#710 – The Expat Files: Healthcare Changes, Canada Reactions, and Expats in Latin America

Automatically transcribed from the original recording; names and wording may contain errors.

[00:00] South of the border down Mexico way That's where I fell in love when the stars above came up to play and now as I wander Hello there all you expat wannabes I'm Johnny Mueller and you're listening to the expat files living in Latin America The show that tells you just what it's like to live work play and or retire down here in Latin America It's a mix of the good the bad the ugly and the great and it's all right here. So let's get started All right before I get started with part two That'll be a whole show on health care for gringles and expats here in Latin America been a lot of changes lately You know before we get into that I'd like to report that when I mentioned a few shows ago that Canada is

[00:48] Being talked about a lot as a new destination I've caught a few of those conversations myself Mostly by uneducated Latins with zero means who want to sneak into the first world to get their piece of this when you're American Of course, it wouldn't be when you're American anymore. It would be when you're Canadian say no longer Would it be the American dream? It would be the Canadian dream Well, once I did that report on the great new interest in moving to Canada Once you know what I got a slew of emails from Canadians saying oh no And get this not one of them thought it was a good idea And I thought at least I'd get some Canadian bleeding hearts because they are such nice caring people, you know, generally surprise surprise They don't want uneducated poor people with bad habits flooding into their country either. Oh, is that too politically incorrect for you?

[01:37] Well, that's the truth and I can read some of these emails if you want But I don't think that's necessary you get the idea. In fact one Canadian lady in her email Sent me one of those little emojis, you know those smiley face things only this one had a smiley face With a finger posed in the I want to vomit position Boy, that conjures up a picture. Didn't even know they had on PC emojis like that. I like it I'm sick of those happy cuddly feel-good ones. Aren't you boring by the way? I've never ever used those things not even once so just for the record every single email I got from Canadians on the subject of Latins wanting to get the Canadian dream going this one your Canadian say They were all against it Not one of them said unlock the front door come on in which begs the question do Canadians lock their front doors if they don't

[02:25] I think they will now Alright, then let's pick up where we left off last time on the subject of healthcare and health insurance for gringos and expats here In Latin America this time. We'll concentrate a bit on Ecuador because there's lots happening there that you really should know about So you might ask why are there big health care and health insurance changes going on in Ecuador? Well, that's because so many gringos have piled in that severe Dislocations are occurring not only in health care and insurance, but with infrastructure social utilities and government services, too As a result government bureaucrats and slugs are reacting or I should say overreacting like the pea-brained morons that they are and the gringos suffer and pay the price and you know It's really rags like AARP and an international living that are to blame for getting the gringos down there in the first place

[03:17] So what you've got is a lot of gray-haired gringos looking for a deal flooding in many coming down to take advantage of those free Or nearly free government services since former president Korea turned the place into kind of a socialist paradise And now according to government statistics the national health care system is not only broke It's bankrupt so in a panic they passed a law going after the gringos the ones with the money So as of this month There's a law that forces all gringos and expats anyone who's temporary or permanent resident even tourists To prove upon entering the country that they've got insurance coverage How do you like that by the way Ecuador is the first Latin American country to do so now as you can imagine

[04:02] There's a lot of misinformation and confusion out there in the gringo and expat community It's especially confusing for gringos and expats whose Spanish sucks Because the laws and proclamations always come out in the Spanish language newspapers So gringos get the bad news in little bits by word-of-mouth and have to wait for the written translations to know what's really going on That said let's start with a few observations from an expat living in Ecuador He says for all you gringos and expats living here in Ecuador Remember those expat health care insurance rules for temporary and permanent residents. Well, it figures Forget those rules because some new ones have just come along Then he says looking like the gang that can't shoot straight Ecuador's Ministry of Foreign Affairs says now

[04:50] You should ignore the old requirements that expats deliver proof of health insurance to the government office nearest you Now they say they've come up with a new set of rules But don't say when these rules will be in place and when they will go into effect However, they will still require all gringos and expats even tourists now to provide certified proof that they have a health insurance Policy that covers them in Ecuador. All right, it's me Johnny again You know, I actually have a PDF document of the brand-new regs in both English and Spanish It's an official document from the Ecuadorian government dated November 2017 if you want to copy just send me an email the expat files at gmail.com and I'll shoot it off to you And basically here's what it says. It comes from the relations exterior's a mobility

