# Medicare / Social Security



## Gatos (Aug 16, 2016)

I know that there is help available at the embassy in DF for Social Security - and we will probably set up an appointment - but in the mean time - My wife turns 65 this year. We really have no need for Medicare Part B. We are still in the process of deciding when we want to start taking social security.

How does Medicare or Social Security even know we live in Mexico ? I just visited their website and pulled up my lifetime earnings report - but there is no mention of my residency. Do they get that from our tax return ?

If someone in the US were to mail a letter to us here in Mexico - we would probably receive it in March. We really don't receive much snail mail anymore.

If we are not yet receiving social security - and my wife turns 65 - and we don't get around to opting out of Medicare part B - how do they bill us ? If we don't have social security - do we have to opt' in for medicare part B if interested ?

Medicare Part B costs around $100 USD/month (if no real income) ?


----------



## lagoloo (Apr 12, 2011)

To answer in part: Medicare Part B is deducted from your SS check. I canceled mine twelve years ago upon moving to Mexico and have saved a substantial amount. However, if you do that, you would pay a very substantial penalty (check this with the SS site) if you wish to re-instate it in the future. 
It took about 3 months for my "opt out" to take effect. 
It's a little more than $100 a month now.


----------



## Gatos (Aug 16, 2016)

Thanks. My wife thought she had read you could opt-out 3 months before you turn 65 - so I guess that might prevent it from ever starting.

BUT - if we are not receiving social security - how can they take the cost of medicare part B 'out' of it ?


----------



## Gatos (Aug 16, 2016)

Found this :
https://www.medicare.gov/your-medicare-costs/part-b-costs/part-b-costs.html

If you are not drawing on SS - "you'll get a bill" ! So in our case - since the mail is going to take 3 months to get here - and since it will take 3 months or so to opt-out that means a minimum of six months due.

That same article said the standard charge for 2016 was $121.80/month.


----------



## lagoloo (Apr 12, 2011)

Sorry if I didn't give you an accurate answer, but I didn't know you could sign up for Medicare if you weren't drawing Social Security.


----------



## Gatos (Aug 16, 2016)

lagoloo said:


> Sorry if I didn't give you an accurate answer, but I didn't know you could sign up for Medicare if you weren't drawing Social Security.


No - thanks for your response - these days SO many things seem to change without any sort of notification - they seem to be setting mouse traps. Not sure that is going to get any better after Jan 20th.


----------



## DiverSailor123 (Sep 17, 2016)

My understanding is you can opt out on line.. Some things can be done on line and even over the phone others things can not. I have been dealing with a SS Medicare snafu for 6 months now.. its very frustrating in spite of the fact that I can drive 10 minutes and actually SEE and TALK to a Human.. 
YES you can opt out and Yes you can pay a penalty to get back in.. The Penalty IIRC is HUGE its more than you saved and its done that way on Purpose.. 
Yes I too feel the next 4 years will not be pretty ..


----------



## Bevdeforges (Nov 16, 2007)

This is the key page to see what you can do online: https://www.ssa.gov/onlineservices/ Also see this page: https://www.ssa.gov/medicare/ under the heading How to Apply Online for Just Medicare. I did this a while back and it is very possible to enroll in just part A (the free part) before you are ready to start drawing your SS benefits. (Just be advised that, if you change your mind later and want to enroll in Part B there is a fairly hefty "penalty" added to the premium you pay every month.)

Unfortunately, you can't set up one of those My Social Security accounts unless you have a US mailing address - but it appears you can still at least initiate the process of applying for SS benefits online without the My Social Security account.
Cheers,
Bev


----------



## lagoloo (Apr 12, 2011)

That penalty is patently unfair, and I hear it's beyond HUGE: 10% PER YEAR you weren't paying in.
Unfair in the case of foreign residents, because they can't use it in the country of their residence and at the same time, it costs Medicare nothing for their care. Double whammy.

