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Is Medical Tourism a Safe Alternative to U.S. Healthcare Costs?

Posted in Health Insurance

August 26th, 2010
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Healthcare is a huge expense Americans struggle to deal with daily, especially for those without health insurance. In fact, the United States offers some of the most expensive healthcare in the world. Yet, as of 2007, over 45 million Americans lacked health insurance and even more were under-insured. That’s why more and more people are turning to medical tourism as a way to save money on the expenses associated with various medical needs.

In fact, medical tourism is a rapidly growing industry and it’s no wonder. Forbes.com reports those who opt for overseas care can enjoy almost no waiting time and a cost savings as high as 90 percent, depending on the procedure and the country where it’s performed.

However, this practice raises the issue of whether the saying, “Get what you pay for”, rings true. Is medical tourism really a safe alternative to the United States surgery or does cheap healthcare lead to disastrous results?

What is Medical Tourism?

Medical tourism is the practice of traveling outside the United States to have medical procedures performed in other countries for less money. The Wall Street Journal reports that this year, it’s estimated six million Americans will travel to other countries in search of affordable medical care, a huge jump from the 750,000 medical tourists of 2007.

Cost of Healthcare Overseas Versus the U.S.

As an example of how much more expensive surgery in the United States is compared with other countries, a breakdown of the costs associated with a heart bypass surgery is detailed below. The information comes from Healthbase, a U.S.-based medical tourism facilitator:

Heart Bypass International Surgery Cost

• United States: $130,000
• Thailand: $11,000
• Singapore: $18,500
• India: $10,000

The trend continues with other common surgeries as well. As explained by Reuters, a 2007 Commonwealth Fund report found “health spending was $7,290 per person in the United States…Australians spent $3,357, Canadians $3,895, Germans $3,588, the Netherlands $3,837 and Britons spent $2,992 per capita on health in 2007. New Zealand spent the least at $2,454.”

These results show Americans are spending about double on healthcare than people other countries. Plus, they are not just traveling abroad to have medically-necessary procedures performed, either. Discount cosmetic surgery is quite popular as well, sending thousands overseas for breast implants, rhinoplasties and more every year.

Risks of Overseas Surgery

Even though medical tourism can allow you to receive life-saving medical procedures at a fraction of the cost, there are numerous risks you assume by leaving the country:

Liability: Patients may not be covered by their insurance company, which can make seeking damages in the case of medical malpractice very difficult. Most hospitals have malpractice insurance, but laws can vary and it’s much easier to file a claim within your own country.

Disease: There are a host of health risks in countries like Thailand, Malaysia and Costa Rica that are rare or non-existent in the United States. Obtaining healthcare overseas could make you susceptible to infectious diseases that will delay or prevent recovery from your procedure.

Quality: Every country has qualified medical professionals and hospitals that maintain a high level of cleanliness and professionalism. Even so, there are just as many, if not more, fraudulent and under-trained practices. Choosing a doctor from across the world or through a third party makes it harder to judge whether you’ll truly receive the best care.

Medical tourism is essentially a trade-off–you must either choose savings or safety. Your decision to travel for medical purposes should be heavily determined by the immediacy of your need and your true ability to pay for the surgical operation. Medical tourism may benefit those facing a life-threatening complication who could otherwise not afford to treat it. On the other hand, an elective but equally risky operation is best performed at home, if at all.

Flu Shots to be Distributed Earlier This Year

Posted in Health Insurance

August 26th, 2010
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If you’re looking to avoid the flu bug this year, you’ll be happy to know that flu shots will likely be distributed early this year. This is also great news for those without health insurance who need time to make arrangements for free shots.

Health Officials Want More Americans to Get Flu Shots

In an effort to get more Americans to acquire their flu shots this year, the Centers for Disease Control and Prevention (CDC) is making more available this year and at an earlier time. After thousands died last year as a result of the seasonal flu bug and the H1N1 swine-flu pandemic, the federal health organization says it does not want to take any chances this year.

Who Should Get a Flu Shot?

According to the CDC, the flu vaccine is recommended for all Americans ages six months and older. Also, because strains change from year to year, everyone who received the flu or H1N1 shots last year should get shots this year because they will contain vaccinations against three strains of flu, including H1N1.

However, those who have egg allergies or other specific conditions should seek more information before getting one.

When Will They Be Available?

The CDC plans to have manufacturers produce between 160 million and 165 million doses this year to meet anticipated demand. Because the flu season starts in October and health officials want to get the shots earlier, many distributors are making them as early as Sept. 1.