[05:39] That's the vice ministry of human mobility What useless idiot moronic Latin government departments will they think of next? Did you get that? It's called the vice ministry of human mobility. I Just have to say that again. It comes from the vice ministry of human mobility Of course, that means they probably have a vice ministry of canine mobility and cow mobility and sow mobility Oh man, where does the lunacy end? Alright, so it says foreign citizens who have their visa issued up to this date either Temporary or a permanent residency that is in accordance with the human mobility law They must comply with the requirements of submitting full coverage health insurance public or private at the moment of

[06:30] Carrying out the procedure to have a visa granted or renewed. It says as of November 9th 2017 proof of health insurance will be mandatory when applying for or receiving number one a visa renewal number two a visa transfer whatever that is and The topper renewal of get this a bank CD Whoa, can you imagine going to a bank and getting a CD or renewing a CD and they ask you to prove that you have health insurance Man, is that not lunacy? But there's more number four you'll need to prove health insurance coverage when getting a certified copy of your visa and number five a Sedulation order whatever that is and here's something that's sure to cause chaos at the airport

[07:18] The new law states for temporary or permanent resident visas issued as of November 9th 2017 health insurance proof will be mandatory and Any foreigner who enters a country that's equator again as a tourist Health insurance will also be required Did you get that if you're just coming into the country as a regular tourist? You will also have to provide them with proof that you're covered by health insurance. What? So it's legit to ask how the hell you supposed to know that if you're just coming down as a tourist to see the sights And what if you're just passing through for a day or two? Well, as they say ignorance of the law is no excuse, right? Now in this PDF they offer some explanation on how you're supposed to fulfill these

[08:08] Requirements when asked as you land at the airport or try to get your visa renewed. Whatever. Let me read the important parts here It says in order to fulfill the requirements of proving you have health insurance The documents that will be admitted for proof number one if you have public insurance, you'll need social security affiliation certificates issued by Ecuador's I ESS which is their social security department and in the case of insurance coverage that is Extended to the family that would be the spouse partner and her children under 18 years of age separate documents will have to be certified And submitted hmm. There goes the rainforest, huh? All right number two if you have private insurance issued from a company in Ecuador

[08:55] You'll need an updated certificate issued by the legal representative of the insurance company Separate documents must also be provided for spouse and dependent family members, too Then it says if you carry foreign insurance that is insurance that's issued outside of Ecuador The applicant must have the counselor offices of Ecuador Certified the authenticity of that health insurance company and the document must show provisions that full coverage Medical and health care are valid throughout Ecuadorian territories This is for foreigners tourists and residents the medical and full health care coverage insurance must be submitted to the government as of 9 11 2017 then it says and listen carefully for tourists who enter the country without a visa

[09:44] That would be tourists from first world regions like the US, Canada, Europe and others who? Automatically get a 90-day visa stamped into the passport as soon as you arrive at the airport It says you will be required to bring proof of your insurability in Ecuador as of February 5th 2018 all right like I said if you want a copy of this Ecuadorian government PDF that just came out Send me an email the expect files at gmail.com then you can download it read it and weep so again What What I mean is what a nightmare Meanwhile all the gringles and expats who have resonancy in Ecuador are scrambling with the little bits and pieces of information They have and luckily for now anyway Ecuador is the only one out of 20 Latin countries that are forcing the issue with an actual law

[10:30] Let me recap this so it sinks in from November 2017 having health insurance in Ecuador is a must under current law Ecuadorian government offices will ask for that certified proof if for one you're applying for a visa a visa transfer a new Saddler order worst of all when you renew a CD at a bank, so why would that matter well? that's because a lot of gringles and expats have their residency based on a government authorized investment a CD qualifies That means if you have an investment visa And you go to the bank to roll over your CD and don't have proof of insurance You won't get the CD and then they'll revoke your residency And this is not good And it turns out they'll also ask for certified proof of health care insurance if you're getting something through customs at the airport

