In Ecuador, a doctor's visit only costs about $20
Maybe this sounds like you: You want to move overseas…but you’re worried about how you’ll pay for health care there since your home country health-care plan probably won’t cover you abroad.
It’s a common concern. Fortunately, there are at least three ways you can cover your health-care costs when you move overseas. And—at least if you’re from the U.S.—they’re all likely to cost less than what you pay now.
- Buy an international health insurance plan. Catch the flu in Berlin? Sprain an ankle in Buenos Aires? Don’t worry; you’re covered. If you intend to travel a lot in many different countries, an international plan may be the most flexible for your lifestyle.
Some international policies come in two forms: true worldwide coverage, or coverage everywhere in the world except the U.S. and Canada. If you include these two countries, your premiums may go up a lot. Think carefully, therefore, whether you need them in your policy. How much time do you expect to spend “back home” once you relocate overseas? If you only plan to visit for a few weeks now and then, consider getting short-term travel insurance for those trips instead.
Here are a few things to keep in mind when evaluating an international insurer:
- How wide a network does the insurer have for the countries you visit?
- How specific is the policy? Can you easily tell what’s covered and what’s not?
- Does the insurer have multi-lingual staff to help answer your questions? What about easy-to-access lists of local providers?
- And of course, check how (and how quickly) the insurer reimburses you for expenses.
Another key point for any type of health insurance is the age cut-off. Many insurers will not issue new health insurance policies to those who are 65 or older. Some insurers have a cut-off age of 75. If you buy your policy before you reach the age cut-off, you can retain it after that age; just don’t let your policy lapse.
2. Buy a national plan in the country you retire to. If you settle full-time in a country, you’ve most likely chosen one that has good health care. So why not buy a private insurance policy there? In most countries you’ll find several firms that offer private health insurance. In fact, in today’s global world, those local companies are often owned by major insurers in the U.S., Canada or Europe.
Again, make sure that the company has a wide network of providers, especially in the area where you plan to live. If you expect to travel internationally, see if you can add a travel rider to your national policy that covers emergency and catastrophic care overseas. (There may well be a separate deductible for the international rider, so make sure you know how much it is. In addition, you’ll want to know which provider networks the insurer is affiliated with overseas.)
Several popular expat destinations, including Ecuador, Brazil and Mexico, also have nationalized health care systems that expats can opt into. You usually must have a residence permit for the country to qualify for these. Nationalized plans tend to be inexpensive—in Mexico, for instance, the top rate is less than $300 a year.
With nationalized systems you may not have much choice of doctors, and service quality may vary by region. But if you’re on a budget, these systems provide a welcome, low-cost health safety net.
3. Pay out of pocket. Health care costs tend to be low in most of the popular expat destinations. In Ecuador, for instance, a doctor’s visit only costs about $20. In Mexico, an overnight hospital stay usually costs less than $100. As a result, some expats simply pay in cash for health-care services. Even expats with health insurance often pay cash instead of submitting claims when the amount is small. It’s just easier.
However, a major surgery or prolonged illness can rack up heavy bills even in a country with low-cost health care. If you do not have insurance and must pay cash, be sure to keep a slush fund for medical emergencies.
Many expats, of course, combine several of these options to get the most bang for their buck. For instance, in countries that offer a free or low-cost nationalized plan, expats may use that when they need costly surgeries. Yet they may use private insurance, or even pay cash, for regular medical care so that they can choose their doctors.
Where to Go For International Health Insurance
Numerous insurers offer international health plans; some also have regional or country affiliates through which you can buy a national plan in a specific country. Here are a few of the largest insurers:
BUPA International, www.bupa-intl.com. Its worldwide health plan offers a core policy to which you can add further services to customize it to your needs. BUPA also offers travel insurance.
HTH Worldwide, www.hthworldwide.com. HTH offers long-term global health insurance as well as travel health insurance.
IMG Global, www.imglobal.com. IMG offers global health insurance, a variety of travel insurance options, and emergency evacuation insurance.
Healthcare International, www.healthcareinternational.com. This company offers a variety of global health plans, travel insurance, and life insurance.
