How to Plan for Health Care When Retiring Abroad

Retirees pay no fee for Medicare Part A, which covers inpatient hospital stays, care in a skilled nursing facility, hospice care and some home health care. If they return to the U.S., either temporarily or permanently, they receive these services from a provider that accepts Medicare payment (most do).

While living outside the country, retirees have three options: “to get a private policy — not a Medicare Supplement — buy into a national program in the foreign country if available or self-insure,” says Benigni.

The U.S. Department of State offers information on a wide range of topics related to accessing and paying for health care in countries around the globe. The agency’s website includes a list of insurance companies that reimburse for medical treatment received outside of the United States.

They also list companies that cover medical evacuation. These policies pay the fees when individuals need to be transported by helicopter, plane or vehicle from a remote location—including a cruise ship. “Air ambulance” services can cost up to $100,000.

The government site also includes a comprehensive database that users can search to learn details about the quality of health care in their country of choice. In Panama, for example, the larger cities have excellent hospitals, but poor road conditions can make ambulance response times very slow in the outskirts. In Costa Rica, most prescription and over-the-counter medications are easy to find, but some expats regularly travel back to the U.S. to fill less-common prescriptions. Retirees in France will find a quality of care on par with U.S. standards, but will likely be required to pay for any non-emergency medical care up front.

The bottom line: Whether your clients retire domestically or in another country, they’ll need to plan for getting and paying for the medical services to help them enjoy those post-work years.