Medicare, coverage, travel, seniors, Abroad

The “golden years” of life are often a time when people are raising grandchildren, taking up new hobbies, and traveling as a couple or solo. Travel is on the rise, with solo travel among seniors increasing by 23 percent, according to Allianz Partners’ 16th annual Vacation Confidence Index.

But whether you’re traveling within the U.S. or internationally, you should know that your Medicare coverage probably won’t come with you once you leave the U.S., according to Medicare.gov.

If you suffer an unexpected illness or accident while traveling abroad, you may incur significant out-of-pocket expenses even if you have Medicare coverage. There are some exceptions, however, such as Medicare Part B covering the cost of services when you are on a vessel in the territorial waters adjacent to U.S. land.

Here’s what you need to know:

Possibility of Medicare coverage overseas

• When a medical emergency occurs, you are in the U.S. and a foreign hospital is closer than the nearest U.S. hospital that can treat your medical situation.
• If you experience a medical emergency while traveling through Canada on the shortest route between Alaska and another U.S. state, and a Canadian hospital is closer than the nearest U.S. hospital that can treat your medical emergency.
• If you live in the United States and a hospital abroad is closer to you than the nearest U.S. hospital that can treat your condition. Also, this coverage is not dependent on an emergency situation.

Source: Medicare.gov

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To be best prepared when leaving the U.S., it’s wise to purchase additional coverage like travel insurance, regardless of the type of Medicare plan you have, Susan Hirschman, director of wealth management at Schwab Wealth Advisory in Phoenix, told FOX Business. In particular, read your policy to understand the travel insurance’s scope, limitations and exclusions. Travel insurance doesn’t typically cover long-term medical treatment, she noted, “It’s more for short-term emergency care so you’re well enough to return home.”

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Cruises are the vacation choice of many senior travelers due to the value and convenience of being able to unpack once and visit multiple destinations in one trip. Medical insurance should also be on your cruise packing list before you set off on the high seas. And where you sail to if you have Medicare is also important.

“To qualify for Medicare Parts A and B, you must be at a U.S. port or within six hours of a port when you receive your services,” Hirschman said. If your travels take you beyond these geographic limits, travel insurance is essential.

Norwegian Cruise Line workers disembark thousands of passengers. In just a few hours, crew members will clean, restock, and load thousands of new passengers onto Norwegian Dawn, Boston’s newest and largest cruise ship. (Photo by Suza) (Getty Images/Getty Images)

Hirschman also said seniors traveling internationally should be aware of what their Medigap or Medicare Advantage plans will cover while they’re traveling. “Evaluate your coverage and analyze what your risk is for high out-of-pocket costs if something were to happen to you,” Hirschman said.

“Many people spend hours researching and planning their trips, and you might want to consider taking a little time to analyze your health risks, your current insurance coverage, and any potential gaps, because if you’re not careful, these costs could be much greater than the price difference between hotels at one site and another.”

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How does international travel insurance work?

While coverage categories and levels vary depending on the insurer and the specific travel insurance policy, Scott Adamski, CPCU, global product development director for Stevens Point, Wis.-based AIG Travel and Travel Guard, says there are two main ways a comprehensive travel insurance plan can help if you get injured or sick overseas.

• If you have a medical emergency while traveling and need help finding a specialist or the nearest emergency hospital, a company like TravelGuard’s Medical Assistance Team has a list of local clinics and the experience to refer you to the right facility. “And if the emergency is in a foreign country and there’s a language barrier, an assistance team is even more important,” Adamski explained.
• When it comes to actually receiving treatment abroad, the support of an interpreter can be crucial. Adamski says travel insurance companies often have interpreters on-site to help get all the diagnostic details from your treating physician and communicate important details about your medical history and doctor’s instructions back to the U.S.
• Travel insurance companies will also cover any lost or running out of prescriptions and can refer you to local doctors and pharmacies if needed.
• Hospitalization itself can be very costly, Adamski argues. “In many cases, some of the costs can be prepaid by the travel insurer up to a certain limit, or it can be handled on a pay-and-report basis,” he says. “However, it’s also important that travelers familiarize themselves with their travel insurance plan’s provisions in this regard, any limitations, and any obligations to reimburse the travel insurer for costs not covered by the travel insurance plan.”
• Travel insurance can also help you get home if a covered medical emergency causes you to miss your return date and the airline tells you it will cost extra to change your ticket. “A Travel Guard travel insurance plan may be able to help, and if you need special arrangements for your return flight (such as a seat upgrade, lie-flat seat, or nurse companion), the Travel Guard outreach team can help make those arrangements,” Adamski explained.
• Coverage varies depending on the specific policy and plan. It is important to review your travel insurance documents to clearly understand the coverage, limitations and exclusions. If you have any questions about your coverage, contact your travel insurance provider for further details and clarification of your benefits.

BOSTON, MASSACHUSETTS – DECEMBER 25: Travelers line up to check their bags at the American Airlines terminal at Boston Logan International Airport on Christmas Day on December 25, 2021. (Photo by Erin Clark/The Boston Globe via Getty Images) (Photo by Erin Clark/The Boston Globe via Getty Images)