The Daily Telegraph has a very intriguing article on the mindset of health insurance companies dealing with insurance fraud overseas for expats. Since healthcare is often cheaper overseas, particularly in the developing world, it is common for medical professionals to charge a lower rate for cash paying patients, and a higher rate for patients paying through insurance. You have probably seen this type of activity when taking your car in for body work (I know I have).
Insurance companies argue that this fraud forces them to raise premiums. Now I know the Daily Telegraph is a bit of a pro-business title, and the sympathy of the story will be with the insurance companies, but I think it is reasonable to assume that a percentage of rising premiums comes from having to deal with insurance fraud. How much though is anyone’s guess.
The article is a very good overview of how health insurance companies treat expats and their claims. In general, expats will claim more on their health insurance than other forms of insurance simply due to the fact that people visit the doctor more regularly than they crash their car for example. Health insurance companies are looking at ways of reducing claims though, and one company has stepped forward to give a “no claims” option for policy holders in order to reduce their premiums. So if you hold off on going to the doctor, or pay cash for treatment, your premium will be reduced next year. This is similar to a “good driving” bonus for auto insurance, rewarding those drivers who get into fewer crashes and get fewer tickets.
What the article neglects to say is that overseas health insurance is generally not guaranteed. Unless there are laws in the country you live in that demand that insurers not drop coverage of a patient under any circumstances, health insurance for expats in no way is guaranteed in the event of an expensive procedure or terminal condition. Expats need to understand that they may face the prospect of flying home for treatment and could face an expensive evacuation by airplane. That is why I always recommend that expats keep evacuation insurance in addition to their local health insurance. Expats should also keep their home health insurance valid by whatever means are available.
