Obamacare Health Insurance and American Expats

[gk10002000]

How about some discussions on how this new system will affect Expats? The specifics of what is required of US citizens, and what the options are and the penalties are still not very defined, although I have read several articles about it.

If an American has Thai health insurance will that allow him to not deal with Obamacare? How would that be reported or documented? I haven't seen anything in the literature about that.

Every thing I have read about Obamacare suggests my rates will go up to help cover those in the "pool" that don't have adequate coverage. So now that I can retire to Thailand should I choose, and with my complete and total objection to this new mandatory health insurance, I am really getting more motivated to retire abroad or certainly get the retirement visa and spend most of my time there. It is hard for me to believe that Thai health insurance will cost more than Obamacar. I am 56.

[lanny]

Expats will not have to have coverage if they meet either of the requirements for the Foreign Earned Income Exclusion. They will not have to claim the exclusion, just meet the requirements. So, a retired person, living on a taxable pension, which would not qualify for the exclusion, could still be exempt from coverage.

Presumably, you will have to include an expanded Form 2555 with your return.

Just as a reminder, the requirements are that you either stay outside the US for 335 days in a twelve month period or are a bona fide resident of a foreign country.

[maxman71]

Expats will not have to have coverage if they meet either of the requirements for the Foreign Earned Income Exclusion. They will not have to claim the exclusion, just meet the requirements. So, a retired person, living on a taxable pension, which would not qualify for the exclusion, could still be exempt from coverage.

Presumably, you will have to include an expanded Form 2555 with your return.

Just as a reminder, the requirements are that you either stay outside the US for 335 days in a twelve month period or are a bona fide resident of a foreign country.

Lanny has it right. A US citizen/US Permanent Resident (i.e. Green Card holder) is presumed to have "Minimal Essential Coverage" under the ACA, i.e. "ObamaCare" requirements if they are out of the US at least 335 calendar days a year (also referred to as the Foreign Earned Income Exclusion threshold). And therefore, they are not required to obtain health care insurance in the US.

One of the earlier drafts of ACA did not exclude expats meeting the Foreign Earned Income Exclusion. But due to lobbying efforts by various US expat organizations, such as the AARO (Association of Americans Resident Overseas) and loud outcries from many of the approximately 6 million Americans who live overseas (myself included), Congress amended the draft legislation to exclude expats. Link to AARO's homepage below where you should be able to get more info.

I had researched this topic during the time period ACA was being debated in Congress and found AARO a good source of information on the topic.

http://www.aaro.org/

[gk10002000]

Thanks for the replies. I won't have a "pension", but I will have dividends and interest from my investment portfolio, and Social Security monies when that kicks in.