As an international traveler, you must know that health insurance systems vary by country. To make your international trip smooth, it’s a good idea to know about how international health insurance systems work, especially if you’re planning a trip longer than a month.
For a vacationer, international medical costs will, in most cases, be paid by the plan holder and later reimbursed. However, checking how reimbursement works before leaving on the trip will save later trouble. Some countries work with an exclusive private system, but most countries have some partnership with the government.
In the United States, healthcare is almost exclusively funded by the private sector, and the government is involved in two major health insurance plans: Medicaid and Medicare. The system has come under heavy fire for being inefficient in spite of 16% of the GDP spent on healthcare. Private international insurance must be purchased by those needing healthcare coverage in the United States.
In contrast, the U.K. healthcare system is almost entirely funded by public insurance, with a few people (11% of the population) opting for extra private insurance for better coverage. Most people receive medical treatment for free, barring a few conditions-eye and dental treatment, for instance. international health insurance is a must for all international visitors.
The system of health insurance followed by France is social health insurance, and covers all residents. The system derives its funds from compulsory contributions by residents. Many residents buy additional private insurance. If you are planning to visit France, check whether you need a Schengen visa, and also whether your international health insurance policy meets prescribed standards.
The Singaporean dual healthcare system seems to be the toast of the world. While the country spends just 3.8% of its GDP on healthcare, it is one of the healthiest countries to live in. Because of the dual system, check what your international travel health insurance covers, and how to file a valid claim. In Singapore, most primary care is private and most hospital care is public.
Many other countries may have systems similar to, or in-between, the systems mentioned above. International travel health insurance and knowledge of coverage are a must for international travel. In India, healthcare is free for everyone at public hospitals, but the quality of care is questionable.
If you’re traveling abroad, be sure to purchase the short-term or long-term international health insurance plan that is right for you. These plans are underwritten by industry leaders like Nationwide, Lloyd’s, and AIG.
Ray Sondeo often writes about international insurance.
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