Obamacare: New Permanent Residents Required to Get Health Insurance

[WorldTravelers 5]

I (and many others, it seems) am a little confused how does Affordable Care Act (Obamacare) affect new permanent residents.

Come Jan 1st, 2014, under this act, all individuals will be required to get heath insurance or pay a penalty. I am just finding out that this applies to new permanent residents as well!

Few questions:

1. Does that mean that the new immigrant will have to purchase a health insurance before entering the country, in order to be insured from day 1?

2. Open enrollment for Obamacare insurance runs between October 1 and March 31. Can the new immigrant enroll upon arrival, even if it's after March 31st?

3. Those that cannot afford the insurance premiums are supposed to qualify for a federal subsidy. Can the immigrants apply for a federal subsidy, or will that affect their sponsors? (usually, immigrants would not qualify for any federal aid until they qualify for citizenship, and any federal benefits they might receive in that time, the government would come back to the sponsor for payback)

4, New immigrants often need to leave the US for few months, especially in their first year here, to take care of some final move issues in their home country (property, accounts...) Would they be required to keep paying for health insurance even for those months they are not here?

5. If the new immigrant is still covered by a health plan in their home country, will they need to purchase health insurance in the US?

Thanks in advance for any advice you have on this complicated new act.

Edited September 27, 2013 by WorldTravelers

[Harpa Timsah 13,258]

They will qualify for the subsidy (if their income qualifies), and for all insurance you keep paying even if you go on vacation. You don't get to nickel and dime and take some months off here and there.

More information about the nuts and bolts will be coming in waves very soon.

[WorldTravelers 5]

They will qualify for the subsidy (if their income qualifies)

How will the income qualification be calculated?

I've read that premium tax credits (which is different from subsidy) will be available to individuals and families with incomes between 100%-400% of the FPL who purchase coverage in the health insurance marketplace in their state.

Will the sponsor's income be deemed to be available to the immigrant and calculated in the immigrant's income, as it would be for Medicaid?

Is the immigrant (in my case, a parent) included in the "household size" for the purpose of determining poverty line, even if tax filing status is Single for both?

To get help with these answers, would one need to contact:

- Immigration lawyers

- Tax advisors

- "navigators": new position of helpers in dealing with insurance exchanges

- someone else?

[NickD 203]

Only if you have to pay income tax, with our rotten economy and exporting our jobs overseas, 46% of the nation does not.

Just received a notice from my VA, because I served my country, don't have to worry about this, already have health insurance, but hardly use it because I have over two bucks in my bank account, have to pay a huge co-payment.

But if I didn't, for the first year, would have to pay either 1% of my gross wages or 95 bucks extra on my tax returns, whichever is greater. This will be increased for the next three years if you don't have health insurance. Didn't memorize that, but does go up substantially. Just tossed that letter in the trash can.

If we have any traitors in this country, its those 575 guys in Washington DC, actually that boils down to about three, because if you don't vote the way your party boss tells you to, won't be around next term. But I waste my time anyway, just bring our jobs back or at least start charging tariffs to all these far east countries that were and maybe still are, our former enemies. They do charge tariffs to our allies.

We never had these huge debts after WW II, Korea, or Viet Nam, if anything, they increased are economy, because the government gets all this money back anyway with income tax. You make a buck, government gets 20% of that, leaving 80 cents left for you to spend, then they get 20% of that to whom you spent that money to, leaving 64 cents for that guy to spend, and so forth until they get it all back.

But once that buck leaves this country, its tax free, the idiots don't even know this simple fact and wonder why they are broke!

Bring our jobs back or start charging huge tariffs on all this imported #######! And ####### it is.

[Harpa Timsah 13,258]

How will the income qualification be calculated?

I've read that premium tax credits (which is different from subsidy) will be available to individuals and families with incomes between 100%-400% of the FPL who purchase coverage in the health insurance marketplace in their state.

Will the sponsor's income be deemed to be available to the immigrant and calculated in the immigrant's income, as it would be for Medicaid?

Is the immigrant (in my case, a parent) included in the "household size" for the purpose of determining poverty line, even if tax filing status is Single for both?

To get help with these answers, would one need to contact:

- Immigration lawyers

- Tax advisors

- "navigators": new position of helpers in dealing with insurance exchanges

- someone else?

I don't know, the health exchanges are up. Have you looked at them?

