By purchasing a collective health insurance for its employees, the company’s management protects its employees from unforeseen treatment expenses, facilitate to timely prevention of desease (preventive vaccination, out-patient rehabilitation, timely doctor consultations), at the same time taking a full advantage of the tax relief provided for this type of insurance by law. An annual premium per person is much lower when a health and/or accident insurance policy is purchased by a group than when it is done individually.
The insurance premium for health insurance of an employee depends on the insurance cover – the benefits included, indemnity limits, restrictions and various social factors. On the present health insurance market there is no such thing as a standard price. Price are also determined by the customer’s nature of business, geographical location, the numerical and demographical composition of the staff, therefore, insurance quotations are developed for each client individually and there are practically never two identical results.
Depending on the quality of an insurance programme, the annual premium per person ranges from about 100 to 500 euro and more. Nevertheless for a large number of employees it is possible to purchase a quite comprehensive cover for a relatively small price. Moreover, there are significant tax reliefs in place on these expenses:
- An insurance premium is not subject to an enterprise income tax (a company’s profit can be reduced for the amount of the insurance premiums paid).
- The payment of an insurance premium is not a source of income taxed with a personal income tax (provided that the insurance premium does not exceed 10% of the insured person’s gross wage or 426.86 EUR).
- The insurance premiums are not part of the mandatory state social insurance contributions (provided that the insurance premium does not exceed 10% of the insured person’s gross wage or 426.86 EUR).
Since health insurance programmes usually include the mandatory health check-ups, employers may use the allocated budget buy better health insurance policies. Considering the effect of the tax relief, it will not be a heavy financial burden on the company, yet the members of its staff will appreciate the caresince, according to HR studies, medical insurance is the highest valued benefit by employees in Latvia .
Typical broker services provided by us to our clients:
Before entering into an insurance contract:
- We constantly collect, update and analyse information on different insurance products available in local insurance market;
- We provide consultations on insurance products offered by different insurers licenced and registered in the European Union - explaining the differences between the cover, terms and conditions, claiming procedures etc. ;
- We accumulate and analize the information on our customers’ needs, based on customer surveys and interviews, our previous experience and expectations considering the changes in the market;
- We request the claims reports from current insurers and renwal offers for the next insurance period from all insurers (see the list attached);
- We analize all offers submitted by insurers and create an explicit summary in the form of spreadsheets for the client;
- We present the results to the client and give our recommendations;
- After the first presentation we pick the most perspective offers and negotiate with the respective providers for the best result.
- We help clients optimise insurance expenses by offering a detailed evaluation and expert opinion on the most beneficial insurance solutions;
- We organize the process of the purchase of insurance policy from the selected insurer and deliver the final package to the client’s office.
After entering into an insurance contract:
- At the client’s request, we prepare a letter for the employees explaining the main differences of the new cover as compared to the insurance cover of the previous year, advising on the most efficient use of the new insurance programme and the claiming process. We also offer some general recommendations on how to reduce medical expenses, brokers’ contact information and consultation times;
- For bigger companies we organize individual insurance packages according to the clients structure and location of subdivisions;
- During the entire period of the insurance contract, we offer consultations to our client’s employees regarding the use of policy, included benefits, pre-autjorisation of medical services with insurer and claiming process. These consultations are provided over the phone or electronically (by email);
- We organize the circulation of insurance related documentation between the client and the respective insurer.
You are most welcome to get in touch with us to receive an offer developed specifically for your company. .
International Health Insurance
Unlike the local health insurance programmes, considering the following 3 key factors, an international medical insurance policy gives you real protection against serious illnesses:
- The territory of activity allowing you to look for the technical equipment, expertise and competencies beyond the borders of our state;
- An insurance amount and limits representing the actual expenses (you will not need to make any additional payments for services provided by the following institutions: Premium Medical, AIWA un ORTO);
- A more comprehensive cover, not excluding the major and most expensive risks such as oncology and cardiology.
Target audience – companies that employ staff from abroad, companies, which are able to and which can afford to provide their management with the medical care and protection of a European standard.
Product Description and Advantages
- An international medical insurance policy operates within the entire Europe. It has an additional cover for acute illnesses in the rest of the world too. There are insurance policies, which may include some elements of a travel insurance (insured luggage, delayed flights, etc.) at a small additional payment, so you will not need to purchase a separate travel insurance policy;
- The purpose of the programme is to provide a customer with the best medical care possible in the event of a serious illness, so it includes significantly higher insurance amounts and limits (the total insurance amount is around 1 000 000 EUR), there are no limits to the hospital treatment for one illness event. These higher insurance amounts are provided for the quality and timely treatment of oncological and cardiovascular diseases, or to tackle other medical problems, which is a very expensive process in the world;
- Unlike local insurance policies, the international health insurance pays for the treatment of the most severe diseases, which are paid by the National Health Service in Latvia, id est, oncology, cardiology, spinal surgeries, prosthetics – it covers practically all medical expenses, provided that there are symptoms and a diagnosis (see the exceptions below);
- An international policy covers a full price of all services, without the patient’s co-payment, so you will not be asked to make any additional payment for a service even at the most expensive Latvian medical treatment institutions, such as ORTO, Premium Medical, AIWA, etc.
- The international insurance programmes may also include dental prosthetics or even laser eye surgeries.
Cover and Price Variations
- The price of an insurance policy depends on the following factors:
- The territory of activity (Europe/ worldwide, except for the USA/ worldwide);
- The age of the persons insured (if there are less than 50 employees in the group);
- The cover – every insurer provides at least 5 programme levels (e.g., it is possible to purchase a policy, which covers only hospital treatments and large risks – it will cost you much less than the policy with a full range of services);
- Aggregate deductible – any variation of a programme may be purchased cheaper if any of the deductible variants, quoted on the price lists, is applied.
- Any illnesses that existed before the insurance policy became active (with an exception of 30 and more insured employees);
- Prophylaxis (general/ disease prevention measures, check-ups or medical treatment carried out in the absence of symptoms) – except for the middle and higher level programmes;
- Plastic surgery;
- Infertility treatment and family planning;
- Injuries and illnesses sustained from doing professional sports.
- Treatment of Congenital Diseases
If you want to receive an international health insurance offer, please get in touch with us to book an appointment.
Individual Health Insurance
Although in Latvia health insurance is usually seen as a type of group insurance, we can also offer solutions to those, whom the employer does not provide this service. Moreover, depending on the individual situation, natural persons may combine various types of individual insurance.
At present there are at least 3 insurance companies in Latvia, which offer health insurance to individuals, but for those who understand the value of a quality health care and who are ready to invest in it, we can also offer various international health insurance programmes.
It is important to understand that a health (accident, travel and life) insurance policy must be purchased in good time! When an accident strikes and a physician has already prescribed some expensive examination or a surgery, it is already too late to purchase an insurance policy.
If you want to receive a consultation on the individual insurance, please get in touch with us.