For expats living in Vietnam, having a reliable expat health insurance is crucial. It ensures you have access to quality medical care and can effectively manage your healthcare needs.
Vietnam is a fantastic place to live, especially for younger people and those who love the Southeast Asian culture. However, navigating the Vietnamese healthcare system can be challenging for foreigners. The language barrier and the way healthcare is delivered can be quite different from what you’re used to. Unexpected medical bills, which can be a significant expense compared to the generally low cost of living in Vietnam, can quickly disrupt your life.
This comprehensive guide will explore the essential aspects of expat health insurance in Vietnam. We’ll discuss the benefits of international health insurance, the key factors to consider when choosing a plan, and how to find the best coverage to suit your individual needs.
What’s an Expat Health Insurance in Vietnam?
Expat health insurance in Vietnam is a specialized health insurance plan tailored to the needs of foreigners living and working in the country. Unlike standard domestic health insurance, expat plans offer several key advantages:
- High Coverage Limits: Expat plans typically come with higher coverage limits, ensuring you’re financially protected against significant medical expenses.
- Access to Quality Healthcare: These plans often provide access to high-quality private healthcare providers, offering shorter wait times than in public local hospitals and advanced medical facilities.
- Global Coverage: Many expat insurance plans offer global coverage, meaning you’re protected even when traveling outside of Vietnam or should you seek medical care outside Vietnam.
By securing a comprehensive expat health insurance plan, you can enjoy peace of mind and safeguard your health and financial well-being during your time in Vietnam.
Is health insurance mandatory for expats in Vietnam?
While health insurance isn’t mandatory for expats in Vietnam, it’s highly recommended. The Vietnamese healthcare system can be challenging to navigate, and medical costs, especially for emergency care or serious illnesses in private hospitals, can be substantial.
Having comprehensive health insurance will ensure you have access to quality medical care and financial protection in case of unexpected health issues.
Why should expats get insured in Vietnam ?
Expats in Vietnam should strongly consider obtaining comprehensive health insurance. While the public healthcare system offers more affordable options, it can have limitations such as language barriers, longer wait times, and potentially less advanced facilities. Conversely, private healthcare can be quite costly.
- Limited Access to Public Healthcare:
- Social Security Requirement: To benefit from Vietnam’s public healthcare, you must be working in Vietnam and registered with Vietnamese Social Security. Without this number, you won’t be found in the system and can’t benefit from public services.
- Language Barriers: Public hospitals may not have bilingual staff, making communication difficult.
- High Cost of Private Healthcare:
- Private healthcare in Vietnam is significantly more expensive than public healthcare in Vietnam.
- Without insurance, even minor medical issues can lead to substantial costs.
- Financial Protection:
- A comprehensive expat health insurance plan can safeguard your finances by covering unexpected medical expenses.
- It ensures you can access quality care without worrying about the cost.
Limited access and limited coverage of Vietnamese Social Security
Foreigners legally employed in Vietnam (eg with a Work Permit) are eligible to participate in the Vietnamese Social Security. However, it’s essential to consider the potential limitations of this coverage.
- Limited Hospital Choice: Social Security only covers treatments in public hospitals, greatly limiting your choice of medical provider.
- Potential Wait Times: Public hospitals in Vietnam can experience congestion, leading to longer wait times for appointments and treatment.
- Variable Quality of Care: Public hospitals offer essential services and the overall quality of care may not always meet everyone’s expectations.
Remember that Vietnamese Social Security only offers a basic level of healthcare coverage. It may be a suitable option for some, but others might prefer the flexibility and potentially higher standards offered by private health insurance.
Expat friendly services at private hospitals in Vietnam
Private hospitals in Vietnam are increasingly catering to international patients, offering a range of foreigner friendly services including: Foreign Doctors, English-speaking staff and multilingual translators.
Given Vietnam’s historical ties to France, you can find hospitals and clinics staffed by French doctors or French trained doctors in many different medical specialties.
Read more about Hospitals in Vietnam.
Beware of Healthcare Dual Pricing for foreigners in Vietnam
It’s important to be aware of dual pricing practices in Vietnam’s healthcare system. It has been observed that many apply 4 pricing:
- Vietnamese with insurance
- Vietnamese without insurance
- Foreigner with insurance
- Foreigner without insurance
In some instances; a foreigner with insurance can be charged 3 times more than a Foreigner without insurance.
Who can buy expat health insurance in Vietnam?
Expat health insurance in Vietnam is not exclusively for foreigners. Vietnamese citizens can also benefit from these plans, which often provide significantly higher coverage compared to local insurance options.
