Importance of Supplemental Health Insurance for Global Employees

Importance of Supplemental Health Insurance for Global Employees

Healthcare is more than just a political topic of discussion – it is a piece of business that can greatly affect a company’s employees. If companies hope to retain employees in today’s competitive marketplace, then providing a comprehensive benefits program is important in order to maintain job satisfaction with all employees. Companies cannot retain talent on the bare minimum health insurance requirements alone and need to put a plan in place to provide supplemental health coverage. The right supplemental health insurance is necessary for companies to not only meet expectations but exceed them while providing employees with incentives to stay productive for the long-term.


Supplemental Health Insurance: Who to Provide for

Before determining who gets supplemental coverage, however, companies need to look into which kind of coverage to provide. Common categories of supplemental health insurance include dental, vision, life, and accidental death and dismemberment (AD&D). Each of these options comes with different levels of coverage, which can be determined based on a company’s budget and the type of employee.

In the U.S. for example, any employee who works full-time for an organization with 50 or more employees is entitled to the company’s health benefits. Although smaller companies are not required to provide benefits to full-time employees, it is advised in order to keep employees satisfied. Each country has its own requirements for what each employee should receive and meeting those are just the beginning.

Companies that look to achieve a global presence need to consider the different requirements in each country that they have employees. Not all countries require health insurance from employers, and businesses need a plan to provide the right supplemental coverage for their international employees. Additionally, the benefits needed for employees that embark on a considerable amount of travel needs to be comprehensive enough to cover them in all the countries they travel to for work-related purposes.

Supplemental Health Insurance: Fitting it into the Budget

Once a company knows what coverage it would like to offer each of its employees, then they need to look into the benefits packages that fit into their budget. It’s no secret that insurance prices are going up for both employers and private policy holders, and companies need a plan to compensate for the trend in rising insurance plan costs so all employees get the coverage they need and deserve.

Supplemental coverage takes multiple factors into consideration when determining the cost for each of a company’s employees. These include family coverage, gender, age, coverage type, and location. For example, employees in Dubai, Hong Kong, Singapore, and Qatar are accustomed to companies offering supplemental coverage to compensate for poor healthcare systems. While in areas like Colombia and Costa Rica where health coverage from the government is considered generous, this practice is less common.

When building a supplemental benefits program, companies need to consider their budget and how they will allocate available funds for each employee’s needs across all locations, both domestically and internationally.

Supplemental Health Insurance: Putting it in Place

Deciding on the right supplemental coverage to offer can be a challenge, especially for companies that operate in multiple countries. When trying to find a global healthcare coverage plan, companies should select insurance providers with experience operating in multiple countries. As more agencies enter the international insurance market, companies get greater access to health care coverage that they can leverage in order to onboard top-quality employees.

After selecting a global healthcare provider, then companies can begin determining their supplemental benefits offering. Each country has its own requirements around health insurance, and staying compliant with those requirements is of the utmost importance for companies as they go global. When selecting supplemental healthcare options, companies can benefit from working with an Employer of Record solution, like an International PEO (Professional Employer Organization) to navigate the requirements for insurance coverage in foreign markets and build a supplemental insurance plan around the required minimum.

Supplemental health insurance needs to be a part of a company’s plan for growth at any stage. Whether they are strengthening their domestic team or building a global presence, offering additional benefits gives companies a competitive advantage when trying to attract and retain top talent. As they build a supplemental insurance program, companies can benefit by taking time to examine their needs, looking into their budget, and building a benefits administration that helps their employees feel valued and focused on the long-term goals of the business.




Learn what it takes to implement a supplemental health insurance plan for your employees with insight from global experts. Reach out to Velocity Global today to learn how we can help you navigate insurance requirements and expectations in over 185 countries.

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