For U.S. retirees considering a move to Panama, one of the first questions they ask is simple: Can I use Medicare abroad?
The answer is also simple — and often surprising: traditional Medicare (Part A and Part B) does not cover medical care outside the United States.
Does Medicare Work in Panama?
The reality is clear. If you visit a hospital, clinic, or pharmacy in Panama, your Medicare plan will not cover the bill. Thousands of expats have confirmed this through their experiences: no matter how affordable care is in Panama, Medicare will not reimburse you.
👉 “It was a shock to learn that Medicare doesn’t work here at all. You can’t rely on it for your everyday health needs in Panama.”
Why Most Expats Keep Medicare Anyway
Despite this, many retirees in Panama continue to pay their Medicare premiums. Here’s why:
- For trips back to the U.S.: Many return to see family or for annual check-ups, and they want coverage while in the U.S.
- To avoid penalties: Dropping Medicare can mean higher premiums and penalties if you ever return to live in the U.S. permanently.
- As a safety net: Keeping Medicare ensures you have coverage if an emergency forces you to go back to the U.S. unexpectedly.
👉 “Even if I don’t use it here, I keep my Medicare active because I don’t want to lose it if I ever move back home.”
The Expat Solution: Dual Coverage
Most retirees in Panama adopt a dual strategy:
- Keep Medicare active in the U.S.
- Buy additional insurance that actually works in Panama.
Options include:
- Local insurance: Affordable, covers care in Panama, and often works with direct hospital billing.
- International insurance: More expensive, but covers Panama and other countries, including the U.S.
This way, you’re covered both abroad and back home.
👉 “I see Medicare as my U.S. safety net, but here in Panama, I rely on my local insurance. It’s the only way to have peace of mind.”
Recent Developments: Medicare Advantage in Panama
As of 2025, a few private hospitals in Panama — including The Panama Clinic — have started accepting certain Medicare Advantage plans. This is a milestone, but it’s important to note:
- It’s limited to specific hospitals and plans.
- Not all Advantage policies are accepted.
- You must confirm with the hospital and insurer before assuming coverage.
For now, this is more of an exception than the rule.
Practical Tips for Retirees
- Don’t cancel Medicare. It’s a safety net if you ever return to the U.S.
- Budget for an additional plan. Count on $50–$200/month for local coverage, or $200+ for international coverage.
- Ask questions before moving. Verify hospital networks, billing practices, and whether your plan covers emergencies.
- Plan for the long term. Healthcare needs change with age — make sure your plan can grow with you.
Conclusion
Medicare may be a lifeline in the United States, but in Panama, it has little to no practical use. Expats quickly learn that Medicare doesn’t pay for their care abroad.
That’s why most retirees keep Medicare active for when they’re in the U.S. — but rely on local or international insurance for their day-to-day healthcare needs in Panama.
👉 If you’re planning your retirement here, the smart move is to think in two layers: Medicare for the U.S., and a Panama-friendly insurance plan for your new life abroad.
FAQ about Medicare in Panama
Does Medicare work in Panama?
No. Traditional Medicare (Parts A & B) does not cover healthcare outside the United States, including hospitals and clinics in Panama.
Can I use Medicare Advantage in Panama?
Some hospitals, such as The Panama Clinic, began accepting limited Medicare Advantage plans in 2025. Coverage depends on the specific plan and provider.
Should I cancel Medicare if I retire in Panama?
No. Most expats keep Medicare active to avoid penalties and to have coverage when visiting the U.S. It also serves as a safety net in emergencies.
What is the best health insurance option for retirees in Panama?
Expats usually combine Medicare for U.S. coverage with a local or international insurance plan that works in Panama for daily healthcare needs.
How do retirees manage Medicare and local insurance in Panama?
The common strategy is dual coverage: keeping Medicare for U.S. visits while relying on affordable local or international insurance in Panama.