Sep
3
CNA Gains Access to RSA Global Distribution Network
Filed Under Insurance Company, USA Health Insurance | Leave a Comment
CNA insurance company has recently entered into an agreement with RSA, formerly known as Royal & SunAlliance, to provide companies based in the US with access to the global distribution network of RSA. Through this agreement, CNA will be able to expand its reach to India, South Africa, Australia and a good number of countries in Latin America. This new agreement with RSA does not discontinue the current 16-year alliance that CNA has with Assicurazioni Generali.
Some of the Latin American countries where RSA has presence include: Argentina, Brazil, Chile, Colombia, Mexico and Uruguay. In addition of Argentina, Brazil, Colombia and Mexico, the presence of Generali in Latin America also covers: Ecuador, Guatemala, Martinique and Panama.
The branch offices of CNA based in the USA will now be able to offer international policies in 142 key countries worldwide, thanks to the combined international relationships with RSA and Generali. In addition to this, agents doing business with CNA will gain access to the full range of their products including Small Business, Professional, Technology and Excess & Surplus, complemented with quality Risk Control and Claim expertise.
In the words of Michael Dower, CNA’s vice president of Underwriting – International, “RSA has one of the largest networks in the insurance industry, including a presence in 34 countries and the capacity to cover risks in an additional 98 countries. This agreement enables CNA to expand its global reach to serve the international business needs of our U.S. producers and customers.”
Insurance Companies mentioned:
CNA has been serving businesses and professionals since 1897, and is the seventh largest commercial insurance writer and the 13th largest property and casualty company in the US. CNA’s insurance products include standard commercial lines, specialty lines, surety, marine and other property and casualty coverages. CNA’s services include risk management, information services, underwriting, risk control and claims administration.
RSA has a proud heritage dating back almost 300 years. The current company structure was created in 1996 following the merger of two of the largest insurance companies in the UK, Royal Insurance and Sun Alliance. In 2008 the company shortened their name to RSA and simplified and refreshed their corporate brand. RSA has over 20 million customers worldwide. The Group currently manages GBP 14.3 billion of investments. RSA is a member of the FTSE4Good Index. RSA employs around 21,000 people worldwide.
The Generali Group is one of the most significant participants in the global insurance and financial products market. The Group is a leader in Italy and Assicurazioni Generali, founded in 1831 in Trieste, is the Group’s Parent and principal operating Company. Generali is one of the leading global players in the assistance sector thanks to the Europ Assistance Group, active in more than 200 countries with services in the motor, travel, healthcare, home and family sectors. In recent years, the Group has made a significant return to 14 central-eastern European markets and has set up offices in the principal markets of the Far East, including China and India.
Aug
20
CaliforniaChoice Health Insurance Exchange Reaches 20 Million Members
Filed Under Health Insurance, Healthcare, Insurance Company, Medical Insurance, USA Health Insurance | 1 Comment
CaliforniaChoice, a health insurance exchange that is a product of CHOICE Administrators, announced that it has become the first health insurance exchange in the United States to reach 20 million member-months.
Health insurance exchanges offer consumers an easy way to compare costs and benefit options across a variety of health insurance products from insurers participating in the exchange. CaliforniaChoice counts among its participants: Anthem Blue Cross, Kaiser Permanente, Health Net, Sharp Health Plan, and Western Health Advantage, as well as a variety of chiropractic, dental, vision and other ancillary benefit policies.
Started in 1996, CaliforniaChoice is geared towards providing individuals and small and medium-sized employers an accessible way to find health insurance that fits both their coverage and budget needs. By reaching the landmark of 20 million member-months, CaliforniaChoice demonstrates its position as not only the oldest health insurance exchange in America, but also one of its most successful. A member-month is simply the number of participants in the exchange who are members for each month.
While some state-run exchanges have not performed strongly, CaliforniaChoice demonstrates that with the right set up, the exchanges can be very effective. The apparent key to success as a health insurance exchange boils down to having a variety of quality health plans covering different levels of benefits and price points, combined with decision support tools to make finding the appropriate health insurance plan easier for participants.
As part of the Senate health reform bill, H.R. 3590, Patient Protection and Affordable Care Act, which was passed by the Senate in December 2009 and then by the House of Representatives in March 2010, each state must set up health insurance exchanges for individual and family health insurance plans, as well as small groups or companies of up to 100 employees. This mandate for health insurance exchanges takes effect on January 1, 2014.
