Their North Atlantic cruise ended in the hospital. Why won’t travel medical insurance pay their $6,914 claim

When James Cottrell bought travel medical insurance for himself and his wife for their North Atlantic cruise last summer, he never expected to use it. But if he had to, he was confident his GeoBlue travel medical plan would be there for him — and that it would pay his claim promptly.

It didn’t. 

Cottrell’s wife ended up in the infirmary and then the hospital, and the unlucky couple got stuck with a $6,914 bill from their cruise line. Now GeoBlue is treading water on the claim. Is there a way to make an insurance company like GeoBlue pay faster?

“GeoBlue promises to pay in 30 days,” he says. “But it’s been more than six months.”

Six months? Yep, and Cottrell’s case raises all kinds of questions:

• What’s the difference between travel insurance and travel medical insurance?
• How fast are claims paid when you have travel medical insurance?
• Is there a way to speed up your travel medical insurance claim?

We’ll answer all of these questions, of course. But mostly, I’m bringing this one to you because it’s a terrific example of someone who followed the Elliott Method and got the outcome he deserved. We’re also in the middle of a busy summer for travel, and I’m certain Cottrell isn’t the only one facing a problem like this.

So let’s find out what happened.

“My wife was barely able to breathe”

When Cottrell was planning his 35-day North Atlantic cruise, he knew he wanted insurance. He was particularly concerned about having adequate health coverage, which led him to buy the GeoBlue policy.

On the cruise, which happened last summer, his wife fell ill with COVID. The staff treated her, and she returned to her cabin to rest.

“Four days later, we returned to the infirmary. My wife was barely able to breathe,” he recalls.

The onboard doctor diagnosed her with pneumonia. She spent a day in sick bay and then disembarked in St. John’s, Newfoundland. 

“She spent almost five days in the hospital before she was released and able to come home. And she had additional medical complications for most of September,” says Cottrell.

Will GeoBlue pay these claims?

It took GeoBlue just about a month to reimburse the hospital for his wife’s care, less the $250 deductible.

“Once the hospital had submitted its bill to GeoBlue, I submitted our claim for the costs of medical care onboard the ship,” he explains. 

GeoBlue promised him it would pay the claim within 30 days. But a month went by, then two. 

“I’ve been in contact with them a number of times since then and still get the same message from their customer service people,” says Cottrell. “They say the claim is being processed and that there is no way for customers to contact or discuss the claim with those processing it.”

Cottrell had escalated this case twice since he filed it in late September, but the money was nowhere to be found and Cottrell was growing impatient. After all, he was on the hook for $6,914, and it looked like GeoBlue was ghosting him.

So he turned to our advocacy team for help.

But before we get to Cottrell’s claim, let’s look at the differences between travel insurance and travel medical insurance.

What’s the difference between travel insurance and travel medical insurance?

There are important differences between travel insurance and travel medical insurance:

• Travel insurance covers disruptions and cancellations that inevitably happen when you travel. Those may include flight cancellations, delays, and lost luggage. Travel insurance also can cover medical expenses and medical evacuations.

• Travel medical insurance, sometimes also called visitors coverage, focuses specifically on healthcare costs incurred abroad. Domestic health insurance plans often do not provide coverage outside the United States. Travel medical insurance typically includes emergency care services, hospital stays, prescription medications, and evacuation back home if necessary.

Most travel insurance covers medical expenses. But travel medical insurance doesn’t cover everything a travel insurance policy does.

Put differently, travel insurance primarily addresses interrupted or canceled journeys but can also include medical coverage.

The biggest difference is the cost. You can buy an excellent travel medical insurance policy for a fraction of the cost of travel insurance. Many travelers do that when they have a credit card that covers trip interruption and don’t want to over-insure themselves.

Disclosure: I’ve had an annual GeoBlue policy, and using it was a so-so experience. Although the company paid its claims fairly quickly, its app and site were difficult to use, and it raised the premiums after one year, so I found a different policy. I’m not surprised that we received Cottrell’s case.

How fast are claims paid when you have travel medical insurance?

How fast does an insurance company pay? It really depends on the claim — and the insurance company.

Processing times for travel medical insurance claims range from several days to a few weeks, depending upon the complexity of each case.

What makes a case complicated? The type of required documentation provided, how quickly you respond to the insurance company’s questions, and the time of year. (Processing times tend to increase in late summer and at the end of the year because of an influx in insurance claims, but it varies.)

What’s a realistic timeline for payment on a travel medical claim? Ten days, on average. If it’s less than $100, you’ll get the money faster; if it’s more than $10,000, you’ll probably wait at least a month. 

Is there a way to speed up your travel medical insurance claim?

There are a few ways to speed things up:

1. Know your policy. Be familiar with coverage limits, deductibles, and specific provisions outlined in your chosen plan minimizes surprises and accelerates payouts.
2. Submit complete records. Keep detailed receipts and any documentation necessary to substantiate your claim.
3. Be on time. Respond swiftly to requests for additional details or clarification expedites decisions and reduces waiting periods.

One more thing: Don’t buy a junk policy. Selecting a highly rated provider known for great customer service goes a long way toward a streamlined resolution. 

Bottom line: You should have a decision on your claim in less than 30 days. If you don’t, something is amiss. And that’s the situation in which Cottrell found himself.

I love the way Cottrell’s case resolved itself. He contacted my advocacy team and we advised him to file a complaint with the Massachusetts Division of Insurance.

And that’s exactly what he did.

“Thank you for your suggestions,” he wrote a few weeks later. “GeoBlue finally sent us a check to make us financially whole.”

Turns out Cottrell had done nothing wrong. He submitted all the paperwork on time and answered all the questions. His claim was just stuck in the system and all it took was a call from the Division of Insurance to speed up the process.

Look, we love to be heroes and save the day. But often, the best advocate for your travel medical claim — or any consumer problem — is you.

I’m proud of Cottrell for the way he fixed this case himself by appealing to state regulators.