Before COVID, healthcare costs were going down, but during the pandemic, they went up a lot, and for the last couple of years, the cost of healthcare has been steadily on the rise.
Medical insurance premiums have increased by 10-25% in the past year. This increase is driven by things like medical costs going up, new technology, and more people wanting better healthcare.
Standalone health insurance companies have raised their prices even more, around 15-20%. On the other hand, general insurance companies have increased their prices a bit less, about 10-15%, because they offer different types of insurance, according to people in the industry.
Rising healthcare costs make things difficult for most people. However, it puts even more pressure on expats, who need to navigate a foreign healthcare system.
What can expats do if healthcare in their host country gets too expensive?
Dealing with rising healthcare costs can get particularly challenging if you live in a foreign country. Without in-depth knowledge of the local healthcare system or long-term connections with medical facilities and professionals, expats tend to rely on healthcare insurance arranged for them by their companies. So, when healthcare expenses get high, they have little space to maneuver and find more affordable treatment options.
So, if medical costs in your new destination get high, it's best to have alternative plans to help.
Here are a few ideas:
- First, check if there are more affordable health insurance plans available that still offer adequate coverage for your needs. You may also bring this up with your employer and ask them to help you find a more suitable healthcare plan that doesn't eat away too much of your budget.
- Investigate if the country offers public healthcare services that are more budget-friendly and if you are eligible to use them. In most countries, being a long-term resident will grant you access to certain public healthcare services.
- If neighboring countries offer more affordable healthcare, explore the possibility of traveling for medical treatment. Some of the most popular destinations for medical tourism include Canada, Turkey, Thailand, Spain, and Dubai.
- Look into international health insurance plans specifically designed for expats, which may offer comprehensive coverage at a reasonable cost. If you have a long-term contract, consider renegotiating with your employer to include health benefits or allowances that match the new economic situation.
- Have an emergency fund to cover unexpected medical expenses that may arise. In fact, it is never a bad idea to put away money every month for unexpected emergencies, both medical and other.
- Seek out expat community groups or forums for advice on navigating healthcare costs in the new destination.
- Focus on maintaining good health through preventive measures to minimize the need for expensive treatments. Adopt a healthier lifestyle to potentially reduce the need for medical care. This may come off as rather superficial advice, but taking better care of yourself can substantially reduce your chances of needing expensive medical care.
Is returning to your home country for medical treatments an option?
Yes, returning home for medical treatments is often an option for expats if the medical expenses in their host country get too high. However, there are a few things to take into account.
First, let's look at the advantages:
You are likely more familiar with your home country's healthcare system, language, and cultural norms. You also probably know several medical professionals who you can consult or a family doctor who is familiar with your health situation.
You might have higher confidence in the quality of medical care and facilities in your home country. Navigating medical services in a foreign country can be complicated — and you will probably feel more at ease in your home country.
If you have insurance in your home country, you may be covered for more services. What's more, you will have access to the public healthcare system.
You may have family and friends who can provide emotional support during your treatment and recovery.
However, there are also several downsides to consider:
Returning home for medical treatment can involve significant travel costs, including flights, accommodation, and transportation, especially if your employer will not cover these costs.
Depending on the treatment's duration and recovery period, you might need to be away from your new home for an extended period of time. If this is not something your employer sponsors, taking so much time away from work can come at considerable personal and professional costs.
On the other hand, some medical treatments require immediate attention, and the time it takes to travel back might not be feasible.
If your insurance is sponsored by the employer in your new destination, check it covers treatments in your home country and whether you need pre-authorization.
Returning home could disrupt the continuity of care if you've been seeing local doctors or specialists. Moreover, if you need to undergo a lengthy medical procedure, this may require you to travel back and forth between your home and host country, which can get very costly and time-consuming.
Another important thing to consider when making this decision is treatment availability. While most common treatments are available in all major hospitals, regardless of the location, some more specialized procedures may only be available in specific destinations. Make sure to inquire about your treatment needs with health providers in your current destination and abroad.
Will your home country cover healthcare costs if you live abroad?
If your country offers universal free public healthcare, you will probably have no issue seeking medical help when you return. However, how accessible healthcare is may be conditional in some countries.
For instance, if you are employed in an EU country (including Iceland, Lichtenstein, Norway, Switzerland, or the United Kingdom) and reside in a different EU country, you have the right to receive medical care in both nations under the same terms as those insured locally. But to do this, you will need to register in the country where you work and obtain an S1 form from your health insurance authority.
Things are quite different in the United States, though. Once you've lived outside the US for over six months, Medicare won't offer medical coverage. To ensure medical expenses abroad are covered, you'll need to buy an international health plan.
Some countries have reciprocal healthcare agreements with certain nations, allowing their citizens to access healthcare services in those countries. These agreements might cover basic medical care but not necessarily all expenses.
If you maintain health insurance coverage in your home country, it might offer partial coverage for medical expenses abroad, especially for emergencies.
Some expatriate health insurance plans provide coverage both in your host country and your home country. These plans are specifically designed for expats and can offer a broader range of coverage. In fact, it is generally a good idea to negotiate or re-negotiate an expat-friendly coverage plan with your employer.
Some countries might require you to maintain residency or have certain legal statuses (such as non-resident citizens) to be eligible for healthcare coverage. This is something you need to check with your healthcare provider and discuss with your employer.
Remember to research thoroughly, understand the local healthcare system, and consider your personal health needs before making any decisions regarding healthcare expenses in your new destination.
