Medicare

[BILL STARK]

If I decide to move to Ecuador, can I assume I will no longer have to pay for medicare insurance from my social security allowance?

[BOB WETMORE]

Your decision to pay into Medicare is voluntary. When you are abroad Medicare will not pay for services. The downside of not contributing is that if you ever move back to the US and join Medicare your Medicare cost will be increased by 10% for every year in which you did not pay into Medicare. So we, as expats in Ecuador, continue to pay into Medicare.

[BILL STARK]

Thanks so much for the info, Bob!

[PHILIP THOMAS]

Bob, I have two questions here.
For expats who decide to continue to pay into Medicare, how is the amount of the Medicare contribution determined?
As wage earners in the US it’s a % of earned income. I imagine that many expats living abroad live on unearned income, so, if that is the case, and they file US returns, there (currently), would be no Medicare tax.
Also, I assume that once someone retires in the US, and in most cases have no earned income, they no longer pay the Medicare tax, so are expats required to pay for life if they wish to remain eligible for Medicare?
Thanks for the benefit of your expertise.

[PHILIP THOMAS]

Ok. I guess my understanding of Medicare is suspect. Im a younger foriegn born resident that just sees medicare taxes on my paychecks. With a little help from google I have answered my questions. Thanks Bob. 🙂

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