Domestic Medical Travel Insurance Coverage for Employers
Author: Health Options Worldwide (HOW)
Published: 2010/11/02 - Updated: 2026/02/04
Publication Type: Informative
Category Topic: Insurance - Related Publications
Page Content: Synopsis - Introduction - Main - Insights, Updates
Synopsis: This report examines the growth of domestic medical travel insurance programs and their impact on employer healthcare costs. Drawing from industry analysis by Health Options Worldwide, the information provides valuable insights into how insurance companies and third-party administrators are responding to rising healthcare expenses by offering domestic medical travel options to self-funded employers. The data shows how transparency in healthcare pricing, combined with centers of excellence networks across the United States, enables patients - including those with disabilities and chronic conditions requiring specialized procedures - to access high-quality surgical and medical care at reduced costs. The analysis proves particularly useful for understanding how market competition and price transparency can benefit employees needing elective procedures, transplants, or specialized treatments while helping employers manage insurance expenditures - Disabled World (DW).
Introduction
Domestic Medical Travel Spurs Insurers to Increase Offerings and Reduce Employers Costs
Domestic medical tourism is skyrocketing in growth.
"More insurance groups are offering domestic medical travel plans to employers and more employers are offering them to their employees," said David Goldstein, president of Health Options Worldwide, an online medical tourism agency that provides surgical benefits management to self funded employers.
While insurers prefer sending patients overseas to save money, they can still reap cost savings by keeping patients in the United States by offering discount incentives.
Main Content
Surprisingly, some insurance carriers don't cover medical travel expenses nor do they encourage patients to travel to another state for care, unless for very serious, complex medical issues. Those insurers who don't have a domestic medical travel product offer cost comparison tools to compare costs for a variety of procedures against another hospital. Patients can use the tool to see all of the costs associated with a specific medical procedure, from lab tests to recovery room charges.
However, domestic medical travel is the reason why many insurance companies provide a list of "distinction centers," or "centers of excellence" - American hospitals that score high in areas such as transplants, surgeries and cancer.
"These centers are the reason for inbound medical travel whereby wealthy people from other countries come to the United States for medical treatment," said Goldstein, whose website connects patients to physicians who offer high-quality low-cost surgical and medical procedures.
United Healthcare currently has contracts with nearly 5,000 nationwide, as well as over 550,000 doctors and healthcare providers. United Healthcare provides a service that rates different hospitals on certain elective procedures. Their site also gives a breakdown for quality and costs, which is extremely helpful for domestic medical travelers.
"The healthcare industry is on the brink of an historic milestone, with a consumer-driven healthcare marketplace that has global solutions," said Goldstein, "Insurers and third party administrators (TPA's), that have millions of members, are in a unique position to manage cost and access for the industry, both here and overseas."
Insurers and TPA's realize that patients now have the ability to make consumer decisions based on cost and quality.
"With insurance initiatives that promote healthcare transparency, medical travelers can drive healthcare decision-making and foster a truly competitive medical marketplace," said Goldstein.
Self-funded employer groups have more flexibility to make quick decisions and redesign medical plants to incorporate domestic medical travel options. Many have already implemented this benefit or are working with TPA's to offer a medical tourism benefit.
"These entities are sure to be watched closely by others who will then follow suit to offer the aspects that work and avoid those that don't," said Goldstein.
As domestic medical tourism program experience growth and success, domestic healthcare providers will experience some downward pressure. For example, a large domestic employer recently announced their medical tourism program. This announcement was met by a response from a US provider that matched the international price quotes.
"That's what domestic medical tourism will do - prompt a reaction from US healthcare providers to lower their prices," said Goldstein, "Organizations will benefit from downward pressure and correct their pricing strategy and increase their patient numbers and profitability."
Insights, Analysis, and Developments
Editorial Note: The shift toward domestic medical travel represents more than just a cost-cutting measure; it signals a fundamental change in how Americans approach healthcare decision-making. When insurance companies began steering patients toward high-quality, lower-cost facilities within the United States, they inadvertently created a competitive marketplace that benefits everyone involved. Patients gain access to transparent pricing and proven centers of excellence, employers see measurable reductions in their healthcare spending, and domestic providers face the kind of pricing pressure that ultimately improves efficiency across the entire system. For individuals managing disabilities or chronic conditions, this model offers something particularly valuable: the ability to choose specialized care based on both quality metrics and affordability, rather than being locked into whatever provider happens to be geographically closest or most expensive - Disabled World (DW).Attribution/Source(s): This quality-reviewed publication was selected for publishing by the editors of Disabled World (DW) due to its relevance to the disability community. Originally authored by Health Options Worldwide (HOW) and published on 2010/11/02, this content may have been edited for style, clarity, or brevity.