Countries all over the world have different healthcare systems, many of which use a complex mix of different types of programs to make healthcare accessible to their residents.
While you may not think much about the healthcare systems of other countries, this can come into play when traveling abroad.
Although no one wants to think about getting sick or having an accident while on vacation, it is not totally uncommon for these situations to arise far from home.
Knowing whether or not a country you are traveling to has high medical expenses can help you better prepare for your journey abroad.
Why Do Some Countries Have High Medical Costs?
The cost of medical care can vary greatly depending on a number of factors. This can include how advanced the healthcare is in that country, as well as the average cost of living and the advancement of medical technology.
Generally, more developed and technologically advanced countries will have higher healthcare costs, but offer exceptional quality care and advanced medical techniques to care for patients and ultimately save lives.
Countries With the Highest Healthcare Costs
Here are some of the countries where medical expenses tend to be highest:
United States
The United States is known for having some of the highest medical costs globally, due to factors like expensive medical procedures, high costs of pharmaceuticals, and a complex healthcare system.
The United States is a mix of public and private programs, with no universal coverage for healthcare. Most healthcare providers in the United States are privately owned, but there are some public hospitals and clinics.
Most Americans get their health insurance through their employer, although individuals can also opt to buy insurance through a marketplace.
Health insurance in the United States is crucial, as medical costs can be financially devastating without coverage.
If you are traveling to the United States from abroad for a short visit, travel medical insurance can offer significant protection against potentially financially devastating healthcare expenses in the event that you need to seek medical attention for an emergency.+
Switzerland
Switzerland has a high standard of healthcare, but it also comes with a high price tag, partly due to the cost of living and high-quality care. Some of Switzerland’s hospitals are ranked highest in the world.
Switzerland is equipped with some of the most advanced medical technologies available. While this contributes to high-quality care, it also drives up costs due to the expense of acquiring and maintaining cutting-edge equipment.
Switzerland has a mandatory health insurance system. All residents are required to purchase health insurance from private insurers. This insurance covers a wide range of medical services, including doctor visits, hospital stays, and prescription medications.
Switzerland has a mandatory health insurance system. All residents are required to purchase health insurance from private insurers. This insurance covers a wide range of medical services, including doctor visits, hospital stays, and prescription medications.
The mandatory insurance, known as “basic insurance,” covers essential healthcare services. Everyone must have this basic coverage, but they can choose from a range of private insurance companies.
In addition to basic insurance, individuals can purchase supplementary insurance to cover services that are not included in the basic plan, such as private hospital rooms or alternative medicine treatments.
Norway
Norway’s healthcare system is among the best in the world, but the costs associated with healthcare services and treatments are also quite high.
Norway operates a universal healthcare system funded primarily through taxation. This ensures that all residents have access to healthcare services, regardless of their ability to pay. The government provides most healthcare services, including hospital care, doctor visits, and specialist care.
Healthcare in Norway is particularly expensive due to a high standard of living and some of the highest average wages for employees in the world.
Germany
Germany’s healthcare system is one of the oldest and most comprehensive in the world. This country offers excellent healthcare, but the associated costs, especially for out-of-pocket expenses, can be significant.
Germany operates a dual healthcare system that consists of both public and private insurance. About 90% of the population is covered by the Statutory Health Insurance (SHI) system, which is publicly funded, while the remaining 10% opt for Private Health Insurance (PHI).
Germany’s healthcare system follows the Bismarck model, where insurance is financed through contributions from both employers and employees. The government also plays a role in regulating the system to ensure fairness and quality.
Australia
While Australia has a public healthcare system, private healthcare can be expensive, particularly for specialized treatments.
Medicare is the publicly funded healthcare system in Australia, providing access to a wide range of medical services for all Australian citizens and permanent residents. Medicare covers public hospital treatments, doctor visits, and some specialist services, with most costs covered by the government.
Private healthcare in Australia includes private hospitals, private health insurance, and access to private specialists and procedures. While Australians can choose to use private healthcare, it often comes at a significantly higher cost than public services. Many Australians opt for private health insurance to cover costs not included under Medicare.
Canada
Although Canada has a public healthcare system, certain services and medications can be costly, especially when accessing care outside the public system.
Canada’s healthcare system, often referred to as Medicare, is publicly funded through taxes. It provides universal healthcare coverage to all Canadian citizens and permanent residents, ensuring access to medically necessary hospital and physician services without direct charges at the point of care.
However, Medicare in Canada doesn’t cover everything, such as dental care, prescription drugs, physiotherapy, and some mental health services, whcih can be expensive for residents when sought privately.
Since private health insurance cannot cover services that are considered medically necessary and are covered by the public system, individuals seeking private healthcare for these services must pay entirely out of pocket. This includes private surgeries, specialist consultations, and diagnostic tests that might be covered more quickly in the private sector but are not subsidized by the government.
United Kingdom
The United Kingdom has the NHS, which provides free healthcare at the point of delivery, but private healthcare can be expensive, particularly for expedited services.
Private healthcare and expedited services in the UK are expensive due to a combination of factors, including high demand for quicker access, high-quality and personalized care, limited availability of private services, investment in advanced technology and facilities, staffing and administrative costs, lack of government subsidies, and stringent regulatory requirements.
While the NHS provides comprehensive care for all, those seeking faster, more specialized, or more comfortable healthcare options in the private sector must be prepared to pay a premium for these services.
Japan
Japan has a universal healthcare system, but out-of-pocket expenses and the cost of advanced medical treatments can be high. Japan is known for its cutting-edge medical technology, including advanced imaging equipment, robotic surgery systems, and innovative treatment options. The cost of acquiring and maintaining this state-of-the-art technology is high, and these costs are often passed on to patients.
Japan provides universal health coverage through a public health insurance system. Citizens and residents are required to enroll in one of the two main types of health insurance: Employee Health Insurance for salaried workers and their dependents, and National Health Insurance for self-employed individuals, retirees, and others not covered by employment-based insurance.
The insurance system covers a wide range of medical services, including doctor visits, hospital care, prescription drugs, and mental health services. Patients generally pay 30% of the cost of services out-of-pocket, with the government covering the remaining 70%.
While the majority of healthcare services are provided through public hospitals and clinics, Japan also has a robust private healthcare sector. Private facilities often cater to those seeking more personalized care, shorter wait times, or treatments not covered by public insurance.
Can Visitors Take Advantage of Universal Healthcare?
Even when visiting a country that offers a universal healthcare system, it is important to understand that these services are generally only available for citizens or residents of that country.
Typically, visitors to a country are not eligible to receive free healthcare or healthcare benefits offered through a country’s universal healthcare system.
This means that visitors to countries abroad, particularly those with extremely high medical costs, will be stuck paying out-of-pocket for any medical expenses incurred during their travels without proper coverage in the form of travel insurance.
Why Travel Medical Coverage Is Crucial
When traveling abroad, having travel medical coverage is extremely important, especially when visiting a country with higher healthcare costs.
Traveling abroad is already expensive, and no one wants to be left with hefty medical bills from another country if they get sick or have an accident during their trip.
Travel insurance can help cover you for emergency medical expenses, lost luggage, emergency medical evacuation, return of mortal remains, and much more.
Travel Abroad With Peace of Mind
While traveling abroad can be an exciting adventure, it is also important to properly prepare to ensure that you have the best trip possible.
To find the best travel insurance coverage for your trip, compare international travel medical insurance plans or contact our Customer Success Team for friendly assistance!
