Health insurance in Thailand, like elsewhere, is a complex product with a wide range of prices. If you go to the market, you will find a variety of different price options, seemingly even for the same level of coverage. What causes these differences? What causes Thailand health insurance prices to differ so much? Surely for almost identical plans the premiums should be the same? If only it was that easy….
Understanding the factors that contribute to Thailand health insurance price differences is crucial for people to make informed decisions.
The following article will look at key factors that influence health insurance pricing in Thailand.
Table of Contents
1. Level of Coverage
How much you are actually covered for has a huge impact on the pricing of your health insurance. Whilst this may sound obvious, the finite details of your cover are often not so clear.
Understanding the policy wording associated with your plan is key. This is where the small print regarding your coverage is contained, and where standard policy exclusions will be listed.
Once you have established the fundamentals of your cover, the level of coverage you have can largely be split into the following groups:
Basic Plans
These offer essential coverage, such as hospitalisation, surgery, and emergency care. This level of coverage is typically referred to as inpatient as you will need to be admitted into hospital before the insurance will provide cover. Inpatient plans are typically more affordable and offer the lowest Thailand health insurance price points.
Comprehensive Plans
These offer broader coverage, and can include outpatient care, dental, maternity, and mental health benefits. They are more expensive than basic inpatient plans.
International Plans
International plans are differentiated from the above plans by their cover areas. They offer coverage internationally which can increase premiums significantly, especially if the USA is within your area of coverage.
2. Age and Health Status
Age
As individuals age, their risk of health problems increases. This increases risk for the insurer, and therefore results in premium increases. Depending on the provider, these premium increases can be annually, or in age bands which are typically on a 5 year basis.
Pre-existing Conditions
Individuals with pre-existing health conditions may face higher premiums or be excluded from certain coverage. This is because they are considered a higher risk to insurers. Some insurers offer to cover some pre-existing conditions in return for a higher premium. This is premium loading.
3. Deductibles and Co-payments
These offer an optional way of tailoring your premium to your individual needs. By taking some of the financial risk on yourself, you can drive down the Thailand health insurance price you will need to pay to get adequate cover!
Deductibles
This is the amount you must pay out-of-pocket before your insurance coverage takes over. Higher deductibles lead to lower premiums, but you’ll have to pay more upfront for medical expenses.
Co-payments
These are fixed amounts you pay for specific services, such as doctor visits or prescriptions. Higher co-payments will result in lower premiums.
4. Network of Providers
The healthcare providers you are able to use will impact the price you pay for your health insurance. Typically, Expats view the freedom of being able to use any hospital they choose as a major plus point. In reality, it’s adding to your annual health insurance costs.
Controlled Hospital Networks
Some insurers are proactively working to control the costs of claims at major International hospitals in Thailand. Their aim is to reduce cost inflation for insured people, and reduce price gouging which commonly occurs. If the insurer can control these costs, it can reduce Thailand health insurance price points, and pass this on to customers via lower premiums.
5. Geography. Cover areas and your country of Nationality.
Cover area
This has a huge impact on your premium. If you opt for Thailand only coverage your premium will be lower than if you opted for Worldwide. Why? Healthcare costs outside of Thailand can be much higher, increasing the risk for the insurer, and then the premium you pay in order to be covered. Thailand health insurance prices can be reduced by focussing your network of coverage.
Your Nationality
This can impact your premium as insurers will anticipate you making visits back to your country of Nationality from time to time. If this is a country with high healthcare costs, your premium will be higher than someone who holds a passport from a country with low healthcare costs.
6. Insurance Company Reputation and Financial Stability
Health insurance is an important choice. You need to be sure that the insurance company will pay out when you need it to. What factors determine the likelihood of this?
Brand Reputation
Well-established insurance companies with strong reputations normally charge higher premiums. They are proven entities with a track record of delivering.
Financial Stability
A financially stable insurance company is more likely to be able to pay claims than a ‘fly by night’ operation.
Regulation
Regulated companies have to adhere to strict rules on financial stability and solvency. This comes at a cost, meaning that regulated companies charge higher premiums than unregulated companies who are known to operate in the Thai market. Thailand Insurance Companies are regulated by the OIC.
Choosing the Right Health Insurance Plan
When choosing a health insurance plan in Thailand, it’s essential to weigh up the costs and benefits carefully. Whilst you do not want to be paying over the odds, the above article highlights the discrete differences which drive the price differences in the market.
Here are some further tips to help you make an informed decision:
Assess Your Needs
What level of cover do you want/need? What hospitals would you want to use?
Compare Plans
Research different insurance providers. What options do they have for coverage, premiums, deductibles, and co-payments. Check their policy wordings!
Consider Long-Term Costs
Think about your future healthcare needs and choose a plan that will provide adequate coverage over the long term.
Seek Professional Advice
Quality insurance brokers and intermediaries understand health insurance polices better than most. Use them!
By understanding the factors that influence health insurance Thailand price points, you can make informed decisions and select a plan that best suits the needs of you and your family, both from a financial perspective and from a ‘peace of mind’ perspective.
Looking for a health insurance quote? Contact Seek2Insure today!
