When we think of travel, many of us envision picturesque beaches, historical sites, or national parks. For others, travel is driven by healthcare needs, often combining treatment with tourism activities or recovery time. This practice is commonly referred to as medical tourism.

The prevalence of medical tourism is difficult to quantify, but the American Association for Physician Leadership (AAPL) estimates that approximately 1.4 million Americans travel abroad each year for medical care. ¹ For employers, this does not indicate that their health plans are misaligned with benchmarks, nor is it something to control. However, it is a growing reality that benefits from education and proactive navigation. The opportunity is to frame your approach not as cost-cutting, but as an access and risk management consideration. Without thoughtful planning, organizations may face hidden costs, care gaps, and employee dissatisfaction, particularly when complications arise after an employee returns home and seeks care under an employer-sponsored plan.

Why Employees Seek Care Abroad

Employees travel internationally for medical care for a variety of reasons, most commonly for cost and availability. High deductibles, limited coverage, or lack of insurance may prompt individuals to seek care outside the United States. In some cases, international facilities incorporate procedures and recovery into destination-based settings, which may appeal to employees and dependents.

Procedures most often associated with healthcare tourism include cosmetic and reconstructive surgeries, bariatric surgery, fertility treatments, dental procedures, and alternative or experimental therapies.

Healthcare Tourism vs. Medical Travel

Many employers have embraced medical travel leveraging centers of excellence and bundled pricing for domestic medial travel programs.  Healthcare tourism is the same fundamental concept but instead of increasing quality and decreasing variability, in many instances the exact opposite happens.  Also, healthcare tourism is often initially at the employees’ expense making it difficult to manage in advance of complications.

Risks for Employer-Sponsored Plans

Because most medical tourism occurs outside of employer-sponsored benefit plans, it typically involves no preauthorization, limited quality vetting, less structured follow-up care, and reduced cost predictability for unplanned complications. While participants generally assume these risks while abroad, employers often absorb downstream impacts once employees return home. These may include postoperative complications such as infections, additional surgeries, extended recovery periods, and related leaves of absence.

One of the most significant challenges is the lack of coordination with domestic providers, including limited sharing of medical records before and after procedures performed abroad. As Renée-Marie Stephano, JD, Chief Executive Officer of Global Healthcare Accreditation, explains,

“When patients arrange medical travel independently, without involving their primary care provider, physicians may be left out of the loop. That makes it difficult to review the treatment plan, ensure it aligns with the patient’s medical history, and properly manage follow-up care once the patient returns home.” ²

Establishing a Philosophy Around Medical Tourism

Rather than implementing rigid policies that aim to discourage or restrict international care, employers may benefit from establishing a philosophy, not a policy, regarding medical tourism. This approach focuses on governance, education, and equity rather than enforcement. Many organizations currently take a passive approach, addressing complications only after employees return home. While this requires minimal oversight, it can result in unintended inequities and inconsistent employee experiences.

In developing a philosophy, employers may consider factors such as equity and access, employee experience, cost transparency, and organizational risk tolerance. Often, the most effective approach involves modeling scenarios across health plans, disability programs, and time-off policies for employees seeking care domestically and internationally. Practical steps may include adding educational resources about risks, clarifying coverage expectations, planning for post-travel care coordination, and aligning leave and disability benefits with health benefits.

Looking Ahead

Medical tourism is expected to continue growing in the coming years. According to Forbes, the global medical tourism market is projected to grow at a compound annual growth rate of about 25.2% through 2030, reflecting rising demand as more individuals combine travel with healthcare services. ³ While medical tourism may not present immediate challenges today, establishing a clear foundation and philosophy now can help employers better manage risk as participation increases.

As with other benefits decisions, employers should apply the same attraction and retention principles when considering medical tourism. Rather than viewing it as a perk to promote, it should be treated as a plan governance consideration. While employers cannot prevent medical tourism, thoughtful planning can help reduce risk, manage complications, and support better outcomes for employees, dependents, and employer-sponsored plans.

1American Association for Physician Leadership (AAPL), medical tourism estimates
2Physician Leadership Journal, “Medical Tourism — Who, What, and Where,” Renée-Marie Stephano, JD
3Forbes, 5 Tips Business Leaders Can Learn From The Rise In Medical Tourism, noting that the global medical tourism market is expected to grow at a CAGR of 25.2% through 2030.