Go Back  British Expats > Living & Moving Abroad > USA
Reload this Page >

Medicare B Penalty if Return to US from Abroad

Medicare B Penalty if Return to US from Abroad

Old Dec 14th 2019, 7:10 pm
  #1  
Just Joined
Thread Starter
 
Joined: Jul 2003
Posts: 8
stickinthemud is an unknown quantity at this point
Question Medicare B Penalty if Return to US from Abroad

Hello,

My husband and I plan to move from the US to the UK for an indefinite period. We are both over 65 and now enrolled in Medicare A & B, plus we have a Medigap plan.
I have read that if we decide to move back to the US, after some years, and have not been paying the Medicare B premium all that time, that we MAY face a 10% per year away penalty added to our B premium.....for a lifetime.

Does this penalty always apply? Can it be avoided? If we can prove we had "credible coverage" with NHS coverage in the UK the whole time we were away, would that allow us to avoid the penalty? It seems grossly unjust to penalize us so, just for being out of the country for a few years.

Many thanks! Sheryl
stickinthemud is offline  
Old Dec 14th 2019, 9:29 pm
  #2  
Lost in BE Cyberspace
 
Joined: May 2010
Location: San Diego, California
Posts: 7,196
SanDiegogirl has a reputation beyond reputeSanDiegogirl has a reputation beyond reputeSanDiegogirl has a reputation beyond reputeSanDiegogirl has a reputation beyond reputeSanDiegogirl has a reputation beyond reputeSanDiegogirl has a reputation beyond reputeSanDiegogirl has a reputation beyond reputeSanDiegogirl has a reputation beyond reputeSanDiegogirl has a reputation beyond reputeSanDiegogirl has a reputation beyond reputeSanDiegogirl has a reputation beyond repute
Default Re: Medicare B Penalty if Return to US from Abroad

Medicare is an insurance policy..... if you join the insurance pool later in life your premiums are higher.

So, if you don't continue your premiums, when you re-join you re-join at the higher premium

It's not unfair.... if the rest of the pool has been paying for 10 years while you are away, they should not have to subsidise you when you decide to return.

Don't know of any waiver for voluntarily stopping paying in.
SanDiegogirl is offline  
Old Dec 15th 2019, 8:01 am
  #3  
Heading for Poppyland
 
robin1234's Avatar
 
Joined: Jul 2007
Location: North Norfolk and northern New York State
Posts: 11,088
robin1234 has a reputation beyond reputerobin1234 has a reputation beyond reputerobin1234 has a reputation beyond reputerobin1234 has a reputation beyond reputerobin1234 has a reputation beyond reputerobin1234 has a reputation beyond reputerobin1234 has a reputation beyond reputerobin1234 has a reputation beyond reputerobin1234 has a reputation beyond reputerobin1234 has a reputation beyond reputerobin1234 has a reputation beyond repute
Default Re: Medicare B Penalty if Return to US from Abroad

Originally Posted by stickinthemud View Post
Hello,

My husband and I plan to move from the US to the UK for an indefinite period. We are both over 65 and now enrolled in Medicare A & B, plus we have a Medigap plan.
I have read that if we decide to move back to the US, after some years, and have not been paying the Medicare B premium all that time, that we MAY face a 10% per year away penalty added to our B premium.....for a lifetime.

Does this penalty always apply? Can it be avoided? If we can prove we had "credible coverage" with NHS coverage in the UK the whole time we were away, would that allow us to avoid the penalty? It seems grossly unjust to penalize us so, just for being out of the country for a few years.

Many thanks! Sheryl
You simply need to make a calculation or judgment call, and either continue to pay your Part B monthly premium, or cease paying for the time being.

Criteria would include;
Will you ever return to USA long term, to live there?
Approx how many years will you be away from USA?
While abroad, will you visit USA on holidays, etc?

I’m 69, so I’ve been paying my Part B for nearly five years, and I’ve never once sought medical care in the US in that time. I still think that keeping up my Medicare premiums is money well spent, though.
robin1234 is offline  
Old Dec 18th 2019, 10:09 pm
  #4  
Just Joined
Thread Starter
 
Joined: Jul 2003
Posts: 8
stickinthemud is an unknown quantity at this point
Default Re: Medicare B Penalty if Return to US from Abroad

Thank you both so much. Interesting Robin1234 that you continue to pay after 5 years. It is no small sum. We will indeed have to do a calculation.

And SanDiegoGirl. I see your point. Of course we will be not only paying higher premiums, but also a penalty for life on top of the higher premiums when we return. People who join for the first time at that point only have to pay higher premiums.

