foreign medical insurance instead of US - impact on Medicare?

[spanky42]

I'm having a difficult time finding answers on this on, especially with someone in a similar situation.

I'm 52, retired two years ago...my employer retirement insurance is a terrible price...$5500 annual premiums for a single male, high deductible plan so I still have a $2k deductible then 20% copay up to another $1000. So my potential out of pocket total is $8500.

My pension is $60k and rental income push me over the ACA option, so I have 13 years to pay this high amount that keeps increasing every year or find other options.

I am buying a couple condos in Mexico to rent out and also stay there for at least a few months of the year, so one option I found is there are foreign health care policies for around $1700 plus a $1000 deductible that actually work in the US, but the caveat is you have to reside outside the US for at least 6 months.

If I went with this option I've heard from a couple people this will effect my medicare when I do claim it because I will have turned down health care here for 13 years even though I've paid into it for 35 years...is this true? I can't find any info on this but they said I will have to pay a steep penalty for this.

Does anyone have experience with permanent foreign policies as in replacing your current one or information on if I'm penalized for turning mine down when I reach medicare age?

Another option is to marry someone with great insurance!
Any other ideas??

Thanks!

 

[HenryD]

I have no ideas, but had not heard anything like that. I thought the problem was you need to sign up for it at the normal age, even if you don't plan on using it. I expect to be in a similar situation regarding foreign insurance, so I am very interested in the question. My DW currently has good insurance, but it will end when we retire

 

[Sunset]

OP - your insurance doesn't sound all that pricey.

However, regarding medicare.
I think the eligibilty is: work 10 years paying into SS, and live in the US when claiming at age 65.
Be a citizen or US resident for 5 years.

So as long as you are a citizen, you can sign up while living outside the USA, but it won't do much/anything for you unless you return.

https://www.medicarefaq.com/original-medicare/medicare-eligibility/

 

[Alan]

However, regarding medicare.
I think the eligibilty is: work 10 years paying into SS, and live in the US when claiming at age 65.
Be a citizen or US resident for 5 years.

So as long as you are a citizen, you can sign up while living outside the USA, but it won't do much/anything for you unless you return.

https://www.medicarefaq.com/original-medicare/medicare-eligibility/

I believe this is correct. My wife and I signed up for Medicare Part A while living in the UK. We did this because it is free and gets us into the Medicare system should we ever return or need hospitalization while visiting. (We also have health insurance cover for traveling overseas)

 

[Rainbowdash]

I wish I have your insurance…

 

[martyp]

I retired to Thailand in 2017. I have Thai health insurance. I signed up for Social Security at 62. When I turned 65 I was put into Medicare without my doing anything. I asked the Manila Social Security office and they said that I wouldn’t be signed up for Medicare Part B unless I asked for it which I have not and I have not been paying for Part B. If you buy into a new foreign policy at an older age then be prepared for exclusion of existing conditions. My Thai policy has a $1,200 deductible which brings the cost down to about $200/month. The health care in Thailand is excellent and I would prefer to pay for routine care out of pocket. I am saving the insurance for a truly bad medical event. You should consider the quality, cost, and availability of the health care in Mexico.

 

[Sarah S]

I think if you do not have so called creditable coverage immediately before starting medicare there is a period ( possibly six months) when any medicare supplement you buy does not cover you for any pre existing conditions. I was asked about current coverage when I applied for my supplement. I think it is only the supplement and not the original medicare but not positive.

Agree that your insurance quote doesn’t sound terrible. It is slightly less than I paid retiring 10 years ago and about 3000 a year less than the last year before medicare in 2021

 

[PaunchyPirate]

I'd give up worrying about the current price of your insurance. It's not that much more than mine (also a single person) and I get an ACA subsidy. It is what it is.

 

[spanky42]

Thanks to everyone for their info...it makes me feel like foreign health is at least an option that shouldn't impact my medicare when it comes time to claim!

I'm confused on the replies that say I'm getting a good deal or it's not that bad...I can go right on healthcare.gov and get plans that are $8000 max out of pocket...a little less than I'm paying now, so I don't understand why people are saying they are paying more??

Now if you are in your 60's I get it will be higher, but then we aren't comparing apples to apples.

 

[PaunchyPirate]

Thanks to everyone for their info...it makes me feel like foreign health is at least an option that shouldn't impact my medicare when it comes time to claim!

I'm confused on the replies that say I'm getting a good deal or it's not that bad...I can go right on healthcare.gov and get plans that are $8000 max out of pocket...a little less than I'm paying now, so I don't understand why people are saying they are paying more??

Now if you are in your 60's I get it will be higher, but then we aren't comparing apples to apples.

When you see a policy on healthcare.gov that has an $8000 max out of pocket... that does NOT include the cost of the premium. Where I live, a 52 year old with a very high income (therefore no ACA subsidy) would pay $5297 per year for the lowest cost plan available to them. That plan has an $8900 deductible and an $8900 max out of pocket. So a catastrophic illness could cost $8900 + $5797 per year. $14,197.

 

[spanky42]

When you see a policy on healthcare.gov that has an $8000 max out of pocket... that does NOT include the cost of the premium. Where I live, a 52 year old with a very high income (therefore no ACA subsidy) would pay $5297 per year for the lowest cost plan available to them. That plan has an $8900 deductible and an $8900 max out of pocket. So a catastrophic illness could cost $8900 + $5797 per year. $14,197.

Thanks...yep I do see that now, confusing because I took that to mean total out of pocket maximum...including premiums!

And yes so obviously someone with a high income would be expected to pay more but I think paying 15% of my gross pension income seems excessive...but maybe not.

 

[PaunchyPirate]

Thanks...yep I do see that now, confusing because I took that to mean total out of pocket maximum...including premiums!

And yes so obviously someone with a high income would be expected to pay more but I think paying 15% of my gross pension income seems excessive...but maybe not.

Oh, don't get me wrong. I totally agree with you. It's ridiculous that we pay this much for health insurance. But as I said... it is what it is. I don't see our country's current approach changing any time soon.