Do You Need Travel Insurance If You Already Have Health Insurance?
When planning a trip, it’s normal to focus on the fun adventure you’re about to embark on rather than the potential risks that lay ahead. It’s this reason why many travelers overlook trip insurance, especially if they already have existing health insurance at home.
But are the protections provided by your health insurance sufficient for your travels? Here’s what you need to know about the differences between travel insurance and health insurance, and whether travel insurance is worth considering for your upcoming vacation.
The Difference Between Travel Insurance & Health Insurance
While both travel insurance and health insurance are intended to protect you from significant out-of-pocket expenses, the two serve different purposes.
Health insurance—whether Medicare, Medicaid, or an employer-sponsored plan—is designed to cover medical expenses in your home country or within a specific coverage network. The coverage provided by health insurance is often continuous and paid for on a monthly or bi-weekly basis.
Travel insurance, on the other hand, provides a short-term protection for unexpected disruptions that occur while you’re traveling away from home. While the majority of travel insurance policies include medical coverage, many also provide reimbursement for expenses relating to:
- Trip cancellations or interruptions
- Lost or delayed luggage
- Emergency medical evacuation
- Flights delays
This makes travel insurance a more comprehensive safety net for travelers, particularly for international journeys or adventurous activities.
Does Health Insurance Provide Coverage When Traveling?
The extent of health insurance coverage while traveling depends largely on your destination. Here’s how coverage varies:
Health Insurance Coverage for Domestic Trips
If you’re traveling within the U.S., your health insurance may cover expenses relating to unexpected injuries or illnesses you incur during your trip. Some domestic healthcare policies will also extend coverage to U.S. territories like:
- Puerto Rico
- Guam
- U.S. Virgin Islands
- Northern Mariana Islands
- American Samoa
However, it’s a good idea to confirm with your insurance provider what type of expenses are covered, as some plans may have limited networks that don’t apply across state lines.
Health Insurance Coverage for International Trips
Most U.S. health insurance plans do not cover medical emergencies abroad. This gap is a significant reason why many travelers purchase travel insurance. Without travel insurance, you’d be responsible for covering medical expenses incurred overseas, which can be exorbitant.
Travel insurance is one of the few ways to get short-term medical coverage outside the United States. However, it is not designed to cover extended stays longer than 90-180 days, depending on the policy.
How Much Travel Medical Coverage Do You Need Overseas?
When selecting a travel insurance policy, it’s important to ensure that it provides adequate coverage for whatever comes your way.
At Squaremouth, the nation’s largest travel insurance marketplace, we recommend that international travelers should aim for a policy that provides at least:
- $50,000 in Emergency Medical coverage
- $100,000 in Medical Evacuation coverage
These minimums increase if you plan on participating in higher-risk activities like adventure sports, cruises, or trips to remote destinations. The added cost for more protection is often worth the peace of mind and financial protection.
Does Travel Insurance Cover Pre-Existing Medical Conditions?
If you’re planning international travel and have a pre-existing medical condition, it’s important to find a policy that accommodates your health concerns. While pre-existing medical conditions are often excluded from coverage, some comprehensive travel insurance policies offer a pre-existing condition waiver that removes this exclusion.
Eligibility for this waiver typically depends on meeting specific criteria:
- Purchase the policy within a set time frame (e.g., 14-21 days of the first trip payment).
- Be medically fit to travel when purchasing the policy.
- Insure 100% of your prepaid, non-refundable trip cost.
This waiver ensures coverage for unforeseen complications related to existing medical conditions, which would otherwise be excluded.
Do Credit Cards Provide Travel Medical Coverage?
Many travel credit cards nowadays offer a wide-range of perks to cardholders to enhance their travel experience. Popular card benefits include lounge access, hotel credits, sign-on bonuses, free checked luggage, and more.
In addition, many of these cards also offer their own form of travel protection. Like travel insurance, many credit cards provide protection against unforeseen travel disruptions. However, very few travel credit cards include medical benefits. Most credit card travel protections are limited to:
- Trip cancellations or delays
- Lost luggage
- Rental car insurance
For robust medical coverage, travelers should not rely solely on credit card benefits and should instead consider a dedicated travel insurance policy.
Is Travel Medical Insurance Worth It?
Travel medical insurance is often worth the investment. Policies can be relatively inexpensive, particularly if you choose one without trip cancellation coverage.
In 2024, the average “medical-only” travel insurance policy cost less than $100. This is a small price to pay given the potentially high cost of requiring medical treatment overseas.
For travelers venturing abroad, especially to destinations with costly healthcare systems, the benefits of travel insurance far outweigh the risks of getting a policy and not needing it.
Final Thoughts
While health insurance provides essential medical coverage at home, it’s not designed to protect you against the myriad risks associated with travel.
Travel insurance bridges this gap, offering both medical and non-medical protections abroad. By understanding your needs and the limitations of your health insurance, you can make an informed decision and travel with peace of mind.