Milliman: The rise and risks of medical tourism

The term 'medical tourism' seems to be cropping up everywhere these days. From trade and business journals to the popular press, traveling to another country specifically to obtain medical care is a significant new trend. In this challenging economy, where the cost of healthcare continues to spiral up and hundreds of thousands have lost their health insurance along with their jobs, it's not surprising to see keen interest in less expensive resources, especially because the savings are often substantial.

Today a $250,000 heart surgery in the United States costs approximately US$15,000 in India, including airfare and accommodations. As a result, a number of major U.S. insurance agencies and provider companies are offering coverage for a range of medical procedures performed internationally. It is easy to imagine how this could lay the foundation for a growing treatment alternative and possibly, depending on variables such as the future of Medicare and the concept of universal coverage, a sea change in the U.S. healthcare industry.

But important factors such as hospital reporting, medical residency requirements, the use of evidence-based medical guidelines, and even pharmaceutical nomenclature vary worldwide, and so a critical component remains unsolved: how to standardize the way patients, providers, and payers assess and manage the risks associated with this new medical frontier.

http://www.milliman.com/perspective/articles/rise-risks-medical-tourism-...