H-1B Visa Insurance: Picking The Right Coverage

The H-1B visa is a non-immigrant work visa that allows skilled foreign workers to work in the United States for a specific period. All H-1B visa holders are required to have health insurance while living and working in the US, due to the high cost of healthcare in the country. There are several options for health insurance for H-1B visa holders, including employer-sponsored insurance, insurance through the Marketplace, and short-term insurance plans from private companies.

Short-term insurance plans

As an H1-B visa holder, you are not required by law to have health insurance. However, it is highly recommended that you purchase a plan to cover any medical emergencies, as healthcare in the US is extremely expensive.

When choosing a short-term insurance plan, it is important to compare different policies and not just opt for the cheapest plan. Plans with better and longer coverage will cost more. Be sure to review the description of coverage and select a plan that suits your specific needs and budget.

• GeoBlue Xplorer: Offers medical benefits such as inpatient and outpatient care, medical evacuation and repatriation, optional dental and vision care, and optional maternity benefits. Not available to residents of New York, Maryland, Washington, and South Dakota.
• IHC Short Term Connect: Available in two options – Connect STM and Connect Lite – with varying levels of coverage. Offers coverage for a range of medical situations, including hospitalization and surgery. Not available to residents of Arizona, California, Connecticut, Washington DC, and several other states.
• IHC Care Access Plan: Covers defined critical illness, hospitalization, and surgery. Optional coverage is available for preventive wellness, diagnostic testing, and physician office visits. A $25 application fee applies. Not available to residents of Arizona, Connecticut, Massachusetts, and several other states.
• Patriot Travel Plan: A short-term visitor insurance plan that can be purchased through InternationalStudentInsurance.com.
• Safe Travels USA Comprehensive: Offers 100% coverage for eligible conditions up to the medical maximum after the deductible. Includes emergency room and urgent care coverage, as well as coverage during international travel.
• Safe Travels USA Limited Coverage Plan: Provides basic coverage at a lower cost, with a fixed amount of payment per incident up to the policy maximum. Coverage can range from 5 to 365 days.

Remember, it is crucial to have health insurance coverage while on an H1-B visa to protect yourself financially and ensure you have access to necessary healthcare during your stay in the US.

Long-term (domestic) insurance plans

Long-term or domestic health insurance is usually only available to H1-B visa holders once they become "resident aliens", which happens after they have lived in the US for at least 183 days in a year (6-10 months after receiving the visa). At this point, they become eligible for ACA-compliant insurance, which offers long-term coverage.

There are two ways to get ACA-compliant insurance:

• Through your employer: Most large companies offer their employees healthcare plans, usually in the form of group plans. These group plans tend to be cheaper because they cover a large number of people and because the employer covers part or most of the expenses.
• Through the Marketplace: If your employer does not offer health insurance, or the plan they are offering does not meet your needs, you can buy your own ACA-compliant health insurance through the Marketplace (healthcare.gov).

It is important to note that if you choose to buy health insurance from a private company rather than through one of the two options above, your H1-B insurance will not be ACA-compliant, and you may have to pay a fine when you file your tax returns (amounting to about 2% of your annual income).

Long-term or domestic health insurance typically offers a broader range of coverage, including pre-existing conditions and maternity care. This is because these plans must satisfy the requirements of the ACA.

ACA-compliant insurance

The Affordable Care Act (ACA), also known as Obamacare, requires US citizens and permanent residents to have ACA-compliant health insurance coverage. While H1-B visa holders are initially classified as \"non-resident aliens\" and are therefore not obligated to maintain ACA coverage, they become eligible for ACA-compliant insurance once they gain "resident alien" status. This typically occurs 6-10 months after their arrival in the US or after they lose their student status.

Timing:

It is crucial to be mindful of the timing when transitioning from a non-resident to a resident alien. This transition usually takes place within the first 6-10 months of your H1-B visa, but the exact duration depends on when you entered the US and when your student status ended. A "Substantial Presence Test" can help determine your status.

