International insurance plans for foreigners in Mexico
Updated May 30, 2010
It is advisable to have international health insurance while traveling or living as an expatriate. Having an international health plan gives a person, family or group a variety of choices when it comes to health care. For example, a person covered by such a plan can choose a private hospital or any approved physician for their care.
For persons living between countries, an international insurance plan may cover them in both countries and even worldwide. They can choose policy limits that can cover them for medical expenses up to $50,000 USD, with options for coverage for as much as $8,000,000 USD in medical benefits.
However, not having appropriate international health coverage might expose one or one's family to a significant financial liability and impede appropriate care.
Some things to consider:
- Many traditional domestic insurance plans won't cover a person outside his or her home country.
- Usually Mexico auto insurance plans are limited to $2,000 USD per person, or less.
- Medicare doesn't cover outside of the U.S.A. (Please see time-sensitive remarks regarding the new Affordable Care Act in the U.S. at the end of this article.)
- A medically necessary air ambulance can cost $30,000 USD or more. Companies that offer only air ambulance insurance might have a 90-day waiting period for pre-existing medical conditions.
- International health insurance plans allow multi-country flexibility for full benefits coverage. Canadians and Americans can stay outside their home country for much longer periods.
Short Term International Health Plans
These can cover a person for up to three years outside their home country. If a person lives outside his or her home country permanently or for the majority of the year, see International Major Medical Plans below.
International Major Medical Plans
These insurance plans can cover a person for a lifetime if he or she is living in Latin America, Asia or Europe and can cover them in their home country too. Policies are renewable, usually for a lifetime. These plans and the short-term plans cover costs of hospital and doctors, medicine, local and air ambulance, reunion of family members, and offer 24-hour-a-day, seven days a week support. There are more benefits than what is mentioned here.
Life Insurance and Annuities — How they can work for your benefit
Life insurance (permanent and term) policies are available at discounted rates
Permanent life policies may build cash value, which earns interest tax-free. Later in life, these cash values may be used to pay for such things as assisted living expenses or basic living expenses. Taking a portion of your savings (nest-egg) and purchasing a fixed annuity can be useful to provide a steady income at a safe guaranteed rate of return, for a period of time. Often these give you a rate of return better than some banks (CDs for example) and can provide an income to be used for living and medical expenses.
Usually insurers offering Fixed-Annuities to Americans will sometimes allow a foreign citizen to purchase these instruments.
Visit International Insurance-Seguros agency for more information.
Here are some plans and a detailed description of coverage, as applies to expatriates, visitors and retirees heading to Mexico.
Preventative Healthcare Benefits
| There is no medical underwriting, and the Atlas plan covers sudden, unexpected and unforeseen medical expenses outside of the person's home country of citizenship. |
| These policies are renewable from as little as 5 days for up to 36 months, and deductibles vary from $0 to $2,500 USD. |
| The range of coverage amount is $50,000 to $1,000,000 USD. |
| Generally, there are limits to coverage of pre-existing medical conditions. |
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Chronic treatments are not covered. We have solutions. |
| Major Medical policies are available from IHI Danmark, an insurer who is part of the BUPA Group of companies (British United Provident Association) and from HCC Medical Insurance Services (formerly Multinational Underwriters). |
| You can apply up to a maximum age of 74. If the application is made before age 65, the person can qualify for lifetime coverage. |
| The IHI Superior Plan has no deductible, and virtually everything medical-, dental- and vision-related is covered at 100%. These plans are for private hospitals. |
| If he or she applies between the ages of 65 and 74, the policy will end at age 75. |
| You can apply up to a maximum age of 74. If the application is made before age 65, the person can qualify for lifetime coverage. |
| If an applicant has a minor pre-existing medical condition, he or she might be accepted with a premium load and a waiting period on that medical condition. |
| The applicant could be accepted with a permanent exclusion on the condition or could be declined. |
| Health check (wellness) benefits for the Platinum plan are limited to $250 USD a year for those who have been covered at least 12 months, and are not subject to a deductible waiting period on that medical condition. |
| The Mexican Instituto Mexicano del Seguro Social or IMSS — the government's social medical program — will not cover chronic treatments for new applicants with resident visas. |
Preventative examinations can detect a medical condition in the early stages before it grows and gains momentum.
Traditional domestic U.S. health insurance plans may have wellness (health checkup) benefits but the member usually cannot take advantage of these wellness benefits in Mexico.
