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.