Put Granny on the Plane: The Case for Medical Tourism in Medicare Reform

By Joe Wallace

Introduction

The United States spends more on healthcare per capita than any other country, yet many Americans struggle with affordability, long wait times, and inconsistent quality. For retirees on Medicare, the cost of routine and specialized medical procedures has reached absurd levels. There is a simple, practical, and cost-effective solution: medical tourism.

Instead of overpaying for treatments that can be performed at world-class facilities abroad for a fraction of the cost, Medicare should encourage and facilitate medical travel for non-emergency procedures. This policy shift could save billions annually while maintaining or even improving care quality. It’s time to embrace a new mantra: Put Granny on the Plane.

The Cost Disparity: U.S. vs. Abroad

Medical procedures in the U.S. often come with an eye-watering price tag. Here are some examples of cost differences for common procedures in the U.S. compared to reputable international medical hubs:

• Dental Implants: $32,000 (U.S.) vs. $5,100 (Mexico)
• Hip Replacement: $40,000 (U.S.) vs. $10,000 (India)
• Heart Bypass Surgery: $120,000 (U.S.) vs. $15,000 (Thailand)
• Knee Replacement: $50,000 (U.S.) vs. $12,000 (Costa Rica)

These price gaps exist despite the fact that many international hospitals meet or exceed U.S. standards, boasting accreditation from organizations like the Joint Commission International (JCI) and using American-trained physicians.

The Potential Savings for Medicare

Medicare spent an estimated $950 billion in 2023, with hospital services and physician fees accounting for the majority of costs. If even 5% of Medicare beneficiaries opted for medical tourism, the savings could be in the tens of billions annually. For example:

• If 50,000 knee replacements were done abroad instead of in the U.S., the savings would be nearly $2 billion.
• For every 10,000 heart bypass surgeries performed overseas, Medicare could save over $1 billion.
• Dental care, largely uncovered by Medicare, could become dramatically more accessible, improving quality of life for millions.

Addressing Concerns About Quality and Safety

Critics argue that traveling abroad for healthcare presents risks. However, these concerns are often based on outdated stereotypes rather than reality. Many international hospitals cater specifically to medical tourists, providing English-speaking staff, private accommodations, and recovery plans tailored for international patients. Countries like Thailand, Mexico, Costa Rica, and Singapore have entire hospital networks built around treating Americans, Canadians, and Europeans.

Policy Recommendations

To integrate medical tourism into Medicare effectively, policymakers could:

1. Create a Medicare-Approved Network of International Hospitals – Establish a vetted list of accredited hospitals that meet U.S. standards.
2. Offer Financial Incentives – Provide travel stipends or reimburse airfare for procedures that save Medicare significant money.
3. Ensure Seamless Medical Records Transfers – Utilize digital health records to ensure continuity of care upon return.
4. Develop Post-Procedure Monitoring – Implement telehealth follow-ups to provide ongoing care after returning home.

The Bottom Line

The U.S. healthcare system is broken, particularly when it comes to cost efficiency. Instead of resisting global healthcare solutions, Medicare should embrace them. Medical tourism isn’t about cutting corners; it’s about cutting unnecessary costs while maintaining high-quality care.

For retirees looking to preserve their savings and for policymakers seeking sustainable solutions, the answer is clear: Put Granny on the Plane.