Recently, more people around me have been deciding to move back to Korea for their retirement. However, before packing up, there's a pressing question: Should you continue paying for Medicare Part B or drop it?

To get straight to the point, this is a matter that should be evaluated based on numbers, not emotions. So today, I will lay out both sides of the argument for comparison.

First, let's talk about costs. The standard premium for Part B announced by CMS for 2026 is $202.90 per month. This is an increase of $17.90, or 9.7%, from $185 in 2025.

That amounts to $2,434.80 for the year. The annual deductible has also risen from $257 to $283.

For those with higher incomes, IRMAA applies, resulting in monthly payments ranging from $284.10 to $689.90. Honestly, I was a bit shocked when I first saw these numbers.

The problem is that even if you pay this money, there are very few places where you can actually use it overseas. Medicare.gov clearly states that care received outside the U.S. is generally not covered.

The exceptions are very narrow. They include situations like emergencies that occur on a cruise ship within 6 hours of a U.S. port or emergencies that arise in Canada while traveling between Alaska and other states.

Going to a hospital in Seoul while living in Korea does not fall under these exceptions. For overseas residents, it essentially becomes a structure where you are just paying premiums.

So what about Medigap? While several plans offer overseas emergency benefits, they only apply to emergencies that occur within 60 days of starting your trip.

Even then, it only covers 80% after a $250 deductible, with a lifetime limit of $50,000. This indicates that it is not designed for long-term residents.

At this point, it seems like dropping it would be the right choice. However, the opposing argument is quite substantial as well.

The first concern is the late enrollment penalty. For every 12 months without Part B, a permanent 10% increase is added to the standard premium.

For example, if you drop it for 3 years and then return, you would incur a 30% penalty. Based on 2026 calculations, that means you would pay an additional $60.87 each month, and this penalty would follow you for life as long as you maintain Part B.

They do not make exceptions for overseas residents. CMS training materials also state that this rule applies equally to those living abroad.

The penalty is not a fixed amount but is based on a percentage of the standard premium for that year. This means that in years when premiums increase, the penalty will also grow.

The second concern is the gap period. To re-enroll, you generally have to wait for the General Enrollment Period, which runs from January 1 to March 31 each year.

Starting in 2023, coverage begins on the first of the month following enrollment. Previously, you had to wait until July 1, so this is an improvement.

However, if you suddenly need to return in the summer, you would have to manage without Part B until the following January. This is the most frightening aspect if you have to return due to health issues.

The third concern is Medigap. Medigap plans require both Part A and Part B to remain active, so if you drop Part B, Medigap will also be terminated.

If you want to re-enroll later, you may have to undergo health underwriting depending on the state. If you develop a chronic condition, you could be denied coverage or face significantly higher premiums.

You also need to consider the situation in Korea. Since December 2018, foreigners and overseas Koreans must stay in the country for at least 6 months to qualify for local health insurance.

This means there could be a gap of up to six months right after you arrive. You should factor in the possibility of needing private insurance to cover this period.

So how should you decide? I break it down into two factors: the duration of your stay and the likelihood of returning.

If you plan to live there for a few years before making a decision, keeping Part B is safer. The combined costs of penalties, gaps, and the risk of re-enrolling in Medigap could exceed several years' worth of premiums.

On the other hand, if you are unlikely to return to the U.S. and plan to fully settle into the Korean healthcare system, dropping it makes sense. Paying over $2,400 a year for insurance you won't use is a waste.

If you have a spouse, each person should calculate separately. If their health status and return plans differ, the answers may vary.

For reference, if you voluntarily drop Part B, you must submit Form CMS-1763 to the SSA and go through a consultation. It's not just a matter of clicking a button online.

Part A typically does not require any action if you have worked for at least 40 quarters, so it's not necessary to touch that. The key decision ultimately revolves around Part B.

Personally, I would keep it for the first 2-3 years while confirming my position in the Korean health insurance system before reassessing. It aligns with my tendency to avoid cutting off options too early.

However, the answer can vary significantly based on income, health status, and nationality. Since it depends on individual circumstances, I recommend checking with the SSA, Medicare consultation centers, or experts before making a decision.