Getting Prepared For The Philippines > Laws, Regulations, Taxes as Applied to Foreigners

US Healthcare requirement voided by living in the PH?

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tenstar:
Hello, I'm new here and would like to move to the Philippines. The US healthcare requirements say I must sign up for healthcare, but if I'm living in a foreign country like the Philippines is that requirement null and void? Especially if I purchase LOCAL healthcare in the Philippines? Thanks!

Lee2:
First of all welcome to the forum. Now to answer your question I can refer to a news article because the answer is yes and no depending on your situation Foreigners can get PhilHealth but I believe it is only once they have a legal visa to stay in the Philippines, I am not sure about tourists, so I believe you would either have to get an SRRV, which you can read about in at this link http://www.livinginthephilippines.com/forum/index.php?board=58.0 or be married to a citizen of the Philippines or one of the other types of visas, possibly someone staying on a tourist visa can chime in and let us know if they had been able to get PhilHeatlth but a friend of mine was required to give them a copy of his SRRV and another friend who is married needed his 13a before they would issue them  health insurance.

--- Quote ---U.S. Citizens Abroad Avoid Health-Law Mandate
The Affordable Care Act requires most Americans to carry health insurance or pay a tax penalty–and there’s a reason we say “most” rather than “all.”

Americans who live abroad at least 330 days of the year will be treated as if they have qualifying insurance coverage and won’t owe any tax penalty, according to the Internal Revenue Service. That’s true regardless of whether the U.S. citizen actually has health insurance in the country where he or she lives.
Read MORE: http://blogs.wsj.com/washwire/2013/10/02/u-s-citizens-abroad-avoid-health-law-mandate/

--- End quote ---

Lee2:
More info at the IRS website.

--- Quote ---12. Are US citizens and U.S. residents living abroad subject to the individual shared responsibility provision?
Yes. However, U.S. citizens who are physically present in a foreign country or countries for at least 330 full days during any period of 12-consecutive months are exempt from the individual shared responsibility payment for any month in the tax year that is included in that 12-month period. In addition, U.S. citizens who are bona fide residents of a foreign country (or countries) for an uninterrupted period which includes an entire taxable year are exempt for that year. Resident aliens who are citizens or nationals of a foreign country with which the U.S. has an income tax treaty with a nondiscrimination clause, and who are bona fide residents of a foreign country for an uninterrupted period that includes an entire tax year also are exempt. In general, these U.S. citizens and U.S. residents are individuals who qualify for a foreign earned income exclusion under section 911 of the Internal Revenue Code. Individuals may qualify for this exemption even if they cannot use the exclusion for all of their foreign earned income because, for example, they are employees of the United States. See Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad, for further information on the foreign earned income exclusion.  Individuals who qualify for this exemption should file Form 8965, Health Coverage Exemptions, with their federal income tax returns.

U.S. citizens who meet neither the physical presence nor residency requirements will need to maintain minimum essential coverage, qualify for a coverage exemption or make a shared responsibility payment. For this purpose, minimum essential coverage includes a group health plan provided by an overseas employer and certain expatriate health plans. One exemption that may be particularly relevant to U.S. citizens living abroad for a small part of a year is the exemption for a short coverage gap. This exemption provides that no shared responsibility payment will be due for a once-per-year gap in coverage that lasts less than three months.  See Question 22 for more information on the short coverage gap exemption.
13. Are residents of the territories subject to the individual shared responsibility provision?
All bona fide residents of the United States territories are exempt from the individual shared responsibility provision. Individuals who qualify for this exemption should file Form 8965, Health Coverage Exemptions, with their federal income tax returns.
http://tinyurl.com/gswakcv

--- End quote ---

JoeLP:
Before I moved to the Phils in 2013 I visited my local SS office.  Talking to a woman that she varified that Medicare does not cover anyone in the Phils.  I then asked why I should pay for it.  She said I don't and that before I leave to come in and fill out a form and I could add that premium to my income. 

So that's what I did and she assured me I would not be fined as a citizen with foreign residence.  Now, I also checked and due to my standing I do not need to go through the whole "enrollement" process that a normal American residing in the 50 states would need to.  I can enroll at any time.  It may take a month or so to get it set and going again, but I wouldn't have to wait till January and all that to reactivate my Medicare.

Not sure what insurance you are receiving and all, but it seems to me the same rules would apply to you.  There may be some other hurdles or paperwork to fill out depending on what insurance setup you are now under.  Best of luck.

tenstar:
Thank you for helping with this.

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