According to recent estimates by the U.S. State Department, there are 6.6 million Americans living overseas.
Obama’s health care reform will tax them for not holding US health insurance the excise tax of $750 a year. Organizations of ex-pats all over the world are currently protesting the Obama’s tax on Americans living abroad. The House Health Care Bill exempted the ex-pats from paying the tax. This is not the case in the Senate Bill.
Here is the list with the frequently asked questions by Americans living abroad answered by AACI /Association of Americans and Canadians living in Israel
1. I participate in Medicare – will I still have to pay the excise tax?

As of this writing, Medicare is not specifically named as one of the approved health care plans. Therefore we suggest you fax your objections to the excise tax.

2. If a citizen living abroad pays the $750 will they be covered when in the U.S. on visits?

Payment of the excise tax will not cover you in the US; you will get no insurance benefit for paying this tax. The excise tax will be a penalty you pay for not participating in one of the authorized health plans. You will still need to purchase travel insurance.

3. Is that amount the same for everyone regardless of income? If someone is a student, retiree, child, otherwise unemployed still required to pay it?

The excise tax mentioned in the Senate bill will be the same for everyone.

4. In the version without the excise tax can citizens living abroad opt to pay it and get the insurance while in the U.S.?

Paying the excise tax will NOT give you healthcare coverage. In the House version and the Senate version, US citizens living abroad CAN choose to buy into one of the approved insurance plans. Once the various plans are approved, you can determine if any of them are appropriate to your needs. From previous experience, you cannot rely on these plans for coverage outside the U.S.

5. Is there a site where I can get a copy of the proposed bill written in layman terms?

Unfortunately, as of yet, there is no such creature. This is because the bill is still being debated with amendments added and sections changed

6. I have lived in several states prior to moving abroad. To which Senators do send my faxes?

Under federal election law, the Senators from the state in which you last resided prior to moving abroad are the ones to receive your faxes.

7. Wouldn’t this excise tax be covered under the tax treaty between the US and Israel; since we pay an Israeli health tax, wouldn’t this be deducted from the US tax?

The specific issue of the US/Israeli tax treaty has not been addressed in either of House or Senate bills. This excise tax is applicable to ALL US citizens living outside the US, not just those in Israel.

8. If the bill goes through with the excise tax, how is it going to be enforced?

All excise taxes are added to the taxpayers’ final tax liability owed to the IRS.

9. If Americans living outside the US do not pay the excise tax, how would they pay for their medical care if they became ill or injured on a visit to the US?

The excise tax will not provide any medical coverage to anyone. It is merely a tax on people who choose not to participate in any of the American Approved Health Care Plans (to be determined at a later date). Americans living abroad can choose to participate in one of Approved Plans and pay for it (costs are unknown at present) or can purchase travel insurance here in Israel. It is unknown if any of the approved plans will provide services outside the U.S. Neither Medicare nor Medicaid provide such services.

To check the number of Americans living in particular country or region click here