| August 10 2010
Tags medical tourism - canada - mexico - obamacare - UAW - health care - Patient Protection and Affordable Health Care Act
As more of us face the costs of higher out of pocket expenses for our health care, with rising deductibles, co-pays, and now medical savings accounts, more Americans are going abroad for medical and dental care, which many years ago, was only the privilege of the rich. Today, more middle income Americans are traveling to Mexico, Costa Rica, France, India, Thailand and many other countries now not to get cosmetic or elective surgeries, but for life sustaining surgeries and medical treatments for cancer, obesity, orthopedic, dental work and many others. The big question is now: with the changes in the health insurance laws has done to facilitate this demand, and what it could mean for Americans going forward. The Patient Protection and Affordable Health Care Act, often referred to as “ObamaCare”, has opened this door to medical tourism wider, especially for employer sponsored health care plans that are self insured. A self insured plan is where the employer (or a union such as in the UAW’s Voluntary Employee Beneficiary Association or VEBA) puts up their own assets as the funding for the health insurance claims of its employees, and may have an insurance company perform the necessary paperwork and administrative services. Self insured plans have the flexibility to pay for medical services outside the USA, and private insurance plans may eventually offer similar arrangements. In some southern States, private insurance companies are actually offering employers and self employed persons health insurance coverage at greatly reduced rates, if the insured agrees to get the majority of their health care in Mexico. The object here is to get quality care at much lower prices.
As baby boomers age, there is an increased need for more orthopedic surgeries such as knee and hip replacements. The American Academy of Orthopedic Surgeons estimates that knee replacement surgeries over the next 25 years will increase by seven fold. Also, there are many specialty treatments for certain diseases that are not offered in the USA and are already available in another country, including our neighbors to the north and south, and your American based doctor may already be familiar with these treatments, and may recommend them to you.
A major question has to be answered: is it safe? Is there any accrediting body to look to when evaluating a foreign doctor, hospital or other provider? Since 2006, the number of Joint Commission International accredited hospitals increased from 80 to 255. Quality concerns about crossing the border for care are beginning to fade. A greater amount of employee benefit plans are contracting with medical tourism companies to provide advice and access to foreign health care providers.
Presently, Medicare does not pay for health care outside the USA. Because of this, and cultural aspects, most American living abroad may choose to come back to the USA for care because of things like language, trust and ease of transportation. Private insurance plans may pay for care outside the States, and more will do so in the coming years. As more American health care providers establish facilities south of the border, the issues of language and trust are becoming less of an obstacle to considering health care abroad.
Medical tourism helps us to really understand and shop for health care both in and outside the USA, and for us to truly appreciate the costs of providing health care.
