Travel health insurance is a special policy designed to cover medical expenses if you get sick or injured on a trip abroad. A common question from those that do not travel often is if travel insurance is necessary.
This article will explain how travel insurance works, how it might benefit you, and whether you need to purchase it if you're going to be away from home for a period of time.
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Travel health insurance is usually purchased for foreign trips, and although it's designed to be used for a limited period of time, there are travel medical policies for ex-pats that can be purchased for trips that last multiple years.
Whether you need travel health insurance depends on how likely you think it is that you might need medical care during your trip (this can be hard to predict, and medical needs can arise out of the blue), how well your existing health insurance policy covers you when you travel abroad, and on your ability to pay for medical care if the need arises—keeping in mind that this might require a long-distance medical evacuation.
For most people—and particularly for people who are older or are traveling to a less-developed area—the answer is probably yes. Here's why:
Expenses of Foreign Medical Care
Before you plunge into a travel insurance policy, check your existing health insurance. Some companies will pay what they refer to as "reasonable and customary" medical costs if you need care in a foreign country, which means you don't have to duplicate that kind of coverage in a travel policy.
But it's also common for American health insurance policies to not cover care received outside the United States. Most U.S. policies are required to cover emergency care anywhere in the U.S. (even if it's outside the plan's network). But there is no requirement that they cover emergencies outside the country, and many plans do not.
Even if your plan does cover some emergency care outside the country, pay close attention to what's not covered in your policy. Most domestic insurers will not pay to have you evacuated out of a foreign country for a medical emergency. The U.S. State Department says an evacuation can easily cost more than $50,000.
If that's not a cost you are capable of paying—or are willing to pay—for the consequences of something as simple and unpredictable as an auto accident, for example, you might want to buy extra insurance.
Many countries offer taxpayer-funded health coverage for their own citizens, but you may find that care is still expensive if you're a visitor. In the UK, for example, visitors from most other countries would be charged 150% of the regular National Health Service prices—although some services are provided free of charge to anyone, regardless of where they live.
In New Zealand, the country's Accident Compensation Scheme covers most of the cost of treatment for accidental injuries, but visitors need to have their own health coverage to pay for the treatment of illnesses.
In Japan, the public health insurance system is not available to non-residents, which means visitors need to arrange for their own medical insurance. The same is true in Canada. These are just some examples, but they illustrate some of the variations that exist from one country to another in terms of access to health care.
If you're traveling to another country, it's essential that you understand how that country's healthcare system works, how your current health plan will (or will not) cover the cost of care you might need overseas, and what options are available to you in terms of supplemental travel coverage that you can buy for the duration of your trip.
Where to Get Travel Medical Insurance
Travel websites offer a way to compare prices and coverage offered by a variety of providers. One well-known and frequently used online travel insurance company is IMG Global. Another is USI Affinity Travel Insurance Services.
Travel medical insurance is also available from some of the well-known insurers that offer standard health insurance in the U.S., including Cigna Global, GeoBlue, and UnitedHealthcare Global. The companies' websites offer a good overview of the types of travel insurance available and how much the various plans cost.
Travel medical plans are not regulated under the Affordable Care Act, which means they don't have the same consumer protections as regular U.S.-based major medical coverage.
So when you're comparing travel health insurance plans, pay particular attention to how the plan handles pre-existing conditions. A general rule of thumb is that travel health insurance plans will not cover pre-existing conditions, but some plans offer applicants the option to purchase a rider that will allow for at least some level of pre-existing condition coverage.
If you have a pre-existing condition, you'll want to carefully check the details of the plan you're considering, and understand exactly what would be involved if you were to need care for that condition during your trip.
It's also important to understand that travel medical policies will have limits on how much they'll pay. This is not allowed for plans regulated by the Affordable Care Act, but again, that's not applicable to travel medical insurance.
There is a lot of variation from one plan to another in terms of the maximum benefit limits, so pay close attention to that when you're comparing plans. A policy with a $50,000 limit will likely be much less expensive than a policy with a $500,000 limit, but the coverage is also a lot less robust.
Travel Health Insurance for Older People
Older people should take particular note—Medicare does not pay for hospital treatment or medical care outside of the United States, except for a few very limited circ*mstances. That means that you'll be on your own unless you have other coverage that does provide coverage abroad, or you buy a travel policy.
Some Medigap policies and Medicare Advantage plans provide foreign travel emergency healthcare coverage when you travel outside the U.S. And if you have employer-sponsored insurance (a retiree plan or a plan from a current employer) that supplements Medicare, it might provide some coverage overseas.
Before traveling outside of the country, check with your supplemental plan or Advantage plan regarding travel benefits. And consider adding a travel insurance plan to supplement your existing coverage.
Risks of Illness
Foreign travel can be rigorous for anyone, given the changes in elevation and climate, and the presence of unfamiliar microbes. In some parts of the world, questionable water quality and sanitation compound the hazards.
The State Department recommends that anyone with a pre-existing medical condition, ranging from a heart problem to allergies, carry a letter from their healthcare provider that describes the condition, the treatment for it, and any prescription drugs that are being used, including their generic names.
The Centers for Disease Control and Prevention (CDC) has tips on the immunizations that are required for trips to foreign countries and special conditions that may exist in those countries.
If you do get sick while you are abroad, an American consulate can help you locate the medical care you need and help arrange for travel back to the U.S. You will need to pay the bills, however, so be sure to pack your regular medical policy's ID card and confirmation of your travel policy, if you decide to buy one.
Combining Health and Travel Insurance
In addition to travel health insurance, you may want to consider travel insurance plans that combine travel medical insurance with coverage to protect your travel investment. Things like lost luggage, cancellation of flights, and cruise line or hotel bankruptcy can ruin your travel plans.
Along with your health insurance, travel insurance agencies can provide you with cancellation insurance, which may cover all or some of your costs.
But don't assume that a general travel insurance policy will include travel medical coverage. Read all the fine print of any policy you're considering, and make sure you purchase coverage that's adequate for whatever situations might arise.
Don't Forget Your Medications
If you plan to travel to a foreign country, it is important that you provide for your medication needs before leaving. An illness in the middle of your trip can ruin your vacation and cost you money to get needed medications.
Prescription drugs should be carried in their original containers with their original labels.
Before you leave for your trip, see your healthcare provider to get an ample supply of all your prescription medications. Also, talk to your healthcare provider about your change in schedule and ask when to take medications if you are moving through different time zones.
Summary
Americans traveling abroad often need to purchase a travel medical insurance policy in order to have coverage for medical care during their trip, or for emergency medical evacuations. Some U.S-based health plans will provide coverage abroad, but many do not. For people who need to purchase a separate travel medical plan, there are numerous insurance companies that offer this coverage, with benefits and available coverage durations that vary by plan. Coverage can usually take effect as soon as the day after purchase, but generally does not cover pre-existing conditions.
A Word From Verywell
It's always better to be safe than sorry when it comes to health benefits. And that's especially true if you're going to be traveling in a foreign country. A serious medical situation is never something you expect to arise while you're traveling, but it does happen. The last thing you want is to be in need of medical care—or a medical evacuation—and struggling to afford the cost. Planning ahead with a travel medical policy can give you peace of mind during your trip. And the plans tend to be much less expensive than standard American medical insurance, so they aren't likely to add too much to the cost of your trip.
