Mulling Over Medical Insurance

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One of the most basic things that should be on your to-do list is looking into the insurance you already have and what is covered under your existing plan.

Typically, an individual’s primary health insurance plan or HMO will provide emergency medical care overseas along with other types of services. But, it’s wise to know what the plan includes before you get on a plane that takes you thousands of miles away from home.

“You have to read the fine print,” Hasbrouck says. “Often people buy the wrong insurance or buy coverage they don’t need because they don’t know what they have.”

"One of the clauses to look for when reviewing your insurance benefits is the amount of time for which you will be covered," he suggests. “Some insurance companies and travel insurance providers will only offer coverage for X amount of time,” adding that 30 days is commonly the X amount of time.

Most insurance companies also include clauses outlining what types of coverage will be provided during terrorists acts, war, or natural disaters. It is adviseable to read the policy thoroughly to determine what level of benefits would be offered. If it is unclear what benefits you would be entitled to, call your insurance provider and clarify those details.

For travelers without health coverage or those who need supplemental insurance to cover gaps in other plans, Hasbrouck recommends weighing the costs of the insurance policy against what the possible costs of medical care would be abroad. In some parts of the world, a trip to the hospital and access to above-average treatment may not break the bank.

“The United States has the most expensive health care in the world, so anywhere else will be cheaper,” he says. “Even if you have insurance, you will have to pay the upfront costs and wait to be reimbursed after you file the claims. You have to do a rational cost analysis and try to determine what those potential expenses could be.”

A big exception to factor in, and one on the mind of many travelers, is medical evacuation via an air ambulance, helicopter or chartered plane. Those charges are expensive all over the world, and could cost tens of thousands of dollars.

Despite the concern it causes, Hasbrouck says such emergency service is rarely required. Under “normal” circumstances, travelers injured on the road often can recover well enough to fly home on commercial flights and don’t need to be airlifted.

However, if you are going to remote places where medical facilities are sorely lacking or are participating in what could be considered a dangerous activity, such as scuba diving—you may need to be quickly transported to a decompression chamber—medevac insurance may be worth paying for before you go. Insurance companies often bundle the service in their general package, but there are companies that will allow you to buy it separately, Hasbrouck says. For example, if you are hospitalized, MEDJET Assistance will provide air ambulance transportation to any worldwide hospital you choose.

Engaging in adventurous or dangerous activities brings up another facet of the medical insurance selection process. Providers may exclude coverage if injuries come from things like rock climbing, rafting, scuba diving or riding a motorcycle without a proper license, says Hasbrouck. Coverage for those activities is generally offered for extra fees.

In the end, deciding whether or not to buy medical insurance comes down to weighing all your options, analyzing anticipated expenses and going with what makes you most at ease.

“What are you worried about? What do you need to be covered for and what coverage do you already have? How broke are you and what are you willing to pay for?” says Hasbrouck. “These are things you have to think about.”

No matter what you decide to do on your trip, or even if your insurance doesn’t cover acts of God (“a sudden and violent act of nature which could not have been foreseen or prevented”), war or terrorism, Hasbrouck says “having a plan, both individually and with your traveling companions, may be as important as having insurance.”

He adds: “If your hotel were to burn down or be washed away, and you lost all your documents and were separated from your travelling companions, what would you do? […] Agree on things like a person back home who you and your companions would all contact, if separated, to let them know you were ok, and to reconnect with each other. Have copies of all your documents, and leave a set of copies with your contact at home, so they could fax them to you in an emergency to help get your passport, etc. replaced.”

One Woman’s Payoff

Davidovitz went through some of same questions before she left for her Thailand trip. She and her husband thought they would go scuba diving while on vacation, and on the recommendation of her brother-in-law, she opted for secondary health insurance from the Divers Alert Network (DAN). Under that plan, which cost her about $50, Davidovitz would be covered for any accident that occurred while she was in the water. The decision to buy the policy was a departure from her regular routine.

“I’ve traveled for many years and nothing ever happened,” Davidovitz said. “I usually barely have enough for the plane ticket and the rest of the trip, never mind buying travel or medical insurance.”

The debate over the pros and cons of purchasing the extra insurance ended the second the fishing hook ripped through her leg, luckily avoiding major veins and arteries.

Although the $1,400 bill for her extensive treatment may not have busted her wallet, the security of knowing that she was going to be cared for in a critical moment was worth every dime, she said. Her primary health insurance company covered a majority of the out-of-pocket expenses, and Davidovitz was reimbursed the other fees, like the upgrade to first-class on the way back to the United States, from the DAN policy.

“This incident convinced me to always have insurance,” Davidovitz says. “You never know when something will happen.”

Jennifer Baljko is a San Francisco-based freelance writer who hopes she’ll never see the inside of a medevac helicopter.

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