Will Medicare cover me if I move to another country?

Written By Jerdon Johnston

What happens to my Medicare benefits if I move abroad permanently?

If you move abroad permanently, your Medicare benefits will be affected, as Medicare generally does not cover healthcare services outside the United States. However, you can still maintain your Medicare coverage in case you return to the U.S. or plan to travel back periodically. Here’s what you need to know if you’re planning to move abroad:

1. Medicare Coverage Outside the U.S.

  • Original Medicare (Parts A and B): Original Medicare provides very limited coverage outside the U.S. Generally, Medicare will not pay for healthcare services you receive while living in another country, except in a few specific situations (such as emergencies near the U.S. border).

  • Medicare Advantage (Part C): Some Medicare Advantage plans may offer emergency coverage abroad, but the extent of this coverage varies by plan. If you’re moving abroad, it’s essential to check with your Medicare Advantage plan to see what international benefits they offer, if any.

  • Medigap (Medicare Supplement) Plans: Some Medigap plans offer limited foreign travel emergency coverage, typically covering 80% of emergency medical care during the first 60 days of a trip outside the U.S., up to a lifetime maximum of $50,000. However, this is only for short trips, not permanent moves.

2. Maintaining Medicare Coverage While Abroad

If you plan to move abroad permanently, you can still maintain your Medicare Part A and Part B coverage, though you will need to continue paying your premiums to stay enrolled. Here's what happens:

  • Medicare Part A (Hospital Insurance): Most people do not pay a premium for Part A, so keeping this coverage while abroad won’t cost you anything if you’re eligible for premium-free Part A. However, Medicare Part A will not provide coverage outside the U.S.

  • Medicare Part B (Medical Insurance): You will need to continue paying the monthly premium for Part B (which is $174.70 in 2024 for most beneficiaries) to maintain your coverage. Since Medicare does not generally cover care abroad, you may decide to drop Part B if you plan to stay outside the U.S. permanently, but this decision requires careful consideration:

    • If you drop Part B and later return to the U.S., you may face a late enrollment penalty if you re-enroll. This penalty increases your Part B premium by 10% for each 12-month period you were not enrolled, and it lasts as long as you have Part B.

    • If you plan to return to the U.S. for visits, it might make sense to keep Part B coverage so you’re covered for medical care during your stays.

3. Re-Enrolling in Medicare If You Return to the U.S.

  • If you move back to the U.S. after living abroad, you will be eligible to re-enroll in Medicare during a Special Enrollment Period (SEP). The SEP allows you to re-enroll in Medicare without paying the late enrollment penalty, provided you meet the eligibility criteria. The SEP begins the month you return to the U.S. and lasts for two months.

  • If you previously dropped Part B, you can use the SEP to re-enroll without a penalty, as long as you sign up within the SEP period. However, this is only available if you had health insurance coverage while living abroad that was considered creditable.

4. Consider Alternative Health Coverage Abroad

Since Medicare does not cover healthcare services abroad, you will need to arrange for alternative health insurance in your new country of residence. Some options include:

  • Foreign Health Insurance: Many countries offer government healthcare systems or private health insurance plans for residents. Research the healthcare options available in your destination country.

  • International Health Insurance: If you want comprehensive coverage while living abroad, you may consider purchasing an international health insurance plan that covers medical care in multiple countries, including emergency care and repatriation.

  • Travel Insurance: If you plan to travel back to the U.S. periodically, a travel insurance policy with health coverage might be useful for short trips.

5. Medicare Part D (Prescription Drug Coverage)

  • Medicare Part D does not cover prescription drugs purchased outside the United States. If you move abroad permanently, you may choose to drop Part D coverage. However, like with Part B, if you decide to re-enroll in a Part D plan later after returning to the U.S., you may face a late enrollment penalty unless you had creditable drug coverage while living abroad.

6. What to Do Before Moving Abroad

  • Notify Medicare: If you’re moving abroad permanently, contact Medicare and the Social Security Administration to update your address and review your coverage options.

  • Review Your Options: Consider your healthcare needs and coverage options both abroad and if you plan to return to the U.S. for visits.

  • Explore Coverage Abroad: Research health insurance options in the country where you’ll be living to ensure you’re covered for both routine and emergency medical care.

Key Takeaways:

  • Medicare does not cover healthcare services abroad, except in limited emergency situations near the U.S.

  • You can keep Medicare Part A and Part B, but Part B requires ongoing premium payments.

  • Dropping Part B may result in a late enrollment penalty if you return to the U.S. and re-enroll later.

  • Consider alternative health insurance options in your new country to ensure adequate coverage.

For personalized advice on managing your Medicare coverage while living abroad, or to explore additional health coverage options, schedule an appointment with a Tsunami Advisor here: Schedule an Appointment.

Jerdon Johnston
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