The President of CHOICE Administrators, Ron Goldstein said “If done properly – as the privately run CaliforniaChoice has shown it can be – exchanges have the capacity to help us move to a more rational method of purchasing health coverage while getting society closer to achieving the noble goal of universal coverage for all its citizens,” continuing on to say that “In many ways the exchange is like a giant, online health shopping mall filled with an assortment of carriers offering their products at various price points and benefits, the CaliforniaChoice model has witnessed unprecedented success, and it’s not a stretch to call it a model for how exchanges should be established and administered under the new regulations.”
Companies Mentioned:
CHOICE Administrators
Based in Orange, California, CHOICE Administrators inc. is a subsidiary of Word & Brown, that deals with developing and administering employee-choice health benefit programs. They oversee health insurance exchanges like CaliforniaChoice and CaliforniaChoice 51+, which offer healthcare policies to individuals, families and small and medium sized groups.
Aug
20
New CEO for Blue Cross Blue Shield
Filed Under Blue Cross, Insurance Company, USA Health Insurance | 1 Comment
Blue Cross Blue Shield of Massachusetts (BCBSMA) has chosen Andrew Dreyfus to become the new president and chief executive starting on 07 September 2010. Boston-based BCBSMA, which is the largest health insurer in the state, had been led by William C. Van Faasen as interim CEO, after the resignation of Cleve L. Killingsworth in March 2010.
Mr. Dreyfus is a veteran insurance executive who had served as executive vice president for healthcare services at BCBSMA for the past five years, he is 51 years old. Before joining Blue Cross in 2001, Mr. Dreyfus worked on healthcare in state government, through the Massachusetts Hospital Association, from where he commissioned a report that became the foundation for the healthcare law in the state. Mr Dreyfus currently spearheads the effort within BCBSMA to remunerate providers based on the value of their services, rather than volume.
At this point in time, the state of Massachusetts is facing rising healthcare costs, which have burdened businesses and consumers alike, as well as becoming an issue for insurers and healthcare providers.
In a recent announcement, Blue Cross Blue Shield reported a loss of US$14.3 million (EUR 11.2 million) in the first half of this year attributed in part to “inadequate premiums” due to the state rate cap in the SME business and individual markets. For the most part of this year, BCBSMA had been embroiled in a dispute over these state-imposed rate caps, before finally reaching a settlement with regulators earlier this month, agreeing to voluntarily limit its rate increases in the small-group market to single-digit increments for the rest of this year.
After the announcement for the new role of Mr. Dreyfus, he said in a statement that “Making healthcare affordable is, and will continue to be, our company’s highest priority.”
Insurance Company mentioned:
Blue Cross Blue Shield of Massachusetts is an Independent Licensee of the Blue Cross and Blue Shield Association. he Blue Cross and Blue Shield Association (BCBSA) is a national federation of 39 independent, community-based and locally operated Blue Cross and Blue Shield companies. Throughout our 80-year history, the 39 Blue Cross and Blue Shield companies have provided millions of families with top-quality, affordable health insurance. Today, the Blue Cross and Blue Shield Brands are registered in more than 170 countries.
Aug
13
Bupa Growing Abroad
Filed Under BUPA, Expat Insurance, Health Insurance, Hong Kong, IHI Bupa, Insurance Company, International Healthcare, Medical Insurance, Spain, USA Health Insurance, United Kingdom | Leave a Comment
Bupa, the UK’s largest private medical insurance provider, has announced its financial results for the first half of 2010. The report indicated that while the company’s UK membership numbers remained flat, there was considerable growth in international markets contributing to an overall increase in income of £3.71 billion(US$ 5.7 billion) for Bupa.
Trading conditions in the UK, US and Spain have been particularly difficult since 2008, reflecting the fallout from the general downturn in business activity in these countries. However, trading in Australia and other non-European countries, and the USA, has helped Bupa generate an overall increase in revenue for the first six months of 2010. The UK health insurer reports a 10 per cent increase in revenue to £3.71 billion (US$ 5.7 billion) producing a 5% increase in surplus funds amounting to overall growth of £183.6 million (US$ 285 million) for the same period. As Bupa is a provident association all funds are reinvested into the company, consequently Bupa does not recognize “profit” per-se, but rather “surplus” revenue.