There are typically no nationality restrictions for eligibility but to buy an expat health insurance in Vietnam, you’d need to primarily reside in Vietnam.
Insurers may have varying entry age limits, usually capped between 60 and 70 years old. However, these plans are generally renewable for extended periods, if not for life.
What options are available for expats in Vietnam?
Health Insurance from Vietnamese Insurers
Vietnam offers a large range of local plans from Vietnamese insurances. These plans mostly cover Vietnam only and are capped in coverage. While premiums for these plans are generally lower than those offered by international providers, these local plans are usually documented and serviced in Vietnamese only.
Top 3 health insurance companies in Vietnam are Bao Viet, PTI (Post Telecommunication Joint Stock Insurance Corporation) and PVI.
Health Insurance from International Brands present in Vietnam
Some international brands such as LUMA are present in Vietnam. These providers offer bilingual services and adhere to international standards for service and coverage.
LUMA, April, and Pacific Cross are examples of such international brands operating in Vietnam.
Health Insurance from International Providers (Offshore)
Offshore health insurance plans are provided by international insurers that do not have a physical presence in Vietnam. These plans offer portability, allowing expats to maintain coverage even when relocating to other countries.
However, offshore plans may have limitations such as potential language barriers when coordinating with local hospitals and challenges with direct billing to healthcare providers.
Group Insurance (and employee benefits)
Ideally, you’re employed by a company that provides health benefits. This could be through a group insurance plan or by covering your personal health insurance premiums. Some companies even settle the bills directly with the insurer, simplifying the process for employees. By centralizing these arrangements, companies can streamline administration and expenses for their workforce. In some cases, companies may choose to consolidate individual policies into a group policy for further efficiency.
At LUMA, we offer health insurance solutions to Companies in Vietnam starting from 3 employees.
Explore more about Corporate solutions with LUMA.
Our recommendation: Get Both Private and Employee Coverage
In some cases, your company may provide basic health insurance, which may not be sufficient to cover all your healthcare needs. To ensure comprehensive coverage, consider supplementing your company-provided insurance with a personal private health insurance plan. This dual-layer approach can help protect you and your family from unexpected medical expenses.
Additionally, if your company only provides coverage for employees, you may need to secure a private health insurance plan for your spouse and children.
Essential Tips: How to choose the right Expat Health Insurance in Vietnam?
Select the Appropriate Level of benefits
Typical expat health insurance plans structure
Here we will explore the most common health coverage plan options selected by expatriates in Vietnam and what to look for in each plan option.
Health insurance plans favored by expats generally fall into the following categories:
- Plans with inpatient cover only
- Plans with inpatient and outpatient cover
- Plans with inpatient and outpatient cover + other benefits such as dental care, vision care, maternity and health checkups
Expat Health Insurance with inpatient cover only
Inpatient-only health insurance plans are often referred to as essential or basic plans. These plans cover expenses incurred when you are hospitalized, either overnight or during the day (daycare or daycase procedures).
A strong inpatient plan ensures you have access to necessary treatment at a facility that meets your needs.
To ensure adequate coverage, look for a plan with sufficient limits to cover serious illnesses, such as cancer, and major accidents, particularly when treated in medical facilities in your area.
Expat Health Insurance with inpatient and outpatient cover
For those seeking comprehensive health coverage, plans that include both inpatient and outpatient benefits are ideal. Outpatient care refers to medical services that do not require hospitalization, such as doctor visits and prescription medication.
Comprehensive plans offer a wider range of coverage, protecting you from both major medical expenses and smaller, everyday healthcare costs.
While outpatient care in Vietnam is generally affordable, a comprehensive plan can still be a valuable investment. Upgrading from a basic to a comprehensive plan after developing a pre-existing condition can be challenging, as insurers often exclude pre-existing conditions from coverage.
At LUMA, we’ve designed comprehensive yet affordable health insurance plans like Asia Care Premier and Asia Care Pro, offering annual limits ranging from $100,000 to $500,000. These plans combine inpatient and outpatient benefits, providing a comprehensive solution for your healthcare needs in Vietnam. By offering both inpatient and outpatient coverage, we help you avoid the limitations of budget-driven inpatient-only plans.
Comprehensive Expat Health Insurance with added Benefits
In addition to inpatient and outpatient coverage, you can enhance your health insurance plan by adding optional benefits for an extra premium:
- Dental benefits
- Maternity (pregnancy and delivery) benefits
- Vision benefits
- Wellness benefits (health checkup and vaccinations)
Does the plan offer cover for Health check up?
