Rising healthcare costs are forcing modern consumers to search for different ways to reduce expenses and still get the medical service they need. In recent years another solution has appeared. Medical tourism has people living in one country and traveling to another to seek medical, dental and surgical care.
With the globalization of factories, farming and finance, it is inevitable that yet another major industry like healthcare would join the ranks.
Healthcare is Going Global
There’s actually nothing new about medical tourism. The direction of the flow is what is new. Historically, people from poor countries traveled to wealthy ones in search of advanced medical attention. The flow is reversing today, as people from wealthy countries now hunt for affordable healthcare in less developed areas where it tends to be less expensive.
What may be even more noteworthy is the prospect of Americans going overseas for medical care, particularly to poorer countries. For generations, the U.S. was seen globally as the country to get the best medical care almost regardless of where in the world a person lived. But today, the Centers for Disease Control (CDC) estimates 750,000 Americans go overseas for treatments annually.
This follows the pattern of other major industries. Just as manufacturing firms relocate in search of low-cost labor, healthcare now snakes around the globe looking for similar cost advantages. Two factors enabling this are the large number of students from poor nations attending medical school in rich countries, and the growth of the Internet as a universal information source.
The Huffington Post’s online travel blog posted seven articles in the last year on medical tourism. The World Medical Tourism Global Healthcare Congress is scheduled for Washington, D.C. in September though its website appears to be for travel professionals rather than for patients.
There is now even a trade association – The Medical Tourism Association – with its own website. There are success stories, ads for guide books, and an upcoming industry events listing. Separate sections offer material for healthcare providers, governments, insurers, and patients.
Why Even Consider Medical Tourism?
Patients travel overseas seeking a high quality of healthcare, affordability, and access of care, but the most basic reason to go to a third-world country is the cost. In many developing countries, one can have major surgery for a small percentage of the cost in the U.S., Canada, Japan, or Western Europe.
But there other reasons going beyond cost.
Most elective surgery – such as cosmetic surgery, certain dental surgeries, and even hip replacements – are not covered by insurance in the U.S. But if the cost is much lower overseas, you might elect to make the trip for surgery.
There may also be procedures, such as fertility, cancer treatments or other therapies not approved in the U.S. or in other rich countries. A couple desperate to have a baby, or a terminal patient looking to participate in experimental cures, might find attractive options in a poorer nation.
Even in countries with single-payer national health insurance, medical tourism is growing. In such systems, surgeries involving non-life-threatening illnesses and injuries can land you on a waiting list lasting for months or years. Many people then seek relief through medical tourism.
The rollout of Obamacare – and the prospect of it ultimately transitioning to a single payer format similar to other countries – is also stoking interest in the U.S. As well, the growth in compliance and regulation as a result of the new healthcare law has caused a number of doctors and other healthcare practitioners to either abandon the medical field or threaten to do so. Medical tourism is increasingly seen as a viable option against the prospect of a smaller field of providers.
How Much Can You Save With Medical Tourism?
A major medical procedure performed in a foreign country may cost less than the out-of-pocket costs for the same procedure in the U.S. – to say nothing of the possibility of a claim disallowed after the fact for some unimagined reason. For example, a heart bypass surgery might cost over $150,000 in the U.S., but can cost less than $10,000 in India.
In general, poor countries have lower medical expenses than the U.S. and other western countries. In addition, they typically are not subject to the threat of legal action as medical practitioners are in America. It’s possible to have not only a major surgery in a third-world country, but also to pay less for of transportation and accommodations.
The Medical Tourism Association touts that with its membership you could “save up to 90% on medical expenses.” Annual dues appear to range of $2,000 to $5,000.
The Most Popular Destinations
The list of what we might call “hot” medical tourism destinations varies from year to year, and is also largely determined by the type of treatment or surgery. There is no one country as a haven for medical tourism, however, Mexico, Costa Rica, India, the Czech Republic, Thailand, Malaysia and South Korea keep coming up on various lists.
Consider two factors influencing the country you choose to seek for medical care . . . .
The first is the quality of care related to specific illnesses, ailments, or injuries. This can vary staggeringly from country to country. Narrow your choices down to the one, two or three countries offering the best care for your need.
The second consideration is cost. Even in poor and developing countries, the cost of certain medical care can change substantially from one country to another. This isn’t to say you want to look for the lowest cost destination; you want to balance out cost with the quality of care.
For Better or Worse, Medical Tourism is Gaining Acceptance
As medical tourism becomes more popular it’s also gaining acceptance. There are agencies, commonly called medical tourism providers, who coordinate your surgery and travel. They handle every detail of your trip, often including potential follow-up sources once you are back home. One site, advertising on Google searches, is MedToGo.com, which seems to specialize in Mexico as a destination.
Payment will typically be in cash since there is no insurance company paying or acting as an intermediary. However in the past few years, some health insurance providers have dipped a toe into the medical tourism phenomenon. Companies such as Blue Cross/Blue Shield of California, Blue Cross/Blue Shield of South Carolina, and Anthem Blue Cross/Blue Shield of Wisconsin have at least experimented with limited participation in medical tourism.
In addition, some independent employers encourage the use of medical tourism as a way of reducing health insurance costs. But as a general rule, at this stage of the game you should expect very little assistance from any institutions in the U.S.
The CDC issues the following risks associated with medical tourism:
- Language barriers that could cause treatment problems.
- Transmission of diseases, such as HIV, from reuse of syringes.
- Unregulated and/or poor quality medications.
- Anti-biotic resistance may be more common in some countries than in the U.S.
- Questionable blood supply.
- Flying after surgery increases the risk for blood clots.
Still, medical tourism seems destined to follow other major industries into greater public acceptance.
