(cc) Julia Pearl / flickr.com

For several years now, private health insurers have recorded a rise in costs of outpatient and inpatient treatments abroad. This phenomenon called ‘Medical Inflation’ does no longer affect only countries like the USA and Canada, but also former low-income countries such as India and China.

The ‘2012 Medical Trends’ report shows that the expenses for medical care rose by approx. 10% worldwide in 2011. In North America, last year saw an inflation of more than 11%. The Asia-Pacific region, the Middle East and Latin America also faced a two-digit rise in costs for international health insurance. And the trend continues: for 2012, a similar rise in costs can be expected.

Steep rise in Asia and Latin America
In countries with an underfinanced health system, travelers and expats often have to pay even more for their medical treatment than in industrialized countries. Private hospitals charge costs at an international level and try to follow American standards. In some Asian countries, medical costs rose by more than 10% in 2011. The biggest increases took place in Bangladesh (15%), India (13.25%) and Indonesia (13.55%). In Latin America, the countries with the steepest rise in international health insurance are the Dominican Republic (33%), Brazil (12%), Costa Rica (12%) and Panama (11.5%).

What are the main cost drivers in health care?
In this context, new medical technologies are both a blessing and a curse. According to the ‘2012 Medical Trends’ report, other cost drivers are excessive use of benefits as well as the greed of certain providers. Among the most costly treatments are those dealing with cardiovascular diseases and cancer.

Premium adjustment as a result
Since volunteers and aid workers travel to emerging countries affected by medical inflation, Central as the insurer providing policies to this target group has to take such cost explosions into account. Together with Central, Dr. Walter provides insurance solutions for volunteers and aid workers alike. In the negotiations with the insurer, the travel insurance expert could successfully manage to have only a small premium adjustment for the AIDWORKER tariffs from 1 January 2014.

Click here for the '2012 Medical Trends’ report'