There are a few major aspects that should be considered when moving your family abroad from the United States as it relates to ACA compliant International Health Insurance plans. These include:
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Family Situation: This includes how often family members will return to the US, how many days a year they will be in the US, where they are moving to, how long they intend to stay abroad, how much other international travel will occur, number of family members and combined household income.
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Considerations: These include the family’s ability to pay out-of-pocket for care, specific benefit requirements, and penalties incurred for non-compliance if the family is required to retain ACA compliant health insurance.
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Comparable Non-Compliant Plans: This refers to the benefits provided by and costs of similar global insurance plans that are not ACA compliant.
Now let’s have a look at the details of our example family who will be moving away from the US:
Family Situation
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Family of 4
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Combined income of $200,000
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One child in elementary school, one in high school
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Moving to France
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Staying for multiple years
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Parents plan to return to US throughout the year for both business trips and holidays
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Family plans to travel internationally somewhat regularly
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No employer provided insurance plan
Considerations
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Family could afford to pay out of pocket for some healthcare but needs inpatient coverage to address higher cost medical care, as well as coverage for potentially costly chronic conditions.
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Family would like to have access to private hospitals anywhere they travel
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Penalties for non-compliance with ACA would be $3,250 annually
Comparable Non-Compliant Plans
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Cost of comparable ACA non-compliant plan with global coverage is lower than an ACA compliant plan
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The difference in cost of an ACA non-compliant plan with global coverage and a compliant plan is lower than the penalty incurred.
Q: Is an ACA compliant International Health Insurance plan from Pacific Prime right for this family?
A: Yes!
If we look at the details of the family in question, they are very likely to have to retain an ACA compliant health insurance plan to avoid a penalty when filing their tax return, as the parents will likely be in the United States for more than 35 days in a given year. Additionally, since they plan on travelling in other areas of the world beyond just France and the US, a plan with global coverage is very attractive to them. Furthermore, while the family could obtain a non-compliant global plan for less than a compliant one while still addressing their medical needs, the penalties incurred would still make the overall cost to the family higher than if they obtained a comparable ACA compliant International Health Insurance plan.
If you believe that an ACA compliant International Health Insurance plan from Pacific Prime may be a good option for you and your family, get a free quote today! Just fill out and submit the form on the right side of the page for plan and pricing information.
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