The 10% increase in revenue for Bupa was driven by organic growth of 4% and agreeable foreign exchange movements of 6%. Higher sales in Australia contributed to higher revenue, and a favorable exchange rate from the Australia Dollar to the Sterling was a strong factor for the company’s success.
As a result of the tough economic conditions in the UK, Bupa experienced a 0.8% decline in membership numbers over the 6 month period. Revenue and profits from the UK market remained flat for the first half of 2010 following one-off restructuring costs, but significant loss was contained by lower claims payments and cost savings resulting from new a new administration system adopted in August 2009.
Trading in the USA private medical market was also adversely affected because of the economic downturn, high unemployment levels, and the reform of the healthcare system in the country. These factors all contributed to the slowdown in new business sales and renewals. Bupa continues to develop new products to meet the changing demands in the American private healthcare market, with new business opportunities arising following the passing of health reform legislation; industry watchers expect increased sales volume for USA private medical insurance as President Obama’s reforms roll out through to 2014.
In international markets, Bupa’s surplus increased from £51.3 million (US$79.8 million) to £88.7 million (US$138 million) over the six month period, until 30th of June 2010. Bupa International still remains the largest provider of international private medical insurance, with a global 2% increase in policyholders over the reporting period; primarily due to Bupa Arabia, and Bupa Australia experiencing increasing membership numbers.
Ray King, Chief Executive of Bupa commented on the future of the Australian health insurance market by saying: ‘In our Australian insurance business, the integration programme is almost complete and we look forward to the launch of a single product suite later this year which should further enhance our competitive position.”
In other markets, Bupa Latin America reported an increase in profits compared to the same period last year, explained by steady membership growth and lower claims being made. Bupa Hong Kong revenue increased modestly, and Max Bupa, the joint India venture launched in March 2010, has 6 retail offices in major cities across the country; this is planned to increase to 9 outlets by the end of 2010.
The future for Bupa in the UK and US remains unclear due to the stringent economic conditions and the impact on demand for private health insurance products. However with both governments implementing major reviews of healthcare provision it may give the UK medical provider opportunities to accelerate business in these markets. Chief Executive of Bupa, Ray King said “The UK and US government started to articulate their plans for reform of their healthcare systems and we believe that this should offer new opportunities for businesses in the future.”
The future outlook for Bupa internationally looks positive; consolidating their market presence in the international health insurance market. However, the markets in Europe and North America are still subject to difficult economic conditions.
Insurance Company Mentioned:
Bupa
Bupa was established more than 60 years ago in the UK and is now has ten million customers in over 190 countries, and over 52,000 employees around the world. Bupa is a leading international healthcare provider, offering personal and corporate health insurance, workplace health services and health assessments. As a provident association Bupa has no shareholders, because of this it uses its profits to invest in healthcare and medical facilities around the world. Bupa has operations around the world, principally in the UK, Australia, Spain, New Zealand and the US, as well as Hong Kong, Thailand, Saudi Arabia, India, China and across Latin America.
Aug
2
Medical Tourism – The Growing Trend Continues
Filed Under Health Insurance, Healthcare, International Healthcare, USA Health Insurance, United Kingdom | 11 Comments
The growing demand for private healthcare in buoyant Asian markets is highlighted by the Malaysian state owed Khazanah Nasional Berhad winning the battle to acquire Singapore’s Parkway Holdings, against stiff competition from Indian based Fortis Healthcare.
In 2009 Fortis Healthcare estimated the Indian healthcare market to be worth US$38 billion; this it is expected to rise to US$62.9 billion by 2014. Foreign nationals seeking healthcare treatment are being drawn to private Indian healthcare providers, as medical treatment can be offered at a fraction of the price compared to USA and European healthcare alternatives.
The Indian medical industry has seen particular growth in recent years, taking full advantage of the demand for modern, high quality, medical treatment for patients throughout the world who require affordable treatment in internationally recognized hospitals. This is being driven by India’s ability to rival other recognized sources of quality healthcare in the Asian region, such as Thailand and the Philippines, both in quality and cost.
The position has now been reached where a procedure for a heart bypass can be conducted in a private Indian hospital for approximately US $10,000; compared with an Asian rival in Thailand or Singapore, where costs amount to between US $11,000 to $18,500 it can be immediately seen that the Indian Healthcare option is by far the more affordable. A similar treatment in the USA would cost approximately $130,000 well out of the range of most average patients to cover out-of-pocket.