[11:21] Again, I can only say what the half So the real question is why is this happening and why in little Ecuador take a guess you just might be surprised or Maybe not. Here's what most insiders point to as the real problem and why the gringos are paying for it Well, it turns out the I ESS system as the Ecuadorian social security system Which is also part of the national health care system is facing a huge financial crisis and business and labor groups in Ecuador Are demanding an investigation? In fact last month or so the government's been holding emergency meetings in search of solutions and guess what those solutions are of course Raise premiums, but not on the average Ecuadorian little guy

[12:07] You have to find someone else to shoulder the cost the cost of what well the cost of their overburdened health care system In fact Ecuador's finance minister says the heart of the crisis is a debt of almost three billion dollars that the federal Comptroller says the government owes to the I ESS system The government doesn't have the money and the minister says he's not sure who is responsible for the debt Or who will pay it the cash shortfalls having an immediate negative effect on the Ecuadorian pension system And an even worse effect on the Ecuadorian national health care system Which held so much promise when it was heavily funded under the korea administration A move that got so many gringos and expat residents to sign on to it He says the problem began in 2010 and got very bad in 2015 due to decisions made during the rafael korea presidency

[12:59] You know he's gone now Anyway, he expanded the national health care program without allocating any extra funds to pay for it figures, huh? And now they must make difficult hard decisions under emergency circumstances So naturally the government is looking for funds from the deepest pockets That way the average poor Ecuadorian making only a couple hundred bucks a month won't feel the pinch and of course Who would that be? Why gringo expats an elite wealthy entitled group? Hey, i'm reading directly from this article, man. I'm not making this stuff up That's what those pus bag latin government types think of gringos even though statistics show gringo expats are a tiny part of the Iess system there are millions of Ecuadorians enrolled and only a few thousand gringo expat residents enrolled

[13:47] Still the government is doing what governments do best Go for the people who are most likely able to pay And least likely to vote and since gringo and expat residents can't vote Yeah, as if they actually would if they could what a laugh That means they fit the bill perfectly So the fact is that gringos and expats in equator are not breaking the back of the national health care system Sure, most of them do belong But the fact is that the system was set up with the premiums way too low Which is why the sweaty masses absolutely loved correa Because he gave him all this great stuff and passed the bill on to his successor It's called kick the can down the road sound familiar and now they're stuck with a three billion dollar deficit So again, why is all this happening? And why is it falling on the shoulders of gringos?

[14:35] Well, let me read you this from the bbc that sheds light on the whole situation there in equator And i'll paraphrase this as usual cut out the boring parts. The title is u.s. Baby boomer gentrification reeks havoc in socialist equator By the way, all latin countries are socialists. So is the u.s. Canada europe? It's just a matter of how socialist they are and equator is one of the most socialist latin countries along with venezuela cuba And nicaragua, by the way soon I'm gonna do a little report on nicaragua that might not sit well with too many of you Anyway, let me paraphrase the article states The small city of quinca equator is struggling to address a growing wave of american baby boomers Who decided to retire there to take advantage of a socialist welfare state design for the locals?

[15:25] Not the americans. It says u.s. Retirees are causing conflict in the city raising real estate prices dramatically Demanding english language services and threatening to sue locals accustomed to a more casual business atmosphere and not accustomed To litigation at all. All right, it's me. Johnny again Isn't that perfect gringo is coming down as guests in a foreign country and they bring their stinking lawsuit happy mentality with them You know one of the great things about latin america is they're not into suing people and then Us gringos come down and start that craziness all over again Yeah, but not when you're off the gringo tourist trail, you know Anyway, then it says you may have been reading that there is a blissful existence of upper-class white american migrants

[16:11] Blocking to quenca and other parts of ecuador. They're attracted by what they read in retirement blogs news sites Youtubes and international living that emphasize the appeal of temperate weather inexpensive health care and cheap real estate For example, you'll find articles and blog sites that say things like quenca What's not to like they have a robust public transportation system extensive museum networks solid health care Markets bursting with fresh fruits and produce a place where a two-bedroom and two and a half bath apartment costs 400 bucks a month Americans can live a solidly upper-class lifestyle dining out frequently and traveling all on a social security check Then you have medical procedures orders of magnitude cheaper than they would be up in the states