Employer-Sponsored Insurance:

Many employers in the US provide health insurance to their employees, including foreign workers on H1-B visas. Employer-sponsored insurance is an easy way to ensure ACA-compliant coverage. When discussing health insurance with your employer, clarify how much they contribute, the waiting period for coverage to begin, the out-of-pocket costs, and whether the plan is ACA-compliant.

Marketplace Plans:

If your employer does not offer insurance or if their plan is insufficient, you can purchase an ACA-compliant plan on the Marketplace (HealthCare.gov). These plans meet all ACA requirements and can be compared based on your state and zip code. However, ACA plans on the Marketplace are typically only available during the open enrolment period from November 1st to January 15th each year. Outside of this period, you may need to consider short-term insurance unless you have a qualifying life event, such as marriage or the birth of a child.

Compliance and Costs:

ACA-compliant plans offer broader coverage, including pre-existing conditions and maternity care. While short-term plans are more affordable, they often have limited benefits and may not cover essential health needs. Additionally, non-ACA-compliant plans may result in a fine of about 2% of your annual income when filing your tax returns.

Non-ACA-compliant insurance

When it comes to health insurance for H1B visa holders, there are a few things to keep in mind. Firstly, as an H1B visa holder, you are required to obtain health insurance while living and working in the United States due to the high cost of healthcare. During your first 6-10 months in the US, you will be considered a "non-resident alien" and will not be subject to the Affordable Care Act (ACA) or "Obamacare" requirements. This means that you will need to purchase a short-term, non-ACA-compliant health insurance plan.

When choosing a non-ACA-compliant plan, it is important to carefully review the coverage details as these plans can vary significantly. Ask questions about what is covered, what the out-of-pocket costs are, and whether there are any exclusions or limitations. Be wary of plans that are marketed as "Obamacare" or "Gold" and "Silver" plans, as these may be disguised as ACA-compliant when they are not.

Additionally, keep in mind that non-ACA-compliant plans may not cover the cost of COVID testing or vaccines, as required by federal rules for ACA-compliant plans. These plans are also not considered minimum essential coverage, which may impact your ability to enroll in ACA-compliant coverage outside of open enrollment periods.

In summary, while non-ACA-compliant insurance plans can provide temporary coverage for H1B visa holders during their initial months in the US, they may not offer comprehensive benefits and should be chosen carefully to ensure adequate protection. Once you become a "resident alien" after 6-10 months, you will be subject to the ACA requirements and should transition to a compliant plan to avoid penalties.

Employer-sponsored insurance

There are a few things to keep in mind when considering employer-sponsored insurance. Firstly, it is important to discuss the details of the insurance plan with your employer. This includes finding out how much they will contribute towards the insurance and how much you will need to pay yourself. There may also be a waiting period before the coverage starts, so it is a good idea to purchase a short-term plan to cover you during this time. Additionally, it is important to understand the coverage offered and any associated out-of-pocket costs, such as deductibles, office co-pays, and co-insurance. Your employer should be able to provide you with a plan summary outlining these details.

Another thing to consider is whether the employer-sponsored insurance is ACA-compliant. The Affordable Care Act (ACA), also known as Obamacare, requires US citizens and permanent residents to have ACA-compliant health insurance coverage. While H1-B visa holders who are considered non-resident aliens are not required to maintain ACA coverage, those who have obtained resident alien status are subject to the same requirements as US citizens and permanent residents. Therefore, it is important to ensure that your employer-sponsored insurance meets ACA requirements if you have resident alien status.

It is worth noting that employer-sponsored insurance may not always be an option, as not all employers offer health insurance benefits. In such cases, H1-B visa holders can consider purchasing an insurance plan on the Marketplace or opting for a short-term insurance plan. However, choosing a plan that is not ACA-compliant may result in paying a fine when filing tax returns.

Overall, employer-sponsored insurance can be a convenient and efficient way for H1-B visa holders to obtain the necessary health insurance coverage while working in the US. By discussing the details with their employer and understanding their specific situation, visa holders can make informed decisions about their health insurance options.

Frequently asked questions