The government plans to spend nearly $2 billion to help researchers and biotechnology companies not only develop new drugs, but also come up with new vaccines and build equipment that would shorten the six- to nine-month frame currently needed to create a flu vaccine. But until that happens, the CDC asks that everyone who needs a shot go out and theirs as early as soon as they can.

Visit the CDC flu site for more information about availability.

Today’s News: More Medicaid Patients Using ER, NFIP in the Red and Teen Drivers Vulnerable to Deadly Crashes

Posted in Auto Insurance , Health Insurance , Home Insurance , Medicaid

August 25th, 2010
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A new report has found that more Medicaid patients are using the ER, the National Flood Insurance Program has run into problems that have put it in the red and the NHTSA has revealed that teen drivers are more vulnerable to deadly crashes.

More Medicaid Patients Using ER

Researchers from the University of California, San Francisco, say that an increasing number Americans, especially adults on Medicaid, are using the emergency room as their “safety net” for health care; the reason being that they must treat all patients regardless of health insurance coverage or ability to pay.

According to their report, five times the number of adults with Medicaid visited the emergency department than those with private insurance in 2007, as compared to only three and a half times the number in 1999. Researchers said many of these visits could have been handled by a primary care clinic, but the patients preferred the speed of the ER (Business Week).

National Flood Insurance Program in the Red

The National Flood Insurance Program (NFIP) is in the red, and “repeat offender,” flooded homes, seems to be the culprit for the massive payouts that have left the program struggling for money.

A new report from the Houston Chronicle found that between 1977 and 1995, the NFIP paid out $806,591 for repeated storm damage to one suburban Houston home that was valued at $114,480. In the report, it was revealed that roughly 1 percent of properties typically account for between 25 and 30 percent of the claims it pays and these “repetitive loss” homes have more than doubled in the past 15 years.

Currently, NFIP owes the Department of Treasury more than $18 billion and is unlikely to be able to pay it back (Houston Chronicle).

Teen Drivers Vulnerable to Deadly Crashes

A recent report from the National Highway Traffic Safety Administration (NHTSA) revealed that teen drivers are especially vulnerable to deadly crashes.

In the report, it was revealed that mile for mile, teenagers are involved in three times as many fatal crashes as other drivers. Even more, motor vehicle accidents account for more deaths than both suicide and homicide combined. It’s for this reason that the NHTSA encourages parents to not only teach safe driving but also purchase quality auto insurance for teen drivers (NHTSA).

How the Unemployment Extension Affects Health Insurance

Posted in COBRA Insurance , Health Insurance , Medicaid

August 24th, 2010
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President Barack Obama signed an unemployment benefits extension bill into law on July 22, 2010 that would stretch out benefits for nearly 2.5 million people who had exhausted their rights to unemployment checks. This bill set out to help workers who had been unemployed for six months or more. However, the bill’s passage did not go without heated debates between Democrats and Republicans in Congress.

In fact, in order to get the bill passed, Democrats had to make some sacrifices, including dropping a $25 a week bonus and eliminating an important COBRA subsidy. With the loss of this subsidy, those out of work are now in a tougher fix than before when it comes to acquiring health insurance.

How the COBRA Subsidy Worked

In March 2009, Congress approved what was then a nine-month subsidy to help laid-off workers pay for their COBRA benefits. The subsidy resulted in a 65 percent cut in costs for the unemployed individuals who chose to take advantage of the extension of employer health insurance.

This significant reduction was designed to help the unemployed pay for their insurance while receiving unemployment benefits. It had even been extended from its standard 18-week duration to 26 weeks. Unfortunately, the COBRA subsidy was dropped on June 1, 2010.

As a result, millions of unemployed workers found they would be forced to pay for their highly-expensive COBRA benefits on their own. Not to mention, they are now responsible for an additional 2 percent administrative fee, making it even more costly.

What Can Unemployed Workers Do for Insurance?

Now that the subsidy has been dropped, millions will have to figure out new ways to acquire affordable health insurance. Under the new health care reform law, some options will soon come available to both unemployed and employed workers.

