Should Expat Employers Limit International Health Insurance to One Country and Use Travel Insurance for the Rest?
We were recently asked this question by a client (a large employer of expats) in Thailand:
“What if we remove global health cover only keep cover for Thailand, and purchase travel insurance when our employees travel?”
It’s a question worth asking – especially when budgets are tight – and we firmly believe that employers should explore all reasonable options. At One World Cover, we encourage companies to review plan design thoughtfully and consider cost-saving opportunities in a structured, strategic way.
But this particular idea? We don’t recommend it.
What’s the Proposal?
The company’s current plan provides worldwide coverage (excluding the USA). Their idea was to restrict health coverage to Thailand only, and rely on travel insurance to cover staff when they are abroad — for example, during holidays or visits to their home countries.
Why This Seems Logical
At first glance, this sounds like a major saving:
- You’re reducing coverage from 200+ countries down to just one
- Travel insurance is much cheaper than international private medical insurance (IPMI)
- Staff live and work in Thailand, where they spend 80-90% of their time – so why pay for cover they “don’t use”?
These points are understandable. But the reality is quite different.
Why It Doesn’t Actually Save That Much
Most claims are already in Thailand – so the savings are minimal.
In the company’s case, 90% of all claims already originate in Thailand. Removing access to care outside Thailand might only impact a small fraction of claims – and in our experience, the premium savings from such a change would likely be less than 10%, and probably closer to 5%.
Reducing coverage to Thailand-only may look dramatic on paper, but the real financial impact is modest. And that modest saving comes at the cost of significantly disrupting the staff experience.
Travel Insurance Is Not a Substitute for Health Insurance
Travel insurance is designed for medical emergencies – not long-term care.
Travel insurance is excellent for short-term trips and unforeseen emergencies. It is not designed to replace proper health insurance. Here’s what it doesn’t do:
- Limited cover for pre-existing conditions
- Limited access to care for ongoing or chronic illnesses
- No provision for cancer treatment
Let’s say an employee has a flare-up of a pre-existing chronic medical condition while visiting family abroad. With no global health cover, and relying only on travel insurance, they could be left entirely uninsured.
And what if they need treatment not available in Thailand? Many international plans allow for overseas treatment if adequate care is not available locally. This critical flexibility would be lost.
The Hidden Cost of Restricting Coverage
Moving to Thailand-only cover may send the wrong message to staff. It risks undermining confidence in the company’s commitment to their long-term health and wellbeing — and may affect retention and recruitment, especially among international hires.
The potential savings are small, but the risk of dissatisfaction or gaps in care is real.
Smarter Ways to Control Health Insurance Costs
Rather than removing global coverage, we suggest exploring more targeted and effective strategies, such as:
- Adding reasonable deductibles or co-pays for outpatient care
- Introducing tiered hospital networks
- Using claims data to identify cost drivers and opportunities for better care management
- Capping outpatient or specialist visits
- Evaluating chronic condition programs and virtual care options
All of these can deliver real cost containment — without compromising access to essential care or putting staff at risk.
At One World Cover, we believe in finding the balance between affordability and protection. That means making data-driven decisions, exploring plan design innovations, and building benefits strategies that are financially sustainable and genuinely supportive of your staff.
Cutting global coverage and replacing it with travel insurance is not that strategy. If you’re facing budget constraints, let’s explore the right options together – ones that safeguard your people and your reputation.
To learn more please get in touch: [email protected] or click here to contact us.
