In this article
- 1 What is travel health insurance?
- 2 Why would I need travel health insurance?
- 3 Types of plans
- 4 What does travel health insurance cover?
- 5 How much does travel health insurance cost?
- 6 Who needs travel health insurance?
- 7 When is travel health insurance required?
- 8 What if I have a pre-existing condition?
- 9 Is it worth it?
- 10 Takeaways
What is travel health insurance?
Traveling can expose us to new sights and cultures, but it also brings challenges and difficulties when it comes to our health and well-being. Most US health insurance plans do not cover medical care while you are overseas. This means that your health insurance company will not pay for the care you receive if you need to see a doctor due to a broken leg, spend the night in the hospital due to a heart attack, or fill a prescription for any medication you may need.
International travel health insurance is an insurance plan that helps to protect against those potentially catastrophic medical bills. Like all types of travel insurance, travel health insurance is usually an indemnity plan, which means that you will need to pay the bill upfront and then ask for reimbursement later.
Before you decide on any type of coverage, check out these two helpful resources by the State Department. This page allows you to research the normal policies on how a specific country will expect you to pay for medical bills as well as certain vaccine requirements. You will notice that most countries require you to pay the full bill upfront in cash; make sure that you take this into consideration when traveling.
This second page provides helpful information on where you can seek help in a medical emergency while abroad and how to travel with prescription medications.
Why would I need travel health insurance?
Generally, most domestic health insurance policies are not accepted abroad; it is out of network.
If you are outside of the US and need medical care, most countries require that your medical bills be paid in cash at the time of services rendered. A travel health insurance plan pays those medical cost for you.
Types of plans
There are a few ‘types’ of travel insurance. One is a travel health insurance policy, and this type of plan focuses on medical expenses, but can includes things such as emergency dental and emergency evacuation.
Trip cancellation insurance is what most people are familiar with when they hear ‘travel insurance’ and this type of plan protects the financial investment in your trip, such as flights, cruises, or train tickets. They may or may not cover medical care when you’re overseas, so you may need a separate travel health insurance policy; some plans cover both.
A third ‘type’ is medical evacuation insurance and this pays for medical care during emergency transportation. This is highly recommended when visiting countries with limited health care facilities.
A complete travel plan combines the elements of trip cancellation insurance and travel health insurance to ensure protection against most threats.
Primary vs secondary health insurance
Depending on your specific health insurance plan, you may want to purchase a primary or secondary travel health insurance plan when traveling abroad (you can read more about primary and secondary insurance here).
For example, while Medicare does not pay for any medical care while overseas, if you have a Medigap plan G, your supplement will cover emergency medical expenses incurred during international travel. It will also cover 80% of Medicare-covered services after a $250 annual deductible. In this scenario, you can cover the remaining 20% with a secondary travel health insurance plan.
If you have a health insurance plan that does not cover any overseas travel, you would instead want a primary travel health insurance plan.
Single trip vs annual travel medical insurnace
Annual travel medical insurance, also called a multi-trip policy, covers the policyholder planning to take several trips back-to-back, with coverage lasting up to a year.
Single trip travel health insurance coverage ends as soon as you return home.
Long-term health insurance for expats
If you are living and working abroad for more than a year, you may want to look into a health insurance plan designed for expats instead of a standard travel health insurance plan.
While the usual international health insurance plans do not always cover cost associated with repatriation or emergency medical evacuation, you will have the benefit of being able to renew your coverage annually for as long as you’re abroad.
What does travel health insurance cover?
All plans will vary slightly in what they include, exclude, and the deductibles associated with care. But in general, you can expect to have coverage for most, if not all, medical bills.
The image below shows the types of coverage you can expect from travel health insurance, trip cancellation insurance, and medical evacuation insurance. With a true travel insurance plan, the coverage of travel health insurance and trip cancellation insurance are combined to provide more complete protection.
Cost Sharing, exclusions, and maximums
Travel health insurance is not considered minimum essential coverage. This means that on top of requiring deductibles be met prior to the policy paying, most plans will have exclusions and coverage maximums.
All plans will vary slightly, so it is important to understand what your plan will and will not cover and what, if any, your plan will pay in benefits to cover medical expenses.
How much does travel health insurance cost?
There are a lot of factors that go into the cost of these policies. Obviously, the cost of not having insurance and needing is far greater than the upfront premium, but generally, these policies can be had for very little.
Some of the factors that will influence the cost of a plan include the size and age of the group, the destination, how long you will be gone, and how much coverage you want.
The below image shows the cost for a family of 5 people traveling to Europe for 7 days.
The above image is used for illustration purposes only
As you can see, the cost differ wildly depending on what you are wanting to protect and how much coverage you want.
Being able to tailor the policy to your budget, or to your needs, is one of the great things about travel insurance.
Who needs travel health insurance?
The CDC suggest that travel health insurance policies may benefit people with pre-existing conditions or those that are participating in extreme or adventurous sports, such as scuba diving or rock climbing.
That said, most everyone will benefit from the base level protection of a simply travel health insurance policy. You can see from the chart above, that for even $25, you can receive ample protection against the cost of needing medical care.
Who doesn't need travel health coverage?
Make sure to check your health insurance policy for details. While most plans do not offer coverage outside of the US, some plans do.
Additionally, some credit cards offer travel benefits that include travel health insurance coverage. Some cruise ships also offer minimal medical treatment.
When is travel health insurance required?
Since Covid-19 there has been a growing list of countries that require proof of travel health insurance prior to entering the country.
Most countries also require that travelers have sufficient coverage before issuing a visa.
You can see the requirements of the country you are visiting here.
What if I have a pre-existing condition?
Pre-existing conditions can affect your eligibility for travel health insurance plans and coverage can be denied in some instances.
A few providers will not offer coverage to avoid responsibility for travelers with a high risk of medical needs. Other companies ask you to sign a waiver before agreeing to cover potential medical bills, This waiver typically requires proof that you’re medically able to travel, so get ready to call your physician.
Either way, make sure to read through the fine print so that you fully understand what the requirements before you sign.
Is it worth it?
Almost always. If you’re taking a day trip south of the border, you may be able to skip coverage. Week long ski trip in the Alps? Get coverage before you leave. The protection is pennies on the dollar compared to what you will need to pay if something unfortunate happens.
Takeaways
When you’re covering the cost of a vacation, the thought of paying for health insurance during your travels may seem like an unnecessary expense.
But keeping you and your loved ones safe and protected, doesn’t have to break the bank.
When you’re ready to talk, give us a call and we can find a plan that keeps you safe and sound before you travel.
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