Medical tourism on the rise: What UK-based insurers need to know

The landscape of healthcare is shifting dramatically. Recent figures reveal that over half a million British patients sought treatment abroad in 2024, representing a 50% increase in just two years.

For healthcare providers, alongside insurers and brokers operating in the healthcare space, this surge in medical tourism is something that cannot ignored in terms of the challenges and risk exposure for healthcare providers and their indemnifiers.  

Understanding the driving forces

The exodus of patients seeking healthcare overseas is inextricably linked to pressures on the NHS. With waiting lists rising, patients are increasingly willing to seek treatment abroad where the procedure is one they cannot access promptly at home. Reports show that hip and knee replacements, cataract surgery, dental work, and cosmetic procedures are commonly being taken up abroad. 

What’s more, the economics are compelling; a hip replacement in Turkey costs between £6,000 and £8,000 approximately half the UK private rate. For patients facing lengthy waiting times whilst in pain or unable to return to work, these savings are proving irresistible. 

Heightened risk exposure

It is imperative for insurers providing indemnity to medical professionals to recognise that medical tourism carries inherent risks that may ultimately impact their exposure. Regulation governing overseas clinics varies considerably, and patients returning from abroad may experience complications necessitating follow-up care in the UK. 

This creates a difficult issue for health insurers. Many insurers exclude treatment related to procedures undertaken abroad. Many insurers also specifically ask policyholders to disclose foreign procedures when taking out or renewing policies. Policyholders who provide corrective treatment for surgeries and procedures undertaken abroad may find themselves outside the scope of their private healthcare insurance coverage.

Any such exclusions should be clearly communicated to policyholders. The FCA requires that insurers handle matters fairly and transparently. Insurers should ensure that policy wordings and associated documents are clear around corrective treatment for overseas procedures and any necessary follow up care in the UK. For example: 

• Do policies require insurer approval before policyholders undertake corrective procedures for patients who received treatment overseas?
• Does cover exclude corrective work for complications arising from all procedures electively performed overseas or only in certain territories where regulatory standards raise concerns about patient safety?
• Can insurers collaborate or engage with approved foreign treatment providers to develop clear guidance for clinicians treating patients returning from overseas procedures?
• How do underwriters ensure that policy wording appropriately deals with the question of liability and where this lies when undertaking corrective treatment for overseas procedures?

Looking forward

The government has launched various initiatives with regard to medical tourism, discouraging dangerous practices. The initiative aims to help individuals make more informed choices. Insurers can assist by ensuring that policyholders are aware of the insurance implications of medical tourism. 

With NHS waiting lists showing little sign of improvement despite substantial investment, medical tourism is likely to remain prevalent. At Browne Jacobson, we have specialist teams able to assist you with policy review, claims and coverage disputes. Please contact us to find out how we can help.