Visitor health insurance provides protection against unexpected medical issues while visiting the USA. People purchase health insurance for foreign visitors to the USA because healthcare costs here are extremely high, and financial protection is a necessity. Whether you are interested in purchasing coverage for yourself, or visitors insurance for your parents, this FAQ can provide some valuable information about how the coverage works.
What is a per incident deductible, a per visit deductible, a per policy period deductible and an annual deductible?
There are various types of deductibles:
Per incident deductible: Every time you get a new sickness or injury for covered medical expenses, you have to first pay the deductible before the insurance company starts paying anything.
E.g., VisitorSecure, Safe Travels Elite, and Visit USA HealthCare Budget have a per incident deductible.
Per visit deductible: Every time you visit a provider(doctor, hospital, lab or any other medical facility), you will have to pay the deductible before the insurance company starts paying anything for the covered medical expenses.
Per policy period deductible: You have to pay the deductible only once during the entire policy period, no matter how many times you get sick or injured during the policy period.
Annual deductible: No matter how many times you get sick or injured during an entire year for covered medical expenses, you have to pay the deductible only once in a year. E.g.; Atlas America from WorldTrips has an annual deductible. It is a renewable plan for durations as little as 5 days. If you take a $100 deductible, and renew the plan on a monthly basis, you have to pay the deductible of $100 once during the year. This is the best type of deductible.
No matter which type of deductible it is, you have to pay that first before the insurance company starts covering anything. This is somewhat similar to car insurance. In regular domestic insurance that you may have through your employer, whenever you visit a doctor, you pay a co-pay and the deductible is only for major things like hospitalization, surgery etc. Short term plans such as visitors insurance work differently.
I see that after I pay the deductible, I still have to pay 20% of the medical expenses up to $5,000 in many plans, that is up to $1,000 out of my pocket if the expenses are more than $5000. Is there any insurance that would cover me 100%, if I get sick?
Yes. There are many such visitors insurance plans available.
If I buy the visitors insurance coverage insurance for $50,000 with a $0 deductible, does it mean that, if I need to use the insurance, I don't have to pay anything and the insurance company will pay all the expenses up to $50,000?
No. The deductible is the amount you have to first pay before the insurance company starts paying anything at all. If you choose a $0 deductible, the insurance company starts paying right away but that does not mean it will pay 100%. It will pay according to the coverage defined in a given insurance plan.
There are two major types of insurance plans:
- Fixed: Cheaper, limited
- Comprehensive: More expensive, better coverage
Please read 'How Plan Works' provided for each insurance plan to understand how it works. Please refer to the brochure for further details.
Can't find answers to your questions?
Ask our specialists - Licensed and experienced insurance professionals in the U.S.