Have you ever sought medical care outside the U.S., or are you even facing such a decision right now? Leave a comment!
I’m just leaving a comment to stay in the loop. I want to be notified of all comments as some day, I may need something. I’m thinking out of country services would be needed for those that do not have insurance or those that want something done that is not covered, such as cosmetic surgery.
Hi Joe – Cosmetic surgery is one of the major reasons for medical tourism. Since it’s not covered by health insurance anyway, people naturally seek the lowest cost ways to get it.
OOps. I forgot to hit the “notify me” button. Again, I would like to see the comments.
Thanks for the article Kevin! I’ve never been in a position to have to go overseas for treatment but I can see how someone with a desperate situation might decide to do so. I had no idea the number seeking treatment overseas (750,000) was so high. My guess is that as more and more go (and take their money with them to these countries) the facilities will become increasingly more advanced. I could see this becoming a mainstream option considering the potential decline/confusion/cost of the healthcare system in the U.S.
Hi Brian – I basically agree. As medical tourism becomes more popular it will gain mainstream acceptance. I remember when Japanese cars came out in the 1970s, and a lot of people had a dim view of them. But by the 1980s, they were considered to be almost premium cars. Everything is going global so that shouldn’t surprise us.
Great article. I saw a segment about this on a show like 60 minutes or 20/20 (something like that) several years ago where people were travelling to countries like India to have major surgery performed because their insurance wouldn’t cover it or it was significantly more expensive stateside. These were people who were able to take extended time off from their work so they could re-cooperate for extensive time frames after their procedure. The segment went on to say that in most cases the patients had better healing and recovery because they were more relaxed and were able to have R&R like a vacation without the stress of worrying about work, bills, etc.
Hi Kim – I’m sure it comes with risks, but I could see advantages in going overseas. Some countries are beginning to specialize in certain procedures, so we may see, say heart operations concentrating in certain countries. Everything is changing, so we can’t dismiss anything out of hand.
Terrific article! Medical tourism is just one of the many options available to self-pay patients looking to get affordable healthcare outside of the conventional insurance/third-party payer system. There are also some domestic medical tourism options, like Medibid and North American Surgery.
The most important thing to remember is that not having insurance, or having insurance that won’t cover what you need, is not the final word – there are additional options out there!
Hi Sean – Well said, we all need to create options in a system that is increasingly limiting our choices. That said, your site, The Self-Pay Patient, is fast becoming an authority site on healthcare options. Keep up the good work my friend!
Thanks, Kevin – let me know if/when you want to do a guest post again on my site!
Great article!
Has anyone assessed whether consumer controlled HSA or employer provided HRA funds could be utilized to foot the cost of medical travel? From what we’ve been able to find in our research as service providers in this space, there’s nothing that seems to say these funds couldn’t be used, meaning there’s also a tax reason for utilizing medical travel.
With the ACA Registration deadline coming up on Monday, March 31st, it would stand to reason that people should seriously consider review of High Deductible Health Plans that allow for a Health Savings Account (HSA).
Hi Woody – I didn’t come up with any such allowance in my research, nor have I have heard of it in any other way. It would be an excellent question for the plan administrator. My guess is that it’s an area that hasn’t been tested. I’d have to guess that it would be all over the web if it were permitted. That would be quite a loophole!
I did find one article that said medical tourism is permitted under an HSA for the purposes of finding less costly care, but it didn’t specify if that includes travel to foreign destinations, particularly for procedures that aren’t approved in the US. It seems like it’s a gray area at the moment.
Yes, I also heard about medical tourism or health tourism, I have also read that one reason to travel for medical treatment is because some treatments may not be legal in the home country, like any fertility procedures.
Hi Marie – That is true. An accounting firm I worked for years ago supported a client that was doing HIV treatments in Mexico, because at the time the US FDA was slow to approve various treatments. Not only did the center have a decent measure of treatment success, but it was also a financial success. The combintation of lower (or non-existent) regulations and lower operating costs gave the center a fighting chance.
We may have to accept that the US isn’t necessarily the best location for all medical procedures and treatments, particularly from a cost standpoint.
What happens if something goes wrong? I don’t know about you, but I want to be in the USA with family and friends if there are unexpected complications. Not really great to be in a foreign country when this happens.
What happens with complications? Where would you prefer to be if there are problems? Do you prefer to be near family and friends? Just something to consider.
Hi James – That IS one of the risks. Medical tourism isn’t perfect, but it is a reality, and it seems to be filling more niches all the time.
I recently went to the dentist for a root canal at Nogales, Mex. through my wife’s insurance I’ve got the work done because all dentists by the border accept US dental insurance so long story short this is like a $4,000.00 USD job and we payed nothing like I said they do accept US dental insurances and do not charge any copay… but some do why? I do not know but my wife who works in the Medical field does. Well we saved a good amount of money there, that’s what matters and if you are thinking on coming to any US/MX border for Dentist…I suggest you do a research and make some calls to be sure you will get the same benefits I did and besides we are creating jobs for Mexico.
God bless You All
Hi Omar – The US-Mexico border has become a hotbed of medical tourism for obvious reasons. There actually are some insurance companies who are participating in medical tourism, because it meas lower costs for them. It isn’t a flood tide yet, but it is a gradual development that we all need to keep an eye on.
Good article.
It would be interesting to know how many foreign born doctors receive their medical training in the USA. About 15 years ago, I read an article about a mother and her daughter going to Thailand for mother’s knee replacement surgery. After the surgery, they went…next door!…to a resort that was associated with the hospital. They stayed there for a couple of weeks while the mother recovered. Knee surgery is going to hurt but it’s going to hurt a lot less on a beach in Thailand -grin-.
I’m all for going overseas for surgery, especially Czech Republic; I adore eastern Europe.