Patients in the United Kingdom, USA, Australia and Canada are often used to treatment by Indian medical professionals, who have been present in private and public healthcare facilities for many years in these countries due to the higher wage levels, and more comprehensive employment opportunities. This presence of Indian medical professionals in Western nations has given foreign patients confidence in seeking medical treatment in India.
The Indian government is taking measures to ensure maximum potential by giving consideration to the provision of a visa to a patient and escort, with a possible extension for a three year period. This should ensure that patients traveling to India for the express purpose of receiving medical care have an easier time entering and exiting the country, in addition to ensuring that these same patients have the support they need from their escorts who have historically faced a challenge in entering the country to accompany someone seeking medical care.
The medical tourism market in Asia initially arose in Singapore, with the island nation raising the bar for medical treatment by setting the standards to rival the US. Thailand and Malaysia followed suit with comprehensive medical tourism offerings catering to overseas patients. However, private healthcare in India emerging as the dominant provider in the region, and in more recent times, has become particularly aggressive in acquiring private healthcare facilities.
However, countries such as Taiwan and South Korea are also taking measures to penetrate the private healthcare market with the objective of securing a slice of the business currently dominated by the four main Asian based suppliers. The South Korean government is taking steps to grow the medical tourism industry by offering a high standard of medical care to the Japanese market – especially in regards to cosmetic surgery, such as facelifts.
The top Asian private healthcare providers in Singapore, India, Malaysia and Thailand are battling to increase their strength in the market. National healthcare providers in the West are burdened with increasingly aging populations which often require heightened levels of medical care. In a unique recent development, despite the fact that not all residents of first world nations have private healthcare insurance, in some cases the national health services in these countries are willing to fund procedures in Far East countries. Some North American and European countries are all considering such a plan if they do not currently have a similar proposal already in place. This key development will only serve to open up the private healthcare market in Asia, and as such more growth is forecast.
Much of the demand for private healthcare in Asia comes from Africa and the Middle East, where the healthcare infrastructure is still lagging behind the rest of the world world. There is an increasing number of western patients seeking medical treatment in foreign private healthcare facilities, especially in India. India has emerged as a popular destination for western couples seeking treatment for medical procedures which would be prohibitively expensive in developed nations such as fertility treatment. Asian private healthcare providers can rival western nations with their quality-of-care, state-of-the-art treatment centers and highly trained medical professionals. These facilities enable them to take full advantage of the stagnant national healthcare systems in the UK, Canada, and the extraordinarily expensive procedures in the US.
Asian private healthcare providers are looking to the US to increase their revenue and boost profits. For example, a patient in the US who requires a heart bypass, may need to pay US$ 130,000 for the procedure, while the same operation in a private hospital in Bangkok can cost in the region of US$30,000. A popular procedure for foreign nationals is hip replacements; increasing numbers of patients are seeking treatment in countries like Singapore, at a cost of US$ 12,000 or $9,000 in India, compared to US$43,000 in the USA.
The aim of various Asian governments is to take full advantage of the growing profitable medical tourism market. The success experienced in this industry by countries like Singapore and Thailand has lead to governments of Taiwan and Malaysia offering private healthcare providers with high levels of support to encourage investment in the medical tourism sector. The Taiwanese Department of Health estimates the medical tourism industry will create 3, 860 jobs and generate US$ 342 billion worth of revenue by 2014.
However, medical tourism has not been immune from the economic downturn; the renowned Bumrungrad Hospital in Bangkok reporting a 22 per cent decline in profits in 2009 from the highs of 2007.
Medical tourism looks certain to continue its explosive advance throughout the Asia-Pacific Region; Singapore estimates the 1 million medical tourists entering the country generate US$1.6 billion annually. Malaysia is expected to increase its market share in the lucrative industry to approximately US $600 million over the next 5 years. The future of medical tourism in Asia is to focus on the American and European market. Its intention is to build confidence in the sector; offering patients’ unrivaled value for money with medical procedures ranging from hip replacements to heart bypasses.
As US insurance companies consider adding Asian private healthcare providers to their coverage, the medical tourism across the Asian regions looks certain to continue rapidly, expanding its reach to foreign patients.
