What You Need to Know About Healthcare Costs in the United States
Visitors to America are often cautioned to purchase a health insurance plan prior to their visit. Often this encouragement is accompanied by stern warnings, even horror stories, about healthcare costs in the USA. People talk about outrageous bills for the uninsured party who finds themselves in trouble. But these dramatic stories do not really reflect the cost of healthcare in the United States - or do they? Here’s what people need to know about the costs of healthcare in America so they can make the best choices for their travel needs.
Despite its mixed reputation, healthcare in the United States performs exceptionally well in many regards. For instance, it has the best outcomes in the world for surviving a heart attack or stroke, though it does not do well when it comes to diabetes and asthma.
Waiting times, a concern in many countries with advanced health care systems, are less of a problem in the United States. Preventative health care spending is only marginally lower than that of other industrialized nations. Overall, the standard of healthcare in the United States is very high, but that may be of little comfort when a traveler is faced with an astonishing bill.
US Health Insurance Plans Coverage and Costs of Insurance in the USA
Visitors to America are often cautioned to purchase a health insurance plan prior to their visit. Often this encouragement is accompanied by stern warnings, even horror stories, about healthcare costs in the USA. People talk about outrageous bills for the uninsured party who finds themselves in trouble. But these dramatic stories do not really reflect the cost of healthcare in the United States - or do they? Here’s what people need to know about the costs of healthcare in America so they can make the best choices for their travel needs.
Despite its mixed reputation, healthcare in the United States performs exceptionally well in many regards. For instance, it has the best outcomes in the world for surviving a heart attack or stroke, though it does not do well when it comes to diabetes and asthma.
Waiting times, a concern in many countries with advanced health care systems, are less of a problem in the United States. Preventative health care spending is only marginally lower than that of other industrialized nations. Overall, the standard of healthcare in the United States is very high, but that may be of little comfort when a traveler is faced with an astonishing bill.
US Health Insurance Plans Coverage and Costs of Insurance in the USA
What Are the Costs of Typical Medical Procedures in the USA Without Medical Insurance?
Below is a list of some of the more typical medical services that clients require, along with their costs. Please know that these are estimates and the actual costs will vary state by state or by the healthcare facility providing the services. The infographic below will give you a good overview of the various costs you may incur when visiting a doctor or hospital, especially when you do not have health insurance for non-US citizens.
Common Costs for Health Services in the USA
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What is the Cost of an Emergency Room Visit?
Should you become ill and in need of emergency care, the costs will start adding up right away. An ambulance to take you to the hospital will start at $400. If tests are required, additional costs of $100 - $500 are typical. Should you need to spend the night, an additional charge of $5,000 might be added to your bill. With medications to treat your illness, the cost of an emergency room or ER visit in total may cost $6,000 or more!
How Much is a Doctors Visit in the United States?
A visit to the doctor's office is relatively affordable. However, if you are ill, additional costs will become expensive quickly. An initial consultation with a doctor will cost around $100 - $200. Visits to specialists are typically more expensive depending on their specialty and the nature of your visit. On average, specialists will charge $250 or more for a consultation.
What Is Behind Healthcare Costs in the USA? Why Are Medical Prices So Expensive?
Whether you are a local or a traveler, you cannot deny that healthcare in the United States is expensive. According to USA Today: “The total costs for a typical family of four insured by the most common health plan offered by employers will average $28,166”. In terms of real dollars and earnings, these prices are keenly felt by the average person.
The cost of deductibles and premiums has grown at a faster rate than income. Deductibles (the amount you pay before your insurance starts to pay for covered services) grew by 63% from 2011 to 2016, while premiums increased by 10% to 20%. On the other hand, worker earnings grew by only 11%. These figures alone prove how expensive healthcare in the USA has become and why even residents have a hard time paying for hospital bills.
The high costs of medical service are not the result of one particular challenge but rather a combination of factors that all contribute to increasing the bottom line. As CNBC noted; “...drugs are more expensive. Doctors get paid more. Hospital services and diagnostic tests cost more. And a lot more money goes to planning, regulating, and managing medical services at the administrative level.” These factors, when put together, create a situation that makes it hard for the ordinary person to pay for medical care, especially when they do not have any health insurance in America to cover their expenses.
The Cost of Medical Care in America With Insurance
If you never go to the doctor, then you will not experience these high costs. Many people feel comfortable taking that risk. But for the majority, the risks are too high.
