Restarting ACA after long trip

[HoneyBadger]

DW and I (US citizens) are planning nine months in Europe, where the ACA won't cover us. We'll be paying for travel-friendly health insurance during this period, so we don't really want to pay ACA premiums for nine months of coverage we can't use.

But we'd like to restart ACA coverage on our return to the US. "Returning from a long vacation" doesn't seem to qualify us for Special Enrollment Period.

Has anyone else faced this problem, and if so, how did you resolve it?

Thanks!

 

[PaunchyPirate]

I think the government would expect you to retain your coverage while on the extended vacation even though you would rather not.

From the healthcare.gov website… “Moving only for medical treatment or staying somewhere for vacation doesn’t qualify you for a Special Enrollment Period. You must prove you had qualifying health coverage for one or more days during the 60 days before your move. You don't need to provide proof if you’re moving from a foreign country or United States territory.”

I think you’d really have to prove that you “moved” abroad rather than just left for a while.

You could time your trip so that your return coincides with the January 1 start date for a new year. You would need to sign up for coverage after Nov. 1st.

 

[captain3d]

I finished a job and went on a long overseas trip so I did not pay cobra or ACA thinking I would pick it up when I got back in Oct.

As you know not possible for either. And CAlifornia had banned all other medical coverage ‘for my protection’ so I had nothing till the end of the year.

I was then super pleased to get. $3000 tax penalty for not having health insurance.

Things have changed but you better check the details

 

[Bamaman]

But don't forget about the Schengen Agreement that only allows you to stay in the European Union for 90 days within a 180-day period. Many will have to stay into the U.K. and some other small Eastern European countries to keep within the 90 days.

 

[Irishgirlyc58]

I finished a job and went on a long overseas trip so I did not pay cobra or ACA thinking I would pick it up when I got back in Oct.

As you know not possible for either. And CAlifornia had banned all other medical coverage ‘for my protection’ so I had nothing till the end of the year.

I was then super pleased to get. $3000 tax penalty for not having health insurance.

Things have changed but you better check the details

I don’t understand this. California has had open enrollment for people who would be subject to the state tax penalty and also because of the pandemic.

 

[cathy63]

I don’t understand this. California has had open enrollment for people who would be subject to the state tax penalty and also because of the pandemic.

I think he may be talking about years ago when there was still a Federal penalty.

 

[Irishgirlyc58]

I think he may be talking about years ago when there was still a Federal penalty.

Thanks! I totally read that wrong.

 

[captain3d]

It was 2018 just before the penalty went away. I could not enroll as I had been out of the country and missed the deadline.

 

[HoneyBadger]

But don't forget about the Schengen Agreement that only allows you to stay in the European Union for 90 days within a 180-day period. Many will have to stay into the U.K. and some other small Eastern European countries to keep within the 90 days.

Yes, we're planning to start in the Schengen zone for 3 months, then hit the U.K. and the rim of Africa, then finish up the last 3 months back in the Zone.

 

[gauss]

Are there still "short-term" non-ACA-compliant policies that could be purchased at any time? I believe that the former President liberalized the availability of these.

edit: It looks like there are at this site (at least in my state).

Many of the plans appeared to be 6 months in duration.

Also, since these are not ACA plans, the protections such as guaranteed-issue and medical underwriting may be more like the pre-ACA days in the individual market.

Let the buyer beware.

-gauss

 

[Aerides]

I'd keep your policy, maybe drop to one with lower premiums for the single year of travel. While it might not be super economical, it avoids all these issues. And 9 months is a long time. If one of you became ill you might want to return home for treatment.

 

[BarbWire]

I did something similar in 2019, as I intended to spend two years mostly away from the US (but by March 2020 Covid changed that .)

I got an EXPAT medical insurance policy from Cigna. Far lower premiums and much better coverage than my ACA policy, and it would cover me for up to 90 days in the USA each year (that was a benefit I paid extra for in case I needed to return to the US for something major, using my MedJet transport insurance).

IMPORTANT:

(1) the Cigna global policy is/was considered a “qualified” medical plan so when I ran out of my 90 days coverage in the US in June 2020, I could transition back to a $$$ ACA policy on the basis of “life event” moving. (In this case BCBS-FL) with no gap in coverage eligibility

(2). I had set up a UK address at the mail forwarding service ExPat mail, and though it was not my residence it was just fine for BCBS to use to bless a “move” (heck, they want the business so aren’t too fussy!). I used the address for Cigna (though they would accept the address of your first hotel outside the US to initiate coverage!), and to receive a couple of Amazon packages when I was in the UK, but for nothing else.

Google expat medical policies which are PRIMARY, not travel health policies which are generally SECONDARY.

Note: Many countries in Europe now require that you have substantial medical insurance (a remnant of covering the costs of the Covid catastrophe) and, while simple care such as treating a sore throat or pink eye or an infected cut is usually inexpensive, anything more complex like a broken bone can get very expensive quickly.

 

[aaronc879]

This may not apply to your situation but you could try to get by next year without making any withdrawal from IRAs thereby lowering your AGI which would give you a lower ACA premium. Say you make $40K as a couple with pension and dividend income and you have cash you could use to make up the difference in spending. That would give you a very low(almost zero) ACA premium. You may have to take out extra from your IRA the following year to replenish your cash and therefore pay full freight for ACA that year but at least you would have one year with very low ACA rates. Just an idea. Maybe you can tweak it to fit you situation.