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Some people might want to know if they will be forced to pay an additional tax once obamacare goes into effect in 2014. Here is the answer

 

 

In June 2012 the Supreme Court gave its approval to the Affordable Healthcare Act and many Americans living outside the USA are wondering if the law applies to them. The Supreme Court decision did not change anything in the law and Americans who are bona-fide residents overseas are presumed to have minimum essential coverage and as such do not have to pay a tax for not being insured in the US.
When the law was being discussed in Congress in 2010, ACA and other action groups were able to put pressure on Congress not to include Americans abroad, especially concerning the "Requirement to maintain minimum essential coverage." Overseas Americans are not exempted; technically speaking they are presumed to have acceptable minimal coverage.

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Something interesting ... one of the reasons I am considering CR is because I can not afford healthcare in the US anymore ... CAJA, INS, and pay as you go in CR seem to be more affordable.

 

One interesting development is that it appears that the cost of US health insurance is about to drop ... I think people are not suppose to spend more than 4% of their income on health insurance under the new program. Whether the government can afford the subsidies is another question.

 

Using the Kaiser calculator below, it appears my total insurance premium in the US in the future is getting much closer to my estimate for CR (CAJA+INS+Out of pocket) which could be a game changer in our decision to move.

 

http://healthreform.kff.org/subsidycalculator.aspx

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A couple of the Notes:

"Based on the Patient Protection and Affordable Care Act (including subsequent amendments in the Health Care and Education Reconciliation Act of 2010), as signed by the President.

The premiums are illustrative examples in 2014 dollars derived from estimates of average premiums for 2016 from the Congressional Budget Office. For a 40 year old single adult, the premium for a silver plan is assumed to be $4,500 for a plan with a 70% actuarial value. To the extent that actual expected enrollment in 2014 differs from what CBO assumed for 2016 -- e.g., it has a different composition of people by health status or age -- then premiums could vary from this amount.

Premium subsidies are based on a silver plan (with an actuarial value of 70%), so all premiums shown are for silver coverage. People may be able to pay a lower premium for less comprehensive coverage (i.e., a bronze plan, with an actuarial value of 60%). The tables showing results by age and income also reflect premiums for silver coverage, though the minimum insurance that people would be required to obtain would be bronze coverage.

The proposal also makes available a catastrophic policy for young adults and those exempted from the requirement to obtain insurance that is less comprehensive and has a lower premium than other coverage. It is not reflected in the calculator.

The actual premium calculated is adjusted for family type, and for age (within the three to one limit specified in the proposal). Subsidized people can enroll in more expensive plans, but must pay the full difference in the premium."

AND: "Note: Subsidies are only available for people purchasing coverage on their own in the Exchange (not through an employer). All individuals and families with incomes at or below 133% of the federal poverty level will be eligible for Medicaid. Others with higher incomes may also be eligible, depending on rules that vary by state."

From what I see you will get "tax credits", but this is not defined: Is it a full 100%, or only 50%, or even less? Depending on this, you will still be laying out a good chunk of your own cash.

Dana

Edited by DanaJ

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Just curious, Jim, why you would want to have INS plus CAJA?

 

Eleanor ... I understood that with INS you go to the head of the line not having to wait for procedures and tests and have more choices of your your care, hospital, specialists and physicians. We can afford this "luxury" especially compared to what we pay in the US it seems like small change for that rider ... In addition, I figure we will need BUPA or some kind of travel insurance when we travel outside CR to be safe.

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A couple of the Notes:

"Based on the Patient Protection and Affordable Care Act (including subsequent amendments in the Health Care and Education Reconciliation Act of 2010), as signed by the President.

The premiums are illustrative examples in 2014 dollars derived from estimates of average premiums for 2016 from the Congressional Budget Office. For a 40 year old single adult, the premium for a silver plan is assumed to be $4,500 for a plan with a 70% actuarial value. To the extent that actual expected enrollment in 2014 differs from what CBO assumed for 2016 -- e.g., it has a different composition of people by health status or age -- then premiums could vary from this amount.

Premium subsidies are based on a silver plan (with an actuarial value of 70%), so all premiums shown are for silver coverage. People may be able to pay a lower premium for less comprehensive coverage (i.e., a bronze plan, with an actuarial value of 60%). The tables showing results by age and income also reflect premiums for silver coverage, though the minimum insurance that people would be required to obtain would be bronze coverage.

The proposal also makes available a catastrophic policy for young adults and those exempted from the requirement to obtain insurance that is less comprehensive and has a lower premium than other coverage. It is not reflected in the calculator.

The actual premium calculated is adjusted for family type, and for age (within the three to one limit specified in the proposal). Subsidized people can enroll in more expensive plans, but must pay the full difference in the premium."

AND: "Note: Subsidies are only available for people purchasing coverage on their own in the Exchange (not through an employer). All individuals and families with incomes at or below 133% of the federal poverty level will be eligible for Medicaid. Others with higher incomes may also be eligible, depending on rules that vary by state."

From what I see you will get "tax credits", but this is not defined: Is it a full 100%, or only 50%, or even less? Depending on this, you will still be laying out a good chunk of your own cash.

Dana

 

 

hmm ... interesting point ... and if you don't pay 10's of thousands of dollars in taxes, I am not sure how you would use tax credits ... maybe you can barter them <joke>?

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We had INS until we were eligible for CAJA. We know people that have both. In fact, we know people that have both but didn't want CAJA, which they are now required to have anyway, so they are kind of bent over that, having to pay for insurance that they don't use.

 

Dana

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