According to InsureMyTrip, an online insurance provider, half of U.S. travelers have no idea whether their domestic health insurance plan would cover emergency doctor or hospital visits while traveling outside the country. Spoiler alert: Most plans cover nothing, and unfortunate occurrences such as a medical evacuation can cost around $100,000.
We talked to Meghan Walch, director of product for InsureMyTrip, to bring more clarity around this question and many others related to travel insurance, from what Americans can expect from their travel credit cards to when and how to use Cancel For Any Reason (CFAR) coverage.
Are Americans covered with any health insurance when traveling abroad if they have one of the major policies from providers such as Aetna or Cigna?
Travelers who are unclear whether they have coverage should contact their health insurance company on whether emergency medical coverage will extend outside the United States. Depending on a specific plan and area of travel, medical coverage can vary widely.
Policyholders may discover they have either "in-network" coverage, limited coverage or no coverage at all. Travelers should also be aware of the following terms:
- Deductibles: the amount a patient must pay for covered services before insurance kicks in
- Co-insurance: the amount a patient is responsible for paying for a covered health care service
- Co-payments: a set amount owed for a covered health care service
Also, Original Medicare does not cover emergency medical care for travelers outside the U.S. There are supplemental plans such as Medicare Advantage and Medigap that can provide limited additional coverage.
Do Americans get any coverage if they hold specific travel credit cards, such as Chase Sapphire Reserve?
The short answer is yes — some travel credit cards offer travel insurance benefits. Recently, InsureMyTrip researchers evaluated more than 100 credit cards and found many cards do offer basic travel insurance perks. However, few cards offer emergency medical coverage or robust trip cancellation protection. Also, credit card coverage may only cover what was booked using that card.
Is credit card insurance enough or should travelers purchase additional travel insurance?
Travelers should first review their credit card travel insurance policy to understand what exactly it covers and what it doesn’t. However, even if your credit card offers some protection, it likely will not provide the same amount of coverage you’ll get from traditional travel insurance.
A comprehensive travel insurance policy purchased through InsureMyTrip may cover the entire trip cost in addition to important benefits such as emergency medical coverage, emergency medical evacuation, trip interruption, trip delay and baggage coverage.
Also, a traveler should research their destination to see if there are any insurance requirements. It may be necessary to purchase a third-party insurance plan in order to get the proper limits and proof of coverage.
Why do you think so many Americans are not sure if their health insurance covers them abroad?
It really comes down to reading and understanding your health insurance policy. Every policy is different. For this reason, we recommend contacting your health insurance provider to make sure you are clear about what kind of coverage — if any — you will be provided when traveling outside the U.S.
What are the consequences of not understanding how health insurance works abroad?
Medical bills can add up. If you’re injured or become ill in a foreign country, you may need to seek treatment at a local hospital. If your domestic health insurance provides no or limited coverage overseas, you will have to pay for those medical bills out of pocket.
To put a number on it, if you need to be medically evacuated back to the U.S., it can easily cost $100,000 or more, depending on your condition and your location at the time of injury.
To put a number on it, if you need to be medically evacuated back to the U.S., it can easily cost $100,000 or more, depending on your condition and your location at the time of injury.
What are some other major misconceptions about travel insurance?
A misconception about travel insurance is that people don’t really know all that a policy can cover. A comprehensive travel insurance plan may offer coverage for trip cancellation, trip interruption, baggage, medical, emergency evacuation, 24-hour traveler assistance and accidental death benefits.
Travelers can also find coverage for rental car damage or financial default. Many plans also have optional benefits you can add on.
One of those optional add-ons is Cancel For Any Reason (CFAR) insurance. Can you tell us more about that?
CFAR has become a popular option during the pandemic. CFAR can give you the flexibility to cancel a trip, at least two days prior to departure, for something other than a covered reason, such as fear of travel.
Something to keep in mind: To qualify for this coverage, you want to make sure that you are purchasing CFAR within two to three weeks after making the first payment toward your trip, and that you are insuring the full prepaid, non-refundable trip cost for all travelers.
Reimbursement can be up to 50-75% of your prepaid, non-refundable trip cost. Something to keep in mind: To qualify for this coverage, you want to make sure that you are purchasing CFAR within two to three weeks after making the first payment toward your trip, and that you are insuring the full prepaid, non-refundable trip cost for all travelers.
How can travel advisors educate their clients on travel insurance?
There are a lot of great resources for travel agents to learn about the latest travel insurance benefits available and to encourage their clients to compare the options. I'd also recommend checking out our free ebook, “The Quick Guide to Travel Insurance.” It’s a good overview for first-time travel insurance buyers.
Anything else you’d like to say about this topic?
If a traveler does purchase a travel insurance policy as their supplemental or main coverage for an overseas trip, it is important to know what that plan covers and does not cover. We have travel insurance agents licensed in every state, available to walk travelers through their policy.
Travelers can customize travel insurance policies on InsureMyTrip to make sure they are purchasing the best plan for their trip.
