To celebrate her son Daniel’s first birthday and introduce him to his extended family in the Dominican Republic, Ivette Luna and her husband, Jose Gonzalez, planned a monthlong family vacation to the Caribbean nation.
Luna, a 35-year-old Dominican Republic native, has made the trip multiple times with no incident. Yet, not 48 hours after the family’s arrival in December, each member came down with a stomach virus.
“As adults we can suck up anything,” said Luna, a first-time mom and lead consumer-engagement specialist at Blue Cross & Blue Shield of Rhode Island, “but with a toddler, it’s a different story. … I can gamble with my life but I’m not going to gamble with his.”
Thankfully, Luna made the decision to purchase the Voyager international health care insurance policy through Blue Cross’ GeoBlue service prior to embarking.
A short-term health insurance option for U.S. residents traveling abroad, GeoBlue is marketed by parent company Blue Cross Blue Shield Association as “a trusted source of care … no matter what town, country or time zone.”
Launched two decades ago, GeoBlue was picked up in early 2016 by Blue Cross in Rhode Island. The local insurer offers members three policy choices: Voyager (one trip of up to six months), Trekker (unlimited travel in a 12-month period) and Xplorer (U.S. expatriates living abroad).
The service protects customers on six continents (not Antarctica) and covers conditions ranging from the stomach virus suffered by Luna and her family to illness and injury resulting from terrorist attacks.
“We’re so happy to have had that coverage,” said Luna, “now, I won’t travel without it.”
While data has not been kept by Blue Cross regarding the popularity of its GeoBlue rollout, the target audience is broad. “Anyone traveling internationally” is eligible, said Maureen Lund, senior product manager.
She advises those who already have U.S. health insurance to add international coverage because “it fills the gaps in traditional … coverage.” A request such as “find me a doctor in Morocco” is run-of-the-mill for GeoBlue, said Lund, but “traditional coverage can’t do that.”
In purchasing international health care coverage, however, Luna and her family are in the minority.
According to a 2017 survey by Warwick-based online travel insurance distribution company InsureMyTrip.com, 35 percent of U.S. residents are unsure if their health care plan will cover them while abroad.
And of those who do purchase some type of travel insurance – an estimated 20-25 percent of travelers – not all choose specific medical coverage, according to InsureMyTrip.com CEO Jim Grace.
“There is a lot of potential in the travel-insurance industry,” said Grace, but that hasn’t translated into sales because “people often don’t understand the benefits.”
Luna agreed: “People don’t know about [international travel medical coverage]. I didn’t know about it and I’ve been traveling since I was 18.”
In addition to GeoBlue, local health care providers offer similar programs with varying degrees of coverage. Any individual, UnitedHealthcare of New England customer or not, can purchase a United SafeTrip policy. Launched in April 2017, customers can therein purchase up to $1 million of international health care coverage.
Neighborhood Health Plan of Rhode Island offers international coverage, “only in the event of emergencies,” to its commercial members – those covered either through individually purchased or employer-provided policies, according to a spokesperson.
Regionally, Tufts Health Plan offers coverage for “emergency and urgent health issues when traveling abroad” to commercial members, “people who receive their benefits through their employer,” per the spokesperson.
Through his 85-employee, 18-year-old company, Grace is hoping to increase the percentage of travelers purchasing insurance by offering 1,500 travel-policy options, including medical coverage.
As of late February, 70 percent of Grace’s sales were what he called “comprehensive” policies, which covered multiple needs from prepaid travel costs to lost baggage, as well as international medical insurance. The number of people who purchase specific travel medical policies – what Grace called “a niche product” – account for 15-20 percent of the policies he sells.
While GeoBlue is an independent licensee of the Blue Cross Blue Shield Association, its distribution in the Rhode Island market may drive even more traffic Grace’s way.
“I think it is a good thing,” said Grace.
“The more we make people aware of travel insurance, the better it is for everybody [selling in the market],” he added.
“When people want to understand the product and compare [what’s available] they come to us,” said Grace. His team then presents the customer with the best three options calculated by their “smart algorithm” from their 1,500-policy InsureMyTrip.com portfolio.
