Short Term Health Insurance for Travelers
The majority of Americans covered by health insurance plans are members of network-based programs like HMOs. These policies limit payment for services to a specific group of providers within a pre-defined geographic region. Payment for any care received from a non-network provider will be entirely the responsibility of the patient. Even plans with out-of-network benefits, like PPO policies, still only pay domestic physicians and facilities. However, all health insurance programs contain provisions stipulating their obligation to pay for legitimate emergency services, regardless of where the emergency occurred, but such benefits are limited to only the actual ER treatment and do not include subsequent or follow-up issues. For this reason, short-term health insurance for travelers is available to cover these gaps and replace limited primary benefits.
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Policy Duration
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Travel insurance policies can be customized to meet individual needs, and coverage durations can be chosen ranging from two weeks to two years. Any medical incidents occurring within the chosen duration become the financial responsibility of the travel insurance provider. Policies are usually renewable with a simple telephone call to the carrier, reducing any inconvenience if a vacation or business trip lasts longer than expected.
Maximum Coverage
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Limitations exist on travel insurance policies that may not be present on primary health care policies, as these products are intended to be used a temporary coverage and not full-time replacement of existing benefits. Most short-term health insurance for travelers has a maximum coverage amount clause in the contract, which states the consumer’s benefits have been exhausted, and no further invoices or claims will be paid, when the carrier has spent a total of $500,000 on medical treatment. Higher maximum benefit amounts can be purchased at the discretion of the customer.
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Deductibles, Co-Insurance and Co-Pays
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Like many of their managed care policy cousins, travel health insurance plans contain deductibles, co-insurance and co-pays. In the event that treatment is required, the customer is obligated to pay a deductible amount before the carrier will contribute, and even then a portion of the remaining balance, called co-insurance, is still the responsibility of the traveler. Most travel insurance carriers have multiple available options regarding deductibles, co-insurance and co-pay amounts.
Emergency Evacuation
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A common feature that is seen in many short-term travel health care policies is a specific benefit pertaining to emergency evacuation. If a covered individual is injured or becomes seriously ill and requires treatment that can only be administered at home, the insurance carrier is obligated to pay for any and all arrangements related to the evacuation. Some travel insurance providers will make such arrangements on behalf of the client if the need arises, while others will simply reimburse customers upon receipt of valid proof the evacuation occurred.
Limitations, Restrictions and Exclusions
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Travel insurance policies contain many of the same limitations found in other health insurance plans. Benefits will not be paid for medical treatment received due to pre-existing conditions, illegal activity or dangerous sports or hobbies. Additionally, most travel insurance policies exclude payment for expenses arising from terrorism or war, including riots, melees, insurrections, and protests or similar demonstrations.
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References
Resources
- Photo Credit travel image by Anton Gvozdikov from Fotolia.com
