FURLOUGH SCHEDULE & OVERSEAS RATES WHILE ON FURLOUGH
FURLOUGH INFORMATION INCLUDING SCHEDULE, RATES FOR GROUP INSURANCE
In order to keep group rates as low
as possible, insurance companies provide
“furlough schedules.” These schedules
seek to limit the amount of time an
insured person spends in the USA. In
some cases, if a person over-stays the
furlough schedule, they must drop off of
the group coverage. In other cases, they
are required to pay a higher premium for
the extra time in the USA.
“Surplus Lines/International” insurance
companies are not allowed to provide
long-term health insurance in the USA,
nor do they want to. They know that more
expensive medical claims are incurred if
an insured person receives care in the
States.
How does the furlough schedule work? If
a person is overseas for 12 months, he
or she can be covered on the insurance
for a one-month furlough in the States.
If he or she has been overseas for 24
months, the schedule may provide him
with six months of furlough coverage in
the US. The furlough schedules vary from
company to company.
Some companies provide “blended” or
“composite” rates. This means that the
rate that a person pays overseas for
insurance is going to be the same as he
or she pays in the States. In this case,
there is no penalty for overstaying the
furlough schedule. Of course, such plans
will be more expensive because it is
obvious that individuals will be
spending more time in the States.
