In a recent report, the U.S. Department of Health and Human Services said that in 2017 insurers will raise the premiums for plans sold through HealthCare.gov by an average of 22 percent — about triple the 7.5 percent increase from 2015 to 2016. In some states, the premiums will go up as much as 30-100%.
Mauldin Economics recently reported The Affordable Care Act (ACA), which at this point should be renamed EECA (Excessively Expensive Care Act), is in its death throes.
Let me just recap some of the most vital facts for you:
- A family of four making $60,000 per year could spend almost one-sixth of their pretax income on health costs (premium plus deductible) before receiving any insurance payment.
- In 2017, insurance premiums in many states will rise by 30%-40%—further squeezing middle-class Americans who make too much to be eligible for a tax credit and too little to be able to afford the high premiums and deductibles.
- More and more insurers throw in the towel because financial input vs. output just doesn’t add up for them. In 2016, 225 counties in the US had only one health insurance carrier in the ACA marketplace. In 2017, that number will rise to 650 counties.
With 10,000 people turning 65 every day in the United States, the share of the US population aged 65+ grows—from 47 million today to 72 million by 2030, a 60% increase—more and more money will be spent on healthcare, ultimately suffocating the already weakened US economy.
SO, WHAT’S THE SOLUTION?
With health care cost rising, more Americans than ever are choosing to move to Panama so they can significantly reduce their health care and health insurance costs.
In Panama, healthcare expenses are based on the local cost of living which is much less than the United States. In addition, frivolous lawsuits are non-existence in Panama so malpractice insurance is very low for doctors. For these reasons, Panama healthcare and health insurance cost a small fraction of what they would cost in the United States. Despite the lower costs, the quality of care is high.
A routine doctor visit is $10 to $20 in Panama. That’s not a co-pay. That is the total cost without insurance. A specialist is $30 to $40. If you need to go to the emergency room, it will set you back $25 an hour. These are the prices without insurance.
Many expats living in Panama self-insure because the costs are so low. They can take advantage of the public hospitals where it is only $1.50 to see a doctor and $10 a day if you are hospitalized. A friend was hospitalized with a heart attack a few months ago. After 10 days in the public hospital, his cost was less than $1000 including MRIs, Cat Scans, and medications. Prescriptions are 90% less at the public hospitals too.
But, because health insurance is so affordable in Panama I think it is wise to get health insurance when you can afford to. With a higher deductible, you can reduce your monthly or annual premium.
Health insurance prices will depend on your age.
You have several choices for health insurance. You can get insurance which only covers you in Panama. Or, you can get international health insurance which will cover you in Panama, the United States, or any other country. These plans usually require that you are under 74 on the day you sign up but then they cover you for as long as you pay the premium. They may exclude pre-existing conditions for the first year or two then cover the condition after that.
I have international health insurance with United Healthcare. At 62, I pay $2450 a year with no deductible in Panama and a $1000 deductible outside of the country. I’m covered 100%.
Before moving to Panama, I tripped on a blanket and fell down the stairs at my house in Dallas. I damaged my eyes and had to have two eye surgeries in Texas. I thought my eyes would be excluded from my insurance in Panama but it was not.
Since living in Panama, I have had two more eye surgeries including a lens replacement. Insurance covered the cost of both surgeries in Panama. I can honestly say that the quality of the care I got in Panama was far superior to the care I got in Texas.
Another affordable option for health insurance in Panama, is a medical reimbursement plan through Pan American Life Insurance. With this insurance, there is no age restrictions, no deductible, and they cover pre-existing conditions after the first year. This plan covers 70%. But with costs so low for a doctor visit or a hospital stay, your out of pocket expense is still very low.
A 68 year old woman who came on my tour then moved to Boquete is paying $82 a month for the medical reimbursement plan with Pan American.
Panama health insurance companies will not issue insurance until you are living in Panama. You’ll need to prove that you are renting in Panama or have bought a house. And they will have have restrictions about how long you can back in your home country to stay insured. So, you cannot buy insurance in Panama at the much lower price then move back to the United States full time.
Shop around for health insurance. And beware that many insurance “brokers” charge 30-40% more for health insurance. You’ll save money by buying your insurance directly from the company instead of using an insurance broker.
There are other savings when it comes to health care in Panama It cost about $30 to get your teeth cleaned. It is less than $1000 for a dental implant. A friend had an upper and lower eye lift in Panama City for only $2200. These low prices are attracting medical tourist to Panama.
You can go in to any lab to order your own lab work without a doctor prescription. I recently paid $42 for a complete lab workup. This price did reflect a 25% Pensionado discount.
This special Pensionado discount is valid for doctor visits, hospital stays, and prescription drugs. The Pensionado discount is for Panamanian or expat women who are over 55 or men who are over 60.
Many Americans are moving to Panama for more affordable healthcare and health insurance.
It’s unfortunate that people in the United States don’t have an affordable solution for health insurance. My healthy 34-year-old daughter would have to pay $297 per month for insurance with a $6,000 deductible under Obamacare. Or she can pay a $1100 a year penalty for not having insurance then pay out of pocket for healthcare. With a deductible that high, it is doubtful that she would ever actually get to use her insurance so it just makes more sense to pay the penalty for not subscribing to Obamacare.
Many people in the U.S. don’t know how bad and how expensive health care is in the United States or that there are very affordable alternatives when they live in Panama.
Many of the doctors in Panama were educated in the United States and some are even Board Certified in the United States. You can find any specialist in Panama that you’d find in the US too.
Quality Hospitals too
Panama has quality hospitals too. Punta Pacifica Hospital, the Johns Hopkins International-affiliate, is known as one of the most technologically advanced medical centers in Latin America. Hospital Paitilla is affiliated with the prestigious Cleveland Clinic. San Fernando Hospital is affiliated with the well-known Tulane University Health Services Center and Hospital Clinic, Baptist Health International of Miami, and the Miami Children’s Hospital. Hospital National is run by the American Hospital Management Company, which is affiliated with the University of Nebraska Medical Center and the Kendall Medical Center in Florida.
Hospitals, medical centers, pharmacies, dental clinics and labs are readily available in cities throughout Panama.
Prices for prescription drugs in Panama can be very low as well. They are priced for the local market. Unless you are buying an antibiotic or a narcotic, you will not need a prescription so you can save money on unnecessary doctor visits.
WHAT ABOUT MEDICARE OR TRICARE?
Neither the U.S. Medicare program nor the Canadian Health System provides coverage for hospital or medical costs outside the United States and Canada. Some expats keep these plans then have an additional Panama only plan to keep their costs down. Others decide to just get international health insurance then opt-out of Medicare.
US military veterans and disabled veterans are eligible for free medical and prescriptions in Panama.
Como No? This is a popular phrase in Panama. It means WHY NOT.
With a more affordable cost for health care and health insurance plus the lower cost of living in Panama, COMO NO relocate to Panama?
It’s certainly worth checking out Panama to see how you can reduce your health care and health insurance costs. Plus you’ll discover how you can live BETTER for LESS.
Join us for a Panama Relocation Tour to discover what your life could be like living in Panama. During the tour, you’ll receive details about various health insurance companies including their direct contact information. Plus you get to visit many different areas in Panama and meet expats who live there.
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