For an example of savings after dropping Part B: Two people X average of $105 per month =$210 X 12 months X 12 years of Mexico residence= $30,240 US dollars saved. Since medical care cost in Mexico is much lower here than in the states, that covers A LOT of out of pocket private care. If the couple carries IMSS insurance as a backup, dire $$$ circumstance situations are covered. 

I think many issues of whether to opt out or not depend on the individual's level of faith in the outcome of treatment in the U.S. or Mexico. Both my spouse and I have had some very poor outcomes from treatment in the U.S. and good ones so far in Mexico. 

There are several companies whose business is selling insurance for sky transport of the sick back to the U.S. for treatment. These are people who have kept their U.S. Part B. The downside of this option is that the patient must be "stabilized" in Mexico before they will transport him/her to the U.S. In addition, the patient must have or find a U.S doctor who accepts Medicare patients (not always easy) as well as a place to stay during recovery and someone to look after them. This package can be challenging and expensive, and not one I'd care to tackle while ill. For those with friends or family in the states who can take care of them and provide a place to stay....it can work. Choices, choices. With a crystal ball, much easier.


----------



## Gatos (Aug 16, 2016)

Bevdeforges said:


> This is the key page to see what you can do online: https://www.ssa.gov/onlineservices/ Also see this page: https://www.ssa.gov/medicare/ under the heading How to Apply Online for Just Medicare. I did this a while back and it is very possible to enroll in just part A (the free part) before you are ready to start drawing your SS benefits. (Just be advised that, if you change your mind later and want to enroll in Part B there is a fairly hefty "penalty" added to the premium you pay every month.)
> 
> Unfortunately, you can't set up one of those My Social Security accounts unless you have a US mailing address - but it appears you can still at least initiate the process of applying for SS benefits online without the My Social Security account.
> Cheers,
> Bev


Regarding that penalty :
"In most cases, if you don't sign up for Part B when you're first eligible, you'll have to pay a late enrollment penalty. You'll have to pay this penalty for as long as you have Part B. Your monthly premium for Part B may go up 10% for each full 12-month period that you could have had Part B, but didn't sign up for it. Also, you may have to wait until the General Enrollment Period (from January 1 to March 31) to enroll in Part B. Coverage will start July 1 of that year."

We have My Social Security accounts but I set them up before moving to Mexico. I'm 99% sure that when we met with the SS rep at the embassy in Mexico City a while back she changed our address to reflect our Mexican residency - and I used the My Social Security site yesterday. It was kind of interesting - the office where the SS woman sat was empty when we were there. I said something like - looks like the expat migration South has dried up. She responded - not at all - we are actually busier than ever - we just do most things over the phone or online...


----------



## DiverSailor123 (Sep 17, 2016)

SS Medicare penalty, Fair Un-Fair?? Unless there is a possibility or a Probability of returning to the USA, its a mute point.. IMHO Unfair is the requirement of a Fideicomiso , unless your 60+ miles from the boarders or the Oceans..( or in Baja) But for those who fall within those guide lines they feel about the FC as I feel about the Medicare Penalty...
More retirees retiring to Mexico than ever? Mute point as well really,because in reality 99+% Don't.. Only a little....... over 5% move more than 100 miles away after retirement and the Majority of those.... come to Florida and other warm US States.. YET! The US Gov. isn't really sure who is here or gone.._ Until you become a person of interest_ the US Gov. Just doesn't have the time or the money or the manpower to care..


----------



## lagoloo (Apr 12, 2011)

Moot point? Please share your source for the 99% and the 5%. Just curious. My guess is that it depends on where they lived in their working years and whether they have the resources to continue in that location on their retirement income and assets. Right now, the median home price in San Francisco is well over a million bucks. New York probably worse. Followed by CA property tax rates......as in PAIN. The choice there is to pay now or have your estate pay if you're a senior.

Just read an article in the news about "ten cities where you can live well on $60,000 a year". Chuckle.
Every one of them is in a location where I'd hate to retire: Deep South, Deep Midwest and rust belt, like Detroit.

