A late spring snow causes headaches for motorists, but you're packing for Cabo San Lucas. Warm beaches sound pretty good right now. But life doesn't stop when you go on vacation. If you become injured or ill while you travel, would your domestic insurance be able to assist with the bills? If you haven't asked, don't assume. Just setting foot beyond the boundaries of the United States creates a whole new world for insurance companies. Inexpensive international travel insurance can prevent a nasty incident from turning into a full blown nightmare.
But before you call your insurance company, a review of basic insurance jargon should help you know what questions to ask. There are many flavors of insurance, but here are a few:
Health Maintenance Organization (HMO): This is a type of insurance that depends on a specific network to maintain low co-pays for their members. Because of this, their ability to help with services outside the US is extremely limited.
Preferred Provider Organization (PPO): These plans have a network to reduce your costs but can pay claims out-of-network and may pay foreign claims. An experienced insurance customer service representative can explain the documentation necessary.
Point of Service (POS) Plan: These plans include provisions of both HMO and PPO plans. Ask an experienced customer service representative about foreign claims.
Foreign Claim: This is a claim made to a US insurance company for services performed in another country. Claims are based on where the services are done not where the provider's office is. Check with your insurance plan about coverage. You usually have to file the claim yourself. If the insurance company has questions, they will be asking you for answers. Always remember to make your own payment arrangements with the provider and get phone numbers to call for additional information.
Emergency Medical Evacuation: If a serious health situation arises, the providers at your vacation location may not be able to fully handle it. This can be because recovery will take an extended duration or because it is simply beyond their capabilities. The injured family member would then require evacuation to the US. This can be very expensive (think chartered plane possibly with medical staff aboard). Because these are rare, regular health insurance is not set up to cover evacuations even if they will cover foreign claims. Check on inexpensive travel insurance for the duration of your trip. There are many very good plans.
Here's wishing you a good and safe vacation.