For many retirees, traveling is a long-awaited reward in their retirement years. Whether it’s a European river cruise, a tropical getaway, or visiting family overseas, international travel is a fun adventure where health care needs are one factor that often gets overlooked. Even though you don’t plan to seek general medical care when traveling abroad, beneficiaries should always prepare for the emergency-related medical needs. However, Original Medicare, Medicare Supplements, and Medicare Advantage plans have limited coverage when you are traveling abroad! In this blog, we go over the limitations of Medicare and how travel insurance is a safeguard when traveling abroad.
What Coverage Do I Need When Traveling Abroad?
First, it is important to consider the reality that emergencies can and do happen. We know that medical emergencies are never cheap, even with insurance coverage and located in the United States. If traveling abroad, the expenses can increase. When outside the U.S., you need to make sure you have coverage for more than just traditional care.
You should consider these travel coverages:
- Emergency care and hospitalization
- Medicare evacuation back to a hospital in the U.S. for care.
- Trip cancellation coverage
Does Original Medicare Cover Medical Expenses Abroad?
Original Medicare (Parts A and B) offers extremely limited coverage outside the U.S. The term “outside the U.S.” means anywhere other than the 50 states of the U.S., the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, and the Northern Mariana Islands. If you are traveling outside the U.S for vacation, you will not be covered by Medicare for any Medical needs.
There are a few narrow exceptions to this rule, but none include traveling abroad. The 3 situations include:
- If you’re in the U.S. but a foreign hospital is closer (e.g., in Canada or Mexico) for emergency treatment.
- If you’re on a cruise ship that is within six hours of a U.S. port.
- If you have a medical emergency while traveling through Canada to reach Alaska. This is only applicable when traveling the most direct route and without unreasonable delay.
For most international travelers, Medicare alone won’t cover healthcare costs when you are sick or injured abroad. Without additional insurance, this could mean paying out-of-pocket for expensive medical treatment, emergency evacuation, or even hospital stays.
Does my Medicare Supplement or Medicare Advantage pay for worldwide emergency coverage?
Beneficiaries usually add a Medicare supplement or enroll in a Medicare Advantage plan to help reduce their medical costs from Original Medicare. These plans can include some benefits outside of Medicare. Some Medigap (Medicare Supplement) plans cover 80% of emergency medical costs abroad, but only up to a $50,000 lifetime limit and with a $250 deductible. Additionally, some Medicare Advantage (Part C) plans may offer limited coverage for emergency care outside the U.S., but the benefits vary by plan. While these plans provide some protection, they often fall short. For example, they do not cover medical evacuations or trip cancellations. The only way to get full coverage is with Travel Insurance.
Why Travel Insurance is Essential for Medicare Beneficiaries
Travel insurance is a type of insurance policy that provides financial protection against unexpected events while traveling. It typically covers risks such as trip cancellations, medical emergencies, lost or delayed baggage, and travel delays. These policies can help cover you where Medicare doesn’t.
Travel insurance has various coverage options, including:
1. Emergency Medical Coverage ensures you receive care if you experience an unexpected illness or injury while abroad.
2. Medical Evacuation Services can cover the cost of transporting you to the nearest appropriate medical facility or even back to the U.S. for treatment.
3. Coverage for Trip Interruptions or Cancellations to offer protection against trip cancellations, delays, or interruptions due to medical emergencies. If you have a sudden health issue before or during your trip, you won’t lose your entire investment.
How to Choose the Right Travel Insurance
When shopping for travel insurance, look for policies that include Emergency medical coverage, medical evacuation coverage (including pre-existing conditions), and trip cancellation benefits. A comprehensive plan can include all of these coverage options. But you can also buy a plan with separate individual benefits, such as a medical evacuation benefit only. This would be useful if you have a Medicare Advantage plan that covers worldwide medical emergencies but does not cover evacuations.
Final Thoughts: Don’t Travel Without Protection
If you’re a Medicare beneficiary planning an international trip, purchasing travel insurance can cover you and safeguard against unexpected medical expenses. Since Medicare provides little to no coverage abroad, a good travel policy ensures you’re protected from costly medical bills, emergency evacuations, and unexpected trip disruptions.
Before your next adventure, compare travel insurance plans, read the fine print, and choose one that fits your needs. Safe travels!
