When Things Go Wrong: Does Your U.S. Health Insurance Cover You Overseas?

What happens if your employee needs to visit a hospital while traveling or living abroad?

As a global mobility expert potentially overseeing worldwide relocations, it’s crucial to comprehend how to handle unexpected situations involving your transferee. We recently discussed the steps to take if an employee loses their passport while overseas. Today, we’ll learn more about the procedures to follow if your transferee requires medical attention in a foreign country.

 

Understand International Coverage of Health Insurance Policies

The most effective strategy is to choose a robust insurance plan that provides comprehensive international protection. Depending on the company and its existing policies, employees being relocated and business travelers may have access to a range of health insurance options, each offering different levels of coverage abroad.

If your options are limited, the next step is to understand what kind of coverage your traveling employees have.

While your transferee’s existing health insurance may offer coverage within their home country, it may not extend to international travel. If they have an insurance plan through their employer or the Health Insurance Marketplace, determining if they’re covered outside of the country can be complicated.

“Most domestic health plans provide limited coverage overseas and won’t cover prescriptions abroad,” says Margaret Wilson, M.D., chief medical officer of UnitedHealthcare Global.

Domestic insurance plans are typically limited to a specific state. While some emergency medical expenses might be covered outside of the United States, you’re unlikely to receive reimbursement for routine procedures or prescription medications.

To determine whether their health insurance provides coverage for international travel, the most reliable approach is to get in touch with the insurance provider. When you call, it’s important to inquire whether preauthorization is necessary for medical care, hospitalization, or other related services.

If your transferee does need medical care while traveling abroad, don’t panic. It’s possible to get the care they need internationally.

“For people who tell folks that health care outside the United States is a disaster, they’re just trying to scare people,” says Allen Koski, chief innovation officer and co-founder of Insured Nomads. “You can find good health care within every marketplace now.”

 

How to Find a Doctor Abroad

If your transferee is hurt and requires medical care while working abroad, they should immediately contact HR and their direct supervisor. It is possible that your company has an established plan for medical emergencies.

When considering where to go for treatment, Allen recommends finding an expat clinic or someplace that’s used to dealing with expats and business travelers. “That’s so important because they understand what you need to get reimbursed, they understand the level of care you expect, and typically, there will be somebody who speaks your language.”

If they have coverage with an insurance company like Insured Nomads, this is a good place to start when seeking a hospital or clinic. If not, then contact the nearest U.S. Embassy or Consulate for a directory of health care providers and medical centers in the area. If the condition is severe, consular officers can help locate medical aid and, upon their request, notify their family or friends.

 

Expect to Pay Out-of-Pocket

It’s important to be financially prepared to pay for medical care upfront while traveling, which may include a credit card with a high limit, even if you have regular U.S. health coverage and supplementary travel health insurance. This is because many foreign health care providers only accept cash or credit card payments at the time of treatment.

“Most overseas hospitals and clinics want to be paid before you leave because, if you just leave, they get stuck with the bill,” Allen says.

To receive prompt and accurate reimbursement from the insurance company, obtain clear and complete copies of all medical bills, records, and discharge notes after receiving treatment.

“Many overseas clinics work through national health plans, so usually you don’t get a lot of good reporting,” Allen says. “They usually don’t do itemized bills like the United States.”

Instruct your transferee to keep copies of receipts or invoices for any hospital care or tests they receive as well, as they will be necessary for filing a claim with their insurance company upon their return. This can help them avoid additional charges later and provide their insurer with the necessary information for reimbursement if their policy covers them abroad.

 

How to Prepare in Case of a Medical Emergency Abroad

Some insurance policies will reimburse at least a portion of the health care costs incurred abroad.

“It’s so important to be proactive,” Allen says. He recommends reaching out to the insurance company before a trip and asking some basic questions, such as: What’s the best hospital? Are there any vaccines I need? What happens if I received a medical bill abroad?

If you discover that your transferee’s current health care policy does not provide coverage for health care services received while traveling outside of the country, your transferee may want to consider buying a supplemental international travel health insurance plan. The cost of international travel health insurance depends on different factors like where they’re going, the length of the trip, their age, the amount of money they’ve already paid, and the level of coverage they want. Along with emergency medical insurance, you can also opt for coverage for trip cancellation and interruption, weather-related issues, and even rental car damage.

Typically, a comprehensive international travel health insurance plan includes some form of medical evacuation and repatriation coverage. If your employee happens to get hospitalized outside their home country and needs to be transferred to another medical facility for better treatment or to return to their home country, the international coverage plan will cover the costs of such medical evacuation and repatriation.

This is an important thing to note: If your transferee has a medical condition that existed before their international trip, it is recommended that they bring a letter from their primary health care provider that describes their condition and any prescription medications they are currently taking. The letter should include the generic names of the medications.

For companies transferring foreign nationals to the U.S., this health insurance conversation is even more vital.

“Foreign nationals coming into the United States are most likely coming from national health programs,” Allen says. “The national health plans don’t help, and you know how expensive health care is in the United States.” Allen adds that almost half of Insured Nomads’ clients are foreign nationals in the U.S., which goes to show that both at home and abroad, medical coverage is important.

 

Health Insurance Is an Important Step in Every Relocation

Keeping your business travelers and transferees safe and healthy during their international work assignments is important. As someone who works in global mobility, it’s essential to understand how domestic health insurance plans work internationally.

With your guidance, transferees and other business travelers can be ready for any unexpected situations. This begins with transferees and experts on the global mobility team working together to identify an insurance policy that provides good coverage abroad and understand the limitations of health plans from their home country.

Moreover, being prepared for personal expenses and understanding how the reimbursement process works are important aspects to consider. Helping your transferees find the right medical help in foreign countries and preparing them for possible health emergencies can also make their journey safer.

Discussing health insurance coverage is an especially important conversation for people coming to the U.S. from other countries because of the high cost of health care in the U.S. compared to many other countries. So, whether your employees are based in the U.S. or abroad, having good health coverage is a critical need that needs continuous attention.