Illness threatens the well being of not only traveling execs, but the companies they work for, too.

Prevention is the Key

For an increasing number of U.S. residents, travel means exposure to infectious disease, including Hepatitis A and B, Typhoid Fever, Malaria, Yellow Fever, Cholera, Rabies and, more recently, SARS, according to the Occupational Safety and Health Administration of the U.S. Department of Labor. More than one-third of these travelers are away on business, making health threats a real concern for companies of every size—and making healthcare a vital part of any firm’s travel management program.

The best protection for a company with traveling executives comes in three parts: evaluate health insurance programs to ensure coverage is extensive enough; investigate additional policies for special circumstances; and send employees to travel medicine experts for pre-trip consultations.

Preparation is essential to head off a potential crisis. "The war in Iraq, 9/11, the West Nile virus and SARS have certainly heightened awareness," says William Shoff, director of PENN Travel Medicine at the University of Pennsylvania. "When traveling to a developing country, you’re not going to Disney World."

If illness strikes during an overseas trip, the complications may be financial as well as physical if the treatment is not covered by the traveler’s regular medical insurance or by worker’s compensation. According to David Waugh, manager of the human resources consulting division at DMJ Resources in Greensboro, N.C., "It’s a plan design consideration. The sponsoring organization needs to decide whether or not it wants to have its plan cover expenses for services that are provided overseas. Also, business travelers should assume some personal responsibility for their financial and physical health by inquiring about the availability of this coverage from their employers before traveling overseas."

The company-funded healthcare plan at Filtration Group, Inc. in Joliet, Ill., does include such coverage for both business and personal temporary travel. "Our third-party administrator would endeavor to negotiate with the out-of-country healthcare provider for whatever discounts are possible," says Corporate Human Resources Manager Wendy Braun, adding that participants also need to be aware that coverage most likely would be paid at the out-of-network rate.

Also a consideration is the length of the trip. "Most quality insurance companies will allow policies to endorse their product to be available overseas for a trip of 60 to 90 days," says Skip Murray, director of operations for The Teare Group in Watchung, N.J. "The HR person should talk to their insurance broker about this." For shorter trips, says Murray, "Most policies will recognize your global environment, but it depends on how the policy was initially written and if it can be modified."

He cautions that, more and more, policies exclude certain locations. Many group-travel accident policies, for example, have a country list modified on a regular basis depending on world events. Currently, says Murray, the United States, Canada and the Middle East often are excluded from claims of loss because of concerns about terrorism or an act of war, whether declared or undeclared.

Bruce Kirby, president and CEO of MEDEX Global Group in Towson, Md., says the most economical kind of coverage offered by his company is an individual plan that sells for $4 a day (with a seven-day minimum) and covers major medical as well as evacuation or repatriation of remains. That’s a bargain considering that an emergency medical evacuation from a foreign country can cost as much as $100 thousand.

The Society for Human Resource Management in Alexandria, Va., bought this kind of supplemental insurance for weeklong trips to conferences in Paris, Mexico and Venezuela, covering not only employees, but also members of its board of directors. "It was a peace-of-mind, just-in-case kind of thing," says Brian Glade, VP for international programs.

In many countries, treatment is administered only if payment is provided in advance. "We had a case in Mexico where the patient with a broken leg was taken out of the hospital on a gurney to the ATM machine to get cash," says Kirby. "Most people do not think about these things when they travel."

Kirby adds that in order for this advice to be effective, it has to be closely followed. As he explains, "People who generally purchase insurance hear about someone else who had problems, or only purchase insurance after they experienced problems firsthand. That’s a very expensive way to protect yourself."

Reprinted courtesy of INSIGHT Magazine, for the Center for Corporate Financial Leadership.

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