Researching the healthcare system of your new country is important when moving abroad. Many countries have different systems in place or different variations of the same system. This can be extremely confusing initially but it’s something that expats will need to investigate and prepare for. You’ll need to know what you’ll be covered for, how expensive treatment may be, whether it’s subsidised or not, and if you need to get private health insurance to cover these costs.
Many popular expat destinations have some type of free or universal healthcare system in place for their residents. But what does this entail?
Free healthcare
Although this system is known as ‘free’ healthcare, this is often a little misleading. Free healthcare, also known as single-payer healthcare, is a system in which the cost of treatment is covered by the government. That said, residents pay taxes to the government each month in order to fund the healthcare system. So, although residents aren’t required to pay for treatment, they indirectly pay for it through their often relatively higher taxes. This system also means that everyone, regardless of their income, will receive the same level of care.
Some of the countries that offer free healthcare are Australia, Canada, Denmark, Finland, Ireland, New Zealand, South Africa and the United Kingdom.
Universal healthcare
Universal healthcare also means access to the same standard of care, but workers must pay a portion of their monthly salary, while their employer also pays an amount on their behalf, towards specific government chosen health insurers who then cover their medical costs. Employees may be able choose which insurer of the select group to sign up with. The amount payable each month is generally shared between the employee and employer, while unemployed people or those who cannot afford it may receive assistance from the government or premiums could be reduced. Those who still cannot afford the payments, could be excluded from receiving universal healthcare.
Some of the countries that offer universal healthcare are Belgium, China, France, Germany, Japan, Poland, South Korea and Dubai and Abu Dhabi in the United Arab Emirates.
Non-universal healthcare
In this system, some residents have private health insurance, some receive free or subsidised care, and some have no coverage at all.
An example of this system is the American healthcare system. In the US, those who can afford it sign onto an extensive health insurance plan that gives them access to the best hospitals and medical treatment the country has to offer, while certain groups of people, such as veterans and those below a particular poverty line, receive either free or subsidised care, although this may only be at public facilities or certain hospitals. The rest of the US population, those who don’t fall into one of the specified groups and those that can’t afford private insurance, must pay the full amount for their treatment out of pocket.
Some of the countries that have a non-universal healthcare system besides the US include Indonesia, Kenya, Tanzania, Uganda and the rest of the United Arab Emirates.
Healthcare for expats
With so many different healthcare systems around the world, the question is: what does this mean for expats?
Although many popular expat destinations have free or universal healthcare, this does not necessarily mean expats will qualify for it. Expats may need to become tax residents, work for a local company or become permanent residents before they have access to either free or universal care. In many cases, expats may not be eligible at all and will need to get private health insurance to cover their healthcare costs.
Although some countries may offer expats free or universal healthcare, the public facilities in these countries may not offer as high a standard of care as private ones. Generally, treatment in private hospitals and clinics is expensive and private health insurance is needed to cover these costs. For this reason, you should not bank entirely on free healthcare even if it is available to you.
These are things that you’ll need to research before moving abroad. It’s recommended that you look into all your options and make an informed decision whether to invest in private health insurance, based on what’s available to you in your destination.
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