Canadian Chat → The perils of Travel Insurance

No matter the spin, or who's charging whom, or who owes what, $1MM to deliver a baby is insanity.

Not atypical. Us Canadians are accustomed to not paying a cent out of our pockets for health care. There's a reason why medical bills is one of the largest triggers of bankruptcy in the United States.

Australia’s foreign affairs minister is looking into the case of a Sydney couple stuck with a million-dollar hospital bill after their daughter was born in Vancouver last August.

John Kan and Rachel Evans had taken out travel insurance and extra cover for Ms. Evans’ pregnancy without realizing the policy would not cover birth or the baby.

They were about to return to Australia after their B.C. vacation when Ms. Evans went into premature labour at the airport.

Piper Kan stayed in the neo-natal ward of the B.C. Women’s Hospital and Health Centre for three months and the bill ended up being about $1-million.

Australian media reports the couple negotiated a payment plan with the hospital at about $300 a month, which would take 278 years to pay off.

What was the pre-existing condition you ask? She had a bladder infection, which caused a bit of hemorrhaging. Even the doctors in Hawaii, said the that shouldn't cause a premature water break.

I believe they also sat down with the insurance agent and specifically said she was pregnant.

Don't US Hospitals bill something ridiculous like $28 for a tylenol pill?

Because its to cover those who end up not paying in due to lack of coverage/no coverage/etc?...

Newly-released tax documents show UPMC (University of Pittsburgh Medical Center) compensated 30 employees at least $1 million in the fiscal year ending June 30, including seven who were paid more than $2 million.

Heading the list was UPMC president and CEO Jeffrey Romoff, whose total compensation for the year was $6.55 million, up from $6.01 million a year earlier....

Others at UPMC earning above $2 million were outgoing executive vice president Elizabeth Concordia ($2.64 million), Diane Holder, president and CEO of UPMC Health Plan ($2.12 million), and physicians Ghassan Bejjani ($2.54 million), Victor Morrell ($2.21 million), James Luketich ($2.65 million) and David Farner ($2.10 million).

A day spent as an inpatient at an American hospital costs on average more than $4,000, five times the charge in many other developed countries, according to the International Federation of Health Plans, a global network of health insurance industries. The most expensive hospitals charge more than $12,500 a day. And at many of them, including California Pacific Medical Center, emergency rooms are profit centers. That is why one of the simplest and oldest medical procedures — closing a wound with a needle and thread — typically leads to bills of at least $1,500 and often much more.

I believe they also sat down with the insurance agent and specifically said she was pregnant. She got the all clear from Blue Cross, the doctor... everybody needed. They did their due diligence.

But I'm also in the camp that think's it was foolish to travel abroad while 6 months preggers, especially to the US and their made for profit health care system and the fact insurance companies try to weasel out of paying insurance when needed. Either points is no secret. It was potential for disaster and it happened. I'm not victim blaming but there were risks.

The Alberta government, with the help of some generous Calgarians, paid the bills and saved the Wolfes from financial ruin.

But of course, you only hear the bad ones or the ones that get denied, even if there is grounds for denial. People have this misconception that just because you paid for a policy that everything is owed to you and that you are entitled to anything you want. Get real.

but I can understand why a couple might want one last trip before the fun starts.

Again, US health insurance is different than Canadian travel insurance.

Three customers who bought travel insurance from Canadian banks are outraged after being left with large foreign medical bills....

In each case, the medical emergencies abroad had nothing to do with any pre-existing conditions they were asked about....

Insurance broker Bruce Cappon is lobbying for provincial regulators to force insurance companies to be more up front about what the medical questions really mean.

“The way the system is rigged right now is that insurers have a legal weapon. The misrepresentation clause is a legal weapon,” said Cappon.

“I find it very unfair that you are asking these people to fight back when the remedies would be very simple, just to add a few changes to the regulations.”

He also thinks it should be illegal for insurers to refuse to pay for treatment unrelated to any pre-existing conditions.

Travel insurance is supposed to protect you if you get sick and have to cancel your trip, but a Calgary man has been left in the cold by his provider after being diagnosed with cancer.

Last September, Neil Steenveld booked a family vacation to Mexico, but found out he had throat cancer just two months later and had to cancel. However, when he made a claim through Manulife Global Travel, they would only refund half of the cost—equaling $1,500.

The reason? Manulife says that because Steenveld saw his family doctor for a sore throat last April and was referred to a specialist, it fit the definition of a pre-existing condition.

and most MEDICAL travel insurance is POST qualified (depending on your age). Meaning if you buy and try to claim they then see if you qualify for the insurance. If you do not then they will refund your premium.

Whereas life insurance is pre-qualified. You don`t qualified then you are denied to even purchase the insurance. Also check if you have mortgage insurance, it may also be post-qualified.

right on the stable....but they will not deny taking your money and assigning a policy until you attempt to claim. Then they will deny the claim based on pre-existing condition.

Whereas others will deny you a policy BEFORE taking your money based on pre-existing condition or deny certain portions based on pre-existing condition BEFORE you buy.

And what about the guy with cancer? He claims he didn't know he had a problem. Im sorry, but if you see your doctor and you are referred to a specialist, chances are you have a problem. This falls under the definition of a pre-existing medical condition. Where's the problem? Just because he can't read or chooses not to read his policy he should be paid out?

All these so-called cases of "the insurance being the bad guy" all boil down to the simple little fact that people DON'T read their policies, or answer the medical questionnaire correctly, which again, is entirely in their control. Those news article are not giving the full story, you are only getting a small glimpse from the client's point of view, but there is a lot more that goes into denying a claim, trust me.

“I’m under the impression that they said, ‘Well, you should have known better than to book a trip if you’re going to see a specialist,’” Steeveld says, adding that his doctor says there was no sign of cancer when he booked the vacation, and wrote a letter to back it up.

and most MEDICAL travel insurance is POST qualified (depending on your age). Meaning if you buy and try to claim they then see if you qualify for the insurance. If you do not then they will refund your premium.

Whereas life insurance is pre-qualified. You don`t qualified then you are denied to even purchase the insurance. Also check if you have mortgage insurance, it may also be post-qualified.