FHBOY Posted September 24, 2013 Report Share Posted September 24, 2013 Affordable Care Act and Expats If we can leave behind all the politics of this, there is a good question to be asked:How does the ACA affect those USA citizens living abroad as expats who are not yet old enough for Medicare (yes, some of us are that young). We are, after all, USA citizens.I would appreciate links and citations, rather than opinions.I left the USA as a Maryland resident and now wonder if we would be required to sign up for USA based health insurance through an exchange or face the tax penalty under the law. Link to comment Share on other sites More sharing options...
jkgourmet Posted September 24, 2013 Report Share Posted September 24, 2013 This is the only information I could quickly find that is information directly from the government. It applies only to ex-pats who get their health insurance through an employer group plan: http://www.dol.gov/ebsa/faqs/faq-aca13.html For individuals, the issue has yet to be resolved. Like so much of the ACA, it's a work in progress. Or a train wreck in progress, depending on your point of view. http://americansabroad.org/issues/taxation/aca-proposes-comprehensive-compliance-program/ Link to comment Share on other sites More sharing options...
blabbyabbey Posted September 24, 2013 Report Share Posted September 24, 2013 Affordable Care Act and Expats If we can leave behind all the politics of this, there is a good question to be asked:How does the ACA affect those USA citizens living abroad as expats who are not yet old enough for Medicare (yes, some of us are that young). We are, after all, USA citizens. I would appreciate links and citations, rather than opinions. I left the USA as a Maryland resident and now wonder if we would be required to sign up for USA based health insurance through an exchange or face the tax penalty under the law. I don't think that expats are required to sign up - I have used this site, there is contact at the bottom of the site - When we move back NOB we will still be under the medicare age and will be using the ACA. http://www.healthcare.gov/families http://americansabroad.org/issues/healthcare/health-bills-no-fines-for-americans-abroad/ Link to comment Share on other sites More sharing options...
tomgates Posted September 24, 2013 Report Share Posted September 24, 2013 We are also below Medicare age and one of us has private Mexican health insurance and I have US insurance. As I understand it, if you don't have insurance that meets the criteria of the ACA, then you would pay a penalty to the IRS. I believe the Mexican insurance meets the criteria of the ACA. Link to comment Share on other sites More sharing options...
bwhite1948 Posted September 24, 2013 Report Share Posted September 24, 2013 This article is well written but who knows if it's accurate. One interesting point is that since IRS is the watchdog of some of the ACA, the article indicates that the address you use on your Federal Income Tax return will become very important. http://voices.yahoo.com/how-does-obamacare-affect-americans-living-abroad-12246047.html Link to comment Share on other sites More sharing options...
gringal Posted September 24, 2013 Report Share Posted September 24, 2013 Found this on one of the government sites: (HEALTHCARE.GOV.) Start the search with "exemptions for..............etc." you'll find the site. " U.S. citizens living outside the U.S. U.S. citizens living in a foreign country are not required to get health insurance coverage under the Affordable Care Act. If you're uninsured and living abroad, you don't have to pay the fee that other uninsured U.S. citizens may have to pay." Link to comment Share on other sites More sharing options...
bwhite1948 Posted September 24, 2013 Report Share Posted September 24, 2013 Found this on one of the government sites: (HEALTHCARE.GOV.) Start the search with "exemptions for..............etc." you'll find the site. " U.S. citizens living outside the U.S. U.S. citizens living in a foreign country are not required to get health insurance coverage under the Affordable Care Act. If you're uninsured and living abroad, you don't have to pay the fee that other uninsured U.S. citizens may have to pay." This is what the yahoo articles says as well. Again, as that author indicated, IRS will look at the address on your Income Tax return; if it's in the US their assumption will be you should be buying into the ACA. So, if you've been using your kid's or sister's or HandyMail's US address on your 1040, it's gonna raise a question from IRS. Maybe an (un)intended consequence is that ACA will help IRS enforce FACTA. Could be a Catch-22 for some expats. Link to comment Share on other sites More sharing options...