Comprehensive health insurance plans often include health check-ups as part of their outpatient benefits. However, if your plan doesn’t cover health check-ups, many hospitals in Vietnam offer competitively priced health check-up packages.
Depending on your specific needs and budget, opting for these packages might be a more cost-effective solution than paying a higher premium for insurance coverage that may not be frequently used.
Note that many expats chose to have their annual health checkup in another country (either their home country or a neighboring country with more advanced Medical facilities like Thailand or Singapore). If your plan includes health check-up benefits, carefully review the locations where these benefits can be utilized.
Read more on Health Check Up: Essential Exams you must do
Does the plan offer Maternity cover?
Coverage for pregnancy and childbirth can be added as a maternity benefit to your health insurance plan.
Important Note: Health insurance with maternity coverage typically only covers new pregnancies. Existing pregnancies at the time of policy inception will not be covered.
Here are some key considerations to pick your Maternity Option.
- Benefit Selection: Maternity coverage is often bundled with other benefits like dental and vision. Check with your insurance consultant for available options and whether standalone maternity coverage is possible.
- Waiting Period: Most plans have a waiting period before you can start claiming for maternity benefits. Waiting periods for maternity benefits can range from 9 months to more than a year.
- Coverage Limits:
- Determine the estimated costs for maternity check-ups and delivery (in case of normal delivery and C-section) at your preferred hospital in Vietnam.
- Check if your maternity benefit limit applies per year, per policy year, or per pregnancy, as this will significantly impact your coverage.
- Complications: Check if the plan covers complications related to pregnancy and childbirth, including specific coverage limits and conditions.
- Assisted Reproduction: If you’re considering assisted reproductive technologies such as IVF, clarify with your insurer if these are covered.
LUMA’s Asia Care Premier and Asia Care Pro plans include coverage for complications of pregnancy and delivery, subject to policy terms and waiting periods. Even without a specific maternity add-on, these plans can provide coverage up to the annual limit for related expenses.
Does the plan offer Dental cover?
Dental coverage varies significantly between insurance plans. Follow the below list of questions to have all elements in hand to make your decision.
- What dental services are covered? Are routine dental check-ups, cleanings, fillings, and more complex procedures like crowns and root canals included? If so, under what sub-limit?
- Are there any limitations or exclusions? Are there specific dental treatments or conditions that aren’t covered?
- Are there different coverage levels for adults and children? Do children have more extensive or limited coverage for orthodontic treatments?
- What are the waiting periods? How long do you need to wait before certain dental procedures are covered?
- Are there any co-payments or deductibles? Will you be responsible for a portion of the cost of dental services?
By carefully considering these factors, you can choose a dental plan that meets your specific needs and budget.
Does the plan offer Vision cover?
Vision care benefits are also often subject to a waiting period. Check how long you have to wait for this benefit to be unlocked. Check also what is covered under vision care benefits: glasses, lenses, laser treatment etc.
Understand the exclusions
Exclusions means what is not covered by the health insurance. There are different types of exclusions:
- General exclusions of the product – things that are not covered by the product (common examples are self-inflicted injuries, cosmetic procedures, experimental treatments, etc)
- Personal exclusions at inception into the policy: These exclusions are specific to you and are determined by the insurer after reviewing your medical history. They might exclude coverage for certain conditions or treatments related to pre-existing health issues.
- Exclusions added during the policy: If you didn’t declare the Insurer about a health problem you had before you bought the policy, they might find out later. When that happens, they can add an exclusion to your policy, meaning they won’t cover that specific health problem. That’s why it’s very important to be honest and accurate when applying for insurance to avoid unexpected problems down the road.
Read more about Health insurance exclusions: Pre-existing conditions
Choose the Area of Coverage
When selecting an expat health insurance plan in Vietnam, one of the most critical decisions is determining the geographic area of coverage. This decision will impact your premium and the extent of your protection while traveling outside Vietnam, including to your home country.
- Geographical Coverage:
- Vietnam-Only Coverage: For those who rarely travel outside Vietnam, a local plan can be a budget-friendly option. However, consider the potential benefits of broader coverage for specialized treatments that may not always be available in Vietnam.
- South East Asia Coverage: If you usually wander within South East Asia, choosing a regional coverage should suffice. A regional plan can offer a balance of cost-effectiveness and coverage compared to a more global coverage.
- Global Coverage: This offers the broadest coverage, allowing you to seek treatment worldwide. However, international cover comes with a much higher premium.
