US$7 for a week in the USA. Sounds reasonable for a short business trip. The problem is that US$7 bought a policy with US$30,000 in medical coverage, a reimbursement model, and sub-limits that make the real coverage a fraction of what it appears.
The Math of Sub-Limits
A policy advertising "US$55,000 in medical coverage" can have this internal structure:
| Procedure | Advertised coverage | Actual sub-limit |
|---|---|---|
| Medical total | US$55,000 | US$55,000 |
| Surgery | Included | US$3,700 |
| ICU per day | Included | US$900 |
| Medical evacuation | Included | US$5,500 |
| Physician fees | Included | US$1,850 |
In a New York appendicitis: surgery (US$25,000) + 2 days of ICU (US$16,000) + anesthesiologist + fees = US$52,000 total. With those sub-limits, the insurance pays US$3,700 for surgery + US$1,800 for ICU + US$1,850 in fees — about US$7,400. You cover the rest: roughly US$44,600.
You did not buy protection. You bought the illusion of protection.
"Basic Coverage" Is Not Coverage
"Basic" or "budget" plans usually offer:
- Low medical coverage (US$30,000-50,000)
- A reimbursement model
- Restrictive per-procedure sub-limits
- Support through an outsourced call center
- A 24-72 hour response time for authorizations
For an Orlando trip with your family, that is not protection. It is a formality.
The Real Cost of Saving US$10
Comparison for a 7-day trip to the USA (family of 4):
| Plan | Total cost | Medical coverage | Model |
|---|---|---|---|
| Budget | US$52 (≈US$2/day/person) | US$50,000 per person | Reimbursement |
| Adequate | US$104 (≈US$4/day/person) | US$250,000 per person | Direct pay |
| Difference | US$52 | +US$200,000 | Removes the reimbursement risk |
Saving US$52 exposes every member of the family to tens of thousands of dollars in out-of-pocket risk in a serious emergency.
When a Low Price Is Legitimate
A low price makes sense when:
- The real coverage is adequate (not just the advertised total)
- The sub-limits do not dramatically cap the protection
- The destination has lower medical costs (South America vs the USA)
- The trip is short and the destination is low-risk medically
A low price does not make sense when:
- The trip includes destinations with high medical costs (USA, Europe, Japan, Australia)
- There are children or seniors in the group (higher likelihood of use)
- Someone has a pre-existing condition
- The trip is long
What to Check Before You Buy
- Total medical coverage: For the USA, minimum USD 250,000
- Per-procedure sub-limits: Surgery, ICU, evacuation — break them out and add them up
- Model: Reimbursement or direct pay?
- Who is the TPA: Who handles the emergency, not who sold the policy
- 24/7 support in your language: Yes or no?
FAQ
Is the cheapest insurance always worse? Not necessarily — but it demands a careful read of the sub-limits. A cheap plan with realistic sub-limits can beat a mid-range plan with restrictive ones. Where do I find sub-limits in the policy? In the "General Conditions" or "Insured Capital" section. Not in the quote summary — that shows the total. The sub-limits live in the full general conditions. Do comparison sites show sub-limits? Rarely. Comparison sites optimize for price and total coverage. Per-procedure sub-limits sit in the general conditions the comparison site never surfaces.
Quote Asteroid — real coverage, no traps · What the insurance does and does not cover · Reimbursement vs direct pay
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