[16:57] There are hundreds if not thousands of blogs and web screens that repeat those opinions over and over again But here's what you didn't know The city of quenca 350 000 population commissioned a study by the way quenca ecuador has been mentioned over and over again It's a number one gringo and expat retirement site Which is why it's important to talk about this people want to know what's really going on. Anyway Quenca commissioned a study of its foreign population in february 2017 Identifying the majority of their new expat population as baby boomers They make up 93 percent of quenca's foreign population. Oh and get this According to this study quenca's baby boomers are more likely to have been professors and teachers before retirement

[17:45] Than any other occupation. Oh man me johnny again You've heard me mention over and over again that went on the gringo tourist trail You run into retired american teachers all the time In other words, it's easy to prove that a majority of gringles and expats coming down to retire in latin america Never had a job making a product or providing a service. They always worked for government In other words, they're used to fat bloated government bureaucracies taking care of everyone. They're okay with that So they're all ready and willing and comfortable to bring all that attitude baggage down with them when they move here to latin america Oh, please johnny here again Those are the kind of people so many of us are trying to get away from By the way that quenca foreigner study delicately notes and makes the case that most of these individuals are not interested in being part of a new culture and are more

[18:37] Interested that the city and its people respond to their needs and demands Are you getting this? Then it says paramount among the city father's concerns is that many retired americans are demanding Quenkin people speak english and create english-speaking neighborhoods within the city All right Here's a quote There is a large group for which learning our language is outside of their interests and faced with frustration of not being able to communicate in spanish They express annoyance with quenkins who do not attend to or respond to their demands in english And that's a direct quote from the study Then it goes on to say u.s Baby boomers who are living in ecuador are also annoyed by the slowness of service they encounter

[19:25] And they're also annoyed with the latin common usage of verbal and informal contracts In fact retired expats have been known to threaten lawsuits when work has not been completed to their Satisfaction or a job not started or finished on time So foreigners create cultural tensions and the study notes that a great majority of the native Ecuadorian and quenkin population are frustrated that they must pay taxes and invest in the welfare state that foreign retiree Migrants are now using and abusing. So when did this mass migration start? Well, it says by 2012 outlets like the bbc were calling ecuador an american promised land And they note here that waves of expats in the thousands hit ecuador and quenka in particular after international living

[20:18] Highlighted a series of articles that describe the city as the top destination in the world to retire Then it says at the time quenka ecuador's international relations director dani hata Appeared pleased by the new influx of high spenders to her city. She told the bbc We promote tourism and are creating strategies for tourism in the long term But even by 2013 a full four years ago Cuenca mayor paul grande was describing the mass migrant wave from the states as a complicated problem He admitted the city is now less accessible to ecuadorians He says due to wealthy americans flocking here and pricing out the locals In fact in an abc news interview

[21:04] He mentioned that since the great influx of gringos the average cost of basic items has increased 40 to 50 percent Then just two years later ecuador secretary of the vice ministry of human mobility Again with the human mobility got to get that hat and t-shirt Anyway, he was warning of wealthy american ghettos popping up Threatening the character of quenca itself. He said there should not be american ghettos forming in zones where average quencan citizens have been living permanently for countless decades He said the gringo migration is at the point where it must be regulated All right, me john again. See what happens when the gringo start piling in you got latin big brother raised in its ugly head

[21:51] prices in the cost of living escalating rapidly and the local government seeing that the gringos do have money and retirement pensions coming in then come the new laws regulations and the tax gouge And man i've seen that over and over again starting in costa rica panama mexico Everywhere and I mean everywhere on the gringo tourist trail. That's not all The report says that quenca ecuador's american invasion was never regulated in part because local businesses and real estate owners preferred selling and renting to americans who could pay their price As quencan landlord and homeowner maria torres told ecuador's el carmercio In a newspaper article she says we prefer renting to gringos and expats because they care for their spaces and pay

