If you are planning a trip to the United States, one of the best things you can do while getting prepared is to purchase travel medical insurance for your journey.
As you research travel medical insurance options for the United States, you may notice that there are two main types of travel medical insurance: comprehensive plans and limited or fixed plans.
These plans can differ greatly in coverage and benefits, so it is important to understand the differences between the two so you can decide which type of plan is right for your trip.
What This Guide Will Cover:
- What travel medical insurance is and how it works
- Why travel medical insurance is recommended
- Differences between limited and comprehensive travel insurance plans
- Why comprehensive plans may be preferred
What Exactly Is Travel Medical Insurance?
Travel medical insurance is temporary health coverage for individuals who are traveling outside of their home country.
Why You Need It
Since most long-term health insurance plans that individuals have in their home country won’t cover them abroad, travel medical insurance bridges this gap in coverage when visiting another country.
What It Covers
Travel medical insurance offers coverage for emergency medical expenses incurred abroad for new injuries or illnesses, including:
- Hospitalization
- Urgent care
- Prescription medication
- Emergency medical evacuation
- Repatriation of remains
Is Travel Medical Insurance Necessary for Trips to the US?
Travel medical insurance is considered a necessity for those who are visiting the United States considering that the US has some of the highest medical costs in the world.
Without insurance, a hospitalization or trip to the doctor for an unexpected illness or injury can quickly add up to thousands of dollars out-of-pocket.
With travel medical insurance, US visitors can have peace of mind knowing that they have health coverage for emergencies during their stay to protect against a potentially huge financial burden in the event of needing medical attention.
What Are Comprehensive and Limited Plans?
There are several key differences when it comes to comprehensive travel medical insurance plans and limited or fixed travel medical insurance plans. The most important difference between the two is the way that coverage works.
Comprehensive plans
Comprehensive plans work on percentage-based coverage, meaning a certain percentage of eligible medical expenses are covered up to the policy maximum, typically 100% of your bill. Limited plans only offer fixed coverage for each type of treatment or service, meaning you can only be covered for eligible medical expenses up to the maximum for each particular treatment or service.
- Example: Let’s say you break your foot during your stay in the US and that all of your medical expenses are eligible for coverage under your plan. Your hospitalization cost $5,000, surgery cost $7,000, and prescription medication cost $100.
A comprehensive plan that pays 100% of eligible expenses could cover all of your total medical expenses after your deductible is met and up to the policy maximum.
Limited plans
Limited plans, on the other hand, only cover up to the fixed maximum per benefit.
- Example: If your limited plan only covers up to $3,000 for hospitalization, you would be responsible for the remaining $2,000 plus your deductible. This would be true for each item billed for your medical treatment. The fixed amounts of coverage for each billable item would be listed in your policy’s description of coverage, and any amounts above the fixed coverage amount for those items would need to be paid by you.
Pros and Cons of Limited vs Comprehensive Plans
When weighing your options between a limited and comprehensive travel medical insurance plan, consider the following pros and cons of each.
Limited Plans
Pros of Limited Plans:
- Lower cost compared to comprehensive plans
- Basic coverage for a low risk traveler
Cons of Limited Plans:
- Fixed coverage on each service or treatment
- Risk of high out-of-pocket costs
- May not have access to PPO network or direct billing
- Have to meet a deductible for each separate illness or injury
Example: Your parent sprained an ankle while sightseeing. The hospital charges $3,000. If the limited plan only covers $2,500 per incident, you pay $500 out-of-pocket.
Comprehensive Plans
Pros of Comprehensive Plans
- Excellent, comprehensive coverage
- Added travel benefits
- Access to a PPO network and direct billing
- One-time deductible
Cons of Comprehensive Plans
- Higher cost than limited plans
Example: Your parent needs a $5,000 hospital stay for a sudden illness. A comprehensive plan covering 100% of eligible costs minus a $250 deductible means you pay only $250, with the insurance covering the rest.
How Can I Choose Between Limited and Comprehensive Coverage?
In order to best choose between a limited and comprehensive travel medical insurance plan for your specific needs, consider the following.
Age
With older age comes an increased risk of potential injury or illness, especially when traveling abroad. Travelers who are older in age should definitely consider a comprehensive coverage plan when traveling to the United States for the best medical coverage if an accident or ailment were to occur.
Out-of-Pocket Cost Affordability
Ask yourself if you can afford to pay thousands of dollars out-of-pocket for medical care. If the answer is yes, a limited plan could work for you, as it only offers fixed coverage for certain benefits, meaning the likelihood of having to pay for a good portion of your medical expenses is greater.
Comprehensive coverage, on the other hand, offers percentage-based coverage and often allows travelers to have no out-of-pocket costs for eligible expenses except for their deductible.
