(MENAFN- Newsroom Panama) Panama has long been a magnet for U.S. retirees, drawn by its stunning beaches, affordable lifestyle, weather and a world-class healthcare system that rivals many in the U.S. at a fraction of the cost. With modern hospitals in Panama City and David offering English-speaking doctors trained abroad (I had one who had a Stanford Medical degree on his wall. Stanford University Medical!), and routine procedures costing up to 70% less than stateside, it's no wonder thousands of expats call Panama home. But for those relying on Medicare, the transition raises key questions: How does your coverage work here? What about emergencies? And how can you minimize costs without risking future penalties? This article breaks it down, focusing on Medicare Advantage plans with global emergency coverage, the critical role of Parts B and D, giveback programs that slash premiums, and the pitfalls of skipping Part D.

Medicare Basics: What Works (and What Doesn't) in Panama

Traditional Medicare-Parts A (hospital stays) and B (outpatient care, Doctors, lab work, etc)-doesn't cover services outside the U.S., including Panama. This means no reimbursements for routine doctor visits, surgeries, or prescriptions at Panamanian clinics. Expats must pay out-of-pocket or secure local/international insurance for everyday needs (Makes little sense for normal care). Panama's public system (via the Social Security Fund) is free for contributors but often involves long waits and language barriers, so most retirees opt for private care, where a specialist visit runs $20-65!
So for seeing doctors in Panama, their whole bill can be less than your Medicare copay as you would pay back in the US. So most expats don't think about the cost of paying out of pocket. Some things are still usable in these plans like Telehealth appointments for your doctor back in the states. Some people get their expensive prescriptions filled there and mail them to Panama, etc.
However, Medicare in the right plan isn't useless abroad. Keeping it active serves as a safety net for U.S. visits and avoids lifelong penalties. It covers you indirectly through your plan for Emergencies in Panama.
Premium-free Part A is a no-brainer to retain as it costs nothing if you worked 10 years in the US. Part B, which is about $185/month in 2025, requires payment even though you can't use it overseas in most cases-but it's essential for seamless coverage if you return home or want to get or stay in a Plan that covers you out of the country. The most important part in a proper Medicare Plan in Panama is the Worldwide Emergency care which is usable in Panama and everywhere in the world.

Medicare Advantage Plans: Your Ticket to Worldwide Emergency Coverage in Panama

Enter Medicare Advantage (Part C) plans: private alternatives to Original Medicare that bundle Parts A, B, and often D, plus extras like dental or vision AND GIVEBACKS. Crucially, many include worldwide emergency and urgent care coverage, making them a game-changer for Panamanian expats. These plans cover up to 100% of emergency costs abroad after a deductible (often $130), with a lifetime cap as high as $250,000 in some plans.
In Panama, this means treatment at top facilities like Hospital Chiriquí (David), Pacifica Salud (Panama City) which is associated with John Hopkins, and many other hospitals. Even Hospital Metropolitano now covers direct billing in Costa Rica as well as many in Mexico!
( CAVEAT... Direct billing is new and on a trial basis but so far has worked well from the feed back I get from numerous clients). Coverage applies with no age nor pre-existing barriers like you will find anywhere around the world in private plans..
To qualify, just maintain Parts A and B or perhaps you already have the coverage in your plan.
Costs? I personally have a full blown Medicare PPO Advantage plan which I use at the Cleveland Clinic, or Baptist Hospital in Miami and the monthly cost to me for the plan? INCLUDING PART B and D and Worldwide Emergency coverage is only $11 per month!. That includes my Part B and D costs! $11.00! One trip to the dentist would actually cost me nothing and even start paying me to be in the plan!.
I have presently 8 clients reapplying for Part B coverage because they opted out not knowing about this and they will have to pay a penalty for the rest of their lives for losing it. (Fair?... I personally don't think so) The same goes for Part D. If you can get it included into a plan for no money which is common why wouldn't you? There are diseases and situations where very expensive life saving drugs could cost you $25,000!!! Without Part D. With Part D $2000. I have seen it all.

Slash Your Costs: The Power of Part B Giveback Programs

Many retirees who live on fixed incomes are playing defense because their money making years are over. $185 ($206.50 in 2026) per month taken out of their Social Security is a big chunk especially since they feel they are paying for something that they can't even use. But with a good Giveback Plan they can easily afford $11 or so per month. It's a“You get your cake and eat it too” kind of thing... Imagine being covered for a $20,000 Emergency visit in Panama and paying only as little as $115 for the whole thing? I have personally seen this with clients. Summarizing... talk to a professional agent before you think of dropping your Part B coverage when you have a Giveback plan available. The agent may have an amazing solution for you.

The Hidden Dangers: Skipping Part D Leaves You Exposed

Forgoing Part D might feel like a budget saver abroad, but without it, you're going to be hit with that 1% monthly penalty forever should you need to access it in the future. You are healthy now... but what about next year?. Delays in coverage start can mean out-of-pocket drug costs during the gap. I have one client who needed drugs for a life threatening disease that would have cost him way over $20,000 just for ONE DRUG!!! Why dump it when it can cost you NOTHING to have it in your plan?

Final Thoughts: Secure Your Health, Secure Your Retirement

A well designed Medicare Plan is possibly one of the few great things for Americans in life when you turn 65. It is one thing Canadians, Europeans and basically everyone on the planet envies. We are blessed as Americans to have it (as long as it lasts) and we should all be taking full advantage (no pun) of it.

About the author:

Guy Craig, who has lived on and off in Panama (Boquete area) for over 15 years (first visited in 1971 on his way to Peru) is a Fully Licensed (in most states) Senior Medicare Agent in Panama. He has been in the business for 6 years and has helped $1,000's of Medicare people in that time. Besides having lived here when he first became eligible at 65 he now has personally been on Medicare himself for over 10 years. He has countless clients in Panama and has an old school style of giving clients the time they need to tailor each plan regardless of zip code. With his Dual Lens he can anticipate problems you may not be aware of. He is also assisted by Nancy Galvez who is also a fully licensed Medicare Agent (2 agents in one). He has many clients in Panama and Costa Rica, Nicaragua, Colombia, etc. and even some in Thailand and Europe. He specializes in Expats. He started this business because he had trouble finding agents in the USA who couldn't answer simple questions and didn't treat you as a number, record every word you say, bore you with long mandatory statements for telesales rules and try to get you off the phone as quickly as possible to get on another call. He likes to meet in person and take a genuine interest in every client's welfare. He does use the phone or computer to put a client into a plan within 10 minutes if that is their wish. He also represents Medicare Supplement plans like Plan G.
He can be reached at:
...
US 941-3017806 (WhatsApp)
Panama: 507-6936-2314 (WhatsApp)
Nancy Galvez US 239-297-0764 (WhatsApp) (Bilingual)

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