A typical average price comparison, in terms of the costs of various operations, in India, Singapore, Thailand, and the USA can be seen below:
| Procedure | India | Singapore | Thailand | USA |
| Heart Bypass | 10000 | 185000 | 11000 | 130,000 |
| Heart Valve Replacement | 9000 | 125000 | 10000 | 160000 |
| Angioplasty | 11000 | 13000 | 13000 | 57000 |
| Hip Replacement | 9000 | 12000 | 12000 | 43000 |
| Hysterectomy | 3000 | 6000 | 4500 | 20000 |
| Knee Replacement | 40000 | 13000 | 10000 | 8500 |
| Spinal Fusion | 5500 | 9000 | 7000 | 62000 |
All figures are shown in US $
Companies mentioned:
Parkway Holdings Limited
Parkway Holdings Limited, is one of the region’s leading providers of healthcare services, with a network of 16 hospitals with more than 3,400 beds throughout Asia, including Singapore, Malaysia, Brunei, India and China.
Fortis Healthcare Limited
Fortis Healthcare Limited is a healthcare provider having a network of 28 hospitals, satellite centers and heart command centers with nearly 3,300 beds capacity.
Khazanah Nasional
Khazanah Nasional is the investment holding arm of the Government of Malaysia and is empowered as the Government’s strategic investor in new industries and markets.
Bumrungrad International
The Group’s principal activities are owning and operating hospitals. Its flagship hospital, Bumrungrad International, is a renowned medical centre attracting over 1 million patients annually and named one of the world’s top ten international hospitals by Newsweek International. The Company also owns a businesses in real estate and anti-aging and functional medicine.
Jul
22
Blue Cross Blue Shield Has Highest Brand Equity in USA Insurance
Filed Under Aetna, Blue Cross, Health Insurance, Healthcare, USA Health Insurance | 36 Comments
Blue Cross Blue Shield, the major American health insurance provider, has been rated as having the highest brand equity in the USA’s national insurance market according to a recent report released by Harris Interactive, a leading international market research company.
During Harris’ 2010 EquiTrend survey, the company found that Blue Cross Blue Shield has the highest brand equity in the industry. The report discovered that Aetna and United Healthcare rank second and third, respectively. This is the first year in which Harris Interactive has looked at the American Insurance industry during the annual study, which has previously been limited to major financial services companies.
The study follows in the wake of recent developments in the American health insurance market, including the recent legislation passed by President Obama in an attempt to reform healthcare in the USA. As such, American consumers are expected to be more discriminating with their choice of health insurance plan, which could be a major boon for Blue Cross Blue Shield in light of the company’s higher visibility in the market.
Insurance companies like Blue Cross Blue Shield, who have focused on, and actively managed their brand identities, will be better able to capitalize on the extraordinary influx of potential business in the coming months, according to Harris Interactive Vice President Debra Richman. However, Harris has also noticed an increasing trend of consumers switching to cheaper insurance cover from 2008 – 2009 with 11% of all health insurance purchasers, up 3% from the previous year, opting to obtain a plan that was less expensive.
This increase in price-conscious consumers means that despite Blue Cross Blue Shield having the most visible brand within the USA’s insurance industry, there may be more factors to consider than simply being noticeable; policy benefits, renewability, and international portability will all affect the decision of the aware consumer to purchase a medical insurance policy.
One of the reasons that Blue Cross Blue Shield may have the best brand equity within the US insurance market is due to their overwhelming market share. The company, its subsidiaries, and partners have the largest share of the health insurance market in 36 states according to a June 2009 survey released by the Center for American Progress.
Jun
30
Chinese and American Healthcare Comparison by CIGNA CEO
Filed Under CIGNA, China, China insurance, Health Insurance, Healthcare, USA Health Insurance | 2 Comments
As well as being the fourth largest commercial insurer in the US, American health insurance giant CIGNA conducts approximately 20 percent of their business abroad, with most of the rapid growth coming from Asia, and in particular China.
In the US domestic market, CIGNA mainly acts as a Health Management Organisation (HMO) providing larger-scale employers with insurance packages, whilst their main role in China is in selling supplemental packages to individuals wanting more coverage than what is available under basic government-provided plans.
In the words of David Cordani, CEO of CIGNA, “It’s a real critical part of our growth strategy. It’s not new for Cigna, it’s just an acceleration” commenting on the continued and significant growth experienced abroad.
