By SYLVIA GORDON
Guest Columnist
Medicare and Social Security are federal programs. You’ll receive the same benefits no matter what state that you live in. Don’t confuse this with Medicaid, which is very different in every state.
Private Medicare insurance prices are based on the state of your residency. If you have a Medicare Supplement, Part D drug plan or a Medicare Advantage plan and you retire to another state, you usually must change your plans. The prices typically go up if you retire to Florida. But, hey, no state income tax!
Some Medicare Supplement plans won’t require you to change plans; you’ll just call the insurance company and they will adjust your rates for the new state. Medicare Advantage plans can vary greatly from one state to another, and you may get better benefits or reduced benefits. Typically, Florida has very rich plans as it is ground central for retirees, and Medicare Advantage companies are very competitive in Florida. It’s the opposite with Medicare Supplements. You’ll pay more.
The amount of Social Security benefits you draw isn’t impacted by moving around the country. You can even live out of the country and continue to receive your Social Security checks in many western nations.
“What if I remain a resident of Indiana but spend six months in Florida?” This gets a bit murky. Basically, you are going to choose which state you want to be a resident of and report that address to Medicare. People think if they own real estate in one state, they must be a resident of that state. Many own real estate in several states.
There are many different indicators that can lead to you declaring one state as your residence over another. Typically, you must live in that state for at least six months, register to vote and get your driver’s license in that state. People have tried to play fast and loose with these residency rules and lie to Medicare about where they really spend most of the year. Don’t try to save a little money on your Medicare insurance premiums by telling the company you still reside in Indiana. If you later have a claim, they can deny the claim!
Before you move, contact your Medicare specialist to get your plans adjusted before you arrive in your new home. A lady was moving to Florida last year and wanted to wait until she got settled into her new Florida condo before she changed her Medicare insurance. There is a grace period, so you don’t have to do it before you move. Tragically, this client had a massive stroke the very day that she moved to Florida. I have a trove of sad stories like this, which is why I urge you, if you are moving, take care of your insurance before you go.
Sylvia Gordon is co-founder of The Medicare Family, headquartered in Noblesville, where she educates thousands on Medicare and Social Security in all 50 states. You can learn more at themedicarefamily.com.