Medical expenses abroad (2024)

FAQs

What happens if I don't pay a medical bill in a foreign country? ›

If no action is taking on your medical bill and you do not pay what is owed, additional charges can be added to your account balance in the form of late fees and interest. Additionally, the healthcare provider can move your balance into international debt collection or file a lawsuit against you.

How much travel medical insurance do you need? Squaremouth, a travel insurance comparison site, recommends buying at least $50,000 in emergency medical coverage for international travel. For travelers going on a cruise or to a remote destination, the site recommends at least $100,000 in coverage.

In order to use your FSA or HSA on medical expenses incurred in a foreign country, you must use it qualified medical expenses. The product or service must be legal in both countries and must be covered under your plan (always best to check with your employer and benefits administrator).

You can deduct the cost of medical procedures done in another country as long as it is a legal operation and not “unnecessary cosmetic surgery”. This is the same requirement for procedures done in the US. IRS Publication 502 will give you more information and an extensive list of covered medical expenses.

Even if you could be certified as having seriously delinquent tax debt, that doesn't mean the State Department is going to immediately revoke your passport and the TSA will stop you at the airport.

You can take steps to make sure that the medical bill is correctly calculated and that you get any available financial or necessary legal help. If you do nothing and don't pay, you could be facing late fees and interest, debt collection, lawsuits, garnishments, and lower credit scores.

U.S. Medicare and Medicaid do not cover medical costs overseas. Private U.S. insurance policies also might not cover any or all expenses. Check with your insurance before traveling to see if it provides coverage overseas. More information is also available on the CDC insurance page.

The U.S. government does not pay overseas medical bills. The patient must pay all hospital and other expenses. You can find lists of doctors and hospitals in the country you are visiting. Check the website of the U.S. embassy in the country you are visiting.

In most situations, Medicare won't pay for health care or supplies you get outside the U.S. The term “outside the U.S.” means anywhere other than the 50 states of the U.S., the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, and the Northern Mariana Islands.

You might think your HSA is useless as an expat. However, nothing in the tax laws prohibits you from using the funds abroad to pay for medical treatment. It is an excellent way to get tax-free money for your healthcare costs.

What happens if I use my FSA for non medical expenses? ›

Your FSA account can be used for eligible medical expenses only and you are solely liable for the use of the plan. If the Benefits Card is accidentally or intentionally utilized for ineligible expenses, you are responsible for reimbursing your account.

Allowed expenses include insurance copayments and deductibles, qualified prescription drugs, insulin, and medical devices. You decide how much to put in an FSA, up to a limit set by your employer. You aren't taxed on this money.

You should also keep a statement or itemized invoice showing: What medical care was received. Who received the care. The nature and purpose of any medical expenses.

A travel medical insurance policy typically offers medical benefits in case of an unforeseen illness or injury while traveling outside your home country. These policies reimburse medical bills for costs associated with an unforeseen illness or accidental injury.

Amounts paid for meals and lodging at a hospital or similar facility are deductible as medical expenses if the principal reason for the person being there is to receive medical care. The cost of meals outside of a hospital is not deductible.

Leaving the country doesn't absolve you of your responsibility to pay your debts. If you stop making payments, your creditor could sue you and garnish your U.S.-based assets.

Most of the countries have their own credit regulations and are no way linked to your credit in USA. So, once you leave and unpaid bill , it will go to collection. When collection is unable to find your whereabouts, they will report it on your credit score. So your credit score will take a major hit.

Having unpaid medical bills should not impact your immigration matters.