November 9, 2009
Health Insurance Systems Around the World
As an international traveler, you must know that health insurance systems vary by country. To make your international trip smooth, it’s a good idea to know about how international health insurance systems work, especially if you’re planning a trip longer than a month.
If you fall ill abroad, you will probably have to pay first, and then get reimbursed by your travel health insurance company. Check whether your company has cashless billing at the destination-it might. Most countries have a combined public-private system, although a few have a totally private system.
In the United States, healthcare is almost exclusively funded by the private sector, and the government is involved in two major health insurance plans: Medicaid and Medicare. The system has come under heavy fire for being inefficient in spite of 16% of the GDP spent on healthcare. Private international insurance must be purchased by those needing healthcare coverage in the United States.
In contrast, the U.K. healthcare system is almost entirely funded by public insurance, with a few people (11% of the population) opting for extra private insurance for better coverage. Most people receive medical treatment for free, barring a few conditions-eye and dental treatment, for instance. international health insurance is a must for all international visitors.
France follows a social health insurance system, which covers all residents, whose paychecks are automatically charged. Supplemental private health insurance is common. Public hospitals are managed by a government agency. Visitors to France may require a Schengen visa and the international travel health insurance purchased should meet visa requirements.
The Singaporean dual healthcare system seems to be the toast of the world. While the country spends just 3.8% of its GDP on healthcare, it is one of the healthiest countries to live in. Because of the dual system, check what your international travel health insurance covers, and how to file a valid claim. In Singapore, most primary care is private and most hospital care is public.
Other countries have systems somewhere in-between the ones mentioned above. In India, for example, healthcare is provided free of cost at public hospitals; however, the quality of public healthcare is considered poor. Regardless of the destination, international travel insurance and knowledge of the terms and conditions set forth are a must.
If you’re traveling abroad, be sure to purchase the short-term or long-term international health insurance plan that is right for you. These plans are underwritten by industry leaders like Nationwide, Lloyd’s, and AIG.
Ray Sondeo often writes about international insurance.
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