Why international insurance premiums will jump 10.3% for digital nomads

Tariffs are pushing up medical costs

U.S.-led trade tariffs that began in April 2025 and widened in 2026 are lifting prices for imported pharmaceuticals, medical supplies and devices. WTW projects global medical costs will rise 10.3% in 2026, with some U.S. carriers already building tariffs into premium filings, according to KFF.

The biggest pressure points are patented drugs, active pharmaceutical ingredients and other imported inputs. U.S. tariff rates now include a 10% base on all imports, with higher rates on goods from China, the EU, Japan and India, while some pharmaceuticals face tariffs of up to 100% unless companies qualify for relief tied to onshoring or pricing deals.

Who feels it first

Digital nomads, expats and travelers on private international plans are likely to see higher premiums at renewal. Insurers expect the added costs to flow through to policy prices and 81% say tariffs will raise costs over the next three years.

The impact goes beyond premiums. Imported drugs, devices and treatments can cost more at the point of care and supply chain disruptions could affect availability in some markets. KFF said some carriers are already flagging premium increases of 2% to 3.6% for 2026.

What nomads can check now

Review renewal notices closely and compare coverage before a plan rolls over. Plans that look similar on paper can price tariff-related increases differently, especially for emergency care, outpatient treatment and prescription coverage abroad.

For U.S.-linked providers, costs may keep moving as Section 232 pharmaceutical tariffs and related pricing rules work through supply chains. Reshoring could take 4+ years, so the near-term pressure on global health insurance is likely to stay.

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