International Major Medical

Why Smart Travelers are Becoming More Aware of Travel Medical Insurance
by Brendan Sharkey

Scores of Americans are traveling the globe for leisure, business, study, and missionary travel. As international travel marches on, travelers seem to be faced with an ever-increasing number of health and safety concerns. Travel concerns run the gamut from pandemics, such as the H1N1 virus, to terrorist threats like the Mumbai attacks. Given the heightened risk, smart travelers are planning and preparing more than ever to avoid potential hazards.

Although health and safety concerns have contributed, strong growth is tied to greater consumer awareness. The simple fact is that existing health insurance plans are inadequate when taken across U.S. borders because they strictly limit overseas benefits. In addition, most health insurers will refuse to pay to get you to a higher standard of care if you need to be evacuated due to a medical emergency. Savvy travelers are aware of these limitations and they’re not leaving anything to chance.

Travel medical insurance policies are designed to pick up where your primary health plan leaves off. If you do not have health coverage, these plans act as primary insurance while abroad. The best-designed plans offer more than emergency benefits. They cover big-ticket items, such hospitalization and surgeries, but will also pick up the tab on physician office visits, ambulance services, prescription medications, and more. The premier plans make it a point to cover sickness or injury due to a terrorist event or a pre-existing medical condition. Critically, some policies will pay medical providers overseas on a direct basis so you can avoid hassles and red tape.

Travelers need to understand that there can be big differences in their coverage rights when they buy travel medical insurance. Some plans are licensed and regulated in the U.S. while others sit offshore: beyond the reach of your local Department of Insurance. U.S. licensed and approved plans are called “admitted insurance.”

Comparing admitted to non-admitted policies is truly an apples and oranges comparison. They are built very differently with important implications for the policyholder. Your personal health and financial security could hang in the balance.

The Advantages of Admitted Health Insurance include the following:

1. Consumer Protection – You are protected under U.S. insurance laws and oversight. U.S laws are strict and favor healthcare consumers. Policy language must be fair and meet the plain English definition. Policy wording, plan definitions, exclusions, claims turnaround times, formal appeals process etc. all must meet regulatory muster.
2. Global Provider Networks – What good is insurance if you can’t find a doctor you trust? The best plans give you access to the best providers. They set up providers to bill the insurance company directly. In addition, providers are selected based on their medical credentials, language proficiency and more. Always ask the insurer what their credentialing process entails.
3. Richer Benefits – Admitted benefits tend to be broader and deeper with fewer surprises at time of claim. The table below illustrates major differences between an admitted policy and a popular non-admitted policy.

When you are selecting a plan, ask yourself these questions in order to ensure you are getting the best and most complete plan available:

• Does it conform to U.S. health insurance laws?
• Are pre-existing conditions covered to policy limit?
• Is terrorism covered with no excluded countries?
• Is pre-certification not required for hos-pi-t-al-ization? (pre-existing conditions coverage may be subject to current enrollment in a primary health plan.)
Enjoy peace of mind with a well-built travel medical plan. As with everything in life, it is a good idea to do your homework. Always ensure that you read the fine print rather than just scanning a benefit schedule. Ask your broker or insurance company to send you a sample policy so you can get a complete picture of what you’re buying.
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Brendan Sharkey is director of individual programs for HTH Worldwide in Radnor, Penn, and is frequently called upon to discuss the travel insurance landscape. His most recent contributions include Forbes Magazine, CNBC Morning Television, The Wall Street Journal, USA Today, Consumer Reports Magazine, the Los Angeles Times and the Washington Post, among others. Brendan has a great number of partnerships in the online travel, benefit platform and search engine arena including Yahoo and Frommer’s. An avid traveler, Brendan has lived in Scotland, Canada, and Australia and holds a Bachelor of Commerce (Marketing) from Griffith University in Australia. Contact bsharkey@hthworldwide.com.