'MY WORST NIGHTMARE'
Nurse left with £120,000 insurance bill nightmare after collapsed lung while visiting her daughter in California
A NURSE has been left £120,000 out of pocket after insurers refused to cover her medical bills whilst on holiday in the US.
Alison Borro, 61, was visiting her newborn grandson in 2017 in California when her lung collapsed and she was rushed to hospital.
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But a mix up between different insurance companies have left the medical bills unpaid and Alison $348,000 (£265,278.66) in debt.
Following an investigation into the case, the Financial Ombudsman advised her insurance firm to pay the bills in full but it could only enforce payment of up to £150,000.
This left Alison to foot the bill for the remaining £120,000.
Unable to afford it, she faced losing her home to cover the costs.
Alison said: "As a nurse, I don't have that sort of money. It was just awful. Absolutely awful.
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"This is just my worst nightmare. They're not going to pay.
"I'm going to lose the house, I'm going to lose everything I've worked for."
Alison was put through to AXA Insurance when she called the phone number on her policy documents from her hospital bed, rather than her own provider.
Despite agreeing to cover Alison's treatment, weeks later AXA realised that they weren't in fact responsible for her medical bills and that she'd need to contact her actual provider, which was underwritten by Lloyds of London.
Because Lloyds hadn't authorised the expensive medical treatment Alison underwent in the US, it refused to pay out for it.
Even after the Ombudsman ruled in the grandmother's favour, Alison still face hundreds of thousands of pounds worth of medical bills that she couldn't afford to pay.
Consumer expert Martyn James explained: "The maximum the ombudsman can compel the firm to pay is £150,000.
What should you look for in a good travel insurance policy?
TRAVEL insurance policies can vary a great deal, but here are some 'must have' features you should look out for from the Money Advice Service.
- Medical expenses - A good policy will give cover of £1million or more for travel in Europe and £2million or more for the USA
- Repatriation service - The costs of getitng you back to the UK for medical reasons should be covered automatically by your policy
- Cancellation and curtailment - A good policy will cover you for £2,000 or more if you have to cancel or shorten your holiday
- Missed departure - Covers additional accommodation costs and travel expenses up to £500 or more if you miss your flight due to circumstances out of your control
- Delay - You'll usually be covered for £250 or more if your travel plans are delayed due to circumstances out of your control
- Baggage cover - Covers you if your baggage is lost, damaged or stolen. Look for policies that have cover of £1,500 or more.
"Beyond that, the ombudsman has the power to issue recommendations but unfortunately they can't make the firm pay beyond that amount of money."
Alison reported the case to the BBC's Rip of Britain: Holidays. Since the show became involved, Lloyds agreed to pay for the medical bills in full.
But the firm refused to pay Alison any compensation for the stress that the saga has put her through, even though it was recommended by the Ombudsman.
A spokesperson for Lloyds told the show: "Hopefully, this resolution will provide her with some comfort."
"The worst bit is living in fear for two years of not knowing if I can see my daughter and grandchildren again in America.
"That's been the hardest part," Alison said.
A spokesperson for AXA said it was unable to comment on the case as it didn't underwrite Alison's insurance policy.
They added: "Whenever we are presented with a travel claim we will always follow the treating facility’s and our medical experts’ advice."
Rip Off Britain: Holidays, starting Monday January 6, daily at 9:15am, BBC One.
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Travel insurance can be really expensive if you have a pre-existing medical condition, which is why we've put together a guide on how to get affordable cover.
Bills will be cheaper for those who have never been ill - you can even get cover from just £9 a year.
In October, a new insurance policy was introduced that pays out if your holiday is ruined by rain.
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