ObamaCare and Studying in Australia

ObamaCare and studying overseas.

Whether you support Affordable Care Act (ObamaCare) or don't support it, is a matter of debate. As January 1,2014, American and legal residents living inside the United States will have purchase health insurance through the mandated Federal Health Exchanges in the US or have health insurance through their employer.

For as  being s student and getting degree, the good news is that you do not have to report to the IRS whether you have health insurance when you file your taxes because living in another country. You are not require to purchase health insurance from the Health Exchanges because being a student is hard enough. You are required to carry required health insurance for your student visa with the Australian Immigration as a condition of your stay in Australia.

The Student Health Cover (OSHC) is far more affordable  than the Affordable Care Act. With Student Health Cover (OSHC) is the  premium is far more reasonable than Affordable Care Act. Affordable Care Act does not work outside the US.

The Affordable Care Act requires a person in living the US to purchase policy with very high deductible and high premium. For example, you could end up paying 3000 USD -$10,000 USD deductible. The premium being unreasonable can add up. Some people are having to pay $500 or more in the US.

I researched and read the legislation to make sure there was nothing would affect being a student in Australia. Luckily, the US government can not enforce this law overseas because American students living in Austrlia have enough to worry about.

That leaves us with the issue of how the US Govt. determines if we officially “live outside the USA”.   In the simplest case, to qualify for the ACA Foreign exclusion:
~ We can be outside of the the USA for at least 330 days in a calendar year to qualify.
or
~ We must qualify under IRS requirements to be a “bona fide resident” (permanent resident) of a foreign country.  http://www.irs.gov/pub/irs-pdf/f2555.pdf
Key parts of meeting the IRS requirements for qualifying as a “bona fide resident” of another country, are covered by IRS Form 2555,    Question 13:
“13 a. Have you submitted a statement to the authorities of the foreign country where you claim bona fide residence that you are not a resident of that country? See instructions. Yes or No