I have been living overseas for the past few years and returned to the US since March. Though I am in the US now, I am looking for jobs simultaneously in the US and the same foreign country I have been living in for the past few years.

My question is - should I sign up for healthcare coverage before mid May so that coverage starts in June as to avoid the penalty for 2017 though there is a chance that I may leave the US (say, in Oct 2017 if job search does not progress much)?

My concern is if I get coverage (probably Medicaid in an expanded Medicaid state as I currently do not have income) to start in June and then later leave the US, can I still claim foreign domicile for the entire year (i.e. coverage exemption) as if my domicile has not changed anytime during the year (I have established foreign domicile since I have lived overseas for years)?

In another scenario - if I do not get coverage but ended up started working in the US (say, 1 Sep 2017), then would I have a coverage gap in this case since I physically arrived in the US in Mar? Or could I claim foreign domicile ends right before work starts (e.g. 31 Aug 2017) without leaving the country?

My question is - should I sign up for healthcare coverage before mid May so that coverage starts in June as to avoid the penalty for 2017 though there is a chance that I may leave the US (say, in Oct 2017 if job search does not progress much)?==>>No I do not think so; Since US expats aren't generally residents of the US while living overseas, the majority of expats will be exempt from the Obamacare health insurance requirements. But in order to be exempt you must prove residency in another country through one of two tests: The Bona Fide Residence Test- To qualify through this test you must have been living abroad for at least 1 year and have no immediate plans to return to the US; The Physical Presence Test- you will qualify for this test, as you simply need to have foreign earned income and be physically out of the US for 330 days out of a 365 day period. So, Once you qualify for foreign residency, you are said to have the ?minimum essential coverage' and are not required to purchase any additional coverage.however, you are an expat on a short-term assignment and do not qualify for exemption through one of the residency tests, you will need to comply with Obamacare regulations as a US resident.


My concern is if I get coverage (probably Medicaid in an expanded Medicaid state as I currently do not have income) to start in June and then later leave the US, can I still claim foreign domicile for the entire year (i.e. coverage exemption) as if my domicile has not changed anytime during the year (I have established foreign domicile since I have lived overseas for years)?====>I guess yea you can claim foreign domicile aslongas you meet either SPT or bona fide residence test.

In another scenario - if I do not get coverage but ended up started working in the US (say, 1 Sep 2017), then would I have a coverage gap in this case since I physically arrived in the US in Mar? Or could I claim foreign domicile ends right before work starts (e.g. 31 Aug 2017) without leaving the country?==>>Corrrect; you would have a coverage gap since you physically arrived in the US in Mar. The definition of ?living abroad? is clear; nomads are limited to visiting the US for no more than 35 days every 12-months, else you are required to purchase minimum essential care insurance policies on a Health Exchange.you are an expat on a short-term assignment and do not qualify for exemption through one of the residency tests, you will need to comply with Obamacare regulations you can directly contact healthcare.gov far more info in detail

Thanks for the reply. I guess the confusion comes in because of the uncertainty of where my domicile will be. I have established foreign domicile before 2016 so if I eventually return to that foreign country towards end of this year, I need not establish again the residency though the number of days stayed in the U.S. is more than 35 days.

My question deals with the 2 different scenarios:
1) I cannot find work here for the next few months and decide to head back to that foreign country + sign up for Medicaid coverage starting June. In this case, the worry is whether the Medicaid coverage indicates I have "re-establish" my residency in the U.S. since March (I will of course stop Medicaid coverage before heading overseas again). The issue is whether it would mean no foreign income exclusion for the income earned overseas later part this year (if any)

2) I continue to stay in the U.S. and eventually find work here + no coverage until starts working. In this case, it appears that I may have a coverage gap if March is when it is considered my US domicile re-establishment date.

If Medicaid coverage does not seriously affect my case of foreign domicile, then it would make sense to apply for it just in case I end up working in the U.S.

If Medicaid coverage will affect foreign domicile, perhaps I could just travel outside the country before work starts and then come back in the U.S. and use that date as U.S. domicile re-establishment date?

Thanks for the reply. I guess the confusion comes in because of the uncertainty of where my domicile will be. I have established foreign domicile before 2016 so if I eventually return to that foreign country towards end of this year, I need not establish again the residency though the number of days stayed in the U.S. is more than 35 days (under normal circumstance).

My question deals with the 2 different scenarios described below:
1) I cannot find work here for the next few months and decide to head back to that foreign country + sign up for Medicaid coverage starting June. In this case, the worry is whether the Medicaid coverage indicates I have "re-establish" my residency in the U.S. since March (I will of course stop Medicaid coverage before heading overseas again). The issue is whether it would mean no foreign income exclusion for the income earned overseas later part this year (if any)

2) I continue to stay in the U.S. and eventually find work here + no coverage until starts working. In this case, it appears that I may have a coverage gap if March is when it is considered my US domicile re-establishment date.

If Medicaid coverage does not seriously affect my case of foreign domicile, then it would make sense to apply for it just in case I end up working in the U.S.

If Medicaid coverage will affect foreign domicile, perhaps I could just travel outside the country before work starts and then come back in the U.S. and use that date as U.S. domicile re-establishment date?

What is not clear is whether it is more beneficial to apply for Medicaid coverage or not (start coverage in June).

Basically, if applying for Medicaid does not necessarily mean re-establishing US domicile since March (since I have already established foreign domicile for a few years now), then it would be better to apply for Medicaid just in case I stay in the US and start working here. If I end up leaving the US, I can still claim bona fide test as it does not matter how long I stay in the US in 2017.

However, if I do not apply for Medicaid, then is it better to leave the country before work starts in the US (if that is the case) so I can claim my US domicile begins at that later date instead of March? Then there would be no coverage gap.