Juan de Uruguay Posted September 24, 2013 Report Share Posted September 24, 2013 When all else fails, just read the law. If someone comes to Mexico, gets a Mexico residency visa, and doesn't spend an entire calendar month in the US, I would think they are not "legally present" and wouldn't have to pay a month's coverage or more under this law. Here it is, straight from the final law passed by Congress: This Act may be cited as the ‘‘Patient Protection and Affordable Care Act’’. COMPILATION OF PATIENT PROTECTION AND AFFORDABLE CARE ACT TITLE I—QUALITY, AFFORDABLE HEALTH CARE FOR ALL AMERICANS ----------------- Subtitle F—Shared Responsibility for Health Care PART I—INDIVIDUAL RESPONSIBILITY --------------------------------- ‘‘CHAPTER 48—MAINTENANCE OF MINIMUM ESSENTIAL COVERAGE Sec. 1501\5000A IRC ‘‘Sec. 5000A. Requirement to maintain minimum essential coverage. ‘‘SEC. 5000A. REQUIREMENT TO MAINTAIN MINIMUM ESSENTIAL COVERAGE. ‘‘(d) APPLICABLE INDIVIDUAL.—For purposes of this section— ‘‘(3) INDIVIDUALS NOT LAWFULLY PRESENT.—Such term shall not include an individual for any month if for the month the individual is not a citizen or national of the United States or an alien lawfully present in the United States. Link to comment Share on other sites More sharing options...
tomgates Posted September 25, 2013 Report Share Posted September 25, 2013 It isn't a function of residency or lack thereof. It is a function of being a citizen and taxpayer of the US. Link to comment Share on other sites More sharing options...
Juan de Uruguay Posted September 25, 2013 Report Share Posted September 25, 2013 With all due respect, it's a matter of being " lawfully present". It has nothing to do with residency, EXCEPT for having legal residency somewhere else to prove they are legally present somewhere else. If a US citizen is not present in the US, it doesn't apply. " lawfully present in the United States." If you have Mexico residency but spend 6 months of the year in Yakima and too young to qualify for Medicare, you'd be legally present 6 months of the year. You'd be on the hook for 6 months of an approved Obamacare insurance plan. Just saw some of the proposed pricing, and for a 60 year old, it would cost about $800 a month without subsidy. Link to comment Share on other sites More sharing options...
gringal Posted September 25, 2013 Report Share Posted September 25, 2013 Is there a problem about being honest about where you actually live? I live in Mexico, so no problem. Link to comment Share on other sites More sharing options...
tomgates Posted September 26, 2013 Report Share Posted September 26, 2013 Where is $800 coming from? Individual, couple make a difference. Rates haven't been set anyway. Link to comment Share on other sites More sharing options...
El Saltos Posted September 26, 2013 Report Share Posted September 26, 2013 Rates HAVE been set in the exchanges in 36 states. Link to comment Share on other sites More sharing options...
RickS Posted September 26, 2013 Report Share Posted September 26, 2013 This article (today) may shed some light on this subject.... http://www.theatlanticwire.com/politics/2013/09/obamacare-insurance-rates-will-be-less-expected/69847/ Link to comment Share on other sites More sharing options...
Juan de Uruguay Posted September 26, 2013 Report Share Posted September 26, 2013 From appearances, there are a lot of South Dakota residents running around Mexico. Here are South Dakota's rates, and Clay County is in Area 2:: http://www.zanebenefits.com/blog/bid/312290/South-Dakota-Health-Exchange-Update-Plan-Rates Link to comment Share on other sites More sharing options...
Toni Baloney Posted September 26, 2013 Report Share Posted September 26, 2013 Premiums are determined by total household income. Here's the cost calculator for Washington state: http://www.wahbexchange.org/index.php?cID=472 Link to comment Share on other sites More sharing options...
bmh Posted September 26, 2013 Report Share Posted September 26, 2013 I would think greencard holders working and living in the US would fall under the group that has to have insurrance. I have a question : if IRS is the enforcer does it means that people who live here and file their taxes with a US address have to get the insurrance? Link to comment Share on other sites More sharing options...
bmh Posted September 26, 2013 Report Share Posted September 26, 2013 If you are a resident of Mexico and live 6 months in the States couldn´t you buy travel insurrance that will pay for sending you back to Mexico in case of a problem or is 6 months too long of a period for travel insurrance.? When I go to France and stay for a month or two I buy travel insurrance and have some coverage from my Mexican insurrance. Link to comment Share on other sites More sharing options...
gringal Posted September 26, 2013 Report Share Posted September 26, 2013 Now, about that Texas drop box address, which the U.S. Govt. is completely aware of and won't even ship a roll of stamps to: Companies who you buy from in the U.S. won't ship there. Netflix won't consider that a U.S. address for purposes of hooking you up to U.S. Netflix. In other words, everybody knows the deal. It probably won't effect the ACA determination of where you live, either. Now, if you've been "living" at your relatives' address somewhere in the States for some reason.......you might have a problem, especially if you use that for your IRS reporting address. If you're REALLY worried, you can drop that address and get a P.O. Box at the local Mexican post office. I hear it's reliable. And, if you find yourself being hassled, you might try sending a copy of your "Residente Permanente" card to whatever agency is hassling you...........if you have the card. Those articles I've been reading haven't enlightened me about whether or not a legit resident of a foreign country who takes a 45 day sojourn to the U.S. for vacation or family reasons must sign up and pay for that time, or not. Seems vague. Link to comment Share on other sites More sharing options...
