ACA Question

[Kris]

MOD NOTE: Split from ACA Sticky thread.

I have a question that is perhaps a little tangential to the stated purpose of this thread, so feel free to tell me to delete it and start my own:

Husband and I are planning to retire in 3 1/2 years and move out of the country, for many reasons, including lower cost of  living.  Of course, while we're living the nomad life, we are planning to pay for health care out of pocket in the countries we're staying in. 

My question is this: though we have no concrete plans to move back to the US, it is nevertheless a possibility.  My worry is that, should we move back here later in life, the fact that we didn't apply for Medicare during the turning-65 window would mean that we would face a significant penalty/heightened cost for Medicare B, C, and D.  So, what are our options?  Is there no way out of that penalty due to the fact that we won't be in the US when we turn 65? Does ACA somehow afford us a better option?  Also, how would ACA calculate our "income" for purposes of charging us, given that we won't be working anymore? 

[forummm]

I have a question that is perhaps a little tangential to the stated purpose of this thread, so feel free to tell me to delete it and start my own:

Husband and I are planning to retire in 3 1/2 years and move out of the country, for many reasons, including lower cost of  living.  Of course, while we're living the nomad life, we are planning to pay for health care out of pocket in the countries we're staying in. 

My question is this: though we have no concrete plans to move back to the US, it is nevertheless a possibility.  My worry is that, should we move back here later in life, the fact that we didn't apply for Medicare during the turning-65 window would mean that we would face a significant penalty/heightened cost for Medicare B, C, and D.  So, what are our options?  Is there no way out of that penalty due to the fact that we won't be in the US when we turn 65? Does ACA somehow afford us a better option?  Also, how would ACA calculate our "income" for purposes of charging us, given that we won't be working anymore? 

You are exempt from any penalty for not having US health insurance if you are living abroad.
https://www.healthcare.gov/exemptions-tool/#/results/2015/details/citizen-abroad

Your income for ACA purposes is the MAGI. It's similar to the amount of income you'd have on your tax return if you filed--but adjusted for certain factors. Generally, modified adjusted gross income is your adjusted gross income plus any tax-exempt Social Security, interest, or foreign income you have.
https://www.healthcare.gov/income-and-household-information/income/

Since you lived abroad, you would not be eligible for health coverage through the Marketplace.
https://www.healthcare.gov/quick-guide/eligibility/

I don't know if living abroad provides you an exemption from the late enrollment penalties for Medicare Parts A, B, and D. I'll look into that for you.

[forummm]

I have a question that is perhaps a little tangential to the stated purpose of this thread, so feel free to tell me to delete it and start my own:

Husband and I are planning to retire in 3 1/2 years and move out of the country, for many reasons, including lower cost of  living.  Of course, while we're living the nomad life, we are planning to pay for health care out of pocket in the countries we're staying in. 

My question is this: though we have no concrete plans to move back to the US, it is nevertheless a possibility.  My worry is that, should we move back here later in life, the fact that we didn't apply for Medicare during the turning-65 window would mean that we would face a significant penalty/heightened cost for Medicare B, C, and D.  So, what are our options?  Is there no way out of that penalty due to the fact that we won't be in the US when we turn 65? Does ACA somehow afford us a better option?  Also, how would ACA calculate our "income" for purposes of charging us, given that we won't be working anymore? 

You are exempt from any penalty for not having US health insurance if you are living abroad.
https://www.healthcare.gov/exemptions-tool/#/results/2015/details/citizen-abroad

Your income for ACA purposes is the MAGI. It's similar to the amount of income you'd have on your tax return if you filed--but adjusted for certain factors. Generally, modified adjusted gross income is your adjusted gross income plus any tax-exempt Social Security, interest, or foreign income you have.
https://www.healthcare.gov/income-and-household-information/income/

Since you lived abroad, you would not be eligible for health coverage through the Marketplace.
https://www.healthcare.gov/quick-guide/eligibility/

I don't know if living abroad provides you an exemption from the late enrollment penalties for Medicare Parts A, B, and D. I'll look into that for you.

It appears as though you would likely owe a penalty for not signing up for Medicare during your Initial Enrollment Period upon turning 65. But you would only have to pay that penalty if you did move back to the US and signed up for Medicare. You can sign up for Part A while abroad, and that has no premium if you've worked for 10 years in the US in a job paying Medicare taxes. The only exceptions to the penalty I could find were if you were volunteering abroad for at least 12 months. I'm not an expert on this specific topic so please get more detailed information from Medicare before making any major decisions relating to Medicare coverage.

[Kris]

I have a question that is perhaps a little tangential to the stated purpose of this thread, so feel free to tell me to delete it and start my own:

Husband and I are planning to retire in 3 1/2 years and move out of the country, for many reasons, including lower cost of  living.  Of course, while we're living the nomad life, we are planning to pay for health care out of pocket in the countries we're staying in. 

My question is this: though we have no concrete plans to move back to the US, it is nevertheless a possibility.  My worry is that, should we move back here later in life, the fact that we didn't apply for Medicare during the turning-65 window would mean that we would face a significant penalty/heightened cost for Medicare B, C, and D.  So, what are our options?  Is there no way out of that penalty due to the fact that we won't be in the US when we turn 65? Does ACA somehow afford us a better option?  Also, how would ACA calculate our "income" for purposes of charging us, given that we won't be working anymore? 

You are exempt from any penalty for not having US health insurance if you are living abroad.
https://www.healthcare.gov/exemptions-tool/#/results/2015/details/citizen-abroad

Your income for ACA purposes is the MAGI. It's similar to the amount of income you'd have on your tax return if you filed--but adjusted for certain factors. Generally, modified adjusted gross income is your adjusted gross income plus any tax-exempt Social Security, interest, or foreign income you have.
https://www.healthcare.gov/income-and-household-information/income/

Since you lived abroad, you would not be eligible for health coverage through the Marketplace.
https://www.healthcare.gov/quick-guide/eligibility/

I don't know if living abroad provides you an exemption from the late enrollment penalties for Medicare Parts A, B, and D. I'll look into that for you.

It appears as though you would likely owe a penalty for not signing up for Medicare during your Initial Enrollment Period upon turning 65. But you would only have to pay that penalty if you did move back to the US and signed up for Medicare. You can sign up for Part A while abroad, and that has no premium if you've worked for 10 years in the US in a job paying Medicare taxes. The only exceptions to the penalty I could find were if you were volunteering abroad for at least 12 months. I'm not an expert on this specific topic so please get more detailed information from Medicare before making any major decisions relating to Medicare coverage.

Thanks, Forummm! The answers to the first couple of questions were what I sort of expected they might be, but I'm just now looking into this so I appreciate being told the answers to reduce the amount of time I need to spend hunting around. Re the last point about owing a penalty for not signing up for Medicare while abroad, well, that seemed likely.  I will, at any rate, post that question on an expat forum I read, and I'll share any info I get here.  But thanks for pointing out that at any rate, we should be signing up for Part A as soon as we hit 65.