Canadian HR Reporter

CANADIAN HR REPORTER SEPTEMBER 2019 FEATURES 19 TELUS has been delivering HR and payroll solutions for close to 2 decades. Human Capital Management (HCM) technology HR business process outsourcing Talent management and recruiting Integrated human resources information systems (HRIS) Cost-effective, end-to-end tailored solutions to help Canadian organizations nurture the potential of their talent. telus.com/employersolutions RISK MANAGEMENT Mitigating risk for employees on the road Sophisticated insurance plans offer robust coverage and focus on compliance By Janice Ogilvie F or many industries, global travel for work is no lon- ger a rarity. And employ- ees who travel for work without proper insurance coverage leave themselves and their employers vulnerable to paying high out- of-pocket costs if they fall ill or are involved in an accident. is also presents a legal risk to employers that have a duty of care to a globally mobile workforce. Over the past 20 years, the definition of a global traveller has broadly expanded from expatri- ates to include inpatriates, third- country nationals, rotational workers, key local nationals, busi- ness travellers and contractors. And there has been an increase in short-term assignments of two years or less, in all industries and regions. Insurance plans To address these complexities, the global insurance market has designed sophisticated interna- tional private medical insurance (IPMI) plans for employees work- ing outside of their home country for more than 180 days per year and for those on business trips. ese plans offer robust world- wide coverage that includes high- risk countries and occupations, alongside a strong focus on global compliance to ensure there are no issues obtaining work visas. ese plans also do not require membership to a government health-care scheme if one is not available. This is important as employees who have moved to a new country may lose govern- ment-provided care in their home country, while simultaneously not being eligible for a similar scheme in their new host country. And, given that dependants often remain in their home coun- try, the plans will cover trailing dependants wherever they reside. But IPMI plans must include a variety of features to provide an adequate duty of care: O cc up ational cover age: Worker compensation programs are often not portable (or only available for short periods of time) and local programs are often not accessible or robust enough. An IPMI should not exclude occu- pational injury or illness unless the employer has taken out an- other policy to respond in these circumstances. Preventive health and well- ness programs: Annual check- ups, health assessments and well- ness tools should be available to a global workforce. Many employ- ees on international assignments lose out on some of the health and wellness initiatives their col- leagues receive. IPMI plans can bridge this gap by including these services in their core products. Pre-existing condition cover- age: If pre-employment medicals are not completed or employees are sent on international assign- ments with ongoing health prob- lems, it is important to include coverage for pre-existing condi- tions. Otherwise, an employee could be required to pay out of pocket for care that cannot be serviced through insurance or a government program. Medical evacuation cover- age: IPMI contracts usually have an option to add a rider that cov- ers travel assistance and evacu- ation for medical emergencies. Unfortunately, similar coverage for security or natural disasters usually requires a separate travel assistance contract. International employee as- sistance program (IEAP): Part of a good wellness strategy is ac- cess to on-demand counselling for personal issues for employ- ees and their families. Stress and mental health-related issues are a big driver of failed expatriate as- signments, so mitigation is impor- tant. ese plans seek to provide telephonic or face-to-face multi- lingual counselling wherever em- ployees are located. International platform for service delivery: is provides for the direct settlement of med- ical expenses or one-time guar- antees of payment to avoid out- of-pocket expenses. Specialists help employers to understand the needs of a global employee and the countries in which they are working. A common question is wheth- er an out-of-country provision under a domestic group medical program can be used. is may not be an ideal solution for the following reasons: • Trip limits: It is common for there to be 60- or 90-day trips limits on domestic programs. is limits their usefulness for global assignments. • Emergency-only coverage: Em- ployees who are posted in for- eign locations expect to be cov- ered for simple preventive tasks such as doctors' visits or special- ist exams, not just unforeseen medical emergencies. • Stability clauses: is may ex- clude important coverage and can be quite restrictive. • Termination age: It is common to see very senior employees take foreign assignments into their 70s. • High-risk countries: ey may be excluded. It is important for employers to understand the employee popu- lation and to have a strong global benefit strategy. If they are benchmarking to the domestic plan, they should make sure to compare all the benefits and provisions so there are no gaps that could result in large out- of-pocket costs. And they should make sure the plan design is applicable, compli- ant and cost-effective. Costs can be justified once the risks are identified and the result- ing outcome is a positive experi- ence for global employees and their families. Janice Ogilvie is an international benefits consultant at financial ser- vices firm Penmore in Calgary. She can be reached at janice@penmore. com or (403) 202-5953 or (866) 229- 2212 x280.

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