British expats who have taken early retirement and moved to Europe will lose free access to local healthcare, the Telegraph has reported.
The change, likely to come in on 1st April 2014, will mean UK citizens in countries such as France and Spain will no longer receive free treatment when they do not qualify through employment.
Currently, many unemployed expats under age 65 (or women under 60) within the European Economic Area can pass their healthcare costs to the Treasury (for up to two and a half years ) after completing Social Security form S1 before leaving the UK.
The changes do not affect people who already hold residual S1. However, once their current form lapses, those living in France would be obliged to buy private medical insurance, The Telegraph said.
A Department of Health spokesperson told The Telegraph: "No other European state offers an equivalent to the residual S1 and the reasons for the UK doing so in the past probably arise because the NHS is different to continental systems."
She added: "We are committed to ensuring that the NHS is sustainable and fair for the British taxpayer. The changes only apply to new applications. All existing residual S1 forms will remain in place and continue to be valid until their cessation date.
"We are continuing to work through the operational implications of the change and will make a further announcement once this work has been completed."