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FAILING to allow for medical bills is one of the most expensive mistakes many expats make. The fourth part of Financial Mail's series on moving overseas looks at the healthcare costs that those seeking a new life abroad are likely to face.
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• BUDGETING for healthcare is a vital part of planning a successful move overseas. Living abroad is likely to mean paying for treatment and medicine taken for granted under the NHS.
A couple in their early sixties retiring to Europe would have to budget £1,500 a year for basic medical insurance, according to Leslie Smith, managing director of expat insurance broker Medibroker International, of Whitley Bay, Tyne & Wear.
But he says that for a fully comprehensive policy, the premiums would rise to between £3,000 and £4,000.
These costs could be higher still for a move to the Middle East, Asia or America where medical bills are greater. Private medical cover is compulsory for foreign residents in some nations, including Saudi Arabia and the Czech Republic.
Anyone who is moved abroad by an employer should find that the company takes care of health cover, but John Stubbington, a director of Bupa International, warns: 'Each employer has a different idea about the appropriate level of insurance for staff. Sometimes, health cover will be limited only to in-patient treatments.'
Those taking a new job overseas independently should check carefully what benefits are included in their salary package. And they should check whether other members of their family are covered under the new employer's scheme.
If they have to make their own arrangements for healthcare, the first choice will be whether to buy from an international provider or use an insurer based in their chosen country.
Neil Armitage is marketing director for medical insurer Exeter Friendly Society, which sells cover to expats throughout Europe. He says: 'The advantage of international cover is that policyholders will have documentation in English and will know exactly what treatments they are insured for.'
As with any policy, buyers should check whether past medical problems are covered and the length of any exclusion period that would apply before they could make a claim.
On top of ordinary medical cover, Britons moving abroad should budget for dental insurance, which can be added to some international health plans. Or expats can sign up to a local savings or insurance scheme.
Returning to Britain for a holiday and sneaking in for treatment is no longer an option because the NHS has clamped down hard on treating non-residents.
Expats should also make sure they sign up for any state medical care on offer in their destination country. The Inland Revenue leaflet NI38 and the Department for Work and Pensions leaflet SA29 give more details.
Amanda and Ted Keen did their homework before leaving Cheshire three years ago to live in Lagos on the Algarve in Portugal. Amanda, 44, does voluntary work at an international school, while Ted, 66, has retired from running a coal importing business. Amanda says: 'The Portuguese state system is good for medical basics.
'We did all the paperwork to register for state care. We even got a letter from the Department for Work and Pensions proving that Ted qualified for a state pension, because that meant both of us were entitled to discounted treatment and prescription costs.'
But the Keens wanted the reassurance of private insurance for more serious medical treatment. They used insurance broker Lloyd & Whyte, based in the Algarve, to arrange health cover with Exeter Friendly Society.
The insurance, which costs £614 a year, paid for Amanda to have complex back surgery with a specialist she had previously seen in Cheshire.
She says: 'It was wonderful to come back to Britain and see people I knew without having to pay a huge bill.'
While English is widely spoken by foreign doctors, language difficulties can leave Britons feeling isolated and unsure about their treatment.
Armitage says: 'We recognised that expats can feel worried about medical issues so we introduced a special GP helpline. Policyholders can call up from anywhere and have a phone consultation with a British doctor. The service has been hugely popular.'
• Specialists in expat healthcare include Medibroker International, 0800 980 1082 and Private Health Associates, 0870 770 0946.
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