How Your Travel Plans Might Affect Your Medicare Decisions

January 28, 2020

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For many retirees, the golden years open up long-awaited opportunities for travel. If your future travel plans include international destinations, you need to become informed about how those plans can impact your health insurance choices and Medicare decisions. 

Medicare vs. Medicare Advantage

While Medicare doesn’t cover international travel, some Medicare Advantage (Part C) plans may cover certain emergencies outside of the United States. Since Medicare Advantage plans are offered through private insurance companies, specific plans may vary. If you plan to travel frequently, your safest bet is to purchase Medigap or supplemental travel insurance, which will be discussed later in this article.  

Medicare parts A and B offer three exceptions for coverage outside the United States and its territories:

• You have a medical emergency that arises while you’re in the United States, but the nearest hospital is outside the country.
• You need care, regardless of if it’s an emergency, where you live in the United States, and the closest hospital to your home is outside the country.
• You’re traveling between Alaska and the mainland United States via Canada and you have a medical emergency that requires you to go to a Canadian hospital. (It’s important to note that Medicare only covers this situation if you can prove that you were traveling through Canada "without unreasonable delay.")

A special note on cruises: As long as you are 6 hours from a port in the United States, Medicare will pay for the care you receive aboard the ship. 

Questions to Ask Your Medicare Advantage Carrier

• What kinds of treatment, including emergencies, are offered out of country (aside from the above scenarios)?
• Does the plan offer coverage for chronic illnesses that you began treatment for in the United States?

Medigap and Supplemental Travelers Insurance

If you plan to travel outside the United States, you may want to consider Medigap, which provides coverage for medical emergencies during international travel. Depending on the plan you choose, Medigap may cover up to 80 percent of international medical emergencies once you’ve met your deductible and you’re within your policy’s maximum limit. Like Medicare Advantage, Medigap is offered through private insurance companies, so the amount of coverage may vary.  

If you’re on a budget, another option is to obtain supplemental traveler’s insurance. This isn’t medical insurance, but a short-term plan that covers emergencies while you’re out of the country. Make sure you buy the coverage before you travel, as once you’ve left the country you cannot buy traveler’s insurance. Also, since not all supplemental plans cover preexisting conditions, be sure to review the exclusions if you have a chronic condition. 

Domestic Travel

With Medicare A and B, you are permitted to see any doctor in the country who accepts Medicare and new patients. This is good news for snowbirds with second homes or retirees who travel frequently to other states to visit family and friends. 

Plans like Medigap and Medicare Advantage are also available to help pay for health care costs Medicare doesn’t cover, like copays, co-insurance and deductibles. As these plans are operated by private insurers, check for coverage details, as always, to make sure the plan can travel with you when you go out of state. 

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Planning to travel in retirement? Classic Insurance can help you navigate the waters of Medicare, Medicare Advantage, and Medigap. For more information call us today or subscribe to our quarterly newsletter.

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