The Health Care System in Panama and Your Health Insurance Options

–

Health Care is undoubtedly one of the most contentious issues for an expat considering moving to Panama. Many expats from countries like Canada and some European countries have a tough time with this, as their government has universal health care, and they cannot imagine having to pay for it. In counties like the USA, health care is always on their mind and is already a big chunk of their monthly budget.

This article will address all aspects of health care in Panama, including what areas of the country have different levels of access to health care and how you can protect yourself with varying levels of insurance.

First, let’s discuss the system in Panama. Panama does not have universal healthcare, at least not for people not part of its working economy. I will explain this in detail later.

Panama has a 2-tier health care system, with public hospitals called Regional Hospitals, with public clinics called polyclinicas, and Social Security (Caja de Seguro Social) Hospitals, and a private hospital system, with private clinics, doctor offices, and labs. They are both pay-for-service systems, with the public systems, being much cheaper.

This system is funded by the Ministerio de Salud (MINSA) (Public Hospitals) and the Social Security Fund (Caja de Seguro Social) (Social Security Hospitals). They currently run over 850 facilities in Panama, from Doctor offices and small clinics to full hospitals. The funds come from government and employee and employer contributions. In 2018, 3.5 million of Panama’s 4 million people were covered by this system, and it provided low-cost health services for those who were not covered.

If you are an employee or business owner in Panama, paying into the Social Security fund, you can use the Social Security system for free. Panamanian retirees receiving social security also have access to this health care system. Suppose you, as an expat, come to Panama on a visa like the Friendly Nations Visa or Employment Visa. In that case, you may also have free access to this health care in Panama if you pay into social security. Anyone can use the public system and pay for it.

The way this Social Security system is funded is through paychecks. The employer deducts a certain percentage from the employees’ pay, or their compensation, there is a percentage match contribution from the employer, and the employer submits that money to Caja de Seguro Social every month, similar to payroll deductions of other countries.

Those not covered by social security, like contract workers, self-employed who opt not to join the program, tourists, and expats living here not employed, can use the public health care system on a pay-for-service method. The costs are very inexpensive, like $3 doctor visits, $5 specialist visits, and $5 physiotherapy sessions. An incident like a broken bone, including visits, x-rays, casting, care, and cast removal, can cost as little as $50 for the entire ordeal. If you do not have the $50, you can arrange with the hospital for monthly payments.

There are some problems with this system, including long wait times, old buildings and equipment, no private rooms if you are hospitalized, lack of doctors in specific fields, lack of some prescription drugs, and just maybe not the experience someone from North America or Europe could handle, or get used to. I am not going to knock down the public health care system in Panama, as I know many that have used it and have been happy with it, but after I explain the Private system below, it may help you decide to get the care in Panama, more like you are used to.

Some consider the private hospital system in Panama to be world-class and one of the best in Latin America. Hospital Punta Pacifica is a hospital in Panama City, Panama, and the only hospital in Central America affiliated with Johns Hopkins Medicine International. This hospital attracts medical tourism from around the world. There are private hospitals throughout Panama, including several in Panama City and two in David.

With the private hospital system, you either pay for the service or be covered by private insurance, which we will discuss later. There are many private doctor offices, clinics, and labs throughout Panama. The cost in these places varies, but they are inexpensive according to North America standards. For example, doctor’s visits can cost $12, specialists $30, blood tests $15, and x-rays $18. English-speaking doctors are common in the private hospital system.

Self-Insure – No Insurance

If you have a big bank account, this can be an option for you, but you should have $100,000 plus per person set aside for healthcare in case of a bad accident or a disease like cancer.

High Deductible Self-Insure

There are several options here, but the higher your deductible, the lower your premiums. A deductible like $10,000 – $20,000 can cut your monthly premiums in half. I have a similar plan to this. A $1,000 deductible in Central America and Colombia, where I spend 99% of my time, and a $10,000 deductible worldwide. I am 61 years old, and I pay $248/per month.

Full Insurance

A plan like this is very popular with expats, with zero delectable in Panama and a small deductible worldwide, like $1,000 – $5,000. A plan like this will cost a 60 – 65-year-old about $3500 a year.

Co-pay with Private Hospitals

These plans are more budget-friendly and deal with certain private hospitals in panama. The plan will pay 70% of your bill, and you will pay 30%. There are many more restrictions and less coverage on these plans than with Full insurance.

If you are interested in more information on health insurance in Panama, please go HERE and fill out a form, and we will connect you with who we at Retire in Panama Tours believe is the best choice for insurance in Panama. You will be looked after and given the options you need.

All major cities have excellent access to health care in Panama, with Panama City and David having the best options for private hospitals. The more remote you get, you will have access almost anywhere to a doctor. Still, emergency room and life-saving trauma rooms can be 30 minutes or more away, and this is something to consider when retiring in Panama, depending on your age and current health status.

In Coronado, they have an excellent private clinic, La Clínica San Fernando, some call it a hospital, but it really is just a clinic. Still, it does have an emergency room and is affiliated with a hospital in Panama City. In Boquete, the hospitals are 30 minutes away in the city of David, but there is a Polyclinica equipped for emergency care to help prepare you for an ambulance ride to David. A new larger Polyclinica is being built in Boquete, but construction has been delayed, and the government has not confirmed when it will be complete.

A new public hospital in Pedasí was much needed; it is called Minsa-Capsi hospital. Now, they do not do major surgeries, but they are equipped to handle many emergencies and transfer you to a major hospital. Communities like El Valle de Anton and Santa Fe are serviced with polyclinicas, with major hospitals 30 minutes away. Las Tablas has a public hospital serving it and the surrounding area.

One of the problems for expats in Panama is the lack of 911 service. There is 911 in major cities, but it is in Spanish only and less sophisticated than in North America. If you cannot give exact directions, in Spanish, to your location, no one is coming. And in Panama, there are basically no street names or house numbers in residential areas. Many expat communities have solved this problem, but having private “911 type” service.

In Boquete, we have one of these services. Register with them, pay $90 a year, fill out a detailed profile with everything from your house location, car description, and dog sitter contact (in case you are taken to the hospital), and receive a numbered sign to put on your front gate. They have 24-hour service in English and Spanish, and you can call them for any emergence, health, crime, or just an informative emergency, like a power line down on your street. It is excellent value for your money for the peace of mind you will receive. Most of the larger expat communities have services like this. It is also very good to get to know your neighbors in case you have an emergency or they need your help.

I want to bring up one more topic. I am a Canadian from a socialized healthcare system, and many European and other countries can relate. I have done a complete analysis since I have to live here. I actually pay less here for total health care, with insurance, and get better service. If I need a MIR, I can do it this week, not so much back in Canada.

I lived in British Columbia, Canada, and I had to pay a monthly premium of $59 to be covered by Canada’s free health care system. I paid for all my prescription drugs, dental and eye care which was not covered. I pay $165/month in Panama, prescription drugs are cheaper, and dental and eye care is ¼ the price here than in Canada. So, in the end, I feel I pay less here for my total health care than back in Canada.

Now that you have learned about health care in Panama and your insurance options in Panama, I hope you feel more at ease that you can be provided good health care when you decide to move or retire in Panama. When you come on one of our Retire in Panama Tours, we will discuss health care a lot and meet with an expert in the health insurance sector to size up your needs here in Panama.

It’s more than a tour . . it’s an experience.