[WorldTravelers 5]

Only if you have to pay income tax,

But if I didn't, for the first year, would have to pay either 1% of my gross wages or 95 bucks extra on my tax returns, whichever is greater. This will be increased for the next three years if you don't have health insurance. Didn't memorize that, but does go up substantially. Just tossed that letter in the trash can.

I have to pay income tax because of my income, but my mom will have no income to report on her tax return. She will still file a tax return (as I think it's a good proof of her domicile), but if there is no income, she should NOT have to pay the penalty based on income (1% OR $95), right? I mean, you can't have zero income and pay some tax to the government, right? And my income is not hers to report on the tax return.

From my (very limited so far) reading on this, it seems there are two things:

1. You can qualify for premium tax credits and subsidies if your income is bellow 400% poverty line. But for the purpose of calculating your income against FPL, your sponsor's income is taken into affect. Ok, fine. Based on this, my mom would not qualify for these.

These credits can be reported on the tax return, but you could also apply for them in advance (as many people won't be able to pay for premiums and then wait for the credit). Generally, even if you don't have an income, you can qualify for a tax credit. There will probably be some worksheet to figure out if she can claim this credit on the return, and she won't qualify because of her immigration status. Fine.

2. The penalty is calculated on the tax return based on the income. Earned income. Earned income of the person filing the return, the new immigrant. Not based on the funds the immigrant has available for a living (which would be from my income). So, no income - no tax (penalty) to pay?

Am I just reading this wrong and interpreting it the way I want it to be, or am I right?

This is all for the exchanges, which I still have to learn more about. I will look into some limited health insurance through private companies that specialize for insurance for visitors and new immigrants. But maybe not right away. And there is a chance those don't meet the government required minimum coverage, in which case the penalty still applies.

[WorldTravelers 5]

I don't know, the health exchanges are up. Have you looked at them?

I am just starting to read up on this. It's confusing. Do you maybe have some good links to share on health exchanges?

I found out that in my town we'll have two "enrollment supersites" staffed by certified navigators open next week, with free help available, so I might go there for some answers. Hopefully these folks are also trained to answer questions related to immigrants.

[Harpa Timsah 13,258]

http://www.visajourney.com/forums/topic/457000-lpr-and-obamacare/?p=6539618

[Darnell 8,479]

here's some info, straight from the horse's mouth.

https://www.healthcare.gov/help/immigration-status-questions/

https://www.healthcare.gov/help/immigration-status-questions/

https://www.healthcare.gov/help/immigration-status-questions/

[NickD 203]

Sounds like the government hires frustrated English majors to write these new laws that would rather write a novel that the congressmen wrote, but never read, like the APA. Son's in-law works for a huge health insurance agency, running into major problems in reading these some odd 1,200 pages to come up with a comprehensive brochure. Can only wonder if all the health insurance companies would interpret these pages the same exact way.

They are also trying to come up with a 5 buck per month premium that meets the interpretive laws so this tax penalty won't apply. But gives less than five bucks worth of coverage.

Ever try to read those 13,000 pages of our IRS tax laws? Would have kicked me out of college if I used a double negative in a sentence, they use triple and quadrupedal negatives in the same sentence. Hope they are not doing this with these new health insurance laws.

In-law said this extra work was dumped on him and others, running thee weeks behind, hope to get it done by November only leaving a month. Maybe others are ahead. Still have their regular work to do.

Wife said the same thing about her hospital and happy she is not working in patient assistance anymore. Her co-workers are now undergoing training and have to be certified. Plus doing their regular work. She also told me her hospital was just taken over my a major corporation and to expect layoffs. Just replied, let me guess, a kid working for two bucks an hour in the mail room was let go. She said, how do you know this?

[WorldTravelers 5]

Thank you for those links. Lots of information but sill not all facts are known. The last time I talked to someone from healthcare.gov, since their website doesn't an answer to one of my questions, he told I can always go and read through the actual law to find the answer! Seriously?!

Here are some things I confirmed:

- LPRs are required to have insurance (US insurance, not from home country), and can apply for Marketplace plans. This is not considered means-tested benefit.

- If the household MAGI (modified adjusted gross income) is between 100-400%, they can apply for premium tax credit, in advance or on tax return. Still didn't confirm 100% if this credit is considered means-tested benefit or not; a no-no for immigrants with affidavits of support.

