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The US healthcare system is primarily insurance-based, although additional healthcare programmes are financed through the tax system. The US doesn’t run any national health service, although there might be public hospitals at state-level. Accordingly healthcare is not free in the US.
Instead of directly providing subsidised healthcare, the Federal Government encourages its citizens to take out private health insurance. This is why health insurance premiums are tax-deductible for US tax purposes. Some regulated health savings accounts may also qualify for tax deductibility. See Health Insurance for Expats in the US.
Aside from the private insurance system, there is a small social insurance system to help low-income individuals, the elderly, and the disabled. As a consequence, all US taxpayers are required to pay taxes to finance social insurance programmes. However, the US welfare system is quite residual, and it is designed to help only those who need it most.
You might wish to check if you need to apply for a US social security number. If you are not eligible to lawfully work in the US, you are unlikely to need a social security number.
Medicare in the USA
In a purely private system, your insurance premiums can spiral out of control if you have a disability or a bad pre-existing condition. Premiums may also rise significantly when you are over 50. These outcomes can be mitigated through social insurance, whereby the underlying costs are shared by all taxpayers.
Medicare is a 100% federal programme which is designed to make sure that your right to health is not going to be jeopardised by your age or a medical condition of yours. In other words, Medicare is supposed to spare you ultra-high insurance premiums rather than fully foot your bills. Consequently, Medicare beneficiaries are still required to pay premiums, deductibles and co-insurance with their own money.
Medicare covers only healthcare costs which fall within the concept of “medical necessity”. Cosmetic surgeries are therefore very likely to be excluded. Dental care, however, is more on a case-by-case basis. Typically, dental care involving a hospital at some point may be within the scope of Medicare. However, Medicare should not pay for things like routine check-ups, dentures, fillings, and extractions.
You won’t get any support from the Medicare programme unless you enrol for it.
You are an eligible person if:
There are four parts in the Medicare programme:
You are not covered by Medicare until you have paid a “deductible” with your own funds. Once you have paid your deductible, the Medicare programme pays a share of your additional bills (typically 80%). The shortfall is called “coinsurance”.
In addition to that, Medicare enrolees have to pay “premiums” each month. Part A premiums depend on your previous working pattern in the US, and you don’t have to pay Part A premiums if you (or your spouse) have paid US Medicare taxes for at least 10 years. However, you have to pay Part B premiums, regardless of your previous contributions to the US tax system.
In 2013, the key rates are as follows
Up to $441
Deductible (per hospital stay)
Higher charges may apply if your income exceeds $85,000 per year ($170,000 if you file a joint tax return). Additionally, you may have to pay a 10% penalty if you are Medicare-eligible but not enrolled. This penalty is payable only when you later decide to enrol for Medicare.
For more information on out-of-pocket costs, click here.
Medicaid is a means-tested programme for low-income individuals, and it is a joint federal-state programme (unlike Medicare). However, it is quite limited, and many poor people are not eligible for Medicaid benefits.
In 2010, the Patient Protection and Affordable Care Act extended Medicaid eligibility requirements, effective from 1 January 2014. Under the new law, you are eligible for Medicaid if:
In 2013, the FPL is $11,490 for a single household not living in Alaska or Hawaii.
The future of the Medicaid programme is all but clear, and the rules may vary from one state to another. Many Republican-led states have already made clear that they would not sign up to the extension of the Medicaid programme.
Many countries provide updated travel information to their citizens, and this often includes health advice. You should regularly check the Foreign Office website of your home country to see if there are any specific steps you need to make. Alternatively, you can go to your local embassy in the US.
Sections in HEALTHCARE IN THE UNITED STATES OF AMERICA:
» National Health Services for Expats in the United States Of America
» Doctors and Hospitals for Expats in the United States Of America
» Health Insurance for Expats in the United States Of America
» Health Emergencies for Expats in the United States Of America
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