Increase in Health Savings Accounts May be Behind the Surge in Medical Tourism

 

When Zach Hansen saw what it would cost him to have his hips replaced last year, he wanted to leap for joy. Unlike some Americans that wince at the cost, even if they have health insurance, Zach was one of over 500,000 Americans that traveled abroad last year to obtain healthcare. This increase, 35% increase over the prior year is an emerging trend.

 

“I signed up for a Health Savings Account coupled with a high deductible HMO a few years ago,” Hansen  recalled. “I had enough money in the plan to cover the cost of the surgery without even having to use any insurance.”

 

Both Health Savings Accounts and Medical Tourism were included among the top 5 healthcare trends to watch at a recent conference hosted by Microsoft. Experts predict that these trends are creating a ripple effect that will affect the global healthcare market.

 

Insurance companies and hospitals are beginning to take notice. Insurance companies are evaluating options to outsource care to their HMO and PPO members, especially for elective procedures. The cost savings can be as much as 90% of treatment in the United States. Experts say that hospitals may soon use medical tourism to respond to mandated free healthcare to patients that earn less than 350% of the federal poverty level. As of January 1, 2007, California requires hospitals to give patients that earn over $60,000 per year free treatment . Hospitals could certainly do that at less cost via medical tourism.

 

If You Go, Medical Tourism Travel Agencies Are the Way to Go

 

An entire new area of the travel industry has sprung up to assist Americans with medical tourism. These companies like PlanetHospital will plan the trip, arrange for patients to be taken to and from the airport and follow up doctor’s visits when the patient returns home.

 

Staying in Control When You Come Back

 

Patients are tapping not only their Health Savings Accounts to pay for the trip/treatment, but also to obtain the medical equipment and homecare they will need to continue their recovery upon their return home. Patients that might find their medical equipment needs rationed or choices limited are finding that they can purchase their equipment direct from companies like Brannons Medical.com which sells directly to patients.

 

“The cost of billing patient’s insurance is a huge cost. If we can provide patients with the best equipment at a price they can afford without resorting to paperwork, it would cut healthcare costs” Brannons Medical’s manager Greg McMorrow said.