Healthcare in the USA: expensive, complicated, better than you think?
Get a detailed look at healthcare and insurance coverage for people in the United States. Discover tips for finding your way through this complex system and learn what you can expect from American healthcare.
State-of-the-art facilities, outstanding doctors and high standards: if you can afford it, the USA offers some of the best healthcare anywhere. Public health insurance, however, only exists for seniors, children, and people with low incomes or disabilities. So as a non-US citizen, you need to take care of your own healthcare and coverage in the States, and that usually raises plenty of questions at first. Let's clear things up!
The US healthcare system in a nutshell
First, the basics: unlike in Europe, health insurance in the States is not mandatory. Contrary to what many people think, most Americans are in fact insured. Employers often provide coverage for their staff (and their families) and pay a large share of the premium.
Public healthcare exists in the form of Medicare and Medicaid, but these programs only cover just under 50% of the population, and only US citizens. Obamacare, or the Affordable Care Act (ACA), set out to expand public coverage and make healthcare more affordable, but not everyone benefits from it either. Private providers and insurers still dominate in the USA. That is why US healthcare is good, but also expensive, and costs keep rising.
Private health insurance: plans, costs & more
EPO, HMO, POS, PPO: these acronyms aren't political parties or diseases, they are private US health insurance plans, known as managed health care plans. These are what you choose from when you arrange your own coverage. They differ not only in premiums but also in benefits and deductibles. To find the right one and avoid paying more than necessary, you need to know your own needs well.
Each of these plans usually has its own network of healthcare facilities, doctors and specialists. If you use these in-network providers for treatment, you normally pay less. While HMO and EPO plans only cover out-of-network care in emergencies, POS and PPO plans are more flexible, though your out-of-pocket costs tend to be higher.
How much you pay for the various private US health care plans varies, depending not only on your age but also on the state. You can also choose between Bronze, Silver, Gold and Platinum tiers within each plan.
To help you keep track despite all the differences between Europe and the USA, we've summarized the key terms for you. Because even with coverage in the States, you will still pay some costs out of pocket.
Here is a quick guide to the key terms in US health insurance costs:
- Monthly premium: paid every month, whether or not you use any services (more on US health insurance premiums)
- Deductible: the amount you pay yourself before your coverage kicks in and the insurer starts paying (more on the deductible)
- Coinsurance: your share of costs after you have met the deductible. It sets the percentage of services you pay yourself (more on coinsurance)
- Copay: a fixed fee you pay yourself, for example for certain medications or doctor visits
More questions about healthcare?
Consultation & implementation
If you'd like to find out what this means for your own situation, the best step is to book a consultation.
