Deductible
Most plans allow you to choose a deductible at the start. The deductible is the amount you have to pay at the time you claim before the insurer pays any benefits. In some ways it’s similar to the excess on a motor or home insurance plan. However, some health insurance plans don’t have a deductible and others only use them in certain situations.
By choosing a high deductible you’re reducing the insurer’s risk of paying larger amounts when you claim, which means they’ll charge you a lower ongoing premium. You can usually choose a deductible from nil up to the equivalent of around £5,000 to £6,000.
A deductible is a yearly amount regardless of the number of times you claim, so each anniversary it’s renewed and starts again, or you can choose to increase or reduce it at that time. In a lot of cases you may not even reach its limit for more straightforward treatments, but it’s there more as cover against a serious illness or injury.
Choosing a deductible depends on who you are and what you want from your medical insurance. If you’re financially secure, you may be quite happy to pay a high deductible. In this way you’ll end up paying for minor treatments yourself, but have the security of comprehensive insurance if you fall seriously ill or injured. This is particularly true for older people when the premium for them is higher anyway.
If you’re not quite as financially secure and feel you can afford the higher regular premium, but not necessarily the cost of treatment, you may opt for a nil or low deductible. This may suit younger people more, when the premium for them is lower.
Co-insurance and co-payment
Co-insurance and co-payment are both very similar and, like a deductible, they’re amounts you have to pay before the insurer starts paying any benefits. However, unlike a deductible, they aren’t optional and form part of the terms and conditions of a plan.
A co-insurance payment is the percentage of any health care costs you must pay, with the insurer paying the remainder. For example, you may be required to pay 20% of the costs of a particular treatment, while your insurer pays the remaining 80%. The amount you pay in each case can vary between different treatments, so always check the details carefully before agreeing to start a plan.
A co-payment is very similar, but instead of being a percentage it’s a fixed amount for each claim. For example, you may be expected to pay the first £100 towards the cost of a particular treatment. Again, check the details before agreeing to start a plan.
Most medical insurance plans include both co-insurance and co-payment for different treatments and is solely down to each insurer’s opinion in each case.
Hospital networks
Some insurers restrict where you can be treated by insisting you use their network of hospitals and clinics around the World. This is fine when you’re in a developed country or a large town or city, but can be a nuisance if you’re off the beaten track.
However there are insurers who’re more relaxed about where you’re treated. As long as you let them know what’s happened and where you’re going before you’re admitted, they’ll liaise with the doctors and surgeons during your time in hospital and even as an outpatient. Some even employ senior specialists themselves who’ll discuss your treatment with the hospital doctors to make sure you get the best treatment possible.
Whatever you want from your international medical insurance, make sure you research the market carefully and understand the different, and sometimes complicated, options available. Alternatively, use an international insurance broker to do it for you. You certainly get what you pay for and you don’t want to find out when it’s too late the plan you’ve got doesn’t do what you need it to.
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