Further sharing his insights about the non-US marketplace, Mr. Cordani believes that the healthcare systems of both the US and China could learn from each other, explaining that in broader terms, the non-US marketplace has a very vibrant individual supplemental segment, from which to learn by providing people in the US with transparency, choice, and ready access to more retail-oriented policies.
Conversely, the healthcare system in China could learn more about American population-based health programmes including health coaching, disease care and lifestyle programmes.
Given that both countries are undergoing healthcare reforms on their respective healthcare systems, the insight offered by Mr. Cordani may be the type of food for thought needed to drive quality and cost improvements that will ultimately help make the new legislations correspondingly sustainable.
Insurance Company mentioned:
A global health service company dedicated to helping people improve their health, well being and sense of security. CIGNA Corporation’s operating subsidiaries provide an integrated suite of medical, dental, behavioural health, pharmacy and vision care benefits, as well as group life, accident and disability insurance, to approximately 46 million people throughout the United States and around the world.
Jun
29
Pan-American Life Insurance Approved to Operate in Costa Rica
Filed Under Health Insurance, Insurance Company, International Healthcare, Life Insurance, Medical Insurance, USA Health Insurance | 8 Comments
Pan-American Life Insurance Group has received final approval from the Costa Rican insurance regulator, Superintendencia General de Seguros (SUGESE), for its subsidiary Pan-American Life Insurance de Costa Rica, S.A. to operate in the country.
Pan-American Life Insurance Group is already the first US insurer allowed into Costa Rica, and all that remains for them to do before commencing operations is receive final portfolio and product approval from SUGESE. Pan-American is planning on rolling out a portfolio that includes group accident, life and health insurance as well as individual health insurance plans. Their offerings will also include an international health insurance plan, which offers access to local healthcare providers and local health benefits as well as access to healthcare providers around the world including those in the United States. Pan-American is working closely with SUGESE to receive approval.
Jose S. Suquet, Chairman of the Board, President and CEO of Pan-American Life Insurance Group said “We are pleased that SUGESE approved Pan-American Life to operate in Costa Rica. This much anticipated moment marks a continued expansion in the execution of our regional strategic plan. The new competitive landscape in Costa Rica favors Pan-American Life, considering the company’s 99-year history and the Group’s deep-rooted experience throughout Latin America.”
Eugenio Magdalena, Pan-American’s Executive Vice President of International Markets added that “Our leading position in the region’s insurance industry commands high expectations for Pan-American Life in Costa Rica. We are committed to the opportunity to support the fulfillment of the health and life insurance needs of Costa Ricans.”
Insurance Company Mentioned:
Pan-American Life Insurance Group
The Pan-American Life Insurance Group was established in New Orleans in 1911 and now has operations in 47 U.S. states, as well Puerto Rico, Colombia, Guatemala, Panama, Ecuador, El Salvador, Honduras and the Cayman Islands. In Costa Rica, the company will offer term life insurance, universal life insurance, health and medical expense insurance and accident insurance.
Jun
18
New Website in Spanish from Regence BlueCross BlueShield Says ‘Hola’
Filed Under Healthcare, Insurance Company, USA Health Insurance | 1 Comment
The new website in Spanish at www.regence.com/espanol has been launched by Regence BlueCross BlueShield as part of their Latino outreach initiative. The contents of the website has been fully customised with features appealing to the Latino community such as articles about health and wellness, Regence programmes and resources, information about the benefits of the insurance on offer, contact information for Consejeros (Spanish for Concierges) and details on the Latino Hero Award Programme.
There is also the option to establish online communication with the bilingual and bi-cultural representatives responsible for answering the customer service and requests for support enquiries submitted through the contact web-page.
The ultimate aim of this website in Spanish is to serve as a guide to members of the Latino community in navigating the health care system, as there currently exist significant health disparities in need of being properly addressed.
Breaking down the linguistic and cultural barriers that make it difficult for many members of the Latino community to understand the health insurance system in the US, is one of the most important goals of the Regence initiative and the driving reason in trying to engage the Latino community.
In addition to the efforts described above, Regence also produces health education radio and TV spots, promotes a campaign to honour Latino community leaders, as well as promoting insurance products especially tailored to fit the needs of the Latino market.