International medical insurance carriers usually have limited dollar amounts, which can be used for routine health checkup exams. Wellness benefits of a U.S. domestic health insurer usually means a higher premium, as often is the case with employer group insurance plans.
Medicare and Medicaid covered individuals could benefit from an international medical insurance policy since these government health plans do not cover Mexico or outside of the United States. See the Social Security Administration website.
Chronic Treatment for Current Medical Conditions
U.S. citizens over age 65
If a person is Medicare/Medicaid eligible or uninsured, he or she might need to pay out of pocket for their chronic treatments in Mexico, and some also purchase a medical air evacuation policy. Most medical air evacuation policies have a 90 day waiting period on pre-existing medical conditions. Some individuals buy this whether they are visiting or staying long term. The risk with medical air evacuation policies is that most do not cover medical expenses. Some people are convinced that if they become seriously ill, they will buy a plane ticket and return to the U.S. to seek medical treatment by remaining eligible for Medicare and maintaining a Stateside residence.
There is a significant financial risk here should one become seriously ill or have an accident. Mexico's private hospitals have been known to require payment for medical services rendered before allowing a foreigner to leave the hospital, unless the patient's insurer will issue a guarantee of payment letter. For some, these medical bills can be significant. A two week private hospital stay could approach or exceed $30,000 USD! It is rare for any U.S. domestic insurer to issue a guarantee of payment letter to a private medical facility in Mexico unless a contractual arrangement exists. This is often referred to by the term "In-Network." International health insurance plans often have In-Network arrangements to protect the insured patient, the medical facility and the insurer from hospital over-billing.
Rates at most Mexican private hospitals have been incrementally increasing over the last several years, especially in areas where expatriates and visitors abound. It's a good idea to also consider a Lifestyle Improvement Program designed for seniors.
There are short-term international medical policies such as the HCC Medical Insurance Atlas plan. There are no medical questions, and the Atlas plan covers sudden, unexpected and unforeseen medical expenses outside of the person's home country of citizenship. These policies are ideal for visitors staying a few weeks or months, students and professionals.
The Atlas policy is renewable from as little as 5 days for up to 36 months, and deductibles vary from $0, $100, $250, $500 and all the way up to a deductible of $2,500 USD. The range of coverage amount is $50,000 to $1,000,000 USD.
Generally, there are limits to coverage of pre-existing medical conditions. Chronic treatments are not covered. For details, visit www.azseguro.com
International major medical plans are available from IHI Danmark, an insurer who is part of the BUPA Group of companies (British United Provident Association).
IHI Danmark's suite of plans allows a person to apply up to a maximum age of 74.
If the applicant has a minor pre-existing medical condition, he or she might be accepted with a premium load and a brief waiting period on the medical condition; this decision is made by a medical risk underwriter. There are no lifetime limits on these plans, and no exclusions for hazardous sports or activities of any kind. The IHI Superior Plan has the best benefits I've ever seen on any health plan, anywhere. There is no deductible, and virtually everything medical-, dental- and vision-related is covered at 100%. These plans are for private hospitals. To learn more about these plans, please contact me.
HCC Medical Insurance Services (Formerly Multinational Underwriters) offers the Citizen Secure International Major Medical Plan. It has a worldwide option and covers up to $5 Million USD, and includes coverage in the U.S., Mexico and Canada. They also offer a lower-premium option to cover Latin America that excludes the U.S. and Canada.
You can apply up to a maximum age of 74. If the application is made before age 65, the person can qualify for lifetime coverage. If he or she applies between the ages of 65 and 74, the policy will end at age 75.
If an applicant has a minor pre-existing medical condition, he or she might be accepted with a premium load and a waiting period on that medical condition. The applicant could be accepted with a permanent exclusion on the condition or could be declined.
Health check (wellness) benefits for the Citizen Secure medical plan are for those who have been covered at least 12 months, and are not subject to a deductible.
The Mexican Instituto Mexicano del Seguro Social or IMSS — the government's social medical program — will not cover chronic treatments for new applicants with resident visas.
U.S. citizens under age 65
Usually people in this age class hold a U.S. domestic health policy or have COBRA benefits from a former employer or via the working spouse. When traveling or moving to Mexico, they may maintain their existing policies and some return to the States for chronic treatments. Or they may pay their own medical expenses in Mexico out-of-pocket — if the medicines are available — as they are usually less expensive than in the U.S.
People considered uninsurable and without medical benefits might purchase a medical air evacuation policy. Most medical air evacuation policies have a 90 waiting period on pre-existing medical conditions. After the 90 day waiting period, the air medical evacuation company may cover the condition, but check with the carrier. These policies can be found at www.azseguro.com.
