What Retirees Moving Out of State Need To Know About Their Medicare Coverage

Retirement often comes with change, and one common idea retirees have is moving out of state. However, Medicare coverage might be impacted when you move, and learning how to maintain your healthcare can help.

Find Out: 2 Important Medicare Issues You Need To Be Aware of, According to Suze Orman

Read Next: 4 Things You Must Do When Your Retirement Savings Reach $50,000

This guide breaks down Original Medicare, Medicare Advantage and Medigap plans and provides the steps to maintain coverage when moving.

It's Going Viral: Want to Retire Rich? Suze Orman Says You're Missing This Key Money Move

Understand That Original Medicare Travels With You

Fortunately, if you have Original Medicare, the good news is that it will travel with you wherever you go in the U.S. Original Medicare (Part A, also known as hospital insurance, and Part B for medical insurance) is run by the federal government and can be used nationwide wherever Medicare is accepted.

This is great if you are downsizing, moving often or want to spend a lot of your budget on travel in retirement. Medicare is the most widely accepted plan. Around 93% of primary care physicians taking insurance in the U.S. will accept Medicare.

Your Original Medicare coverage will stay intact when you move. However, you need to update your address with the Social Security Administration so the billing and communication are sent to your new location. You will also need to see if a Part D plan in your new state matches your current plan (if you have drug coverage).

Learn More: 7 Things You’ll Be Happy You Downgraded in Retirement

Medicare Advantage Plans Are Regional

If you have a Medicare Advantage Plan (Part C), moving to a new state could affect your coverage. Unlike Original Medicare, Medicare Advantage is managed by private regional insurers, meaning your current plan might not be available in your new state.

Therefore, check with your provider before relocating to see if a similar plan exists. If not, you’ll have a Special Enrollment Period (SEP) to choose a new plan, which begins one month before your move and ends two months after, allowing time to switch without penalties.

Over 54% of Medicare beneficiaries are enrolled in Medicare Advantage plans in 2024, so many retirees face this adjustment when moving. Consider factors like network availability, prescription drug coverage and costs in your new state, as plans vary by region. Some states offer broader networks, while others have more limited options. Review your new state’s plans to ensure you find the right coverage for your needs.

Know That Medigap Policies Vary by State

Medigap ( Medicare Supplement Insurance ) helps pay for some out-of-pocket costs that Original Medicare doesn’t, such as copayments, coinsurance and deductibles. Private insurance companies sell Medigap policies, which may be priced differently depending on the region in which you live.

If you’re moving and have an existing Medigap policy, you should see if your plan is portable to the state where you plan to make your new home. Some states standardize authentic Medigap plans, though not all plans may be accessible in every state.

In addition, states may charge different rates for Medigap policies. For example, shifting from a state in which premiums are community-rated (the same whether you are 6 or 60) to one where premiums are attained-age related (where costs go up based on your age) could have an enormous impact on your premiums.

Moving to one state from another within 60 days makes it possible for you to switch Medigap plans without medical penalties during a guaranteed-issue period. This depends on whether your current type of policy is available in the new place — especially if you’re moving outside your plan’s service area.

Steps To Take Before Moving

Here are the steps you should take so you do not lose your Medicare benefits when moving to another new state:

• Get in touch with your Medicare provider: If you are on the Original Medicare, Medicare Advantage or Medigap, contact the plan provider before moving. Find out about the portability of your plan, network availability and whether your plan is available in your new state.
• Special Enrollment Period (SEP): If your Medicare Advantage or Part D plan won’t be available in your new state, you’ll be able to use the SEP to join another plan. This period lasts two months into your move and protects you from being penalized for changing plans.
• Research state-specific options: Medicaid plans and premiums vary by state. Use Medicare’s Plan Finder or consult a licensed agent to find the best option for your new location.
• Notify Social Security: If you receive your Medicare from Social Security, change your address with the agency to get crucial Medicare messages and billing information sent to where you live.

Plan Ahead for a Smooth Medicare CoverageTransition

Retiring in a different state can be an adventure, and the last thing on your mind might be how it will affect your Medicare benefits. Planning properly will ensure you can easily transition to uninterrupted healthcare coverage as you move from one location to another.

Remember to update your address and see what retired plans in select areas can be qualified for using Special Enrollment Periods when needed. By planning accordingly, these concerns will disappear, presenting you with a carefree retirement.

This article originally appeared on GOBankingRates.com : What Retirees Moving Out of State Need To Know About Their Medicare Coverage