Understanding Health Insurance Portability Across Countries: What You Need to Know

In today's globalised world, international relocation for work, education, and personal reasons is becoming increasingly common. This trend highlights the importance of robust support systems, particularly in health insurance, which is essential for maintaining well-being across borders.

Relocating internationally often involves navigating complex health insurance systems, which can include unfamiliar paperwork and language barriers. Local health plans are generally designed for residents and may not meet the needs of those who move frequently. This is where health insurance portability becomes crucial, offering a seamless transition in coverage for globally mobile individuals and families.

Understanding Health Insurance Portability

Health insurance portability allows you to maintain healthcare coverage under the same terms when moving to a new country. It ensures a smooth transition in your health coverage by avoiding gaps or interruptions in care.

Having portable health insurance is particularly beneficial for expatriates on local assignments who may relocate to another country or return to their home country at some point. Whether living alone or with family, these individuals require healthcare solutions that adapt to their changing circumstances.

Additionally, anyone considering a move abroad, including local residents, can benefit from the flexibility and security offered by portable health insurance plans.

Key Benefits and Features of Portable Health Insurance Plans

Portable health insurance plans offer invaluable benefits and peace of mind for individuals and families living or working abroad to ensure their healthcare needs are met regardless of location or circumstances.

What are the benefits?

• Continuous health coverage without gaps: Standard health insurance plans may leave coverage gaps during relocations, which can be especially disruptive for individuals.

Without a portable plan, they may need to find a new plan, potentially leaving them uninsured for a period. This gap can expose them to significant out-of-pocket expenses for unexpected medical needs. To mitigate these risks, some may opt for short-term plans, but these often come with limited benefits compared to comprehensive coverage.

• No waiting periods: Portable plans guarantee continuous benefits by considering the waiting periods you've already completed. For example, if your current policy has a one-year waiting period for dental coverage and you've met this requirement, you won’t have to wait again to enjoy this benefit when transitioning abroad.

• Continuous coverage of your pre-existing conditions: If you move abroad and apply for new health insurance in your new country, you will undergo underwriting, where the insurance company assesses your health risks. Any pre-existing conditions will be disclosed during underwriting. Unfortunately, your policy might exclude them from coverage, or choose to add a loading to your policy.

Portable health insurance avoids this issue because you don’t have to undergo the underwriting process again when moving abroad. Your coverage stays intact, ensuring continuous coverage of any medical condition that may have arisen during your coverage period.

Considerations

When looking into portable health insurance options, there are a few things to keep in mind before you navigate your international journey.

• Country restrictions: Insurance companies sometimes restrict health insurance portability to countries deemed high-risk due to war and political instability. This is a common practice globally, where insurers assess and manage risks by limiting coverage in unstable regions.

Additionally, because the United States has some of the highest healthcare costs globally, some insurers exclude portability for plans covering this area. It's important to review the geographic coverage of any health insurance plan.

• Difference in premium: Depending on where you move, your insurance provider will likely reevaluate your premium at renewal. This is because healthcare costs can vary significantly from one country to another. For instance, if you move from a country with lower healthcare costs like Vietnam to one with higher costs like Hong Kong, where healthcare expenses are among the highest worldwide, your premium will likely be adjusted upward to reflect the increased cost of healthcare in your new location.

Choosing the Right Portable Health Insurance Plan

When selecting a portable health insurance plan, you generally have two main options:

• Check if your corporate plan is portable: if you are currently covered by a company scheme, verify with your employer whether your plan offers portability. If your current plan is not portable, consider purchasing an individual plan that can serve as a top-up to provide additional coverage while retaining portability.

At APRIL, we offer corporate health insurance plans with a portability feature, catering to businesses of all sizes—from small startups to large corporations.

• Buy an individual plan that is portable: Alternatively, you can choose to buy an individual portable health insurance plan, such as MyHEALTH. This is specifically designed to be flexible and can be carried out across different geographic locations.