You’ve decided to embrace the life of an expat or maybe become a Digital Nomad. One of the biggest questions that pop up is: “What about healthcare?”, especially as we age. It’s a valid concern, but don’t worry, there are several options out there for health insurance and alternatives for the over 50 years old who are traveling the world.
Understanding Travel Insurance vs. Health Insurance
First, let’s clear up the confusion between travel insurance and expat health insurance. Travel insurance is designed for emergencies during a specific trip, like if you break your leg. It covers emergency room visits, x-rays, and other immediate needs. Travel insurance often covers trip interruptions and travel related costs. However, this type of insurance won’t cover your regular medical check-ups or ongoing treatments.
On the other hand, health insurance for expats and digital nomads covers everyday medical needs, annual physicals, doctor visits, and potential emergencies, similar to the insurance you might have had through a American employer or the Affordable Care Act (ACA).
1. Expat Health Insurance
Expat health insurance is quite similar to what Americans are used to. Companies like World Nomads, MIG, and Safety Wing (my recommendation) offer plans tailored for international use (excluding your home country). These plans are often cost-effective and customizable. They can provide peace of mind that even if you need long-term care, you will have financial means.
Pros:
- Covers emergencies and regular healthcare needs.
- Provides proof of ability to pay, which some hospitals require.
- Offers peace of mind that expensive treatments are covered.
- Depending on the plan selected you can choose your doctor.
Cons:
- You may need to pay expenses upfront and seek reimbursement.
- Might not cover preexisting conditions.
- Does not typically cover medications.
- Can have deductibles that might not be reached due to lower healthcare costs abroad.
2. Crowd-Funded Healthcare Programs
Another option is healthcare cost crowdfunding programs like CrowdHealth, Medi-Share, or Christian Healthcare Ministries. These aren’t traditional insurance plans but alternatives where you pay a membership fee and get reimbursed for healthcare costs based on the plan’s criteria. One thing to note is that many of these programs are faith based. This is due to how these programs started as a way to provide financial means to missionaries for medical cost.
Pros:
- Often cheaper than traditional insurance.
- May cover pre-existing conditions.
- Allows choosing any doctor.
Cons:
- Plans can be confusing and may not cover all needs.
- Usually does not cover maintenance medications.
- Over 65 might not be eligible.
- Requires out-of-pocket payments with reimbursement claims.
3. Health Savings Account (HSA)
If you’ve built up an HSA over the years, you can use these funds while living abroad. HSAs are regulated by the IRS, so make sure you understand the conditions. Greenback Tax Services has great info on using HSAs as an expat which you can read here.
4. Self-Funded Savings Account
In many countries, quality healthcare is available at a fraction of U.S. costs. You can save money in a high-yield savings account to cover medical expenses out of pocket. This might be a great option for those who are younger or do not currently have concerns about long-term medical conditions. It is important to note that some countries do require you to carry health insurance to qualify for visas.
Conclusion
Whether you choose expat health insurance, a crowdfunding program, use your HSA, or self-fund through savings, there are several options to manage healthcare costs as an expat, digital nomad, or 50+ traveler. As we age, it’s crucial to understand and choose the right option for our needs. Explore these options, do your research, and find the best fit for your health and peace of mind while enjoying your travels.