- Example: If your parent has a $5,000 ER visit:
- Limited plan with $2,500 maximum per incident → you pay $2,500
- Comprehensive plan covering 100% after a $250 deductible → you pay only $250
PPO Network and Direct Billing
Another thing to consider is having access to a PPO network and therefore direct billing or cashless pay. Getting a comprehensive travel medical insurance plan will give you access to care through a trusted PPO network, which also means better rates for medical care. It also means that your healthcare provider will likely bill your insurance directly rather than having to pay upfront and receive reimbursement later.
Limited coverage travel medical insurance plans may not have access to a PPO network, meaning that cashless pay may not be an option. In this case, you will need to pay for your medical expenses upfront and file for reimbursement later on.
Why Are Comprehensive Plans the Better Choice?
Comprehensive travel medical insurance plans are preferred for travelers to the United States because they offer the best overall coverage and protection for visitors.
With a comprehensive plan, you can worry less about paying for care out-of-pocket and receive better benefits overall than from a limited plan.
While comprehensive plans are slightly more expensive than limited plans, you could end up saving thousands of dollars in the long run with percentage-based coverage versus fixed coverage if you end up needing emergency medical care.
How Can I Get the Best Coverage for My US Trip?
Now that you understand the key differences between comprehensive and limited coverage travel medical insurance plans, you can make a more educated decision on which type of plan is right for your needs.
Still have questions? Feel free to reach out to our Customer Success Team for assistance or browse our travel medical insurance plans to find the right coverage.
- Travel medical insurance is essential for U.S. visitors.
- Older travelers should prioritize comprehensive coverage. Age increases medical risk, and comprehensive plans provide better protection for accidents or sudden illnesses.
- Comprehensive plans cover a percentage of expenses and offer broader protection; limited plans provide fixed coverage.
- Investing in comprehensive coverage can save money long-term.
Frequently Asked Questions About Limited and Comprehensive Insurance Plans
How much do limited and comprehensive insurance plans cost?
The cost of travel medical insurance for visitors to the United States varies widely based on age, coverage amount, length of stay, and the type of plan you choose. Generally, limited plans can be as low as $20–$40 per month for younger travelers with basic coverage. For comprehensive plans, prices may also vary: for a 40–year‑old visitor: about $58–$109 per month, for a 60–year‑old visitor: $131–$266 per month, or a 70–year‑old visitor: $263–$328 per month.
Can a limited travel insurance plan cover major emergencies?
Limited travel insurance plans provide some protection, but they have significant restrictions that can make them risky for major emergencies. Limited plans usually have fixed maximum payouts per treatment or incident. If a major emergency (like hospitalization, surgery, or multiple treatments) exceeds this limit, the remaining costs must be paid out-of-pocket.
If I am traveling internationally, should I select a comprehensive travel insurance plan?
Yes, comprehensive travel insurance is generally the safest choice for international travelers, especially if you are visiting countries like the United States where healthcare costs are extremely high. Comprehensive coverage spans across broad medical protection, provides emergency evacuation, and has predictable out-of-pocket costs.
What insurance plan should I pick if I have kids?
In most cases, a comprehensive travel insurance plan is recommended for those traveling with kids. Kids can be unpredictable, and even minor injuries can lead to exorbitant medical costs. Comprehensive plans can cover emergency doctor visits, hospital stays and surgeries, urgent care for sudden illness, or other forms of coverage should you or your child need it.
What could go wrong if I select a cheaper travel insurance plan?
Selecting a cheaper travel insurance plan may save money upfront, but can carry additional financial or logistical risks. Such risks can include insufficient coverage for emergencies, multiple deductibles and extra costs, limited access to providers, exclusions for pre-existing conditions, and risk of delayed or denied claims.
Does a more expensive insurance plan mean more coverage?
Typically, a more expensive, comprehensive travel insurance plan generally provides more coverage than a basic or limited plan. Higher premiums usually reflect higher medical coverage limits, which is especially important in the U.S., where hospital stays and surgeries can be very costly.
If I am purchasing insurance for my elderly parents, what kind of insurance plan should I select?
Comprehensive plans are generally recommended for older travelers because they provide broader coverage for hospitalization and surgery, reduce the risk of high out-of-pocket costs, and include emergency evacuation and repatriation coverage. Limited plans may not adequately cover complex medical situations, leaving older travelers exposed to significant expenses.
Can I switch to a comprehensive plan if I initially select a limited one?
In most cases yes, you can switch to a comprehensive plan if you initially select a limited one. However, there are factors to consider. Many insurance providers will allow you to upgrade before your trip begins or shortly after the policy is issued, but you may not be able to switch once a claim has been filed. Upgrading also typically means paying a difference in premium, and adjusting to different guidelines regarding pre-existing conditions.