[22:37] What we ask not only that local landlords and property owners realize gringos and expats come from a comfortable Status many receiving monthly pensions many multiples of what the average latin american person can expect to receive And their educated status and lack of children makes for quiet Reliable tenants, so we have the reputation of keeping our places nice And you don't have to shag us down for the rent every month bottom line The article finishes by saying the ecuadorian government has nonetheless Continue to express concern of gringo migrants overrunning the city and the country In fact the new international relations director and a palina crespo recently told miami herald reporters

[23:22] Cuencanos are feeling like strangers in their own city and she emphasized quenca never wanted to attract american retirees But it's too late and we're facing lots of problems with them now So the question is how to deal with a phenomena that we aren't even responsible for creating All right So I know I deviated a bit from the health care theme Though not that much because when gringos pile in there are plenty of not so nice secondary effects So there you have it a heads up on what's happening right now in ecuador That should give you a very solid clue as to what you have to look forward to And if you don't believe it do take a trip down and see for yourself We're talking south america. So it's a long tedious trip Then it'll cost you twice as much as seeing the same thing by going to costa rica

[24:10] Of course costa rica is in what you might call the end stages of gringo burnout Whereas ecuador does have a ways to go though You do read in articles and blogs and such that ecuador is the next costa rica. Well, good luck with that That's not to say there still aren't some very very nice off the gringo tourist trail places in ecuador And there always will be but man hordes of retired gringos and balls to the wall socialism Just don't mix now. It's true. All latin american countries are basically socialists But because big brother is generally so weak what you get is socialism light or extra light and big brother that's pretty much a joke too except oddly enough when there's a Concentration of gringos that they can milk in that case plus bag malignant governments are always tempted to regulate tax and gouge

[24:57] Like willy Sutton once said when the feds asked him why he robbed banks He said because that's where the money is. All right We'll have more on gringos and health care in latin america in an upcoming show. So stay tuned for that But before we close out for today I'd like to mention once again that offer from jack brett the author of that newly released second edition of fast spanish He's made it possible for listeners of this show to get a copy of it. Absolutely free Of course, you could go to amazon pay a couple bucks for it But when you can get it for free, just go to the expat files dot com Backslash fast spanish all one word download it read it. You'll like it a lot In fact, I liked it so much. I wrote the forward to it

[25:43] Again to get your free copy. Just go to the expat files dot com Backslash fast spanish and finally a few more things You got about two more weeks to sign up for my expat insider seminar and still qualify for the early bird discount rate That would be 500 off for a single and a thousand dollars off for two people sharing double occupancy Then on december 1st, we're back to the regular pricing to sign up Just go to the new expat dot com website and click on the seminar link It's right there on the main page And while you're there you can read all about those famous john gault pre and post seminar trips, too Now I know that when smart people start thinking about putting together a plan b They can read books watch youtubes and surf day and night on the net

[26:28] But none of that stuff is anywhere near as good as getting your own boots on the ground and making your own connections Which is what my expat insider seminar and the john gault trips are all about and don't forget if you're coming to this seminar You should try to kill two birds with one stone. That is Apply for permanent or temporary residency while you're down in guadamala So if that's your plan don't wait till the last minute to sign up for the seminar Because you'll need a couple weeks to gather your paperwork and get some guidance from our seminar lawyer He'll hold your hand through that process But you got to give yourself a little time in some breathing room to collect the proper documents So don't wait for the last couple days to sign up for the seminar thinking you're going to be able to kill those two Birds with one stone However, if you sign up an hour within the next couple weeks

[27:14] You'll have a month to get your paperwork together, which is more than enough time Oh, and if you just can't make it down to the seminar get boots on the ground yourself Do the very next best thing and sign up for my nine hour expat essentials course Just go to expat plan b.com and check out my video that tells all about it south of the border This is the expat files living in latin america If you want me to help you out with your own plan b just schedule a one-on-one consult Send me an email at the expat files at gmail.com And if you want to learn how to move forward with your own plan b from right up there in the states Go to www.expatplanb.com and check out my three videos. See ya nos vemos