Coinsurance For Travel Medical Coverage

Key Takeaways

• Co-insurance is considered a travel insurance benefit, as opting for policies with Co-insurance can often lead to lower premiums.
• Co-insurance is different from a Co-pay in that you pay a percentage of costs incurred versus a flat-rate dollar amount.
• Co-insurance costs can vary depending on where you are located, and who treats you, so it’s important to review your policy wording carefully before opting for co-insurance.
• While opting for Co-insurance can save you money on the cost of your policy, it’s important to weigh the risks versus benefits, as certain out-of-pocket payments related to travel emergencies can be quite expensive.

What is Co-Insurance in Travel Insurance?

Co-insurance refers to the percentage of medical expenses you’re required to pay after reaching your policy’s deductible. While co-insurance is generally found in health insurance policies, it can also be a feature in some travel insurance plans.

The majority of travel insurance policies will cover all of your covered medical costs up to your coverage limit. Some plans, however, will require you to pay 10%-20% of your medical expenses after your medical deductible is met.

Not all travel insurance plans include co-insurance, and co-insurance percentages and deductible amounts can differ by policy.

How Does Co-Insurance Work?

Co-insurance is similar to a copayment, as it’s a way for insurers and policyholders to split the cost of medical expenses in the event of a claim. A key difference is that a co-insurance is percentage-based, while a copay is typically a fixed dollar amount.

As an example, let’s say you purchase a travel insurance policy that includes an 80/20 co-insurance provision and a $500 medical deductible. Once you pay your $500 deductible out-of-pocket, you will then be responsible for 20% of all remaining medical expenses until you reach your coverage limit.

Travel insurance policies can offer different co-insurance percentages based on whether or not you are in-network or out-of-network. Percentages may also vary depending on whether or not you are traveling domestically or abroad.

What is a Good Amount of Co-Insurance?

Simply put, the lower percentage of medical costs you’re responsible for when traveling, the better. Ideally, your travel insurance company will cover 100% of your healthcare costs after you meet your deductible.

Just because a travel insurance policy includes a co-insurance provision does not mean it is a bad policy. Any type of travel medical coverage can help mitigate the financial risks or getting sick or injured while you’re away from home.

Please be aware that coverage and eligibility requirements for this benefit differ by policy.