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Renewal conditions of your international healthcare insurance and medical inflation

Renewal conditions

Renewal of your policy and renewal conditions

Renewal conditions are approximately send 2 months before the renewal date. During this 2 months period, you – as the policyholder – have time to carefully read the new conditions, study all terms and eventual changes and then make a decision to (1) renew or (2) cancel your contract.

To define renewal conditions, Insurers / Companies take into account the following information

 

Renewal conditions

Medical inflation

Medical inflation corresponds to the increase of medical fees and prices such as consultation fees, hospitalisation bills, medical drugs costs… This increase will automatically have an impact and will increase the amount of total claims reimbursed by the Insurer. Medical inflation varies from one country to another and there is no data available specifically for expatriates. Therefore, many Insurers take into consideration data such as Tower Watson’s reports.

Renewal conditions=> Medical inflation and its impact on international insurances premiums

 

Renewal conditions

Basic coverage 

For Top-Up plans – top-up to the Caisse des Français de l’Etranger (French) or to ONSS (Belgian)-, members will have to consider on one side the increase managed by CFE (or ONSS) and, on the other side, the one used by the Insurer / Company for the top-up plan.

 

Renewal conditions

Technical results

Individual policies are mutualized within a group. Sub groups are considered if special rates apply for

  • specific countries : China / Hong-Kong, for example, or
  • zone of coverage : Worldwide excluding USA, for example.  

The ratio between claims / net premiums can be positive, negative or balanced. When the ratio is positive, the increase can be lower than the medical inflation. When the technical results are negative or balanced, then premiums need to be adjusted. 

Therefore, the best way to limit the increase of premiums is to priorize cost containment. Practically speaking, this means:

  • take care of your health (food, sport, …)
  • select public hospital, free medication.. when possible
  • visit practionners which belong to the network when possible (rates are negotiated)
  • submit first your claims to the local primary insurance,
  • buy only required the number of medecines,
  •  ask for an estimate before buying new glasses,
  • rent your medical equipment instead of buying it,
  • compare and challenge the cost of your GP, specialist, …
  • require support to your claims administrator in case of maternity

 

Renewal conditions

Exchange rates

The currency of reference is Euro. This means that all premiums expressed in USD, GBP, CHF are converted from Euro on a fixed rate defined for the complete year. Nevertheless, practically spealing the exchange rate can vary during the year and have significant impact on technical results at the end of the day (negative or positive).

 

Renewal conditions

Frequency of payment of your premium 

Surcharge apply if you have selected half-yearly (3%), quarterly (4%) or monthly (5%) payment. At renewal, you can revise your frequency of payment and save a % by reducing this option.

 

Renewal conditions

Insurance tax 

In certain countries, tax apply on insurance policies. These taxes vary and are added to your invoice. From time to time, your country of expatriation can decide to implement such a tax, or new regulations (ex: Obamacare, Dubai), or review the % / amount of tax.

 

Renewal conditions

Premiums

Premiums are expressed by age brackets. Therefore, keep in mind that your premium will also be adjusted according to your age (i.e. will increase significantly when you change of age bracket)

 

Renewal conditions

Please pay attention to the local regulation

Please note that subscribing to an international health insurance does not free you from the local regulations. If you are eligible to contribute to the local healthcare system in certain countries and do not have local cover in place, you may be subject to paying a tax levy