Early Retirement- E106/Insurance/Pay into System/Pay as You Go

Hi,

I was made redundant 6 years ago at the age of 52 and received an occupational pension. Since then I have done some voluntary work but paid no NI contributions. This was intentional as it was common knowledge, if not legislation at that time, that a full state pension would be paid with a minimum of 30 qualifing years (I have 34). We have a house in NW Spain. Two years ago I spoke to the DWP regarding healthcare if we moved to Spain and the guy I spoke to told me there would be no problem in obtaining an E106 despite not having paid NI contributions since 2003! 

We are now resident in Spain (renting UK house) and formally sorting out tax, healthcare etc. Having read posts on the Forum I now have doubts about whether an E106 will be forthcoming if applied for.The "cunning plan" was to obtain an E106 for me with OH as dependant, and later apply for E121 for OH with me as depedant until I reached 65. 

Help, comment, adviceon the following would be most welcome.

1. Do I stand any chance of getting an E106?

2. Insurance  - OK- I understand for approx 1500 euros per annum basic insurance is avilable for a couple. However existing medical conditions will not be covered which for me is an issue. Also private clinics are a long way from where we live and not that practical. 

3. I understand I could register as self employed and pay approx  250 euros/month? Quite a whole in our budget.

4. Pay as You Go! Has anyone opted for this approach - clearly a risk? Is there any information as to ball park costs of typical treatment for serious conditions   - for example breast cancer, heart operations etc.

5. At present we are breaking the rules - my UK GP said don't tell anyone and pop back if you need treatment and get your presciptions as usual! We also have a freiedly doctor at the local health centre here who is happy to see us and use our UK EHIC cards - I realise that this is "not cricket" or fraud if you want to blunt.    

Probably like a lot of people we have drifted into living here permanently. We had no intetion of bending rules and now want to sort things out - but with a degree of pragmatism!! 

We have exactly the same problem.  My husband is diabetic, and is presently getting his tablets from the UK and going home for appointments.   We both have 2 years to retirement and both have worked all our lives until August 2008.  We would appreciate any help and advice anyone can give us on this.

As far as I am aware, the E106 will cover you in Spain for up to two and half years only if you have paid NI in UK for the 3 years prior to your move.  The DWP website explains it:

Healthcare provided under the E106

If you move to an EEA country to live but not work and don't receive a UK benefit, you may be eligible for up to two-and-a-half years of state healthcare, paid for by the UK.

You will need to apply for an E106 with the the Overseas Healthcare Team (Newcastle) and prove that you have worked in the UK and paid National Insurance contributions up to three years before your departure.

For further advice, contact the Overseas Healthcare Team (Newcastle)

Overseas Healthcare Team (Newcastle)
Room TC001
Tyneview Park
Whitley Road
Newcastle upon Tyne
NE98 1BA

Tel: 0191 218 1999 (Monday to Friday 8am-5pm)

The E106 will entitle you to treatment on the same basis as a resident of the country you moving to. This may mean that you have to make a patient contribution to the cost of your care.

When the cover on the E106 expires, you cannot get any further medical cover from the UK until you are in receipt of a UK state pension. It is up to the country’s authorities to decided whether you are eligible to join their healthcare scheme. 

You will also be entitled to a UK-issued EHIC, allowing you to visit other EEA countries besides the one your are a resident with.

The fact you haven't paid NI for over 3 years will not give you any cover in another country. 

Looks like you will have to keep "bending the rules" as so many do.  Unfortunately, this situation now applies to other regions of Spain, particularly the Valencia region which has now moved the goalposts.