Americans who are uninsurable are sometimes afraid to move away from the United States for fear of being unable to secure medical coverage. However, some uninsurable persons — with major medical conditions — have decided the benefits of living in Canadian-American expatriate communities in Mexico outweigh the risks, and move to Mexico anyway.
There are short-term international medical policies such as the Atlas plan from HCC Medical Insurance Services (formerly Multinational Underwriters) with no medical underwriting.. As mentioned earlier, the Atlas plan covers sudden, unexpected and unforeseen medical expenses outside of the person's home country of citizenship. These policies are renewable from as little as 5 days for up to 36 months, and vary in deductible from $0 to $2,500 USD. The range of coverage runs from $50,000 to $1,000,000 USD. Generally there are limits of coverage for pre-existing medical conditions. Chronic treatments are not covered.
There are international major medical plans from insurer IHI Danmark, part of the BUPA Group of companies (British United Provident Association).
IHI Danmark's suite of plans allows a person to apply up to a maximum age of 74. If the applicant has a minor pre-existing medical condition, he or she might be accepted with a premium load and a brief waiting period on the medical condition. This decision is made by a medical risk underwriter.This decision is made by a medical risk underwriter. There are no lifetime limits on these plans, and no exclusions for hazardous sports or activities of any kind.
**IHI Danmark BUPA Group |
| IHI Danmark's suite of plans allows a person to apply up to a maximum age of 74. |
| If the applicant has a minor pre-existing medical condition, he or she might be accepted with a premium load and a 4-week waiting period on the medical condition. |
| If the applicant is accepted, IHI Danmark would cover treatments of the chronic condition after the deductable has been met, usually with a 4-week waiting period. |
| An applicant could be accepted with a permanent exclusion on the medical condition or the applicant could be declined. |
| The IHI Danmark Diamond plan covers up to $2 million USD annual. |
| Their popular Gold plan covers up to $1.5 million USD annual. |
| Their Silver reduced-benefits plan covers up to $700,000 USD annual. |
| The IHI Superior plan has no deductible, and virtually everything medical-, dental- and vision-related is covered at 100%. |
| These plans are offshore insurance products, and work at private hospitals. |
| There are no lifetime limits on these plans. The Gold plan is the most popular, and all have medical air evacuation benefits. |
| Health check (wellness) benefits are limited to $600 USD annual on the Diamond plan, and $300 on the Gold plan. |
| There are no exclusions for hazardous sports or activities of any kind. |
The IHI Superior plan has the best benefits I've ever seen on any health plan, anywhere. There is no deductible, and virtually everything medical, dental and vision-related is covered at 100%. These plans are for private hospitals. More about these plans can be found by contacting the author.
HCC Medical Insurance Services (formerly Multinational Underwriters) has the Citizen Secure international major medical plan. It has a worldwide option, coverage up to $5 million USD, and includes full major medical plus medical air evacuation benefits in the U.S., Mexico and Canada. It also has a lower-premium option to cover only Latin America that excludes the U.S. and Canada.
You can apply up to a maximum age of 74. If the application is made before age 65, the person can qualify for lifetime coverage. If he or she applies between the ages of 65 and 74, the policy will end at age 75.
If an applicant has a minor pre-existing medical condition, he or she might be accepted with a premium load and a waiting period on that medical condition. The applicant could be accepted with a permanent exclusion on the condition or could be declined.
Health check (wellness) benefits for the Citizen Secure plan are limited to $250 USD a year for those who have been covered at least 12 months, and are not subject to a deductible. A lifestyle improvement program should be considered.
The Mexican Instituto Mexicano del Seguro Social or IMSS — the government's social medical program — will not cover chronic treatments for new applicants with resident visas.
Unexpected, Unforeseen Illness or Injury
If a person is eligible for Medicare eligible, he or she might pay out-of-pocket for their unexpected, unforeseen illness or injury in Mexico. Some purchase a medical air evacuation policy. Most medical air evacuation policies have a 90 waiting period on pre-existing medical conditions. Some buy this whether they are visiting or staying long term.
There are short-term international medical policies such as the Atlas plan, mentioned previously. For more information, visit www.azseguro.com.
There are international major medical plans from insurer IHI Danmark, part of the BUPA Group of companies (British United Provident Association), as well as from HCC Medical Insurance Services, as mentioned previously, for those living in Mexico. For more information, visit www.azseguro.com or contact the author.
