Many federal employees and retirees are planning to travel overseas in the summer and fall. There is always lots of planning associated with traveling, especially when it comes to overseas travel. No one likes to think about getting sick or injured while they are on vacation, but it happens. While vacation is supposed to be a time of fun and relaxation, accidents and sickness can occur. For this reason, federal employees and retirees are encouraged to check their health insurance coverage before they travel overseas, and, if necessary, purchase travel insurance.
Federal employees and retirees enrolled in the Federal Employees Health Benefits (FEHB) program are advised to check with their FEHB health insurance plan and ask the plan what type of insurance coverage they have should they or members of their immediate family become ill or experience an injury and need to seek medical care overseas. Employees and retirees should first read the FEHB health insurance plan’s brochure for specific information on the plan’s coverage on overseas travel. Some FEHB health insurance plans may require a plan enrollee who experiences overseas health care to pay the hospital and doctor bills themselves and then file for reimbursement.
Those federal retirees who are also enrolled in Medicare should be aware that Medicare usually does not cover healthcare expenses that a Medicare beneficiary experiences overseas. There are some exceptions listed on the Medicare web site.
In order to avoid any surprises when traveling abroad, federal employees and retirees are advised to purchase separate travel insurance. The following is what most travel medical insurance policies cover:
• Emergency medical expenses including ambulance services, doctor and hospital bills, x-rays and lab tests.
• Medical evaluation.
• Prescription medications, and
• 24-hour assistance services.
Travel medical insurance does not cover expenses incurred as a result of routine medical exams, elective care, extreme sports injuries or intoxication. Typically, pre-existing conditions are not covered.
Types of travel medical insurance policies
There are a number of policy types when deciding on a travel medical insurance policy, including:
• Single-trip coverage. A single-trip insurance policy provides coverage for a single trip, from the time of departure until the individual returns.
•Multi-trip coverage, also known as annual trip insurance. Mutli-trip coverage covers all trips during a calendar year, as long as each trip does not exceed a certain number of days.
• Primary coverage. The travel medical insurance will pay out before any other health insurance, such as FEHB program health insurance, and
• Secondary coverage. Claims are first filed with one’s existing health insurance provider; for example, for federal employees and retirees – the FEHB program health insurance plan. If the FEHB program health plan does not provide coverage overseas, or cannot cover all expenses, then a claim will be filed with the travel medical insurance company.
When should travel insurance be purchased?
According to a study conducted by GEOBlue (an independent licensee of Blue Cross Blue Shield who offers health insurance for international travelers), approximately one in four individuals have had medical issues while traveling overseas that require medical care. The study also found that 76 percent of consumers either do not know how they would pay for medical treatment abroad or likely will not have adequate coverage. About 46 percent expect to use their existing domestic health insurance plan.
Federal employees and retirees enrolled in the FEHB program and who intend to travel outside of the US are advised to purchase some form of travel medical insurance, even if they and their families are in good health. In so doing, they will not be stuck having to pay medical bills up-front and getting reimbursed from their FEHB program health insurance plan at a later date. Hospital bills that have to be paid could amount to tens of thousands of dollars.
Who offers travel health insurance policies and what are the costs?
GeoBlue Worldwide Insurance, Cigna Global, and Square Mouth Travel are some of the insurance companies that offer travel health insurance policies. American Automobile Association (AAA) members can also purchase travel health insurance policies from the AAA as part of their membership benefits.
The cost for travel health insurance policies depends in part on whether individual coverage or family coverage – including coverage for family members such as a spouse and children.
According to Travelers.com, travel health insurance policies average in cost between $40 and $80 but higher coverage limits and longer coverage terms typically increase the cost of the policy.
Before purchasing any travel health insurance policy, federal employees and retirees should carefully review the policy details including coverage limits and possible exclusions. In so doing, they and their family are able to travel overseas and be protected in case of an unexpected accident or illness.