- Most marketplace plans should also cover seniors who are not eligible to purchase Medicare (very few fall into this category), and they are not allowed to charge them more than 3x what they charge a 21-year old. The actual prices are no available until you file an application, but based on the Kaiser calculator on the above website, which gives estimates for the Silver plan, our MAGI would be just above 400% of FPL, but the premium would be over 11% of household income.

- LPRs also pay penalty if they don't have insurance, unless they qualify for an exemption. The penalty is calculated on their tax return, based on their MAGI (not household). They are exempt from the penalty if they "don't earn enough to have to file a tax return" - this is determined by IRS, under "who has to file", and that is determined by the individual's AGI, not household.

Also, they are exempt if the lowest-priced coverage available would be more than 8% of household income. I don't know how much the Bronze plan would be, but the silver for us is above 11% of income.

- Federal Medicaid is still not available to LPRs, and TX doesn't have any state medicaid.

- the short term travel insurance is not affected by Affordable Care Act; they can still have lifetime maximum limits, charge what they want, and deny based on pre-existing condition.

Just sharing the information.

[Ruark 4]

- If the household MAGI (modified adjusted gross income) is between 100-400%, they can apply for premium tax credit, in advance or on tax return. Still didn't confirm 100% if this credit is considered means-tested benefit or not; a no-no for immigrants with affidavits of support.

My wife's parents are very interested in this topic. They've been here 2 years and are in their 70s and are LPRs, and of course they have never been able to buy health insurance because they're over 65. My wife sponsored them on her affadavit of support. Are you saying that they can buy insurance on the exchanges, but the affadavit of support blocks their getting any kind of government benefit to cover the cost? They current each get a small pension check from Russia - about $500 a month each. It has been absolutely impossible to find reliable information on this subject.

Thanks

[Harpa Timsah 13,258]

My wife's parents are very interested in this topic. They've been here 2 years and are in their 70s and are LPRs, and of course they have never been able to buy health insurance because they're over 65. My wife sponsored them on her affadavit of support. Are you saying that they can buy insurance on the exchanges, but the affadavit of support blocks their getting any kind of government benefit to cover the cost? They current each get a small pension check from Russia - about $500 a month each. It has been absolutely impossible to find reliable information on this subject.

Thanks

They can get subsidies to cover the cost of insurance on the exchanges. No problem.

[belinda63 3,046]

Without reading all the prior post I will try to summarize.

1. Obtain health insurance through your employer which meets the basic minimum requirements. The employer is supposed to inform you prior to the end of the year if the plan(s) they offer meet this.

2. If your employer does not offer a plan meeting the basic minimum you can purchase off the exchange. If you purchase off the exchange your income will be used to determine your premium payment. The subsidy is a tax credit so it is not a means tested benefit. By buying off the exchange you get the benefit on the premiums or you can wait until you file taxes and take the credit then (having to pay full price for the insurance).

When the immigrant arrives they will have to purchase insurance, not sure of the time allowed to do so, and of course the household income is used to calculate what subsidy they qualify for. Just like if you went on vacation overseas, you don't cancel your health insurance, same for an LPR. They are a resident of the US and taking a vacation. If they claim they live overseas they are no longer a resident.A plus is a lot of the plans have limited coverage if you are out of the country.

Unless the health plan from the other country offers coverage in the US that meets the basic minimum requirements they will have to purchase insurance here. Very, very doubtful any foreign insurance would.

Hope this answers some of the questions and remember this is still a very fluid situation.

[WorldTravelers 5]

Are you saying that they can buy insurance on the exchanges, but the affadavit of support blocks their getting any kind of government benefit to cover the cost? They current each get a small pension check from Russia - about $500 a month each.

Yes, LPRs are able to buy insurance on the exchanges now. I am still not 100% sure that tax credit on federal tax return is not federal means tested benefit. But lets say it's not - AOS is not "blocking" them from getting subsidy per say, but that income is taken into household income when calculating their eligibility.

Even if the immigrant doesn't live in the same household as the sponsor, that income is still calculated. So, if the household income is above 400% of FPL (depending on the family size), they may not qualify for any premium tax credit. And the credit is higher for those closer to 100% than for those closer to 400%.

They can get subsidies to cover the cost of insurance on the exchanges. No problem.

This is true only if the household income is under 400% of the poverty level for that family size.

For us, for example, my mom would not qualify for tax credit, but would still have to pay over $630 a month in premiums for basic coverage on the exchanges. Not cool.