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U.S. Veterans Retiring in Panama: Pensionado, VA Care Abroad and the New Retiree Discount Bill

A guide for U.S. veterans retiring in Panama: the Pensionado visa, how VA and TRICARE care work here, and the retiree discount bill now in the Assembly.

By Jake Smith · · 8 min read

The Biomuseo on the Amador Causeway with the Panama City skyline behind it

If you are a U.S. veteran or military retiree thinking about retiring in Panama, this has been a week worth paying attention to. Panama's National Assembly approved Bill 746 in second debate on October 27, a bill that would widen the discounts retirees get on medicines, doctors and everyday bills, and it now needs a final vote. At the same time, the basics that matter most to veterans have not changed: how you qualify for residency, and how the VA and TRICARE pay for care here.

We work with veterans who are making this move, and these are the three things they ask us about first. Here is where each one stands today.

1. Residency: how a military pension fits the Pensionado visa

The Pensionado (jubilado pensionado) visa is the route most retired veterans look at first, because it grants permanent residency directly and, per the immigration service, does not need to be renewed. The official requirement is a pension or retirement income of at least $1,000 a month, granted for life, paid by a foreign government, an international organisation or a private company.

The points that matter in practice:

  • Dependants: each dependant needs an extra $250 a month, shown with an additional pension or a local bank reference.
  • Couples: spouses can add their pensions together to reach the $1,000 minimum.
  • Property exception: if you own property in Panama in your own name worth more than $100,000, the minimum pension drops to $750 a month.
  • Paperwork: a notarised power of attorney and application, a certified passport copy, a criminal background certificate, a health certificate, a sworn declaration and a certification that your pension is for life.

The certification is where veterans' files usually get held up. Military retired pay and VA benefits come with their own award letters, and whether a particular letter shows what Panama needs (the amount, and that it is for life) is a question for an immigration attorney before you file. We introduce you to one who has done it for veterans. Our veterans page explains how we help, and the 4-question residency check gives you a first read on your options.

2. Retiree discounts: what Bill 746 would change

Pensionado status matters for more than the visa. Panama's Law 6 of 1987 gives retirees and pensioners discounts by law, and once you hold Pensionado residency those discounts apply to you as well. Bill 746 would rewrite that list. According to the text approved in second debate, as reported by La Prensa, Istmo Hoy and Telemetro:

Proposed in Bill 746 Discount
Prescription medicines (in the beneficiary's name, not over the counter) 20%, up from 10%
General and specialist medical consultations 25%
Cancer treatment, therapies, medicines and supplies 30%
Prostheses, wheelchairs, walkers, hospital beds and other assistive equipment 20%
Basic home adaptations such as ramps and grab bars, with medical indication 15%
Coffins and funeral services 25%
Residential sanitation fee 20%
Restaurants 25% kept, but no longer at fondas

The bill would apply to women aged 55 and over and men aged 60 and over, Panamanian or foreign with permanent residency, plus all retirees and pensioners. Shops would have to show the regular and discounted price side by side, and the consumer protection authority (Acodeco) could fine businesses that refuse the discount.

Two cautions. First, none of this is in force. Panama's legislative tracker still listed Bill 746 in third debate on October 30, the Assembly's ordinary session ends on October 31, and the President can sign or veto it. He vetoed the previous version, Bill 226, in September. Second, the details changed between debates, so the final text may differ again. Until a new law is published in the Official Gazette, today's Law 6 discounts are the ones that apply.

Not sure whether you qualify for Pensionado or which route fits your situation? Book a free consultation or take the residency check.

3. VA care in Panama: the Foreign Medical Program

The VA does not run hospitals in Panama. Instead, its Foreign Medical Program (FMP) may pay for medically necessary care you get abroad, but only if the care is:

  • for a VA-rated, service-connected disability, or
  • for a condition the VA determines is associated with and aggravates a service-connected disability (the VA's own example is depression linked to service-connected PTSD), or
  • part of the VA's Veteran Readiness and Employment program.

Anything that is not service connected is not covered by FMP, so you need another plan for the rest of your healthcare. Your FMP benefits letter, which you can download from your VA.gov account under Letters, lists the conditions covered and tells your provider how to submit claims. You can choose any licensed provider in Panama, but many will ask you to pay first and claim back.

The Panama provider suspensions. The VA has suspended a group of Panama doctors, pharmacies and clinics that were named in a criminal complaint over thousands of FMP claims for services that were double billed, overpriced, unnecessary or never provided. The VA estimates the loss at $67 million, and says about 1,030 veterans living in Panama were affected and notified. It publishes the full list of suspended providers on its FMP alerts page, and it continues to process claims from providers not on that list. The criminal case in Panama has been slowed by constitutional appeals, La Prensa reported in May. The practical lesson: check the VA list before you book, and be wary of any provider that offers to handle your FMP claims in ways you do not understand.

4. TRICARE in Panama

If you are a military retiree with Medicare Part A and Part B, TRICARE For Life covers you worldwide. Overseas it works differently from at home, because Medicare does not pay outside the U.S. and its territories:

  • TRICARE becomes the primary payer.
  • You pay TRICARE's annual deductible and cost-shares.
  • You must keep paying for Medicare Part B to stay eligible, even though Medicare will not pay for care in Panama.
  • Overseas, TRICARE For Life questions and claims go to International SOS Government Services, not WPS.

Retirees not yet on Medicare use other TRICARE overseas options, which have their own rules. Most veterans we work with also carry a local private plan for anything neither program covers. We introduce you to brokers who compare them.

Ask us on Webinar Wednesdays

Every Wednesday at 8 PM Panama time we host a free live webinar on Zoom with a different guest, and you can bring your own questions about residency, healthcare and life here. Next Wednesday, November 4, our guest is Mitch Bubb of GLP Properties Panama on secure, profitable real estate for international buyers. Save your seat, or register directly on Zoom.

Have a question about your own situation? Message Jake on WhatsApp about this article or see how veterans move to Panama with us.

Related reading: How the Everything Panama Team Helps You Move to Panama · Foreign Buyers Are Driving Panama's Property Market in 2026 · Panama City's Best-Kept Food Secrets: Eating Like a Local

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Sources

Questions and answers

Can a U.S. veteran get permanent residency in Panama with a military pension?

The Pensionado visa requires a lifetime pension of at least $1,000 a month from a foreign government, an international organisation or a private company. Many retired veterans apply on that basis, but an immigration attorney should confirm that your award letter shows what Panama asks for before you file.

Does the VA pay for healthcare in Panama?

Through the Foreign Medical Program, the VA may pay for medically necessary care in Panama for VA-rated, service-connected conditions and conditions that aggravate them. It does not cover care that is not service connected.

Does TRICARE For Life work in Panama?

Yes. TRICARE For Life coverage is worldwide for those with Medicare Part A and Part B. In Panama, TRICARE pays first and you pay its deductible and cost-shares, and you must keep Medicare Part B to stay eligible.

Are the new retiree discounts in Panama in force?

Not yet. As of October 30, 2026, Bill 746 still needed a third debate in the National Assembly and the President's signature. The existing Law 6 of 1987 discounts continue to apply until a new law is published.

Do Panama's retiree discounts apply to foreigners?

Yes. The discounts apply to foreigners who hold Pensionado residency, and Bill 746 would also cover foreign permanent residents who are women aged 55 and over or men aged 60 and over.

This article is general information, not legal, tax or financial advice. Rules in Panama change, so confirm anything here with us or a licensed professional before you act on it.

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