Insurance Company mentioned:
Regence is the largest health insurer in the Northwest / Intermountain Region, offering health, life and dental insurance. Regence serves more than 2.5 million members as Regence BlueShield of Idaho, Regence BlueCross BlueShield of Oregon, Regence BlueCross BlueShield of Utah and Regence BlueShield (selected counties in Washington). Each health plan is a nonprofit independent licensee of the Blue Cross and Blue Shield Association.
Jun
4
Insurance Cover Limitations related to Suicide; the Foxconn perspective
Filed Under China, Health Insurance, Life Insurance, Medical Insurance, USA Health Insurance | 2 Comments
With stories of workplace suicide regularly gaining attention in the media in the last few years, such as Orange owner, France Telecom in 2008-9, and Apple iPhone manufacturer Foxconn in China, does insurance offer compensation to surviving families and beneficiaries of suicides?
Foxconn, which manufactures electronic and computer parts, has seen a rash of suicides in 2010, with 10 suicides between January and the beginning of June. While this was at first picked up with surprise and sensation in many news outlets, with speculation about the causes running from poor treatment of workers and low pay, to social issues, it is important to have a little perspective.
The company employs hundreds of thousands of employees, including the almost 420,000 at the plant in Shenzhen where the suicides are occurring, which is the size of a fairly sized city in most parts of the world. Most of these employees are migrant workers, coming into cities from rural China to find a job. China’s rate of suicide, according to the most recent figures (1999) from the World Health Organization (WHO), are 13 men out of every 100,000 and 14.8 suicides per 100,000 people for women every year. Given the number of people working at the factory, you could expect anywhere between 30 and 56 people committing suicide at Foxconn every year. Considering the fact that the year is almost halfway through and there have only been 10 suicides, Foxconn is well below the national average.
However, the fact that there has been a recent spate of suicides at one of the world’s top manufacturing centers does pose an interesting question; namely, what is the perspective of insurance, and insurance companies, on Suicide?
In most jurisdictions in the world, accidental injuries or deaths on the job are often covered by business insurance, either in the form of Employer Liability insurance or Worker’s Compensation, whereby the insurer will pay for the employee’s medical treatment and part of lost wages depending on the policy. However, in cases like the Foxconn suicides, insurance such as employer liability or worker’s compensation will not cover expenses of the employee should they survive the attempt, or the surviving family should the attempt succeed due to the non-accidental and self-inflicted nature of suicide. In some jurisdictions, a suicide can be compensable if it is shown to be causally linked to an accidental workplace injury, although in cases such as these, employer liability or worker’s compensation insurance is seen to act as a life insurance policy.
In some instances, Life insurance may pay out in the case of suicide, although this depends on the jurisdiction, type of life insurance policy, and policy exclusions and particulars. In some jurisdictions, individual private life insurance will have a provision stating that if the insured commits suicide within two years of the commencement of the life insurance policy then the insurer will not pay out the benefits, but may return premiums paid depending on the specific policy. If the insured commits suicide after the stipulated two year period has passed, the insurer will often pay out the death benefits, but one should always check the exclusions and provisions of the insurance policy as this may vary. In some cases, group life insurance policies which are used as a recruitment incentive by employers may not have the 2 year provision, in which case death benefits may be paid in the case of a suicide, but again this is dependent on the specific policy the insured is covered under.
If a suicide attempt is unsuccessful, health insurance may pay for treatment depending on the jurisdiction, type of policy and exclusions pertaining to self-inflicted injuries. Group policies will tend to pay for treatment, both physical and psychological, of self-inflicted injuries as they usually do not take previous medical history into account. For example, in the United States it is illegal to discriminate against someone based on health factors under a group policy, and as self-inflicted injuries or those resulting from a suicide attempt are considered to be resulting from a medical condition, usually psychological in nature such as depression, they must be covered by the group policy. Private medical insurance for individuals may exclude self-inflicted injuries and those resulting from a suicide, as individual health insurance plans often exclude pre-existing medical conditions, leaving the individual who attempted suicide to pay for it themselves. If the individual had a history of mental illness, then individual health insurance plans will often exclude that illness and resulting treatments and health problems from coverage.
It is important to remember that the monetary death benefits from a life insurance policy will never replace a lost loved one, and if psychological treatments are covered by your health insurance policy it is always best to seek help.