Natalie’s winter escape to Mexico didn’t exactly go as planned. A sudden medical issue led to a two-night hospital stay, but she felt reassured knowing she had travel health insurance — or so she thought.
She provided insurance details to the hospital, but was also asked for a credit card, which she handed over. After blood tests, a CT scan, and a round of antibiotics, she recovered and was discharged.
Seven months later, Natalie was shocked to find an $18,000 charge from the hospital on her credit card. What was supposed to be a relaxing winter getaway has now turned into a potential financial nightmare.
When she saw the $18,000 charge, Natalie immediately called the travel health insurance provider, who informed her they had already paid the hospital the policy maximum of $10,000.
Next, she called the hospital to get an itemized bill, but no one would answer the phone. Natalie disputed the charge with her credit card company, but within a month they told her that the case was closed, leaving her with no resolution and a massive bill.
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Your choice of insurance could be make-or-break
Natalie’s first mistake was choosing the cheapest travel health insurance plan. While it seemed like a smart way to save money, medical coverage is not an area to cut corners — especially when traveling internationally.
When searching for travel insurance, you may be tempted to choose the lowest-priced option that covers trip cancellation and trip interruption, without looking at what the medical coverage provided entails. But a medical emergency could cost far more than your trip — tens or potentially hundreds of thousands more.
Natalie’s basic travel insurance plan cost $142 and included $4,000 for trip cancellation/interruption, $10,000 for emergency medical coverage, and $50,000 for emergency medical transportation.
For $93 more, she could have purchased a $235 plan with $50,000 in emergency medical coverage and $1,000,000 for medical transportation — enough to cover the hospital charges she incurred.
However, many experts advise having at least $100,000 in emergency medical coverage for international travel.
Assumptions could cost you
Traveling abroad without health insurance is a major financial gamble. Many travelers mistakenly believe their U.S. insurance will cover them internationally, but this isn’t always true.
For starters, Medicare and Medicaid do not pay for medical care outside the U.S.
The U.S. Department of State advises checking with your insurance provider to confirm whether your plan covers emergency and routine care abroad. It also strongly recommends purchasing medical evacuation insurance if you are traveling to remote or high-risk areas.
According to the CDC, travel health insurance is especially important if you have pre-existing conditions, will be abroad for more than six months, or plan to partake in adventure activities like hang gliding or scuba diving. Even in countries with nationalized healthcare, coverage often excludes non-citizens.
Medical evacuation insurance is critical — it covers transport to a facility with adequate care, which can cost more than $100,000.
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What to do if you need health care abroad
In addition to choosing a plan with sufficient coverage, there are steps travelers can take to avoid costly surprises.
If you need medical care while abroad, contact your insurance provider before seeking treatment — if it’s not an emergency and you’re able to do so.
When possible, ask the medical facility about the cost of treatment upfront. Regardless of coverage, always request detailed documentation of the care you received and the associated charges, especially if you’re asked to provide a credit card.
In Natalie’s case, options are limited because her insurance coverage was insufficient. However, if she can obtain copies of the bill, she may want to check whether her personal health insurance or the credit card she used to pay for the trip offers any secondary or supplemental medical insurance.
Remember to read the fine print
Travel insurance policies often have strict timeframes. Many must be purchased shortly after you book your trip. This is especially important if you have pre-existing conditions, as you may need a waiver to ensure those are covered — but verify all the details with your provider first.
The U.S. Department of State advises travelers to carefully review their policy, since coverage can vary widely between insurers. Before you purchase a plan, make sure it covers the essentials:
- Countries you plan to visit
- The full duration of your trip
- Emergency medical care
- Medical transportation back to the United States
- Travel and lodging expenses
- Emergency cash access
- All current medical conditions for you and your family
- Activities you plan to participate in
- A 24-hour help line you can call during your trip
Reading the fine print ensures you’re not caught off guard if you need care abroad — and helps you choose a plan that actually meets your needs.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.