Considering Moving Out of the U.S.?

The Aegon Center for Longevity and Retirement reported that at least 12% of Americans have considered living abroad in retirement.  Whether it’s universal healthcare, family, or other reasons, many of our clients have asked us what to do about Medicare if they were to move abroad. 

Here are the top Medicare tips if you’re considering moving out of the country:

1. You should consider keeping Medicare Parts A+B

Medicare Part A covers hospitalizations and comes at no additional monthly cost for most individuals. Keeping Medicare Part A won’t be a drain on finances.  However, Medicare Part B does come with a monthly premium and it's unlikely that you’ll benefit from coverage overseas.  However, if you do drop Medicare Part B when you leave the country, you will face a 10% a year penalty if you ever decide to come back into the U.S. and reapply for Part B.  Being overseas does not exempt you from Part B penalties

2. You most likely won’t need additional Part D coverage

There is no penalty for not having Part D prescription coverage if you were living overseas. This means that if you dropped your drug plan when you moved out of the country, you’ll be penalty free if you re-enroll when you get back.

3. You’ll have a special election period to enroll in a Medicare Advantage/Prescription plan if you come back

If for some reason you decide to move back into the U.S., you’ll have a 3 month Special Election Period to choose an Advantage or Prescription plan during the year. 

These tips apply to individuals who are permanently moving out of the country.  If you’re still going to be living in the U.S. for parts of the year, we’d still recommend that you hang on to additional coverage (whether it’s an Advantage, Supplement/Part D plan).  Most plans will also provide some type of international emergency coverage for up to 2 months after leaving the country.