Watch: Can NRIs Use Medicare in India? Complete Guide to Part A, Part B & Penalties
Complete guide to Medicare eligibility, coverage, and the Part B late enrollment penalty for NRIs moving to India. Learn what returning NRIs actually do about Medicare.
The full write-up, with the numbers and the links.
Chapters
- 0:00 Introduction
- 1:04 Overview of Social Security, Contributions
- 2:10 Qualification of Social Security retirement benefits
- 5:07 How to check your estimated payments, eligibility criteria
- 7:51 Can you get Social security retirement benefits when you are living in India
Transcript
Auto-generated captions, lightly cleaned
0:05 Hey everyone, if you have lived and worked in the US, you have likely paid Medicare through payroll taxes. But what happens when you move back to India? Do you lose your Medicare? Can you still use the benefits? And should you even sign up for it if you leave US? In this video, I will explain about Medicare for people who are planning to return to India, including eligibility, costs, what's covered while you are in abroad and much more. Let's get into it. Medicare is a US federal health insurance program for people age 65 and above or younger individuals with disabilities. There are four parts to Medicare. Part A which covers hospital
1:06 Visits, skilled nursing, hospice and it is completely free if you have paid Medicare through payroll taxes. Part B, which covers doctor's visit, preventive care, medical equipment, but there is a monthly fee that you have to pay. Part C, which is also called Medicare Advantage, which is a private insurance alternative that bundles part A, part B, and often part D. Also, part D is one that covers prescription drugs. So who is eligible for Medicare at age 65? It can be a US citizen or a non- US citizen who have worked for at least 10 years or 40 quarters. They are eligible for Medicare at age 65.
2:04 Here is the reality. Original Medicare part A and part B doesn't cover medical
2:10 Care outside US. So if you are living in India full-time, the medical care expenses are not reimbursed. There are very limited exceptions. If you live in US and an emergency occurs while traveling through Canada or Mexico or you have a foreign hospital that is closer than a US one during emergencies, these cases are rare and not relevant if you're living in India permanently. Even in the case of Medicare Advantage Part C, medical care cost outside the US are not covered unless it's an emergency. So please look into the documentation from the private insurance and what's included and what's not included and it's only during the emergencies those procedures are covered while you are abroad when you have Medicare advantage.
Read the full transcript (8 more sections)
3:10 So please keep in mind about that. So now many people wonder if Medicaid doesn't work in India, should I even sign up at age 65? Here is the breakdown. Part A, most people get it premium free. It doesn't hurt to enroll. Part B, it costs about $185 per month in 2025 and it goes up as your modified adjusted gross income increases. If you don't sign up when it is first eligible and later you move back to US and you could face a permanent penalty, a 10% extra premium that you have to pay each year you delayed the enrollment.
3:59 Let's talk through this with an example. Meet Raj who turned 65 in 2020 but he didn't sign up for part B because he moved to India and he thought he wouldn't need it. He didn't have a US-based employer insurance or a credible coverage during that time. At age 70 in 2025, he moved back to US and finally signs up for part B. Since he delayed the enrollment by 5 years, so the penalty that he has to pay is 5 * 10% which is 50%. In 2025, the standard premium for part B is around $185 per month and the penalty is going to be 50% of that $185, which is $92.50.
4:53 So, Raj has to pay 185 plus $92.50, which is $277.50 every month for part B. And here is the kicker. He pays this high premium amount
5:10 Every month for the rest of his life. So how to avoid the penalty? Sign up during the initial enrollment period, typically your 65th birthday or you have a credible health coverage like from an employer plan and sign up during the special enrollment periods later. So ask yourself, will you ever return to US in the future for retirement or for medical treatment or do you want to keep your options open for the future? If you answer yes, you might want to enroll and pay part B premium even though you can't use it right now.
5:57 I have spoken to several retaines who are in this exact situation. Here is what they typically do. They sign up for part A when they become eligible at age 65 because there is no premium that you have to pay and it is completely free. Please note you are eligible for part A even if you're Indian citizen as long as you have 40 credits. That's equivalent to working 10 years in US. Second, they skip part B and part D especially if they have plans to live in India long term. Some people signed up for part B and pay the premium especially if they have plans to visit US frequently or be there for some treatment.
6:49 Instead, they rely on healthcare insurance or pay out of pocket for the medical care in India because healthc care costs are more affordable in India. So, what's my recommendation? Sign up for part A. It's free and keep your base eligibility intact. For part B and part D, weigh the costs and penalities based on your future plans and decide on it. Keep in mind Medicare is not a substitute for insurance in India. Explore NRI friendly healthcare insurance plans or talk to your advisor if you are unsure about it.
7:37 Here are the key takeaway points. Medicare can't be used for Indian hospitals or for reimbursements. Medicare Advantage plan C don't usually offer foreign coverage unless they have
7:53 Worldwide emergency benefits. Read the fine print. If you have plans to travel frequently or return to US in the future, take Part B and pay the premium. If you return to US and haven't signed up for part B, it might take few months to reenroll and you might be uninsured during that time. Feel free to like, share so that other viewers can benefit from the content. If you haven't already, download our free financial planning road map that walk you through step by step on how you should plan from a financial side when moving back to India. Please feel free to drop your questions or comments in the comment section below and we will be answering them. Until next time, take
