Planning to travel while on Medicare? Make sure you have coverage at your destination.

For many older Americans, retirement means freedom to explore beyond your backyard. Planning to travel while on Medicare? Before you take off, however, check whether your health insurance travel with you.

Assuming you’re on Medicare — most adults age 65 or older are — coverage away from home depends partly on where you travel to, along with whether you’re on basic Medicare or get your benefits through an Advantage Plan. It also can depend on whether the care you get is routine or due to an emergency.

And while travel medical insurance can be the solution to plugging holes in coverage, it’s worthwhile first determining whether you need it.

Original Medicare consists of Part A (hospital coverage) and Part B (outpatient care). Retirees who choose to stick with that coverage — instead of going with an Advantage Plan — typically pair their coverage with a stand-alone prescription-drug plan (Part D).

If this is your situation, coverage while traveling in the U.S. and its territories is fairly straightforward: You can go to any doctor or hospital that accepts Medicare (most do), whether for routine care or an emergency. It’s when you venture beyond U.S. borders that things get trickier.

Generally speaking, Medicare does not provide any coverage when you’re not in the U.S. There are a few exceptions, such as when you’re on a ship within the territorial waters adjoining the country — within six hours of a U.S. port — or you’re traveling from state to state but the closest hospital to treat you is in a foreign country (i.e., you’re in Canada while heading to Alaska from the 48 contiguous states).

Some Medigap policies — Plans C, D, F, G, M and N — offer coverage for travel. You pay a $250 annual deductible and then 20% of costs up to a lifetime maximum of $50,000.

But, that amount may not go very far, depending on the type of medical services you need.

“I tell our clients that a supplement is not designed for you to get a $50,000 surgery in France. It’s designed to get you healthy enough to get you back on U.S. soil to have the surgery,” said Roger Luchene, a Medicare agent with Hammer Financial Group in Schererville, Indiana.

Also be aware that there is no overseas coverage through a Part D prescription drug plan. And, Medigap policies do not cover any costs related to Part D, whether you’re in the U.S. or elsewhere.
About a third of retirees on original Medicare also purchase supplemental coverage through a Medigap policy (you cannot pair Medigap with an Advantage Plan). Those policies — which are standardized from state to state but vary in price — offer coverage for the cost-sharing parts of Medicare, such as copays and co-insurance.

For retirees who get their Medicare benefits — Parts A, B and typically D — through an Advantage Plan, it’s important to check your coverage even if you’re not leaving U.S. soil.

While these plans are required to cover your emergency care anywhere in the U.S., you may be on the hook for routine care outside of their service area. Or, other plans may let you visit out-of-network providers, but require you to pay more.

“Check to see if your plan has some sort of U.S. coverage outside of your area,” said Elizabeth Gavino, founder of Lewin & Gavino in New York and an independent broker and general agent for Medicare plans. “The big carriers generally do, and depending on where you’re traveling, you could find in-network providers there.”

Some Advantage Plans might also offer coverage for emergencies overseas, so it’s important to know whether your plan does and to what extent.

Whether you have an Advantage Plan or original Medicare, travel medical insurance might be appropriate if you think your existing coverage is insufficient.

“That type of insurance is not too expensive — maybe $90 for two weeks — and you can get a pretty substantial policy,” Gavino said.

Such options are priced based on your age, the length of the coverage and the amount of it. On top of providing coverage for necessary health services, a policy typically includes extras such as non-medical required evacuation, lost luggage and even dental care required due to an injury.

The plans typically come with a deductible — say, $250 or more — and coverage could range from about $50,000 in maximum benefits to upwards of $1 million or more. However, if you’re age 70 or older, you might face a lower lifetime maximum.

You can get coverage for a single trip of a couple weeks or several months, or get a multi-trip policy, which could cover a longer period.

“The multi-trip policy is for when you think you’ll be traveling on and off throughout the year,” Gavino said.

She also said it’s also important to know whether your policy covers pre-existing conditions, because some don’t.

“In that case, say you have diabetes and you’re in Rome when you go into a diabetic coma,” said Gavino. “That wouldn’t be covered.

