Health Insurance for 'Halfpats'

Living in a country where you need to pay for medical services, adequate health insurance is a must. No one ever expects that a medical emergency will happen to them, but the need for health insurance has nothing to do with how well you feel or whether you take good care of yourself. One unforeseen illness or accident without insurance could quickly turn into a financial and/or medical disaster.

With an increasing number of expats signing up for local or ‘halfpat’ packages that do not include comprehensive health insurance from back home, more people are responsible for making sure they have adequate coverage. As medical costs and insurance premiums have risen, people sometimes look for ways to save money without understanding the risks involved.

The most common mistake I see in this regard is people trying to save money with low benefit limits or with sub-limits and exclusions on things like surgery and critical illness. These types of plans cover the small expenses you could afford, and then provide little financial help in a catastrophe. Insurance is most needed for potential catastrophes, and plans with low limits and exclusions could expose you to the same risks as if you had no insurance at all.

If you are looking for ways to save money on health insurance, here are three tips to consider:

• Increase your deductible – A higher deductible plan could significantly decrease your premiums compared to a low or no deductible policy. This means that you pay less on monthly premiums, but more out of your own pocket if you need medical care. Limit your maximum out-of-pocket to something you can afford, and have the insurance company cover everything beyond that amount.
• Geographical Restrictions – Due to the high cost of healthcare in the US, health plans that exclude coverage in the US can offer significant savings. This type of plan could be risky if you have plans to move to the US since any conditions you develop could cause problems when trying to switch to a US health plan. Another issue is that some of these plans will not cover emergency care in the US while visiting, which means you would need travel insurance for those trips.
• In-patient only – This is the type of coverage everyone needs at a minimum. In-patient generally refers to coverage for emergency hospitalization, but does not cover out-patient care (for example visits to a doctor’s office or clinic for a checkup).

Think about your coverage needs, the monthly premium you can afford, the potential risk you will accept, and the health of your family. The cost of health insurance varies considerably based on your health and age, on top of various plan features. Insurance brokers can explain what is available, and help you understand the differences between coverage. Research your different options, and you are likely to find health insurance that is right for you.