Advice for Consumers Traveling Overseas on Health Insurance Coverage Needs

Department of Financial Services, Consumer eViews Volume 7 Number 8

February 19, 2010

Sean M. Shaw, Esq., Florida Insurance Consumer Advocate

As spring time and travel season rapidly approach, the Office of the Insurance Consumer Advocate would like to share with the citizens of Florida some information on purchasing health insurance for overseas travel.

While most health insurance policies cover emergency services rendered within the United States, Canada, Mexico, and U.S. territories, it is important to note that most policies exclude coverage beyond those boundaries. Becoming seriously ill or injured overseas could leave consumers personally responsible for their medical expenses. In the event a patient needs to be evacuated back to the United States, evacuation costs can easily rise to $50,000.

Some health insurance polices may cover “usual and customary” emergency hospital costs overseas, but most policies exclude such coverage. Further, Medicare and Medicaid also exclude emergency medical treatment overseas.

To prevent any issues regarding health insurance coverage while overseas, there are some steps consumers should take prior to traveling abroad to ensure they don’t find themselves saddled with exorbitant health care fees:

• Consumers should review their health insurance policies before traveling abroad to see if their policies cover emergencies. It is also vital that consumers review how they can access their benefits.
• Buying short-term emergency health coverage is a good idea for travel overseas; short-term coverage can be obtained by purchasing a travel insurance policy from a reputable health insurance agent.
• Consumers should not confuse travel insurance that covers health with insurance that covers the cost of the trip.
• Also, in the event emergency services are rendered overseas, consumers should obtain a copy of any medical records before leaving the overseas treating facility.

Short-term emergency health coverage available through a travel health insurance policy is beneficial and may include other coverage, including trip cancellation coverage and lost luggage coverage. While travel insurance policies can offer travelers peace of mind, there are some guidelines that should be considered prior to purchasing this type of insurance.

• Consumers should make sure that the insurance policies that they are purchasing are from a company that is licensed in Florida.
• Be aware of the coverage that is being offered and what might be excluded from such coverage.
• If consumers are purchasing travel insurance from a travel agent, ask the agent if he or she sells policies from different insurers. This will allow the consumer to compare policies and prices.

If you have any questions regarding health insurance while traveling abroad you should contact the Division of Consumer Services within the Department of Financial Services on-line at http://www.myfloridacfo.com/Consumers/ or by phone at 1-877-MY-FL-CFO (1-877-693-5236), toll-free in Florida, and (850) 413-3089 from out of state.

The Insurance Consumer Advocate is appointed by Florida Chief Financial Officer Alex Sink and is committed to finding solutions to insurance issues facing Floridians, calling attention to questionable insurance practices, promoting a viable insurance market responsive to the needs of Florida’s diverse population and assuring that rates are fair and justified.