- Additional Considerations:
- Emergency Coverage: Many plans offer emergency coverage for medical emergencies and accidents outside the primary coverage area. Check in the policy to what extend you’d be covered in case you have an accident outside your zone of primary coverage.
- Medical Evacuation: Consider a plan that includes medical evacuation coverage, which can be crucial in case of serious accidents or illnesses.
By carefully considering these factors, you can choose an expat health insurance plan that provides optimal coverage at an affordable price.
Cost of expat health insurance in Vietnam
The cost of an expat health insurance plan in Vietnam is influenced by several factors.
Level of Coverage
The more comprehensive the coverage (in overall sum insured and/or benefits added), the higher the premium.
Age
Older individuals typically face higher premiums due to increased health risks. Securing a health insurance policy at a younger age can be more cost-effective in the long run.
Geographic Coverage
As explained earlier in this guide, the broader the geographic coverage, the higher the premium.
Rating Methodology in Health Insurance
The method used to determine insurance premiums can significantly impact your costs. Two common rating methodologies used in health insurance are Community Rating and Experience Rating.
Community Rating:
- All individuals within a specific group (e.g., age group) pay the same premium, regardless of their health history.
- This approach promotes fairness and accessibility, as everyone pays the same rate.
- However, it may lead to higher premiums for healthier individuals who rarely claim benefits.
Experience Rating:
- Premiums are based on an individual’s claims history.
- Individuals with a history of frequent claims may face higher premiums.
- This approach incentivizes healthy behaviors and can be more cost-effective for individuals with low claims.
Premium increase
Health insurance premiums tend to increase annually due to several factors:
- Aging Population: As people age, the risk of health problems increases, leading to higher healthcare costs and, consequently, higher premiums.
- Rising Healthcare Costs: Inflation, technological advancements, and increased demand for healthcare services contribute to rising healthcare costs, which are reflected in higher insurance premiums.
- Impact of the COVID-19 Pandemic: The pandemic has led to increased healthcare costs and disrupted healthcare systems, which has had a significant impact on insurance premiums.
- Increasing Prevalence of Chronic Illnesses: The growing number of individuals with chronic conditions, such as diabetes and heart disease, drives up healthcare costs and insurance premiums.
How to buy a private Health Insurance in Vietnam?
Contact a broker or insurer directly
You can choose to either work directly with an insurance provider or utilize the services of a broker.
The process and premium will be the same whether you go through a Broker or go directly to the Insurer.
A broker can compare different providers and plans for you while going directly to an Insurer will only get you plans from the same brand.
Complete the application process
The application process typically involves:
- Personal Information: Providing basic details such as name, age, address, and contact information.
- Medical Declaration: Disclosing your medical history, including any pre-existing conditions.
It’s crucial to be honest and transparent in your medical declaration. Any undisclosed conditions may lead to claim rejections or policy cancellations.
Underwriting process
Underwriting is the process insurance companies use to assess the risk associated with insuring an individual. When you apply for health insurance, the insurer reviews your medical history and lifestyle factors to determine your risk profile.
Based on your medical risk profile, the underwriting process will define whether you are eligible to Standard Policy Terms and Rates. If you’re deemed a low-risk individual, you’ll typically be accepted with specific additional conditions.
If you have existing conditions or symptoms, you might get some exclusions. In other terms, the insurer may exclude certain pre-existing conditions or specific treatments from coverage.
In some instances, the insurer might accept your condition to be covered, in exchange for higher premium also called a loading.
Payment
To activate your policy, you’ll need to pay the premium upfront. While options like split payments or credit card payments offer convenience, they may incur additional charges. For the most cost-effective option, paying the annual premium upfront is recommended.
LUMA offers flexible payment options in Vietnam, allowing you to pay annually, semi-annually, or quarterly to suit your budget.
Our Tips to select your Expat Health Insurance in Vietnam
We hope this guide has equipped you with the knowledge you need to navigate the world of expat health insurance in Vietnam. Here are some final considerations to help you make an informed decision:
- Check if your preferred hospitals and clinics have any direct billing services with the insurer.
This simplifies the claims process and saves you time and hassle.
Check LUMA’s Preferred Medical Network where you can benefit from cashless visits and treatments. - Language of service and support.
- How easy is it to reach out for assistance?
- Inquire about the claim process: can claims be submitted online? How long does it take to get reimbursed?
Check how to claim with LUMA. - Value added services: LUMA, for example, provides access to an international team of doctors for medical opinions, offering valuable peace of mind to expats in Vietnam who might not be familiar with their treatment options in the region.
Check LUMA’s second medical option services.
