Written Provisions and Plan limitations

A Global Health Care Plan needs to be clearly communicated so participants are aware of what is available to them and what is not. If the plan sponsor is offering a significant financial incentive for employees to choose the Global Health Care option, then liability risks may increase.

They should require participants to sign a release stating they are responsible for conducting their own due diligence before accepting the optional treatment offer.

The medical care provider, not the health plan or plan sponsor, is generally liable for medical malpractice. Although, ERISA preemption does not apply to foreign laws, Global Health Care vendor contracts should specify which laws apply to any liabilities that may arise. Contracts and other written agreements between the plan sponsor and the Global Health Care vendors should hold the sponsor harmless from any medical errors or malpractice that occurs during an employee’s treatment.

Medical malpractice is another important consideration. Some vendors may also provide malpractice insurance indemnifying the patient should something go wrong. Malpractice lawsuits overseas are not as common as in the U.S., and medical malpractice awards may be a fraction of the levels experienced in the US. This may become an issue for an aggrieved covered individual who suffers a medical misadventure. Complications Insurance is an acceptable practice to limit this liability, but they carry limits.

Written Provisions and Plan limitations

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