Anecdotal: Here in Ajijic, the stateside visitors' license plates are from all over the U.S. lately, in increasing numbers. The traffic is AWFUL. I sincerely hope they don't all like it well enough to emigrate.

BTW: That Fideocomiso was created so that the coastline wouldn't end up in the hands of foreigners, or so I understand. 
Personally, I think that was fair enough. The Medicare Part B is just unfair on its surface. Some people think they are going to Mexico for the long haul, but things can change and they are obliged to return to the U.S. The Medicare program hasn't lost a nickel while they lived out of the country, so there's no just reason for that burdensome penalty.


----------



## DiverSailor123 (Sep 17, 2016)

My numbers were the result of a simple google search and then finding numbers that matched several times , from NON Retirement Associated Publications.. We too see LOTS of Out of state-rs this time of year.. Most are Snow Birders.. Most often living in.... waterfront pool homes worth anywhere from $300K - $1 M. We live full time on what is called a circle ( but its really a Loop ) on this loop road the Right side is water front , the left inside is dry land.. The 24 Waterfront homes are ALL Owned by out of state ( relocated) Retirees.... The off water ( considerably Cheaper to buy and own ) 24 homes , have 19 out of state retirees and 3 who work here and 1 snow bird.. ( 1 for sale) There is among those retirees a 2 from Canada and 1 couple from Sweden.. That's one street.. 1/3rd of a mile ....There is close to 200 miles of salt water canals leading to the Harbor and the Gulf of Mexico in this county alone.. VERY FEW people who still have to work , live on a salt water canal and most of those who do live far from the Harbor and on NON sailboat water ( they have bridges /overpasses to go under.. There are too many "pockets "" of out of state retirees to count and often those pockets hold 10,000 or more retirees.. Of All The Friends we had back in Illinois NONE even left the state when they retired and all made what we did or more, so it wasn't lack of money..


lagoloo said:


> Moot point? Please share your source for the 99% and the 5%. Just curious. My guess is that it depends on where they lived in their working years and whether they have the resources to continue in that location on their retirement income and assets. Right now, the median home price in San Francisco is well over a million bucks. New York probably worse. Followed by CA property tax rates......as in PAIN. The choice there is to pay now or have your estate pay if you're a senior.
> 
> Just read an article in the news about "ten cities where you can live well on $60,000 a year". Chuckle.
> Every one of them is in a location where I'd hate to retire: Deep South, Deep Midwest and rust belt, like Detroit.
> ...


----------



## Gatos (Aug 16, 2016)

DiverSailor123 said:


> My numbers were the result of a simple google search and then finding numbers that matched several times , from NON Retirement Associated Publications.. We too see LOTS of Out of state-rs this time of year.. Most are Snow Birders.. Most often living in.... waterfront pool homes worth anywhere from $300K - $1 M. We live full time on what is called a circle ( but its really a Loop ) on this loop road the Right side is water front , the left inside is dry land.. The 24 Waterfront homes are ALL Owned by out of state ( relocated) Retirees.... The off water ( considerably Cheaper to buy and own ) 24 homes , have 19 out of state retirees and 3 who work here and 1 snow bird.. ( 1 for sale) There is among those retirees a 2 from Canada and 1 couple from Sweden.. That's one street.. 1/3rd of a mile ....There is close to 200 miles of salt water canals leading to the Harbor and the Gulf of Mexico in this county alone.. VERY FEW people who still have to work , live on a salt water canal and most of those who do live far from the Harbor and on NON sailboat water ( they have bridges /overpasses to go under.. There are too many "pockets "" of out of state retirees to count and often those pockets hold 10,000 or more retirees.. Of All The Friends we had back in Illinois NONE even left the state when they retired and all made what we did or more, so it wasn't lack of money..


