Straight Dope Message Board

[grude]

What if any provisions are there for Americans who live abroad, and may even already be covered by private insurance or taxpayer supported health care in the country they live in?


It seems pretty bizarre that US citizens and dual citizens who may not even be to able to get a policy(travel insurance usually covers US residents on vacation) or be able to use a US based policy would be penalized.

[Jas09]

I can only find a one-page policy brief (here: PDF).

It states that the individual mandate does not apply to US citizens living abroad. Here is the relevant part of the document:

Does the individual mandate apply to U.S. citizens who are working outside the U.S.? Would such persons be eligible to purchase insurance through the new Exchanges?
The answer to both these questions is “no.” As discussed above, the individual mandate provision exempts U.S. citizens living abroad. In addition, U.S. citizens living abroad will be ineligible to purchase coverage through any individual plan offered through an Exchange (see PPACA § 1312(f)(1)(A)(ii)).

[Iggy]

So long as you spend 300 days per year outside the US then you do not have to have qualifying insurance or pay the penalty for failing to have insurance.

I am an expat and my insurance is EXCELLENT but would not qualify as acceptable coverage under PPACA. Glad I don't have to double up and get a second inferior policy to cover stuff I do not want.

[rhoenelfe]

Iggy, I happen to be shopping around for expat (residing in Germany and Italy) insurance. May I ask who you are so happy with?

[Iggy]

Originally Posted by rhoenelfe

Iggy, I happen to be shopping around for expat (residing in Germany and Italy) insurance. May I ask who you are so happy with?

CINICO, a government-run insurer in Cayman. It is 100% paid for by my employer. Not available for the international market, AFAIK.

[dajhilton]

It should be stressed that Americans abroad remain liable for all additional taxes required by Obamacare, even though we cannot obtain the health benefits of the law.

The biggest of these, of course, is the new 25% hike in capital gains taxes. (An additional 3.8% of capital gains tax will be added to whatever other capital gains rate would be payable).

Therefore, if, for example, you sell a home in London that you bought in 1990 for $ 300,000 and realised $ 300.000 from the sale (not at all an unlikely scenario), you will be billed for an additional $ 11,500 in US capital gains taxes, which cannot be set off against other taxes or otherwise avoided.