The best way to offset that risk is to purchase an international health insurance plan. Although a plan requires you to pay a fixed amount even if you never go to the doctor, it will cover your costs for the services detailed in the policy. A high-quality health insurance plan will cover all your costs, minus a deductible, excess, and/or co-pay (the fixed amount you pay for a covered service such as a doctor's office visit - even after you've met your deductible). Plans with higher deductibles and co-pays tend to have lower monthly fees, and vice-versa.
Depending on the plan you choose, all your costs could be covered without limit. But there are certain plans that will put a cap on how much they will pay for your medical expenses. This is called a medical maximum.
Choosing a health insurance plan in the USA with a lower medical maximum will lower your monthly premiums but you will take on additional risks in exchange. If your medical bills exceed the maximum, any additional costs will be your responsibility.
Due to all these factors, the cost of health insurance in America will vary. The cost of an international health insurance plan will be much greater than the cost of a travel medical insurance plan because the former offers more comprehensive coverage. Typically, our clients pay an average of $500 per month for comprehensive global medical health insurance. Compared to paying a $10,000 medical bill out of your own pocket, you can deduce that these premiums are reasonable.
Cigna Global Insurance Plan
- The flexibility to tailor a plan to suit your individual needs
- Access to Cigna Global’s trusted network of hospitals and doctors
- The convenience and confidence of 24/7/365 customer service
Common Costs in the USA vs Other Countries
How do the high costs of healthcare services impact the price of common medical procedures and treatments? Let’s look at the cost of an MRI, a frequently used diagnostic tool. (All costs listed are from the most recent survey by International Federation of Health Plans.)
The average cost of an MRI in the United States is $1,430. In Holland it's $190 while in New Zealand the price falls in the middle at $750.
The average cost of an angioplasty, which inserts a stent in a blocked blood vessel, is $32,200 in the United States. Meanwhile, in Switzerland, famous for both its high cost of living and its near-perfect health care standards, it's only $7,400.
When you take all of these into account, a common malady among travelers like abdominal pain suddenly becomes very costly. It will require diagnostic imaging and 24 hours of observation, which as discussed above is astronomically expensive. This is just for the diagnosis and very little has been done in the way of treatment and care.
If that abdominal pain is found to be caused by an inflamed appendix that requires immediate surgery, it will cost you an average of $15,200 in the United States. If you are in cost-friendly South Africa, it will be a meager $3,200. On the other hand, things will be a bit more expensive in the UK at $5,100 - that is still over $10,000 less expensive than getting the same treatment in the United States!
On the more dramatic end of the scale, both in terms of pricing and health risks, a bypass operation costs an average of $78,100 in the United States. In Holland, it will cost only $11,700. Either way, the cost of the operation is still far too expensive than what the average person can afford. Getting treated in Holland, however, will be far less likely to cause medical bankruptcy compared to when you undergo the same procedure in the USA.
How Can You Cover Your Medical Costs in the USA?
So what can a frugal traveler or expat do? How do you reduce the cost of receiving proper health care without sacrificing quality or convenience?
Firstly, reassure yourself that common over-the-counter medications and first aid supplies are widely available and very affordable in the United States. Headache medication, mild heartburn medication, muscle cream, sinus decongestant pills, and skin ointments are all available for under $25; sometimes they're as cheap as $5.
A chat with a pharmacist is always free and they can provide sound recommendations for treating non-urgent, minor conditions. A bad cold is no more costly in the United States than it is in most other countries.
Secondly, make sure that you have health insurance in the USA. As you've seen up above, if you are traveling and fall ill, a relatively uncomplicated problem like an inflamed appendix can cost several times more than the trip itself. For non-residents, there is health insurance in the USA for foreigners that can greatly reduce costs of medical services, especially when you need them.
You do not need to face a life-threatening problem and then get slammed with sanity-threatening costs after. There is a wide variety of insurance products and packages designed for travelers. They range from the extremely comprehensive and inclusive to the more streamlined option, with a focus on coverage for the most serious and expensive of emergencies.
There is also health insurance for non-residents that can provide basic coverage for the most common ailments. This could be very helpful since healthcare in the USA is some of the most expensive in the world.
A medical emergency is stressful enough when you are traveling. You do not want it to ruin your life as well as your trip. Get health insurance in the USA to avoid headaches and astronomic costs.
Xplorer Worldwide Medical Plan
- Premium Benefits, Coverage and Service
- Define your deductible and prescription benefits
- For Foreigners in the US or US Citizens Abroad