jkgourmet Posted September 26, 2013 Report Share Posted September 26, 2013 Those articles I've been reading haven't enlightened me about whether or not a legit resident of a foreign country who takes a 45 day sojourn to the U.S. for vacation or family reasons must sign up and pay for that time, or not. Seems vague. IT IS VAGUE. Like I said in my prior post, the law has not been written fully covering this specific issue. Link to comment Share on other sites More sharing options...
Sailor Posted September 26, 2013 Report Share Posted September 26, 2013 Now, about that Texas drop box address, which the U.S. Govt. is completely aware of and won't even ship a roll of stamps to: Companies who you buy from in the U.S. won't ship there. Netflix won't consider that a U.S. address for purposes of hooking you up to U.S. Netflix. In other words, everybody knows the deal. It probably won't effect the ACA determination of where you live, either. Now, if you've been "living" at your relatives' address somewhere in the States for some reason.......you might have a problem, especially if you use that for your IRS reporting address. If you're REALLY worried, you can drop that address and get a P.O. Box at the local Mexican post office. I hear it's reliable. And, if you find yourself being hassled, you might try sending a copy of your "Residente Permanente" card to whatever agency is hassling you...........if you have the card. Those articles I've been reading haven't enlightened me about whether or not a legit resident of a foreign country who takes a 45 day sojourn to the U.S. for vacation or family reasons must sign up and pay for that time, or not. Seems vague. What do you mean about "Texas drop box"? We had two addresses in Texas-one at a UPS store and the other was the Laredo address given to us by Mailboxes and Sol y Luna. As long as there is a street address, we received our IRS statements, Medicare statements, etc. and had all kinds of stuff we bought at Amazon.com and other companies delivered there. Never a problem. It was also our address for Vonage. Link to comment Share on other sites More sharing options...
gringal Posted September 26, 2013 Report Share Posted September 26, 2013 What do you mean about "Texas drop box"? We had two addresses in Texas-one at a UPS store and the other was the Laredo address given to us by Mailboxes and Sol y Luna. As long as there is a street address, we received our IRS statements, Medicare statements, etc. and had all kinds of stuff we bought at Amazon.com and other companies delivered there. Never a problem. It was also our address for Vonage. I mean the Texas address given by either Handymail or Mailboxes etc., which is, in fact a place devoted to receiving and distributing mail. Some U.S. companies will ship there and some won't. Most of those we deal with won't, which is why we use Importers such as Estafeta and Merkalink when we buy onliine. We, too, receive our IRS and other statements there and have done for years since it seems to be the most secure way of getting items such as credit cars and bank statements. My point was that everyone is aware that it is not the kind of address which should be a problem re establishing where you actually live in terms of ACA rules. Link to comment Share on other sites More sharing options...
bmh Posted September 26, 2013 Report Share Posted September 26, 2013 I was just wondering about the US addresses, we have a Mexican address and report to the IRS as residents of Mexico so we are not concerned by that aspect but I know many people who are. Big brother both in Mexico and in the US the last 10 years. and is forcing everyone to be resident of one place or another, it seems that the loopholes are being closed one at a time and flexibility of doing one thing or another will be disappear totally. Link to comment Share on other sites More sharing options...
gringal Posted September 26, 2013 Report Share Posted September 26, 2013 I was just wondering about the US addresses, we have a Mexican address and report to the IRS as residents of Mexico so we are not concerned by that aspect but I know many people who are. Big brother both in Mexico and in the US the last 10 years. and is forcing everyone to be resident of one place or another, it seems that the loopholes are being closed one at a time and flexibility of doing one thing or another will be disappear totally. This is probably the end result of improved communication devices and cross referencing. 1984 is now. Link to comment Share on other sites More sharing options...
bmh Posted September 26, 2013 Report Share Posted September 26, 2013 If you live in Mexico with the P.O.Box/physical address from mailbox etc in Texas how do you file? Under Texas and send the returns where the Texans send them or do you file under " International " because you live abroad? Link to comment Share on other sites More sharing options...
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