Expat Health Insurance: What to Know Before Moving Abroad
As an expat, getting the right health insurance is key. Insufficient coverage could leave you paying out of pocket for routine healthcare and medical emergencies. In this guide, we will explore your options for expat insurance and tips for selecting the right policy for your unique needs.
Why Expats Need Health Insurance Abroad
For American expats, relying solely on local health insurance in a foreign country is often a risky decision. Local health plans may not include comprehensive coverage for foreign nationals, leaving gaps in essential healthcare services.
Worse still, you might not know about these gaps until it’s too late. In countries with expensive healthcare systems, uninsured individuals may face prohibitive medical expenses for both emergencies and routine care. If you have insufficient coverage, you could end up stuck with an unpayable bill.
Many countries also mandate health insurance for expats as part of the visa or residency process to ensure they do not burden the public healthcare system. In these cases, not having adequate health insurance could bar you from entering or staying in a foreign country.
Benefits of Expat Insurance
Expat health insurance plans offer a broader range of benefits that cater to specific expat needs. These may include access to English-speaking doctors, emergency medical evacuation, and repatriation services to bring individuals back to their home country if necessary. These plans can also provide access to specialized care, such as mental health support or maternity services, which may not be available through local insurance options.
Many expats frequently travel between countries, whether for work, leisure, or visits home. Expat health insurance can offer coverage that extends across multiple countries, ensuring that individuals are protected no matter where they go. For those who travel frequently, this kind of flexibility is invaluable, as it offers a seamless healthcare experience across borders.
Types of Expat Health Insurance
Choosing the right type of health insurance is essential for ensuring you’re covered for all potential medical needs in your new home. Here’s an overview of your options.
Local Health Insurance Plans
Local health insurance is typically the most affordable option for expats who are planning a long-term stay in a single country. These plans often provide basic coverage for general medical care within that country, making them a cost-effective choice for routine healthcare needs.
However, while local plans are generally more affordable, they come with limitations that may not suit the needs of all expats. Coverage is often restricted to the host country, which means expats might not be insured when traveling outside the area. Additionally, local plans may lack some of the specialized services that expats require, such as access to English-speaking medical professionals.
International Health Insurance Plans
International health insurance plans are tailored for expats and digital nomads who may live or travel in multiple countries throughout the year. These plans offer comprehensive worldwide coverage, allowing individuals to access medical care wherever they go, whether it’s in their host country, a neighboring region, or even back home. International plans typically cover a wide range of services, including emergency care, routine check-ups, and specialty treatments.
While these plans offer broad coverage and flexibility, they are usually more expensive than local health insurance. These added costs can be worth it for the enhanced benefits and peace of mind international health insurance can provide.
Short-Term Travel Insurance
Short-term travel insurance is designed for individuals who are abroad temporarily and need coverage for unexpected medical needs or emergencies during their stay. These plans are ideal for expats on short-term assignments, business trips, or those who plan to live abroad for only a few months. Short-term insurance can be a cost-effective solution for covering emergency healthcare without committing to a long-term plan.
Short-term travel insurance is not suited for long-term residents as it typically lacks coverage for routine and preventive care, ongoing prescriptions, or complex medical needs. It is also generally limited to emergency and acute care, meaning it’s not suitable for those with chronic health conditions requiring regular treatment.
Comparing Types of Expat Health Insurance
| Insurance Type | Average Cost | Scope | Coverage |
| Local health insurance | Lower | Country-specific | Routine basic care |
| International health insurance | Higher | Worldwide | Comprehensive, including emergencies and specialized services |
| Short-term travel insurance | Moderate | Worldwide, limited/ temporary | Comprehensive for a short stay overseas |
Factors to Consider When Choosing Expat Health Insurance
Coverage Area
Assess whether you need worldwide coverage or if a more regional plan will suffice. Some plans provide global coverage with the option to exclude high-cost regions like the US, which can lower premiums. This decision often depends on how frequently you travel outside your host country and whether you may need medical care in specific locations.
Coverage Limits and Common Exclusions
Each insurance plan has maximum annual coverage limits, which set a cap on the amount the insurer will pay out each year. If you expect high medical costs, a plan with higher coverage limits will be important. Review common exclusions like pre-existing conditions or certain elective treatments to understand what won’t be covered under your plan. If you have any ongoing medical needs, look for plans that either cover or offer add-ons for these specific services.
Network of Hospitals and Clinics
Some expat health insurance plans include a network of recommended or partnered hospitals and clinics, ensuring that you’ll have access to reliable medical services within your coverage region. Look for plans that offer a strong network of providers in your area, and confirm whether these facilities offer services in your preferred language or are accessible in emergencies.