“But if you had a heart attack, or something else wrong unrelated to the diabetes, it would be covered.”

Also be aware that some Advantage Plans might disenroll you if you remain outside of their service area for a certain time — typically six months. In that situation, you’d be switched to original Medicare.

“If you get disenrolled, you’d have to wait for a special enrollment period to get another Advantage Plan,” Gavino said.

Planning to travel while on Medicare and want to go over your Traveling Health Insurance options? Click here to find an agent to discuss your health insurance options.

How to Retire with Health Insurance if You’re too Young for Medicare

Whether you’re angling to retire early or think you may be forced into it, you’ll need to make a plan for healthcare coverage. Learn how to Retire with Health Insurance.

Medicare doesn’t kick in until age 65 for most Americans, so those who leave work earlier are generally left to their own devices when it comes to finding low-cost, high-quality healthcare.

Below, find out what options are available when it comes to securing healthcare before 65.

1. Check your spouse’s health insurance plan

This is usually the best place to start, but is conditional on at least two factors: that your spouse is still working and that their employer’s health plan covers spouses or families.

Joining a spouse’s health plan at work is often the most cost-effective option an early retiree will find.

2. Consider COBRA

Named for the Consolidated Omnibus Budget Reconciliation Act of 1985, COBRA allows a person to continue receiving the exact same health coverage they’ve been getting from their employer after they leave. It’s offered by most employers with 20 or more employees.

While COBRA enables a former employee to retain coverage at group insurance rates, the individual is often required to pay both the employer and the employee’s portion, plus an administrative fee, driving up costs significantly.

An individual usually has 60 days to elect to receive coverage under COBRA after leaving the company. Coverage can last between 18 and 36 months, depending on the nature of the “qualifying event,” or the reason for leaving.

For those who did not choose to retire early and instead suffered job loss due to economic reasons, a special tax credit may be available to help cover the cost of COBRA premiums.

3. Browse the Health Insurance Marketplace

If you’ve lost employer health insurance and decide COBRA is too expensive (or you didn’t like your former employer’s plan), you may turn to the Health Insurance Marketplace.

Established by the Affordable Care Act, the Marketplace is a resource available to most US citizens and can help narrow down health insurance coverage options, and find out whether tax breaks or other subsidies are available. Notably, insurance offered through the Marketplace cannot deny any individual coverage, even for pre-existing conditions.

First you have to fill out an application with your estimated income for the year, including interest income, capital gains, unemployment income, and withdrawals from retirement plans. This creates a list of what’s available to you, which may include Medicaid or the Children’s Health Insurance Program (CHIP) for families with kids.

When comparing plans, you’ll want to look at enrollment fees, premium costs, per individual and per family deductibles, copayments, hospital costs, and coverage details, like whether extra costs are levied to visit out-of-network providers.

The Marketplace’s open enrollment period for 2020 health coverage runs from November 1, 2019 to December 15, 2019. However, losing job-based coverage at any point during the year may qualify you for a special enrollment period.

4. Consider a health-sharing plan

Health-sharing ministries are an alternative to run-of-the-mill health insurance.These non-profit organizations are funded by monthly premiums, called the sharing amount, paid by the members and require a deductible-like amount to be met before coverage kicks in.

While not considered health insurance coverage under the Affordable Care Act, individuals belonging to health-sharing ministries before 2019 were exempt from the “Shared Responsibility Payment,” or the fee mandated for not having health insurance. They do, however, operate on the good will of others — they’re largely voluntary and recourse isn’t guaranteed.

These organizations are generally faith-based and require that members follow guidelines, such as no tobacco use and regular worship, in lieu of a standard evaluation based on gender, age, weight, and other health factors. As with anything, understand the fine print before signing on.

5. Get a part-time job

If you’re still willing to work part time in early retirement, it may be worth considering a side gig just for the health insurance benefits.

Whole Foods, Starbucks, and Costco are just a few great companies to work for that offer health insurance for part-timers.

Have any questions on Health Insurance before or after retirement? Click here to find an agent to discuss your health insurance options.