces a year. Changing the status of the company to a subsidiary makes the company an independent legal entity which allows it to apply for setting up its own branch offices in other provinces in China. While this may allow Allianz to enter more than two provinces in China per year, it still depends heavily on collaboration and negotiations between the Allianz subsidiary and a variety of Chinese regulators.

The Allianz casualty and property branch office opened in 2003, they have been growing their business selling engineering, domestic credit, liability, property, marine, short-term health insurance and accident insurance in the province to clients both foreign and domestic.

Given the new opportunities for expansion into new provinces, Allianz intends to keep the focus on growing their core industrial and commercial business, as well as expanding retail distribution of their products during 2010.

Companies Mentioned:

Bupa – Since being started in 1947, The British United Provident Association, or Bupa, has grown to an international company offering health insurance, health and care services to over 10 million customers in 190 countries around the world.

IHI Bupa – Originally dubbed IHI Danmark, the company has 30 years of history as an innovative international health insurer. The company was purchased by Bupa in 2005, and became a branch in 2009 beginning to operate under the banner of ihi Bupa.

Allianz – Founded in 1890 as an accident and transport insurer, Allianz has grown into a international insurer with over 75 million customers in approximately 70 countries.