International Students: Obamacare Eligibility Explained

International students coming to study in US universities are not required to comply with the Affordable Care Act (ACA), also known as Obamacare. The ACA is a healthcare reform law that requires US citizens and some residents to maintain health insurance coverage or pay a fine. However, international students are generally exempt from this requirement, and their health insurance options may differ depending on their visa status, the length of their stay, and the requirements of their school or university. While some schools may offer their own insurance plans, others may require international students to purchase ACA-compliant coverage or allow them to choose their own plan as long as it meets certain minimum standards.

International students on F1 visas are not eligible for Obamacare

International students on F1 visas are considered non-residents for tax purposes and are exempt from the ACA for their first five years in the US. After this initial period, their eligibility for ACA compliance will depend on their visa status and the number of years they have lived in the country. During their stay in the US, F1 visa holders are not required by the US government to have health insurance. However, some schools or universities in the US may require US health insurance for international students that is compliant with ACA standards or their own criteria. In such cases, international students may need to purchase an ACA-compliant plan or a plan that meets the school's or university's minimum requirements.

International student insurance plans are more affordable for international students and can be purchased online. These plans typically include benefits such as emergency medical evacuation, emergency reunion coverage, and repatriation. They also offer travel-related benefits such as lost checked luggage, trip delay, and trip interruption. While these plans may not have the same protections as ACA-compliant plans, they are designed to meet the specific needs of international students, allowing them to pay out of pocket for services like wellness and preventative care, which can help keep the premiums within their budget.

It is important to note that while international students on F1 visas are not eligible for Obamacare, they can still access healthcare services in the US. They have the option to purchase individual health insurance plans specifically created for international students or enroll in a Marketplace plan as a student visa holder. These plans may not include all the protections of ACA-compliant plans, but they can provide essential coverage and access to healthcare services during their studies in the US.

J1 visa holders are required to have health insurance

International students in the US on F1 or J1 visas are not eligible for Obamacare. The Affordable Care Act (ACA), or Obamacare, is a healthcare reform law that aims to make health insurance more accessible and affordable for US citizens and residents. However, it does not apply to international students who are studying in the US on these visas. Therefore, international students are not eligible for ACA plans or state insurance marketplace plans.

The coverage levels for J1 visa holders must include:

• Medical benefits of at least $100,000 per illness or accident.
• A deductible not to exceed $500 per accident or illness.
• Expenses associated with medical evacuation to the home country or country of permanent residence in the amount of $50,000.
• Repatriation of remains in the event of death in the amount of $25,000.

The insurance plan must also include coverage for COVID-19 and related illnesses for the J1 visa holder and their family members. It is important to note that failure to maintain adequate insurance may lead to termination of J1/J2 status.

While J1 visa holders must have health insurance, they have some options regarding the type of plan they choose. The plan must either be backed by the full faith and credit of the home country government or underwritten by a corporation with specific industry ratings. These ratings include:

• A.M. Best rating of A- or above.
• McGraw Hill Financial/Standard & Poor’s Claims-paying Ability rating of A- or above.
• Weiss Research, Inc. rating of ‘B+’ or above.
• Fitch Ratings, Inc. rating of A- or above.

Schools may mandate ACA-compliant insurance

Although international students are exempt from the Affordable Care Act (ACA) or Obamacare, some schools or universities in the US may require international students to purchase US health insurance that is ACA-compliant or meets the school's minimum requirements. This means that international students may need to purchase an ACA-compliant plan or a plan that meets the school's criteria.

There are a few ways that schools can handle health insurance for international students. One way is through a Group Health Insurance Plan, where the school requires students to purchase the insurance plan provided by the school, with no option to buy an alternative policy. Another method is Group Health Insurance with the Option to Waive, where the school gives students the choice to purchase their own insurance or opt into the group plan offered by the school. Lastly, some schools may not offer a group insurance plan, so students have the option to compare coverage and select the best plan for their situation.

ACA-compliant plans are designed to provide lifetime coverage and a wide range of benefits, which may be unnecessary for international students and could result in higher premiums. Additionally, these plans may not offer benefits that international students need while studying away from home. On the other hand, international student insurance plans are more affordable and typically include essential travel-related benefits like emergency medical evacuation, emergency reunion coverage, repatriation, lost checked luggage, trip delay, and trip interruption.

It is important to note that while the ACA's individual mandate penalty was reduced to $0 in 2019, some states like California, Rhode Island, Massachusetts, New Jersey, and the District of Columbia have their own penalties for not having minimum essential health coverage. Therefore, students should carefully review the requirements of their school and the state they are residing in to ensure they comply with the necessary health insurance standards.

Non-ACA plans are available for international students

International students in the US are not eligible for Obamacare, also known as the Affordable Care Act (ACA), for their first five years in the country. This is because they are considered "non-resident aliens" for tax purposes during this period. After five years, students may be subject to ACA compliance depending on their visa status and the number of years they have lived in the US.

However, non-ACA plans are available for international students. These plans are specifically designed for international students and can be purchased from private insurance companies. They are more affordable than ACA-compliant plans and provide essential coverage, including emergency medical evacuation, repatriation of remains, and accidental death and dismemberment. The cost of these plans depends on factors such as the student's age, coverage duration, medical benefits, deductible, and co-insurance.

International students can also purchase travel insurance, which includes benefits like lost checked luggage, trip delay, and trip interruption. Additionally, some schools or universities in the US may require international students to purchase health insurance that is ACA-compliant or meets the school's own criteria. In such cases, students may need to purchase an ACA-compliant plan or a plan that meets the school's minimum requirements.

It is important to note that while international students are exempt from the ACA for a period of time, there may be other health insurance requirements that must be met, depending on their high school, college, or university. Therefore, it is crucial for international students to carefully review the insurance requirements of their specific educational institution before purchasing a health insurance plan.

ACA-compliant plans are expensive for international students

International students in the US on F, J, M, or Q visas are exempt from the Affordable Care Act (ACA) or Obamacare. However, if their school's insurance waiver requirements align with ACA standards, they may have to purchase an ACA plan. This is because some US schools and universities mandate that international students enrol in ACA-compliant group insurance provided by the school.

Most insurance plans designed for international students don't cover wellness or preventative care, but they allow students to pay out of pocket for these services, keeping prices within the budget of an international student. International student insurance plans are more affordable for international students as long as the plan purchased meets the school's requirements. These plans come standard with emergency medical evacuation, emergency reunion coverage, and repatriation. They also include travel-related benefits like lost checked luggage, trip delay, and trip interruption, which are essential for someone studying outside of their home country.

In addition, ACA-compliant plans are designed for permanent US residents, whereas international students are short-term visitors. Therefore, a plan suited for a permanent citizen is not ideal for an international student, as it will be far more costly.

Frequently asked questions