Monday, April 8, 2013

International Health Insurance is an issue if you are planning to live abroad.


We are both over 50 years old and in relative good health.  This is a problem age for self-employed individuals and early retirees because private insurance plans are expensive at this age and Medicare does not kick in until one turns 65.  Pure catastrophic health insurance is ridiculously priced or is simply unavailable.  Further, private plans have limited coverage while traveling and Medicare does not pay for health care costs outside of the US.

In our research we were surprised to find that several countries around the world ranked higher than the US in quality of health care.  In most cases, the cost of health care in these countries is significantly less than in the US. Since we hadn’t yet decided if we wanted to obtain residency in another country the option of utilizing a national health plan wouldn’t be available to us.

Health care and insurance work differently in every country.  First we needed to figure out how to obtain coverage (and health care) in Spain. Spain ranks very high internationally in the quality of health care, in fact, much higher than the US.  Spain has a national social security system which provides public health services to its residents for free or at extremely reduced cost.  Our perception of public health care was that you might wait for hours to see a doctor or wait days or weeks for an appointment but it will not cost you anything out of pocket. 

In all the countries we have researched there is also a limitation of coverage in the public health service, for example, one might be covered for a specific surgery, but reconstruction or cosmetic procedures that would be normal in the US might not be covered in other places.  However, the cost of these additional procedures in other places can be a fraction of the cost in the US.  

What should we do?  A requirement for an extended visa or residency in almost all countries is that the applicant has made provisions for health care coverage.  You can purchase international coverage that will cover you in most places if you are planning to be in several countries.  International health care coverage generally excludes coverage in the very high cost countries (including the US) so it is not an alternative if you are planning to spend significant time inside the US, the UK, or a few other countries. 

A country specific insurance plan is less expensive and has the advantage of being tailored to work within that particular country’s existing healthcare system.  Most plans we found both international and country specific can be purchased month to month or at least quarterly so there is no long term commitment to a specific plan.  However, the old pre-existing condition thing can creep into coverage anywhere so staying within one insurance company’s plans can have the benefit of getting you past any waiting period that might exist for coverage of a specific problem.  By purchasing from a large international insurer, like BUPA your time under contract begins when you purchase your first policy and continues as long as you are insured with them, even if you were to change your country of residence and plan several times under their umbrella.

We looked at many plans and found some great service providers that offer English speaking agents so that communication is not difficult.  Everything can be handled over the internet with applications or health questionnaires signed and scanned.  We were actually surprised at the ease of obtaining quotes and descriptions of coverage   

For us, we chose a BUPA plan for Spain.  The Bupa program in Spain is called Sanitas and it is offered for purchase through agents. It is Spain’s largest private insurance plan and offered the most options for us at a very reasonable cost.  The plan covers us for regular doctor visits, lab work and hospitalization within Spain and also covers us for up to 60 days of travel time outside of Spain for accidents or injury (including the US).   If we were traveling in the US and had an accident the BUPA network in the US is United Health Care.

A one page application and a one page statement of health was emailed to us, we filled them out, signed them and scanned them back.  Assuming we would get long questionnaires about previous health histories and adjustments to the basic premium quoted we were amazed when the following day we received an email simply asking what credit card we wanted to have our premiums charged to each month and when we wanted our coverage to begin.

Copays and deductibles work a little different than in the US but you can generally modify your coverage and out of pocket costs to arrive at an insurance premium that works for you.  Compared to US health insurance plans, coverage may seem to have lower maximum reimbursement but remember, health care costs a lot less in most other countries.

Our plan looks like a regular US PPO plan with no deductible.  Our copay for doctor visits is 12 euros and for a hospitalization it is 24 euros, all lab work ordered by a physician is included.  Prescription drugs are not covered simply because they are so affordable in Spain that coverage is not necessary.  Dental care, on the whole, is very good in Spain and significantly (40% to 50%) less expensive than in the US but dental coverage is relatively expensive so we decided to exclude it.

This plan was very similar to a private plan we had in the US that cost approximately $2,000 per month (for both of us).  There was very little medical information requested (mostly surgeries in the past 10 years and any chronic conditions) and the company did not blink at any of our historical medical information.  This plan costs us 140 euros or about $185 per month for the both of us together.

Wow, suddenly our monthly budget for designing a life overseas became much more reasonable and we started to seriously think that we might just be able to continue to live elsewhere around the world before or after our Peace Corps Service.  We were beginning to get the idea that even on our very limited budget we might really be able to afford it now instead of waiting for that ever elusive “retirement” age.

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