Living in Canada and Medicare

[Rob]

Hi-
I have a friend from the States who is 63 years of age. In a couple years she wants to get Medicare, but likes Canada and plans on living there. Can you live in Canada, perhaps near Seattle area or someplace else near the States, and declare yourself a resident of a particular state.

I am sure there are many American retirees living in Canada. Can they still venture to the States for medical coverage through Medicare? Is it common and legal?

Thankyou.

[Orchidflower]

Is it legal to declare a tax free State like Florida or Texas or Wyoming or Washingon your home, use a P.O. box or have a friend vouch for you (when you don't really live there), but still collect Medicare and other American benefits...is that your question? Are you kidding? Hell, NO, it is NOT legal.
If your tax person in America finds out, they, too, are committing an illegal act.
But there people trying to do this every day, I am sure.
Are they caught by the IRS and other official government watchdogs? I'm not sure, but do some homework on it thru the net. Something is written on this somewhere.
I do know I would HATE to be the one who was caught and had to pay those obnoxious, outrageous fines they would surely stick you with when they do catch on. I am sure the Federal government would just love to make an example of someone who does this.
It isn't even legal to live in Maine and work in Massachusetts--in an attempt to avoid State taxes that Massachusetts has and Maine, for the most part, does not.
And, in final, as we all know: illegal acts are committed every day of the week. Some are caught, some are not. Hey, I know...I watch the Sopranos on tv.

[haha]

You do not have to live in USA to get Medicare. You have to receive the tratment in USA. And you have to be qualified by a process that is for the most part identical to that which qualifies you for SS. You also have to pay the Medicare part B premiums.

If I as a Medicare enrollee want to live in Mexico and fly up to Houston for medical treatment, I can legally do so.

I believe the question of what state you live in is a different one, and may be important because some state may be trying to claim you and have you pay state income tax.

People cruise the Caribbean for years on end. To the extent that they need a US domicile, they usually choose Florida, or perhaps TX. To the best of my knowledge, it is not necessary to keep an apartment or room in one of these states. It is however important to avoid doing things that another tax-agressive state like CA could use to claim you as a tax resident.

Ha

[Orchidflower]

Someone who is more in the know than I told me it was illegal! I happened to ask the same question. I'll do some homework on the net about this today. Thanks.
I DO know for sure that the declaring a tax free State as home base when you don't live there is illegal.
Wish one of the tax professionals on this board would answer this question for us, too. Hint, hint!

[d]

can't vouch for the accuracy, but this does seem to answer the question http://finance.yahoo.com/how-to-guide/retirement/29149

ps: it's prefectly legal to live in a low tax state and work in a high tax state ... the income tax is due to the state where the income is earned.

[Goonie]

I found a couple of links on the medicare.gov website that may be of help (or at least a place to start)

http://tinyurl.com/3abadt

Also on that page there is a section of called "Related Answers" and the first link under it is "I live outside of the U.S., how do I contact the Social Security Administration to enroll in Medicare?"

Hope that helps some...or at least speeds up your digging online.

[Goonie]

I also found in the Medicare booklet "Medicare & You 2007" (found online at the medicare.gov website) that Medicare will only pay for medical treatment IN Canada, if you are traveling the most direct route THROUGH Canada between Alaska and any other state (page 19 of the booklet).

[donheff]

I'm curious about the opposite situation. If you live in Canada or an EU country with a comprehensive national health plan, what happens when you get hospitalized in the US? Do the national plans cover the foreign costs like a health insurance plan would? Do the US doctors/hospitals over bill the Canada/EU patients like they do here before the insurance companies force down the reimbursements?

[Trek]

Originally Posted by donheff

I'm curious about the opposite situation. If you live in Canada or an EU country with a comprehensive national health plan, what happens when you get hospitalized in the US?

For an EU national, you're on your own in the U.S. An EU citizen needs to get private health/travel insurance when visiting countries outside the EEA (European Economic Area) where they do have coverage.

[Martha]

Originally Posted by Orchidflower

I DO know for sure that the declaring a tax free State as home base when you don't live there is illegal.

There are many fulltime rv'ers who establish a home base in a low tax state. They don't live there more than they live anywhere else. This is not necessarily illegal--the home base state may say it is just fine. However, where things get complicated is breaking ties with your old state of residence. As Ha mentioned, certain states may not be inclined to let you go as a resident and might not accept that you have established residency elsewhere. So you have to look at the laws of the state you are leaving as well as the laws of the state where you wish to establish residency.

This doesn't have anything to do with Rob's question, which was already well answered.

[Ed_The_Gypsy]

Active duty military have a similar residence problem, but the answer was simple. As I recall, the last state they lived in was considered their legal residence.

Rob, Washington state would be a good stepping stone for your friend. No state income taxes. It might take a step such as moving there for a while, filing one year's fed income tax using a WA address, then moving north.