But still, I see some justice in what you say, assuming that the premiums in any one year never really cover the real cost of the medical needs in any one year, and so previous premiums are needed to make up for it. Or something like that!! Thank you, again.
stickinthemud is offline  
Old Dec 19th 2019, 4:14 am
  #5  
Forum Regular
 
Joined: Jul 2018
Posts: 126
vespucci has a reputation beyond reputevespucci has a reputation beyond reputevespucci has a reputation beyond reputevespucci has a reputation beyond reputevespucci has a reputation beyond reputevespucci has a reputation beyond reputevespucci has a reputation beyond reputevespucci has a reputation beyond reputevespucci has a reputation beyond reputevespucci has a reputation beyond reputevespucci has a reputation beyond repute
Default Re: Medicare B Penalty if Return to US from Abroad

Originally Posted by stickinthemud View Post
Or something like that!!
I don't quite understand it either. You didn't get your subsidy so now you get a smaller subsidy?
vespucci is offline  
Old Dec 19th 2019, 2:24 pm
  #6  
Heading for Poppyland
 
robin1234's Avatar
 
Joined: Jul 2007
Location: North Norfolk and northern New York State
Posts: 11,088
robin1234 has a reputation beyond reputerobin1234 has a reputation beyond reputerobin1234 has a reputation beyond reputerobin1234 has a reputation beyond reputerobin1234 has a reputation beyond reputerobin1234 has a reputation beyond reputerobin1234 has a reputation beyond reputerobin1234 has a reputation beyond reputerobin1234 has a reputation beyond reputerobin1234 has a reputation beyond reputerobin1234 has a reputation beyond repute
Default Re: Medicare B Penalty if Return to US from Abroad

Originally Posted by stickinthemud View Post
Thank you both so much. Interesting Robin1234 that you continue to pay after 5 years. It is no small sum. We will indeed have to do a calculation.

And SanDiegoGirl. I see your point. Of course we will be not only paying higher premiums, but also a penalty for life on top of the higher premiums when we return. People who join for the first time at that point only have to pay higher premiums.

But still, I see some justice in what you say, assuming that the premiums in any one year never really cover the real cost of the medical needs in any one year, and so previous premiums are needed to make up for it. Or something like that!! Thank you, again.
Well, I spend time in the US. Having a high-deductible Medicare Advantage plan means that I’m covered, if and when I choose to go the doctor or whatever - or if I have a major accident or illness. And, when I’m older and essentially have to choose (if I’m fortunate enough to be able to choose) where to spend 100% of my remaining time, I’m covered if I choose the United States.
robin1234 is offline  
Old Dec 19th 2019, 6:17 pm
  #7  
Lost in BE Cyberspace
 
Joined: Jan 2006
Location: San Francisco
Posts: 10,137
Giantaxe has a reputation beyond reputeGiantaxe has a reputation beyond reputeGiantaxe has a reputation beyond reputeGiantaxe has a reputation beyond reputeGiantaxe has a reputation beyond reputeGiantaxe has a reputation beyond reputeGiantaxe has a reputation beyond reputeGiantaxe has a reputation beyond reputeGiantaxe has a reputation beyond reputeGiantaxe has a reputation beyond reputeGiantaxe has a reputation beyond repute
Default Re: Medicare B Penalty if Return to US from Abroad

Originally Posted by robin1234 View Post


Well, I spend time in the US. Having a high-deductible Medicare Advantage plan means that I’m covered, if and when I choose to go the doctor or whatever - or if I have a major accident or illness. And, when I’m older and essentially have to choose (if I’m fortunate enough to be able to choose) where to spend 100% of my remaining time, I’m covered if I choose the United States.
This is going to be my strategy moving forward: high deductible, relatively low cost Advantage plan that covers the bases and can be changed to a lower deductible Advantage plan if that's the way the cookies crumble down the road.
Giantaxe is offline  
Old Dec 20th 2019, 11:23 am
  #8  
Often not so civil...
 
civilservant's Avatar
 
Joined: Apr 2010
Location: The Boonies, GA
Posts: 7,653
civilservant has a reputation beyond reputecivilservant has a reputation beyond reputecivilservant has a reputation beyond reputecivilservant has a reputation beyond reputecivilservant has a reputation beyond reputecivilservant has a reputation beyond reputecivilservant has a reputation beyond reputecivilservant has a reputation beyond reputecivilservant has a reputation beyond reputecivilservant has a reputation beyond reputecivilservant has a reputation beyond repute
Default Re: Medicare B Penalty if Return to US from Abroad

Involving insurance companies in healthcare decisions about benefits that you are guaranteed under traditional Medicare is a terrible idea. I see it every single day.
civilservant is online now  
Old Dec 20th 2019, 3:57 pm
  #9  
Lost in BE Cyberspace
 
Joined: Jan 2006
Location: San Francisco
Posts: 10,137
Giantaxe has a reputation beyond reputeGiantaxe has a reputation beyond reputeGiantaxe has a reputation beyond reputeGiantaxe has a reputation beyond reputeGiantaxe has a reputation beyond reputeGiantaxe has a reputation beyond reputeGiantaxe has a reputation beyond reputeGiantaxe has a reputation beyond reputeGiantaxe has a reputation beyond reputeGiantaxe has a reputation beyond reputeGiantaxe has a reputation beyond repute
Default Re: Medicare B Penalty if Return to US from Abroad

Originally Posted by civilservant View Post
Involving insurance companies in healthcare decisions about benefits that you are guaranteed under traditional Medicare is a terrible idea. I see it every single day.
The equation becomes a little different if you're living abroad for some or all of the year.
Giantaxe is offline  

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service - Do Not Sell My Personal Information

Copyright © 2018 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.