When you move overseas for retirement you need to plan for health care and health insurance. Almost anywhere in the world you might choose to live or retire, you’ll find the cost of health insurance to be more affordable than in the United States. Dramatic health insurance savings can be one of the greatest benefits of spending time in another country.
With few exceptions, such as military policies, your U.S. health insurance probably won’t cover you outside the United States. Medicare doesn’t cover care received overseas. However, Medicare can be an important part of your health insurance strategy if supplemented with a local or international policy that excludes coverage in the United States.
Here are four options for health insurance overseas.
[Read: Medicare Out-of-Pocket Costs You Should Expect to Pay.]
1. A hospital insurance plan. In many countries you can arrange medical insurance through specific private hospitals. These hospital plans are not general health insurance, and they cover your treatment in that hospital only. If you travel outside the country or even far from the hospital within the country and you find yourself in need of medical care, you won’t be able to use the policy. You’ll either have to pay all medical costs out-of-pocket or find your way back to the hospital where you’re insured, and cover the related costs yourself. Traveling back to the hospital may not be a viable option in an emergency.
On the other hand, in-country hospital policies can be very affordable and can include extra benefits that make them appealing. The Hospital Santa Fe in Panama City, Panama, for example, offers an insurance program through the hospital that accepts new policyholders of any age. A 60-year-old man might pay $130 per month for coverage, and a male who is 90 or older might pay $210 per month.
Hospital insurance policies are risky, but can be a good option if you live close to the hospital offering the coverage and do not plan to travel much throughout the country or abroad.
[Read: Medicare Enrollment Deadlines You Shouldn’t Miss.]
2. Travel medical insurance. A travel medical insurance policy is low cost and guaranteed issue. You don’t have to file a lengthy health history, and coverage can be put into effect within minutes. Further, you can opt for a $0 deductible, 100 percent coverage beyond a deductible (rather than any copay requirement) and you can be accepted as a new policyholder long after you can typically qualify for local or international insurance.
In many ways, a travel medical policy can be the most flexible possible insurance. It’s not intended to be long-term insurance, but can work longer term than you might imagine given the name. A travel medical insurance policy is a good choice for coverage during your scouting stage, when you’re trying a place on for size, and if you’re beyond the age cutoff for a local or an international policy.
3. Local medical insurance policies. A local medical insurance policy can be ideal if you have no pre-existing conditions and are younger than 63. Insurance providers are typically connected with hospital networks and doctors throughout the country, meaning you are not limited to one health care facility, as you are with a hospital plan. Typically, your coverage follows you anywhere you travel in the country, but it does not follow you outside that country.
If you plan to be based in one country most of the time, a local medical insurance policy can be a much less expensive alternative to a comparable international medical insurance policy. However, the coverage might be basic, and the cutoff age for coverage can be a limitation.
[See: 10 Medical Services Medicare Doesn’t Cover.]
4. International medical insurance policies. The safest, most secure and reliable option for international health insurance, especially if your plan is to be living overseas for an extended or indefinite period of time, is an international health insurance policy with a big international insurance agency that has a long track record. In most cases, international insurance policies provide the most comprehensive and appropriate level of medical coverage.
You do not have to rely on one hospital or facilities in one country. International insurance companies have networks of doctors and hospitals around the globe where you can receive excellent treatment, as good as or better than treatment you might expect in the United States. An international medical policy should cover you nearly anywhere you choose to travel and for whatever period you choose to stay there.
International medical insurance premiums are based on your age and the amount and type of coverage you want. Most policies are guaranteed for life once you have been accepted for coverage. An international insurance policy is typically more expensive than other health insurance options. However, international health insurance is still far cheaper than comparable U.S. health insurance. Cigna, Bupa and HTH Worldwide are three top international insurance companies to consider.
Kathleen Peddicord is the founder of the Live and Invest Overseas publishing group.
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How to Choose Health Insurance for Retirement Overseas originally appeared on usnews.com