• Health insurance exchanges: Health insurance exchanges were initiated by the federal government as a part of health care reform and will work as a way to offer low-cost options to individuals and families. Similar to the idea of group health care plan offered by employers, insurers will come together to offer insurance at cheaper rates. The exchanges are not required to open in each state until 2014. However, many are getting started as early as this year.
• High-risk pools: Health insurance high-risk pools are also state-sponsored options and are geared toward individuals who have preexisting conditions and have problems acquiring insurance otherwise. Unlike health insurance exchanges, each state had to create or expand an existing high-risk pool by July 1, 2010. Most states have already started accepting new patients for their pools.
• InsureKidsNow: If you’re trying to find insurance that caters to kids, you could visit InsureKidsNow.gov to learn more about the CHIP program and other options for acquiring affordable coverage for your children.

Also, in the near future, Medicaid will be adjusting its income requirements so that people with higher incomes will qualify.

Unfortunately, the unemployment extension had a negative effect on health insurance and workers’ ability to maintain affordable COBRA insurance. However, the compromise was one of many that we’re likely to see between parties as both try to appease voters for November midterm elections.

Poll Shows Healthcare Reform Confuses Americans

Posted in Health Insurance , Low Income Health Insurance

August 23rd, 2010
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A new poll released by Thomson Reuters revealed that not only do Americans have less confidence in their ability to pay for their healthcare, they are also confused about how healthcare reform can actually help them. According to the poll, Americans’ confidence in their ability to pay for and access healthcare has dropped 5 percent, partially due to this confusion.

Consumers Having Trouble Paying for Healthcare

In the poll, also known as the Thomson Reuters Consumer Healthcare Sentiment Index, 3,000 respondents were asked if they had problems paying for their healthcare or had to postpone care in the three months prior. It also asked if they expected to have problems in the coming three months.

Respondents answered all questions in a pessimistic fashion, showing that their confidence in the healthcare system and healthcare reform is eroding.

Healthcare Reform is Confusing

Another issue that respondents seemed to have with the state of our healthcare system is the fact that the reform is confusing to them. According to the poll, it seems that most people really don’t know what has been implemented and how it will affect their ability to secure quality health insurance or otherwise pay for healthcare.

Without knowing how reform has made a difference, they have not-so-great feelings about the system, and feel less confident than before reform passed.

Affordable Healthcare Options

The good news is that until reform becomes a bit clearer and more people are able to have access to affordable health insurance there are other options to take advantage of. If you have a low income, you might consider the following:

• State and Local Health Departments: Each state and many cities have their own resources for affordable healthcare. Learn what they are in your area.
• Insure Kids Now!: If you’re trying to insure your kids you might consider this site, which offers links to free and low-cost health insurance programs around the country.
• Eldercare Locator: Another option to consider is the Eldercare Locator. This directory is a public service of the U.S. Department of Aging and provides a nationwide directory for older persons in search of local, low-income health care support.

It may take some time to sort out all of the details of healthcare reform, but in the meantime, it’s good to know options are available to those in need.

Today’s News: Medicare Funds to Exhaust in 2029, Higher Mortgage Insurance Fees Approved and Auto Insurance Customer Satisfaction Declines

Posted in Auto Insurance , Health Insurance , Home Insurance , Medicare

August 23rd, 2010
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A new government estimate shows that Medicare will run out of funds by 2029, 12 years later than originally expected. In other insurance news, higher mortgage insurance fees have been approved by Senate and a report from JD Power and Associates shows that auto insurance customer satisfaction has declined.

Medicare Funds to Exhaust in 2029

The Obama administration has released a new report showing that Medicare will exhaust its funds by 2029. While this sounds bad, it is actually 12 years later than a previous report. The administration credits the 12-year extension to the health care reform law and cuts in payments to medical providers that could raise money for the program.

However, Medicare’s chief actuary, Rich Foster, says the numbers are a bit rosier than they should be since cuts aren’t likely to stand—doctors will probably drop out of the program to save their practices instead of accepting the cuts (Wall Street Journal).

Higher Mortgage Insurance Fees Approved

Recently, we reported that mortgage insurance fees were likely to increase in the near future. Now it seems that Congress is taking steps to make this official.

In early August, Senate unanimously approved legislation that would give the Federal Housing Administration (FHA) the power to hike the monthly premiums it charges to consumers. Currently, borrowers who take out loans through FHA to cover the 20 percent down payment on a home loan (also known as mortgage insurance) pay an annual fee of 0.55 percent of the total loan.

Now, FHA has been given the power to increase the rate to 1.55 percent with President Barack Obama left to give final approval (Associated Press).

Auto Insurance Customer Satisfaction Declines

A study released by JD Power and Associates found that there has been a decline in auto insurance customer satisfaction so far in 2010. According to the study, satisfaction declined 10 points from 2009′s numbers to 777 on a 1,000-point scale.

