Travellers often don’t see overseas medical costs coming. If you’re going on holiday or a business trip abroad, you probably feel secure knowing you have a clean bill of health and the recommended vaccinations. Unfortunately, emergencies can happen no matter how well you prepare or how healthy you are. Moreover, without the right coverage, you will likely have to pay overseas medical fees out-of-pocket.

We help you plan your next international venture by examining the cost of healthcare abroad, the medical risks of travelling, and how to protect yourself.

How much does medical treatment abroad cost?

The cost of medical treatment abroad depends on where you go, the type of care you receive, and what country-specific policies (if any) apply.

Some overseas medical expenses are similar to domestic costs in Australia, while others are exceptionally higher such as in the United States. Many travellers have to pay full price for services, even if it’s emergency care.

For example, an ambulance ride in the US could cost you as much as $1,277 USD (approximately AUD $2,000) according to Forbes.

Meanwhile, if you visit one of the eleven countries that have a reciprocal agreement with Australia, fees could be covered or subsidised for public healthcare services.

However, this agreement largely only applies to life-saving situations declared by trusted medical professionals. There’s also no guarantee you’ll get cover because every country has different processes.

Medical risks of overseas travel

Travel is usually safe and low-stress, but there are potential dangers to your health. For example, you may experience any of the following:

  • Accidental injuries
  • Severe allergic reactions (anaphylactic shock)
  • Complications from pre-existing conditions
  • Foodborne illnesses
  • Sunburn and sun poisoning
  • Bug bites
  • Dental pain or infections
  • COVID-19

Many of the risks listed above are preventable through proper travel safety, such as vaccinations or by following local health advisories. However, medical crises happen to the best of us—even experienced travellers—and a minor condition can become a serious illness or injury.

As you consider the risks, research financial protection. Travel insurance providers like PassportCard, backed by Guild Insurance, shoulder certain healthcare expenses so you can focus on recovery and getting home safe.

Highest out-of-pocket healthcare costs by country

To help you prepare for your next holiday or business trip, we’ve put together an overview of the five most expensive nations’ out-of-pocket costs.

 

1. Switzerland

Switzerland lands first on our list with an average of USD $1,688 for out-of-pocket health spending per capita. This means that the average individual spends around AUD $2,508 on healthcare expenses without insurance to cover any claims, making it one of the highest rates globally.

The high average is due to Switzerland’s high cost of living—which helps fund a well-developed healthcare infrastructure and well-trained medical professionals.

The country also frequently ranks as one of the pricier places for Australians to visit. You’ll likely receive premium care, but without the right travel insurance, you’ll need to foot the bill on your own.

2. United States

The United States has the second-highest out-of-pocket spending per capita at USD $1,425 (est. AUD $2,117).

Additionally, the Organisation for Economic Co-operation and Development (OECD) ranks the US as having the highest spending for healthcare goods and services. In 2022, it averaged USD $12,555.26 or AUD $18,656 per capita—the highest of any nation in the world.

Keep these averages in mind if you don’t have travel insurance and intend to visit the US. The country’s costly fees are due to many factors, including a lack of universal healthcare and a complex bureaucratic system that usually can’t accommodate foreigners.

3. Austria

Another European country with high fees is Austria. Individuals spend an average of USD $1,148, which is an estimated AUD $1,706 for out-of-pocket expenses.

Like some other European countries, Austria provides universal healthcare for its residents, but uninsured Australian travellers will most likely have to pay in full if they need treatment.

Furthermore, you may also encounter language barriers as you would in Switzerland or Belgium (listed below). English is commonly spoken, but language differences can complicate your access to healthcare. Be sure to brush up on your German and ask for an English translator if you ever need medical help.

4. Belgium

Belgium has the fourth-highest medical fees without private or government cover. Individuals pay an average of USD $1,075 or roughly AUD $1,597.

Belgium is also one of the eleven countries with which Australia has a reciprocal health care agreement. This means you may be eligible for subsidised medical costs during emergencies.

That said, uninsured Australians are not guaranteed cover, nor can the Australian government request care on your behalf. If you receive cover through the agreement, it may not apply to other subsequent needs like follow-up treatment or transport.

5. Canada

Trailing after its neighbour, Canada ranks fifth on our list. The country’s high out-of-pocket medical fees—an average of USD $941 or around AUD $1,398—reflect its high cost of living and well-developed infrastructure.

Canada does provide universal healthcare, but this is limited only to permanent residents and citizens. The Canadian government will not cover or subsidise costs for Australians and recommends you secure travel insurance before visiting. 

How to cover overseas medical costs

A private health insurance policy or Medicare won’t apply abroad, so the best way to cover medical costs is through travel insurance.

Depending on your eligibility, travel insurance protects you against costly treatment, evacuations, injuries, dental emergencies, pre-existing conditions, and more.

One dedicated provider is PassportCard. As a partner of Guild Insurance, PassportCard offers 24-hour assistance during international trips to a wide range of people, including professionals, families, seniors, and people with long-term conditions.

Get help faster – approved medical claims are eligible for instant payouts through the PassportCard. Other common, non-medical travel claims like delayed luggage or stolen cash—which make a medical situation all the more stressful—are also eligible for instant payouts under a comprehensive policy.

For wider protection, you can add winter sports, adventure travel, cruise, or business coverage so you’re secure no matter the type or location of your emergency.

For more information on PassportCard click here or call them on 1300 392 885 to speak to someone about taking out a policy for your upcoming trip.