For many expats moving to Panama, the question isn’t whether healthcare is affordable — it’s whether health insurance is worth it. After all, doctor visits can cost as little as $30, and medications are a fraction of U.S. prices.
But while routine care is cheap, the reality is more complex. Emergencies, major surgeries, and hospital stays can still generate bills in the thousands. This is why choosing the right type of health insurance — or deciding whether to get it at all — is one of the most important decisions expats face.
Do You Really Need Health Insurance in Panama?
At first glance, it may seem unnecessary. Many expats go through their first months paying out of pocket, impressed by how cheap everything is. A $50 consultation with a specialist feels like a bargain compared to the U.S.
But expats with more experience warn against going uninsured:
👉 “Routine care is cheap, yes. But a single emergency surgery could cost more than ten years’ worth of premiums. It’s just not worth the gamble.” Perhaps not as expensive as the U.S., but it will be costly to pay for that medical emergency.
Local Health Insurance: Affordable and Practical
Many long-term expats choose local insurance providers such as ASSA, BlueCross BlueShield Panama, or Mapfre.
The Pros:
- Far more affordable than international plans.
- Direct billing with most hospitals and clinics, which means you don’t have to pay large sums upfront.
- Ideal for expats who live full-time in Panama.
The Cons:
- Coverage is usually limited to Panama or, at most, Central America.
- Customer service can feel slower or less streamlined compared to what North Americans are used to.
👉 Testimonial: “I love my local plan because I don’t have to worry about paying $5,000 upfront. The hospital just bills the insurer directly.”
International Health Insurance: Peace of Mind
For expats who travel frequently or want the option of returning to their home country for treatment, international providers such as Cigna, Bupa, or Allianz are a popular choice.
The Pros:
- Global coverage, including the U.S. and Europe.
- Strong customer service and often available in your native language.
- Peace of mind knowing you’re covered no matter where you are.
The Cons:
- Significantly more expensive than local plans.
- Often requires you to pay bills out of pocket and then wait for reimbursement.
- Premiums rise steeply with age and pre-existing conditions.
👉 Testimonial: “The international plan is expensive, but I travel a lot. Knowing I can get treated in the U.S. or Spain without worry is worth it.”
The Self-Insurance Option: A Risky Gamble
A minority of expats choose not to have health insurance at all, reasoning that routine costs are so low they can simply pay out of pocket.
The Pros:
- No monthly premiums.
- Works well if you’re young, healthy, and only need occasional care.
The Cons:
- Extremely risky. A major accident, heart attack, or cancer diagnosis could generate bills in the tens of thousands, even in Panama.
- Without insurance, luxury hospitals require large deposits upfront.
👉 Testimonial: “I thought I was saving money by skipping insurance. Then I ended up in the ICU after an accident — the bill was more than $20,000. Never again.”
How Much Does Health Insurance in Panama Cost?
Premiums vary widely based on age, coverage level, and provider.
- Local insurance: $50–$200 per month, depending on age and plan.
- International insurance: $200–$500 per month or more, often higher for seniors.
While local plans are much cheaper, they do not cover treatment abroad. International plans offer peace of mind but can strain the budget.
Practical Tips for Expats Choosing Insurance
- Consider your lifestyle. If you rarely travel outside Panama, a local plan may be enough.
- Ask about exclusions. Pre-existing conditions can limit coverage.
- Compare hospital networks. Make sure your preferred clinic accepts your insurance.
- Don’t wait too long. Premiums increase with age, so securing coverage earlier is usually cheaper.
Conclusion
Health insurance in Panama isn’t one-size-fits-all. For many expats, a local plan provides affordable peace of mind and eliminates the stress of large upfront payments. For those who travel often, an international plan offers global coverage, albeit at a higher cost.
What nearly all expats agree on is this: going without insurance is a gamble that isn’t worth the risk. Routine care may be cheap, but unexpected emergencies can be financially devastating.
👉 Next: Learn more about the Cost of Healthcare in Panama and how it compares to insurance premiums.
FAQs about health insurance in Panama
Do expats need health insurance in Panama?
Yes. While routine care is affordable, emergencies and major surgeries can cost thousands of dollars. Insurance protects against financial risk.
What is the difference between local and international insurance in Panama?
Local insurance is cheaper and covers treatment within Panama, while international insurance provides global coverage at a higher cost.
How much does health insurance cost in Panama?
Local plans range from $50–$200 per month. International plans typically cost $200–$500 or more, depending on age and coverage.
Can I use U.S. or European health insurance in Panama?
Generally no. Most expats purchase local or international policies that work directly with Panamanian hospitals and clinics.
Is it safe to live in Panama without health insurance?
It’s risky. Routine care is cheap, but a major accident or serious illness could generate bills of tens of thousands of dollars.