The decline in satisfaction was largely attributed to the cost of coverage, which by itself declined 30 index points from 2009. However, other factors that attributed to overall dissatisfaction included interaction, billing and payment, policy offerings and claims (PR Newswire).

NY Gov. Signs Ian’s Law to Limit Health Insurers’ Ability to Drop Patients

Posted in Health Insurance , Health Insurance Companies

August 20th, 2010
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New York Governor, David Paterson, recently signed a new law that will improve health insurance protections for patients. According to the signed legislation, also known as “Ian’s Law,” health insurance companies will not be able to suddenly drop a patient or cut their benefits without following specific guidelines.

The Inspiration Behind Ian’s Law

Ian’s Law is named after Ian Pearl, a 37-year-old man suffering from muscular dystrophy, whose health insurance coverage was terminated without an option for replacement coverage that would cover his treatments. While his treatments were intense (24-hour nursing care) and expensive, his family felt that the sudden termination of coverage was unlawful, resulting in a lawsuit against his insurer, Guardian Life Insurance Company of America.

Initially, the lawsuit upheld his coverage discontinuance. However, a separate lawsuit revealed company documents showing the insured had compiled a list of its costliest members (calling them names like “dogs” and “train wrecks”) and planned to get rid of them.

How “Ian’s Law” Will Protect Patients

After realizing that the company had bad intentions for high-cost policyholders, the governor decided to take action. On Thursday, he signed the new law that would protect patients in the following ways:

• Insurers must notify of discontinuation: The new legislation amends the states current law by requiring insurance companies to give written notice of pending discontinuation at least 90 days prior to the date of discontinuation of coverage.
• Insurers must offer alternatives: If a policyholder’s plan will be discontinued, the insurer must provide that policyholder with options to purchase alternative, replacement health insurance that is already offered by the insurer.
• Policyholders can’t be dropped due to high costs: The law also mandates that a policyholder cannot be dropped from a group plan just because the individual is high-cost.

In addition, policyholders with serious medical conditions who have had related insurance benefits in the 12-month period preceding the discontinuation will be able to keep their present coverage if similar coverage cannot be made available.

The law benefits policyholders because it holds the insurance industry accountable for the coverage it provides. In addition to protections offered by health care reform, this law should protect individuals from being dropped who have played by the rules with their insurance companies.

Today’s News: AIG Reports $2.66 Billion Loss, Missouri Refuses Health Care Reform Law and Questionable Auto Insurance Claims Increase

Posted in AIG , Auto Insurance , Health Insurance , Life Insurance

August 20th, 2010
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AIG reported a $2.66 billion loss in the second quarter, Missouri voters shot down one aspect of the federal health care reform law and a new report has found that questionable auto insurance claims have increased.

AIG Reports $2.66 Billion Loss

Life insurer AIG has reported a second quarter net loss of $2.66 billion, which is a considerable drop from its $1.82 billion loss posted in the first quarter. However, the loss is not from a drop in earnings. It’s instead a result of the loss after selling some of its life insurance divisions to help repay the government bailouts it received in 2008 and 2009.

Aside from the losses posted from selling its companies, AIG’s core insurance companies were able to nearly double their earnings in the second quarter, showing an adjusted net income of $1.34 billion (CNN Money).

Missouri Refuses Health Care Reform Law

Recently, 71 percent of Missouri voters were asked to decide whether they wanted the federal government to require them to purchase health insurance, and they responded with a resounding “No.”

Their votes in opposition to the portion of health care reform law that will require nearly all Americans to purchase coverage or face penalties has set no legally binding precedent. However, the opposition could result in fewer people voting for Democrats in the fall midterm elections, which could shift the balance of power in Congress and impede President Barack Obama’s health care agenda in the long-term (FreeP.com).

Smashed Car Windows Increase Questionable Auto Insurance Claims

According to a new report from the National Insurance Crime Bureau (NICB), questionable auto insurance claims increased by 14 percent in the first half of 2010. This increase was largely due to the fivefold increase in claims from car owners who said that their windows had been smashed.

The NICB says that many policyholders deliberately damage their car windows or stage phony accidents to receive a payout. On a larger scale, almost half of the 7,993 cases of suspected fraud were related to vehicles (Bloomberg).

How To Insure Your Kid’s Health For Less

Posted in Health Insurance , Low Income Health Insurance , Medicaid

August 19th, 2010
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Finding affordable health insurance for a person of any age can be difficult if you’re not already covered by your employer. For those who seek private insurance for their children and don’t qualify for Medicaid, finding low cost health insurance options could be even more difficult.