Cost-Sharing Components
Deductibles, co-pays, and other out-of-pocket expenses can impact the affordability of a plan. For example, higher deductibles may reduce premium costs, but they require you to pay more upfront before insurance kicks in. Evaluate your budget and health needs to decide what level of cost-sharing you’re comfortable with, as it directly affects your out-of-pocket costs each time you access care.
Optional Benefits
Expat health insurance plans often allow for add-ons that cater to specific needs, including:
- Dental
- Vision
- Maternity
- Mental health services
Many expats find these optional benefits valuable. Additionally, look into repatriation and evacuation services. These benefits can cover the costs of emergency transport back to your home country or the nearest adequate medical facility in case of a severe illness or injury.
Policy Renewal Terms and Flexibility
Some plans come with fixed renewal terms, while others allow for flexible adjustments or annual reviews. If you’re unsure about how long you’ll remain in your host country, choosing a plan with adaptable renewal terms can offer the flexibility to adjust coverage as your situation changes. Ensure you understand any potential changes in premium costs or coverage restrictions upon renewal, as this can affect your plan’s affordability over time.
Expected Costs of Expat Health Insurance
The cost of expat health insurance varies significantly based on different factors. The biggest factor is usually location. Below are the average annual health insurance costs in several countries for comparison.
| Country | Average health insurance cost for individuals (annual) | Average health insurance cost for families (annual) |
| United States | $15,296 | $34,152 |
| Hong Kong | $8,339 | $23,558 |
| Singapore | $6,855 | $19,879 |
| Dubai | $5,896 | $17,670 |
| Taiwan | $5,710 | $15,891 |
| Israel | $6,317 | $17,530 |
| Mexico | $5,485 | $15,480 |
| United Kingdom | $5,770 | $15,936 |
| China | $5,915 | $19,188 |
| Spain | $5,193 | $14,417 |
| Poland | $3,900 | $10,710 |
| Thailand | $4,695 | $18,027 |
Other factors can influence insurance costs, such as:
- Age: Premiums typically increase with age due to higher health risks.
- Coverage: Comprehensive plans with extensive benefits and higher coverage limits are more expensive than basic plans.
- Geographic scope: Plans offering worldwide coverage, especially those including the United States, tend to have higher premiums due to the high cost of healthcare in certain regions.
- Medical history: Pre-existing conditions can lead to higher premiums or exclusions, depending on the insurer’s policies.
Tips for Finding the Right Expat Health Insurance Plan
Assess Personal Health Needs
Start by taking stock of your health needs and lifestyle. If you have ongoing medical conditions, need regular prescriptions, or require access to specialists, look for plans that offer robust coverage for these specific services. For families, consider plans that include family-friendly benefits like pediatric care, maternity services, and dental coverage.
Use Insurance Comparison Sites
Comparison sites are valuable tools for quickly assessing and comparing multiple insurance plans. These tools allow you to view options from different providers and compare coverage, exclusions, and costs side-by-side. They streamline the process and help you evaluate which plans offer the best balance of coverage and affordability.
Research Provider Reputation
Reputation matters, especially when it comes to healthcare. Read reviews from other expats to understand their experiences with different providers. Look for feedback on claims processing, customer service, and responsiveness — all factors that can impact your experience when you need care.
Examine Policy Details Carefully
Insurance policies can be filled with complex terminology, exclusions, and limitations. Before finalizing your choice, carefully read the policy documents to fully understand what is and isn’t covered. Pay close attention to coverage limits, renewal terms, pre-existing condition exclusions, and any specific limitations on benefits like emergency evacuation or mental health care.
Common Questions About Expat Health Insurance
Is International Health Insurance Necessary for All Expats?
While not mandatory for all, international health insurance is highly recommended to ensure access to quality healthcare and financial protection abroad.
Can I Use Local Health Insurance Instead of an Expat Plan?
Local health insurance may suffice for some, but it often lacks the comprehensive coverage and flexibility that expats require, especially for international travel.
What Happens if I Have a Medical Emergency Abroad?
Without appropriate insurance, you may face significant out-of-pocket expenses and limited access to quality care. Expat health insurance provides coverage for emergencies, including medical evacuation if necessary.
Greenback Can Help with Your Expat Health Insurance
When moving overseas, finding the right health insurance is key to protecting your health and finances. By researching your options, you can find a plan that aligns with your health needs and lifestyle.
At Greenback Expat Tax Services, we give Americans around the world the support they need to manage their finances abroad. For personalized advice, contact us today, and our customer champions will be happy to answer all your questions.