The reason most of the people in the area you are describing are out-of-towners is that there really are no decent paying jobs - not when you compare it to what is available in SE Florida. To each his own - but I find SW Florida sleepy/boring. If I had all the money in the world I might live on Captiva/Sanibel, perhaps Naples. My parents retired to Fort Myers and later moved to Lehigh Acres. My dad died of a heart attack because he was so far away from the hospital.

When we left SE Florida we lived on a NFB canal with a 25' Whaler on our 90' dock. At idle - we were perhaps 15 minutes from being in the water. Our property taxes were around $14K/year - with homestead. The town was known as a waterfront community. Perhaps 60% or more of the homes were on water. We lived in an area like you describe - there was a loop of waterfront homes and dry lots in the middle. Most of the homes had already been knocked down and replaced with 'mansions' - and we lived on the wrong side of the tracks. Most all of the neighbors who lived on water still worked - most owned their own businesses. ALL of the homes were lived in year-round by locals.


----------



## DiverSailor123 (Sep 17, 2016)

Wages in Florida over-all, lag behind many northern locations. This Area like many others was designed from the beginning to be.... a retirement on the water or close to the water destination. The Punta Gorda and the Port Charlotte Area has more than enough going on for us .. We have never been Bored.. We are NOT out clubbing every night that's for SURE.. but there is lots of live music at Restaurants and Bars. (( What at 65 yoa do you feel we are missing that you have in Mexico ? )) We just don't do, that scene too much at 65 y.o.a. hahahaha.. If your last in depth visit was more than 10 years ago you will not recognize SWF.. Siesta Key to Marco Island.... but to each his own... Yep there are IMHO a few undesirable Locations along the way 
Captiva / Sanibel ?? Yea if you owned a Helo so you didn't have to deal with the Bridge .... I thought you had said somewhere, that you didn't like the Tourist Traps & ****** Havens.. ??? ( That's why the East Coast is said to Rock.. ) .. Yes we too are 15 minutes, for us , from the Harbor but it can be as far as 1 hr even more for some folks ... depends on what you want to pay .. Our Taxes are 1/5 of what you paid.. about same size lot I assume, ours is 120x85 .. Hospitals 2 within about 10 minutes 4 within say 15 minutes.. I am Sorry to hear that about your Dad.... Lehigh Acres is now , rather undesirable.. so is much, or at least some, of Ft Myers.... Its because of where we now live and all that IS available here, that is making us so cautious on the move back to Mexico.. What will we really gain by the move?



Gatos said:


> The reason most of the people in the area you are describing are out-of-towners is that there really are no decent paying jobs - not when you compare it to what is available in SE Florida. To each his own - but I find SW Florida sleepy/boring. If I had all the money in the world I might live on Captiva/Sanibel, perhaps Naples. My parents retired to Fort Myers and later moved to Lehigh Acres. My dad died of a heart attack because he was so far away from the hospital.
> 
> When we left SE Florida we lived on a NFB canal with a 25' Whaler on our 90' dock. At idle - we were perhaps 15 minutes from being in the water. Our property taxes were around $14K/year - with homestead. The town was known as a waterfront community. Perhaps 60% or more of the homes were on water. We lived in an area like you describe - there was a loop of waterfront homes and dry lots in the middle. Most of the homes had already been knocked down and replaced with 'mansions' - and we lived on the wrong side of the tracks. Most all of the neighbors who lived on water still worked - most owned their own businesses. ALL of the homes were lived in year-round by locals.


----------



## Gatos (Aug 16, 2016)

Succinctly - what were your reasons for considering a move to Mexico ?


----------



## DiverSailor123 (Sep 17, 2016)

We missed the Ambiance and Adventure of what Caribbean Mexico is for us.. We missed long time friends .. and the diving ( if we chose to go back to Cozumel) Living ON the beach if we chose to go instead to Progresso Beach Area and Friends we have who have moved there.. What "can be" a simpler way of life.. There are few to any real red necks.... no jacked up trucks and no $%^&*() civilians walking around carrying guns!!! ..


Gatos said:


> Succinctly - what were your reasons for considering a move to Mexico ?


----------

