Do You Really Need Health Insurance When Living in Bali? Here’s Why and Where to Buy It.

Living abroad is fun and exciting, but if you end up having a serious illness or having to pay hefty hospital bills that you can’t afford, you may wonder why you left your country in the first place. Nobody wants to have to start a GoFundMe page, or ask their family for thousands of dollars to cover the cost of healthcare. That’s why having health insurance is probably one of the greatest things you can do for your peace of mind and for protecting yourself and your family from any unfortunate situations. In this post, we’ll explore the health insurance options available for expats living in Bali, so that you can cover yourself from any unexpected issues. 

Health insurance provides coverage to the insured for medical expenses, such as hospitalization costs, surgical expenses, and medication costs.

Health Insurance Options: 

There are different types of health insurance available, each with differing levels of coverage. Some popular options are: 

Expat Health Insurance: This is probably the most comprehensive coverage you can get, and we would recommend foreigners living in Bali to purchase it. It will cover a large range of medical problems, as well as surgery, hospital fees and scans. Generally speaking, the premiums can be higher than purchasing local insurance, but may offer a lot more in terms of coverage. The costs of taking out such a policy can vary between $1000 per year for 30 somethings, up to much higher (around $6000) for 60+ residents. 

Nevertheless, it’s worth noting that the cost of getting any major surgery, especially heart related, can be extremely expensive in Indonesia (even up to $50,000), so covering yourself is crucial. Most hospitals will demand payment before you are discharge, sometimes even before an admission - and most people don’t have that kind of money lying around. 

Furthermore, local hospitals may not offer you the best healthcare in the face of serious health problems, and you may prefer to get healthcare in nearby Malaysia or Thailand. Some expat healthcare insurance providers will cover you in these countries, too, but not all of them. As such, when purchasing it’s important to make sure you read the policy in detail to see if it will cover all your expenses for both major surgeries and medical care overseas. 

Local Insurance: Local insurance is generally more tailored towards Indonesian residents. If you can’t speak Bahasa Indonesia fluently, you may have difficulties understanding what you’re covered for or navigating issues during any kind of health problem. Furthermore, coverage may also be limited to Indonesian hospitals only. 

However, there are some local insurance companies who have international links that can provide you with good coverage within Indonesia. These branches are definitely worth considering if you’re unable to afford more costly expat health insurance. Taking out a policy with one of these local providers with international links can range from a few hundred dollars to over $1000 per year. 

BPJS: BPJS is effectively Indonesia's Universal Health Coverage, a social security system that gives basic healthcare coverage to employees of Indonesian companies. If you work for an Indonesian company for longer than 6 months, they should be contributing to BPJS for you. If you have your own company, you should register for BPJS for yourself and all the employees of your company.

BPJS could cover you for some problems, but the quality of care may be less than what you would receive with expat health insurance, being that there is a low ratio of doctors to patients in the Indonesian healthcare system. This low ratio means that waiting times at Indonesian hospitals can be long, and in any case, you are only protected for up to rather low amounts that would be unlikely to cover you in the case of major accidents or surgeries. Therefore, relying on BPJS alone for coverage is a risky move since it might not be sufficient for more expensive or complicated treatments. 

BPJS Kesehatan is an option for the Indonesian people and foreign nationals who already have a KITAS or KITAP to access Indonesian healthcare services at an affordable cost.

Travel Insurance: Travel insurance is a good solution for anyone who is staying in Bali in the short-term. Nevertheless, you may run into issues when trying to claim on travel insurance policies if you are living in Indonesia, as they are designed to protect you only as a traveller and not a long-term resident.

Where to Buy Expat Health Insurance:

Cigna Global: They offer a wide range of plans and comprehensive coverages and are a strong option if you need flexibility and international coverage. 

Bupa Global: Bupa is well-known worldwide for providing access to premium medical facilities. Their plans may also include dental treatments and emergency evacuation, which may be necessary if you live somewhere more rural. 

Aetna International: Aetna provides different plans, including basic and comprehensive packages. Their more comprehensive coverage also covers you for wellness benefits and emergency evacuations. 

A Second Option: Local Insurance Options with International Links

There are also some local providers that are branches of international companies. These are options well worth exploring, as they may provide lower premiums whilst still covering you for any serious illnesses or surgeries. 

Allianz Indonesia: Allianz has a good reputation amongst expats and offers insurance plans that are suitable for expats. Some of their plans may give you the option of cashless coverage which is a major benefit, as having to pay and then wait for reimbursement can be cumbersome. 

Allianz Indonesia is one of the world's leading insurance companies, serving 86 million individual and corporate clients.

AXA Mandiri: This is a joint venture between AXA Group and Mandiri Bank, which sells insurance plans for expats and locals. They have familiarity with the Indonesian healthcare system, making them a good choice. 

Prudential Indonesia: Prudential mainly offers insurance to locals, but their comprehensive coverage and agents who can communicate in English may mean they are worth exploring for expats. 

What to Consider Before Buying Health Insurance: 

Coverage Limits and Benefits: Read the policy in detail and ask your insurance provider questions if you are unsure. As previously mentioned, some surgeries are extremely costly, so what might appear as a good amount of coverage might not actually be enough in the event of something more serious. Look at the annual limit and benefit limit when considering what would be enough coverage. 

Area of Coverage: Having a policy that allows you to get treatment outside of Indonesia is a big plus, as hospitals in Bali may not be adequately prepared for more major issues. 

Exclusions and Pre-existing Illnesses: Make sure you understand what is not covered. This could be illnesses you already have, natural disasters (which are more common in Indonesia) and motorbike accidents. There are some insurance policies that cover you from motorbike accidents, but only as long as you have a license, wear a helmet and are not under the influence of alcohol or other illegal substances. It’s worth making sure you’re protected on the roads as some very unfortunate expats have had to pay upwards of $50,000 in the case of a crash. 

The Claims Process: Understand how the claims process works - you may prefer a cashless system that saves you from having to pay out of pocket. Make sure the company has a reputation for paying out in the case of an accident. 

Do You Really Need Health Insurance?

Whilst it may seem like an expensive or unnecessary expenditure, nothing in this life is given. Even if you’re not able to afford particularly comprehensive coverage, having a more basic plan that covers you in the case of major surgeries is still worth purchasing, as it could potentially save your life, as well as your or your loved one’s life savings, in the event of a serious problem. Having to deal with finding large amounts of money to cover your healthcare whilst being ill is something that nobody should have to go through, so our advice is - take care of yourself and just buy it.

Written by Team Bali Solve

12 December 2024