Medicare for Expats?
Medicare stops at the U.S. border, as you probably know. Extending Medicare to U.S. retirees in Mexico has been a political issue for some time now, as noted in a comprehensive article in the June issue of Inside Mexico, (see http://www.insidemex.com) and it’s one worth writing to our representatives in Washington about. Officials from Panama and the Philippines are already lobbying to bring Medicare there as well.
If Medicare were to be extended to expat retirees, it would most likely go to those in Mexico first. With as many as 1 million U.S. citizens living in Mexico, and more planning to move there as baby boomers retire, this is no small problem. A University of Texas survey cited by Inside Mexico shows that 86% of those questioned said that they didn’t plan to return to live permanently in the U.S., while 66% would return if they had a serious Illness. It’s well worth noting, too, that a whopping 98% said that health care in Mexico is adequate.
While some retired expats neglect doctor visits until something serious happens, others willingly pay out of pocket for medical care at rates well below those in the U.S. Some purchase private health insurance from international companies, while others enroll in heath plans offered by Mexican clinics and some sign on to the state sponsored plan.
Nevertheless, making Medicare available outside the U.S. is a political issue that could heat up. Medicare is already a huge drain on the U.S. treasury, but one that politicians are reluctant to mention for obvious reasons. And while it would be hard to certify providers and facilities in Mexico or elsewhere, the end result could be considerable savings to the U.S. government. Medical tourism is a burgeoning industry even without help from Medicare, but more retired people would cross borders for costly elective surgery such as hip replacements if Medicare chipped in, again at great savings to the government. Most likely, too, more U.S. citizens would retire outside the U.S. if their Medicare benefits could follow them.
Another aspect of the issue is that many, many Mexican-Americans (and Filipino-Americans and others) work in the U.S. and pay into Social Security and Medicare here, but are reluctant to return to Mexico for their retirement years because of having to forego their Medicare benefits. If your senator or congressperson takes a “send ‘em back” stand on immigration, be sure to mention this when you write.