Americans Travel the World for Affordable Healthcare

While we hear endless stories of Canadians coming to the US to avoid waiting for noncritical operations, Americans are starting to look abroad for affordability. The New York Times “Finding Affordable Health Care in Foreign Hospitals” tells the story of an early retiree from Bank of America (BAC) with a $10,000 deductible health insurance plan.

Ben Schreiner, a self described 62 year old former executive, priced a double hernia operation at $14,000 in local hospitals. Trying not to spend his entire deductible, he settled on Costa Rica for $3,900. Our medical tourist was satisfied with the results.

If even the skills of a bank executive are no match in negotiating medical costs or effectively shopping the American healthcare market, none of the rest of us stands a chance. That’s why President Obama sees no future in “consumer driven” high deductible plans.

The most interesting aspect of the article was not the quality of care or cost savings available outside the US, or even the potential risks of receiving care abroad. My interest was on Ben Schreiner himself and why a former Bank of America executive is carrying a $10,000 deductible policy. Did he think that he could wing-it until Medicare without incurring substantial medical expenses? Did he do a cost-benefit analysis, concluding he could easily absorb $10,000 in medical costs? Or was a $10,000 deductible policy all he could afford after medical underwriting at his age?

Unfortunately, the Times article focused primarily on the process for planning an out of the country medical procedure. And Ben Schreiner did not discuss the economics of or any constraints imposed on his choice of health insurance plan. Whatever his reasoning, for any American to be limited to such poor coverage is unconscionable.

Let’s examine the rhetoric in medical tourism. There have been stories over the last two decades of American medical tourism for cosmetic and elective procedures. Basically, procedures not ordinarily covered by health insurance. At the same time, “horror stories” of desperate Canadians coming to the US for what turned out to be non-life threatening operations. So whether the motivations are financial or convenience, no one appears to be traveling for a life or death medical procedure.

The stories of Canadians suffering a few weeks of pain while waiting for an operation don’t make my heart bleed. I have yet to hear of a Canadian that suffers under the stress of a $10,000 deductible. Remember that only financially able Canadians can come to the US for care.

When former executives either cannot or will not get adequate health insurance, current executives should beware of having their companies stand in the way of letting anyone at any age buy into government sponsored “Medicare for All.”

Disclosure: Author is long BAC.

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