Using Your Health Savings Account to Pay for International Travel

Medical tourism first began to get popular in theWhat is the Risk?
1990's, when people began traveling in largeAccording to the Institute of Medicine, over
numbers to Brazil for cosmetic surgery. But as100,000 accidental deaths occur in hospitals every
costs have continued to rise, thousands ofyear. And that's here in the U.S. Hospitals are a
Americans have been traveling overseas for realdangerous place to be, and you want to spend as
medical conditions, such as knee replacements,little of your life in one as possible. So there are
by-pass operations, heart valve replacements, andrisks everywhere, and probably greater risks
other serious issues. Many countries are seeingoutside the U.S.
medical tourism as a good way to bring in foreignBut the magic of the free-market does give you
money.some protection. There is a lot of money flowing
In many cases the quality of medicine availableto countries and international hospitals that
overseas is equal to the top hospitals in the U.S.practice high-quality medicine. If a hospital does
Patients are showing up at places like the Apollonot provide quality service, you can bet its
Hospital in Hyderabad, India, part of a 36-hospitalcustomers will go elsewhere, particularly if they
chain founded by a cardiologist fromare choosing among anywhere in the world.
Massachusetts General. A heart valveThe influx of foreign patients (and money) is
replacement may cost $50,000 to $100,000 in theenticing more western-trained doctors to return
U.S., and only $12,000 in India, including travelhome, so the choices are actually increasing, and
costs.the quality and prices continue to improve. I
Escorts Heart Institute and Research Center, inbelieve that if you use care in choosing your
Delhi, India, is another popular medical touristprovider and structuring your treatment, the risks
destination. It was founded by Dr. Naresh Trehan,are no greater than having surgery here in the
an authority on robotic cardiac surgery formerlyU.S.
based at New York University.How to Research Your Options
Blue Cross Blue Shield has just announced thatKeep in mind that most health insurance plans still
they will pay for treatment at Bumrungradwill not cover for treatment outside the U.S.,
International Hospital, in Bangkok, Thailand forparticularly if you are traveling specifically to
individuals from South Carolina. Over 80,000receive medical care. So check with your insurer if
Americans received treatment there last year.the cost of the treatment is going to exceed
The hospital boasts that over 200 of its doctorsyour deductible.
are board-certified in the U.S, and will perform aThe Joint Commission on Accreditation of
knee replacement operation for 20 percent ofHealthcare Organizations certifies hospitals here in
what it would cost in the U.S.the U.S. Their international division, Joint
Who Does This?Commission International, certifies hospitals
Dodie Gilmore is a 60 year-old rodeo barrel-racingthroughout the rest of the world. Make sure the
champ from Oklahoma. She runs a 180 acrefacility that you are considering has been certified
ranch, but could no longer ride a horse becauseby them.
she needed a hip replacement. Her healthThen check out your doctor. Confirm that he or
insurance plan had an exclusion that wouldn'tshe is English speaking, and was trained in the U.S.,
cover her operation, and she really didn't feel likeU.K., Australia, or Germany.
paying the $35,000 it would cost her. Instead sheFinally, consider hiring a consultant to help you
and her partner flew to India where she had thechoose the best hospital and surgeon for your
surgery at the Max Institute of Orthopedics andneeds. A good service will not only set up the
Joint Replacement.treatment, but can also arrange all travel plans,
Her physician was Dr. S.K.S. Marya, who averagesmeet you at the airport, and act as your liaison
one American hip-replacement patient everywhile you are being treated.
week. Dodie's total coast, including travel, wasIf you spend money from your Health Savings
only $11,000. She even managed to take in a tourAccount to pay for international medical care, the
of the Taj Mahal.amount you withdraw is tax-free. Health Savings
Forty to Sixty percent of those surveyed sayAccount regulations also allow you to cover the
they would consider surgery abroad if it couldcost of your travel if the reason you are traveling
save them $5,000 or more. Going out of the U.S.to get medical care is not "for purely personal
(perhaps even just to Mexico), could be areasons."
worthwhile strategy if you have an exclusionaryWhen choosing how to manage your health, you
waiver on your policy, if you'll be having electiveshould carefully consider all your options.
surgery not covered by your health insuranceInternational travel is a great option for people
policy, or if you have a high deductible plan.with Health Savings Accounts.