One expat couple recently discovered the problems when they were put in a difficult position after the unexpected birth of their son.
While visiting the UK to see family over the Christmas period, Paul Barnes’ fiancé, Sophie Henley, gave birth to their baby prematurely, meaning they had to receive care at the Royal Devon and Exeter hospital.
Despite holding British passports and having British citizenship, the new parents have residency in Zambia, and since they are residents outside the European Economic Area (EEA), they were required to pay a 150 per cent tariff on the care they received.
The Daily Mail has reported that the birth itself cost around £5,900, but as the couple’s son was born prematurely and had to be admitted to the neonatal intensive care unit (costing up to £1,300 a day), the final total may well reach £60,000.
A spokesperson for the Royal Devon and Exeter NHS Foundation Trust explained that the charges applied to overseas visitors are “determined by residency and those eligible for free treatment need to be living in the UK voluntarily and for settled purposes”.
The Department of Health further clarified that someone’s British nationality is not enough to make them eligible for free healthcare on the NHS, saying that “UK citizens who live outside the European Economic Area will need health insurance when visiting the UK”. The purpose of these measures is to deter large numbers of pregnant women travelling to the UK to take advantage of the free maternity services.
The rules for UK expats in Spain and the rest of Europe
Healthcare in the UK remains free for British state pensioners living in the EEA and anyone who holds a European Health Insurance Card (EHIC).
As you age, and especially if you have moved abroad to France, Germany, the Netherlands, or Spain, your expat retirement planning is likely to be relatively straightforward compared to if you move to somewhere outside of Europe.
However, this story does emphasise the need to understand what rights you have in any country you’re visiting and to plan accordingly. With Brexit officially under a year away now, it is absolutely necessary for all British expats to keep up to date with how it may change laws and state benefits, not just in regard to healthcare but also in regard to wider financial considerations.
For instance, if the EHIC system is scrapped and the UK leaves the EEA, the existing reciprocal healthcare arrangements between the UK and EU countries are bound to change, and it’s possible that a British expat travelling back to the UK from their European home to visit family may no longer be entitled to free healthcare on the NHS.
Contacting one of the Blacktower team for financial advice is an effective way of understanding all the financial implications of moving to another country. Get in touch with us today.
This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.
A SIPP transfer may offer many benefits, including greater investment flexibility and exemption from capital gains and income tax; however, a SIPP is not suitable for every retirement investor and independent expat financial planning advice should always be sought before committing to a SIPP pension transfer.
Generally speaking, saving money and planning for your future are two key aspects of financial planning. So, getting this right as early as possible should be one of your main priorities, to ensure that there are no nasty surprises down the line. There are a multitude of reasons that you might choose to put money aside, such as for a “rainy day fund”, a house purchase, your children’s education or making sure that you can retire comfortably.