The Mexican Instituto Mexicano del Seguro Social or IMSS — the government's social medical program — can administer emergency treatment to visitors, just as private medical favilities can. The quality of care can be limited in remote areas.
Catastrophic Medical Event
Some purchase a medical air evacuation policy in case they should suffer a catastrophic medical event. Most medical air evacuation policies have a 90 waiting period on pre-existing medical conditions, and the plans usually include repatriation of remains in case of death. The risk with medical air evacuation-only policies is that they usually provide no medical coverage benefits in Mexico.
There are short-term international medical policies such as the plan, mentioned previously. Catastrophic medical events are covered, per the policy limits. These plans usually include medical air evacuation benefits. Contact www.azseguro.com.
There are international major medical plans from insurer IHI Danmark, and Multinational Underwriters, as mentioned previously, for those living in Mexico. These plans, too, usually include medical air evacuation benefits.
The Mexican Instituto Mexicano del Seguro Social or IMSS — the government's social medical program — can administer emergency treatment to visitors, as can private medical facilities. The quality of care can be limited in remote areas.
Employer International Group Medical Plans
International group medical insurance plans can range in size from two employees and beyond, with no size limit. Coverage is extended to Canadian, U.S. or Mexican citizens. These plans can be custom designed with ease, based on the employer's needs. Rates are usually lower than with domestic U.S. group plans.
There are group medical plans that offer coverage regardless of medical conditions of the employees (but with usually elevated premiums). Other such plans can be implemented where rates are based on the average age of the employees and disclosed medical conditions (if any). Deductibles can range from $250, $500, $1,000, $2,500, $5,000 or $10,000. Coverage is worldwide and includes Latin America, the U.S. and Canada.
To save on premiums, a plan can be implemented to cover worldwide but exclude the U.S. and Canada. Benefits include hospitalization, outpatient surgery, treatments, medicines and medical air-evacuation. The spread of medical risk among a pool of employees can possibly result in lower premiums and more flexibility, insuring employees who might have medical conditions.
Long Term Care Insurance
There are insurers offering long term care benefits that can be used to pay expenses in Mexico for someone who is chronically ill. Benefits are paid when the person cannot perform at least four of the six "Activities of Daily Living (ADLs)" without assistance. A physician must certify that the person meets these requirements.
International Life Insurance
Why do you need life insurance? Its main purpose is to provide cash to your family or business partners after you die. The money your dependents will receive — the "death benefit" — is an important financial resource. It can help pay the mortgage, run the household, and ensure that your dependents aren't burdened with debt. These proceeds could mean that they won't have to sell assets, homes, or rob retirement plans to pay outstanding bills or taxes. What's more, there is usually no federal income tax on life insurance benefits.
Benefits from an international policy will be paid in U.S. dollars. With Latin America-based policies, the insurer would buy dollars to pay the death benefit or pay it in local currency.
Life Insurance is a tool to protect partners who are in business together. Policies can be a place where one can borrow money. There are optional critical illness policies, disability income riders and long term care benefits that can supplement a life insurance policy.
Disability Income Protection
Usually this is an option that can be added to international life insurance policies, at additional cost. protect your income or paycheck, should you become ill and are unable to work.
Note about healthcare reform affecting those living in the U.S. and citizens living outside the U.S.A.
The USA Department of Health and Human Services is responsible for transforming the Affordable Care Act — signed into law March of 2010 — into regulation form. At this writing, the regulations are still being developed by USDHHS and this has many in the healthcare and insurance industry on edge.
An overview of the Affordable Care Act may be found by an internet search. The document is called the Secretary's Strategic Initiatives and Key Inter-Agency Collaborations. That publication discusses the vision of the Act and the proposed changes, including health insurance exchanges, electronic medical records, bare periods, reducing health care fraud and a many more.
It is not anticipated that this will have much of an effect on Americans spending time outside the U.S. who may be covered by Medicare, Medicaid and other such government plans. A person should consider a Lifestyle Improvement Program. Why? There are efforts underway at institutions such as University of Arizona to train forward-thinking practitioners in integrative medicine, transforming the ways of conventional medicine, and helping practitioners to become partners with the patient. The partnership helps the patient become aware that lifestyle changes are necessary to improve health, and that partnerships teaches the patient techniques to help the patient improve his or her own health.
Some call this a prevention lifestyle. It is very well documented that 75% of chronic illness is lifestyle-related, so you should consider lifestyle improvement programs.
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