Obamacare, changes on regulation in the USA

Obamacare (2014) : regulatory developments in the USA revolutionizing the insurance landscape and insurance possibilities for expatriates. Intended to offer medical insurance to the poorest, the so called Obamacare law impact the insurance market for expatriates, including top up to CFE.

Obamacare

Obamacare, key points

We recommand that you contact the official entities and local advisors to study your obligations with regard to American regulations.

The Patient Protection and Affordable Care Act (PPACA) is a health care reform law signed into  law by President Barack Obama in March 2010. This law is also know as “Obamacare”. The main objective of PPACA is to reform the health system in order to improve the quality and access to care for all in the USA.

To summarize, the law has two major obligations:

  • First, the individual obligation,
  • Second, the Employer’s obligation.

The individual obligation states that individuals must have health insurance coverages that meet certain levels of coverage. This obligation is valid for themselves, their spouse and dependent children. I.e. anyone they claim to be dependent on on their tax declaration. The individual obligation will take effect on January 1, 2014.

All persons legally present in the USA must have PPACA compliant health insurance covergae, including:

  • American citizens,
  • Permanent residents,
  • Foreign nationals recognized as tax residents.

Obamacare

What happens if someone does not have an Obamacare health insurance?

A tax penalty may apply when filing the IRS form for your declaration, if you did not subscribe to a PPACA compliant health insurance. Some people may be exempt. for more information, you can have a look on the following links:

Before subscribing an international health insurance, we warm you about the possible penalties that you would have to assume and recommand you to contact a specialist on this matter to study your personal situation.

 

Obamacare

Regulation

Please note that subscribing to an international health insurance does not free you from the local regulations. If you are eligible to contribute to the local healthcare system in certain countries and do not have local cover in place, you may be subject to paying a tax levy.