Luckily, the health reform law has made some improvements to the options available to children. Let’s take a look at what you may be able to take advantage of as a parent trying to insure your child.

Insure Kids Now

InsureKidsNow.gov is a website created by the federal government and states to offer cheap health insurance coverage for children. If you are not able to afford private health insurance or don’t have coverage available to you, you may find through this website that you qualify for some.

According to the site, you may be approved for insurance for your child if your income is no more than $44,100 per year for a family of four.

In order to determine what options are available in your area, you must search the site by state to find a provider. The various listings you pull up with offer information on the program of choice, services available and eligibility requirements.

What is CHIP?

The Children’s Health Insurance Program (CHIP) is a program that was signed by President Barack Obama under the Children’s Health Insurance Program Reauthorization Act (CHIPRA). With his signature, he renewed the program, which was originally created in 1997. Currently, it helps to provide insurance coverage to 7-11 million children.

As a part of the renewal, he increased the income requirements for families looking for assistance so that now more than low-income families and pregnant women are eligible for assistance. Currently, InsureKidsNow.gov offers listings for various CHIP programs around the country, so if you’re interested in learning more, visit the site for additional information.

High-Risk Pools

Unfortunately, health insurance companies have a bad reputation when it comes to insuring kids, especially those with preexisting conditions. In 2009, several insurers were put in the hot seat for denying children for seemingly trivial issues like being underweight.

However, under the new health care reform law, insurance companies will no longer be able to decline children due to preexisting conditions. The only problem is this portion of the law has yet to take effect, which is why states will be obligated to create high-risk pools so everyone with preexisting conditions will be able to get insured.

If you’re looking for more information, check with your state’s Department of Health.

Keep Kids on Your Insurance Longer

Another piece of health care reform that helps parents with older offspring keep insurance is the portion that requires children to stay on their parents’ policies until the age of 26. According to the law, all insurers will have to abide by this rule by Sept. 23, 2010, which means you won’t have to worry about helping your adult child find insurance if under this age.

If you are in need of free health insurance, you may have some options available to you as well. A great resource to take advantage of is Covering Kids and Families, which is a site that offers information on Medicaid, CHIP and other low-cost and free services.

The good news is that it isn’t impossible to get your hands on the affordable family health insurance you need for your children. By using the options above, you could increase your chances of getting your child insured under any condition.

Health Insurance Funds Granted to 45 States to Protect Premium Increases

Posted in Health Insurance , Save on Health Insurance

August 18th, 2010
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To get a handle on insurance company abuses, the government has issued grants that will hold these companies accountable for any unjustified premium increases. These grants have been issued to most states so far, and as hoped by Congress, will help protect consumers and give them fair treatment when acquiring health insurance.

How the Grants Benefit States

One of the original versions of the health care reform law would have given full rate review authority to states; however, this provision was excluded from the final version of the bill. To make up for this exclusion, lawmakers included in the reforms more than $250 million in grants that would let states closely review proposed increases in insurance rates.

The first round of grants, $1 million per state, was handed out on Monday to 45 states and the District of Columbia. The states that have so far not applied for funding are Alaska, Georgia, Iowa, Minnesota and Wyoming.

How the Grants Benefit You and How to Find Affordable Coverage

Of course, you may not see an immediate change in the way the health insurance process is handled, but the idea of offering the grants to states is to find ways of opening dialogue and allowing for states to have a voice when it comes to premium increases.

Secretary of Health and Human Services, Kathleen Sebelius, said that health insurance should eventually become more affordable as a result of careful use of the grants. However, if you’re looking for ways to find affordable health insurance now, here are a few ideas:

• Shop around: One of the best ways to find affordable health insurance is to shop around for coverage until you find what works for you.
• Find a health insurance exchange: While health insurance exchanges are not required by law until 2014, some states are offering their own exchanges now that offer access to affordable coverage.
• Get a job with benefits: While there aren’t as many around as in the past, look for an employer that is offering quality health insurance benefits to help reduce the price some.
• Live a healthier lifestyle: The healthier your lifestyle is, the less you will need to make visits to the doctor or emergency room, which require you to pay co-insurance, a co-pay or a deductible.

Hopefully, the grants will be able to provide states with the authority they need to keep health insurance rates affordable. But until then, it’s good to know that there are some options out there to find affordable rates on your own.