International Corporate Healthcare Trusts

International Corporate Healthcare Trusts offer all the reassurance of traditional Private Medical Insurance in terms of high standards of employee medical care, but come with distinct advantages.  

What is an International Corporate Healthcare Trust (ICHT)?

An International Corporate Healthcare Trust is an alternative way for a company to offer private medical cover to their employees and families. 

The schemes are trust based, as opposed to insurance based, and as such offer significant cost savings and increased flexibility. These schemes are available on an international basis, thereby offering companies a more tailored medical solution, adaptable to their growing needs.

How does this differ to traditional Private Medical Insurance (PMI)?

Traditional PMI is established by way of an insurance policy, issued by an insurance company. Historically, this route tends to be more expensive and the medical cover more rigid.  Now more modern and innovative alternatives are available such as with an ICHT, which can be tailored to a company’s business without the traditional associated costs.

Is the Healthcare cover comparable?

There is the flexibility to define both the rules of the scheme and the benefit entitlements. International Corporate Healthcare Trusts give companies greater control over the benefits that are provided to employees. The level of care can be the same as that which employees would receive from a typical PMI policy and potentially better than some providers, as a result of cases being managed by nurses rather than insurance claims handlers.

How is the risk of claims exceeding the value of the fund managed?

The risk of claims exceeding the value of the fund can be managed through the use of 100% Stop Loss Insurance. Aggregate and Specific Stop loss insurance is available which is insured at Lloyds. This insurance covers any claims exceeding a specified amount, enabling the company’s exposure to be fixed, and hence is equivalent to fully insured PMI.

Summary

International Corporate Healthcare Trusts offer all the reassurance of traditional Private Medical Insurance in terms of high standards of employee medical care, but come with distinct advantages. There are significant cost savings – typically as much as 10% on the average corporate PMI premium as well as lower medical inflation. With an ICHT, any money saved from lower than anticipated claims is also retained by the employer instead of becoming profit for the insurer – and could even result in contribution holidays. Not only that, ICHTs also offer much more flexibility as the company can define both the rules of the scheme and the benefit entitlements, giving greater control over the benefits provided to employees.

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