ACA

We are thinking about dropping our BlueCross BlueShield health insurance (kept it from Govt service when I retired) this next November. If I understand it correctly, I need to be out of the US for about 335 days (can't remember exactly) to avoid tax penalties. We won't meet that requirement for 2015 since we got here 16 April, but I believe choosing to drop the insurance in November doesn't actually take place until the new year so it would only count on our 2016 tax year.....that sound right?

Not too sure we are doing it yet, but if we end up buying a house a bit over our budget I figure that the $330 a month will offset that greater cost upfront. We would be signing up with a local surgery we already used in the past and it was pretty decent.

With regards to your message, if you qualify as an expat (using either the physical presence test or bona fide residence test), you do not need to purchase insurance under the ACA. Expats are exempt from having to purchase Obamacare coverage.

If you would like even more information, you can see additional articles on our website.

I think this one in particular will help answer your question: http://www.greenbacktaxservices.com/blog/obamacare-and-expatriate-taxes/

Also, it is my understanding that you can have up to a three month gap in coverage without ill effect. As such if you cancel your policy in November, you should still not have to pay the fine.

I hope this helps!

Make sure that by giving up the Government service insurance you aren't loosing anything else like access to Medicare plans when you become eligible if you are going to be paying for it or dental insurance.

I don't know much about Medicare, but why would dropping my US health insurance cause a problem with Medicare? Granted, I am planning on staying in the UK for good so what I've understood of Medicare I won't have access to it anyway. Although.....I might register for it when it's time just in case. I had no dental coverage on our current plan.

What about future visits back to the US?  Having Medicare would be a safety net should you become ill on the visit.

I have Medicare A because it's automatic; did not opt to pay for Medicare B. If I ever go back to the US (doubtful) and take Part B I'll pay the 'penalty' for delayed enrollment. The cost w/be far cheaper than paying for coverage I'm not likely to use.

We also dropped BC/BS when we moved. DH was on COBRA and I paid as self-employed. Premiums in 2011 were >$12K per year. Not a snowball's chance in hell that I would pay that "just in case".

I don't plan on going back to the US very often at all. Maybe every 3 years or so at the best. I would likely have to take a separate health policy.....but that is cheaper than paying $4,000 a year. I'm only going to be 58 this summer, so the Medicare choices are still years away for me. That $4,000 is 2 months of living expenses for us.

I don't know much about Medicare, but why would dropping my US health insurance cause a problem with Medicare? Granted, I am planning on staying in the UK for good so what I've understood of Medicare I won't have access to it anyway. Although.....I might register for it when it's time just in case. I had no dental coverage on our current plan.

If you will be staying in the UK until you die then I can see opting out of Medicare, but that does mean that if you change your mind you'll end up paying far higher premiums that other Medicare recipients.

Also most people on Medicare buy supplementary insurance and you might lose access to those if you give up your US Government retiree insurance now. So while giving up your current insurance might be a good move, make sure you understand the implications fully.

If you will be staying in the UK until you die then I can see opting out of Medicare, but that does mean that if you change your mind you'll end up paying far higher premiums that other Medicare recipients.

Also most people on Medicare buy supplementary insurance and you might lose access to those if you give up your US Government retiree insurance now. So while giving up your current insurance might be a good move, make sure you understand the implications fully.

Staying here for good is the plan. Luckily it's another 7 years before I have to make the decision. Just made an offer on a house today, so we'll see how things go.