Read More:
- What is Medicare Portability?
- How would Medicare Portability work?
- How would Medicare Portability save Medicare costs?
- How would Medicare Portability benefit retirees living abroad?
"…[A]t a time when both president Barack Obama and the Republicans in Congress are pushing for more free trade alongside budget reductions, expanded trade in medical services that saves the government money to boot seems like something that should be on the table."
Charles Kenney, Inpatients Abroad, in ForeignPolicy.com
What is Medicare Portability and why Is it important for Americans Retiring Abroad?
Medicare portability is Medicare coverage for eligible Americans abroad. Medicare portability would improve health care outcomes for American retirees and achieve cost-savings for Medicare.
The Need and the Problem
A growing number of U.S. retirees are choosing retirement abroad. Some experts predict that this rate will increase greatly as American “Baby Boomers” begin to retire. There are many attractive reasons Americans choose retirement living outside of the U.S. – comfortable climates, modern infrastructure, cultural attractions, and a much lower cost-of-living.
Through the ease and security of global banking, pension and Social Security payment issues are nearly nonexistent for retirees abroad.
Healthcare coverage, on the other hand, remains a major obstacle, as many surveys of retirees abroad have shown. Medicare legislation specifically excludes reimbursement to providers who render health care services outside the U.S. and its territories, except in a very limited set of circumstances.
Retirees who choose to settle outside of the U.S. must either pay for healthcare costs out of pocket, or travel back to the U.S. for care and wait the required 6 months before qualifying for Medicare reimbursements. Medicare portability would solve this.
While health care costs are lower in virtually every country outside the U.S. - often much lower - most retirees in Mexico, for example, must pay for routine health care out of pocket. Most then return to the U.S. when a serious health issue occurs where Medicare will pay most of the cost of treatment. Although many Medicare supplementary policies offer emergency international travel coverage, these are not designed nor intended for those living part-time or full-time outside of the U.S.
Health policy research has shown that persons who lack insurance coverage frequently forego early or preventive medical care. Particularly for older people, this can lead to serious consequences, and a greater need for high-cost medical interventions. For example, failure to be screened for cardiovascular conditions, diabetes, certain cancers, and other health issues that frequently affect older people can lead to acute care needs at high cost. These are the kinds of situations that lead overseas retirees to rush back to the U.S. for costly Medicare-covered hospitalization, rehabilitation, and treatment.
The Solution
If overseas retirees were covered by Medicare where they live, they would be more likely to obtain the screenings and preventative treatments that could avoid high cost and traumatic interventions. Moreover, by remaining in the country where they live instead of returning to the U.S. for high-cost care, Medicare reimbursements payments would be lower, often substantially lower.
