How to buy the right US health insurance for you!

U.S. Healthcare
As we all know, the U.S. has one of the best medical benefits in the world, from children to retirement to old age, there are comprehensive and perfect benefits. First, let’s compare a set of data: there is a significant difference in the five-year overall cancer survival rate between the United States and China: 30% versus 66%. This data is based on the statistics of the American Cancer Society and the 2015 National Congress of Clinical Oncology! This shows that the level of medical care in the United States is much higher than in China! But without proper medical insurance, it is not generally expensive to see a doctor in the United States, and some netizens even jokingly say: after seeing a doctor in the United States, a suite in Beijing is lost!

Therefore, whether you go to the United States to study, work, or travel, visiting relatives, business visits, or immigrants to the United States, it is necessary to understand the U.S. health insurance system.

So, what type of health insurance do different people need to buy when they go to the United States?
Traveling to visit relatives or business visits
There are two types of health insurance companies in the U.S. Most insurance companies offer domestic health insurance for U.S. citizens and legal immigrants, and a small number of insurance companies offer visitor health insurance for foreigners who are visiting the U.S. for a short period of time.

Foreigners who are traveling to the U.S. for a short period of time on a non-immigrant visa can usually only enroll in a visitor health insurance plan.

This is the case, for example, for travel to the U.S. for family visits, business trips, short-term study, work, etc. You can apply for a health insurance plan for as short as a few days and as long as a few years, depending on your trip.

Visitor medical insurance usually covers expenses for critical illness emergencies, hospitalization, examinations, prescription drugs, etc. It also covers transportation costs for patients who need to be transferred, as well as the cost of transporting the insured person’s remains back to their home country in the event of their death.

There are generally two types of visitor health insurance plans in the market: Fixed Coverage and Comprehensive Coverage.

Fixed Coverage means that for each medical service, the insurance company will only cover a fixed amount, such as $50 for a doctor’s visit, $500 for an emergency room visit, $3,000 for a surgery, etc. The insured pays for the rest of the medical expenses, no matter how much they are.

Comprehensive Coverage, on the other hand, is a plan where the insurance company and the individual share the risk according to the percentage of benefits specified in the insurance contract. The patient pays the co-payment and a proportionate share of the medical costs, and the insurance company pays the rest.

Most visitor health insurance policies do not cover pre-existing conditions and complications such as hypertension, diabetes, or pregnancy and childbirth.
Working in the U.S.
When you work in the U.S., you can get health insurance through the following channels: Group Health Insurance (GHI), Individual Health Insurance (IHI), or group health insurance provided by a trade association for its members.

Group Health Insurance is a non-salary benefit provided by the company to its employees. If you are working in the U.S. on an H or L visa, you are covered through your employer in the same way as a legal immigrant (green card holder) or citizen of the United States. The group premiums you pay can also be used for tax deductions. Most Americans consider whether a company offers health insurance as an important consideration in their job choice.

You must pay Social Security taxes and Medicare taxes (Medicare Tax) when you work in the United States.

Medicare is a social insurance program organized by the U.S. government that provides medical care for people over the age of 65. You must pay 1.45% of your paycheck as Medicare tax. You must pay even if you will not receive Medicare benefits in the future.

You can qualify for Medicare when you turn 65 after you have worked in the U.S. and paid Medicare taxes for 10 years or 40 quarters or more.
Studying in the U.S.
If you are studying in the United States (F-1 visa) or are a visiting scholar (J-1 visa), you must provide proof of Medicare coverage in order to be granted enrollment. Many schools have agreements with insurance companies to provide student health insurance for our students.

You can purchase this insurance for yourself and your dependents at the school. You can also purchase health insurance from an off-campus insurance company that meets the university’s minimum requirements.

University Health Services (UHS) provides outpatient and emergency care, laboratory tests, health counseling, psychological counseling, vaccinations, and other basic medical services to students.

Common illnesses and traumatic injuries can be addressed here. The university also provides a variety of free health education and psychological counseling services.

Usually, universities require students to pay a health care fee upon registration to use the basic medical services of the school clinic for free. Some school clinics may require students to pay for the use of some medical items, but the fees are generally much cheaper than those charged by off-campus general clinics.

Some schools allow graduating students to continue to participate in the school’s student health insurance plan (for about a year) after you have completed your studies and are on an Optional Practical Training (OPT). Some internships may provide you with health insurance. If you are unable to obtain insurance from your school or internship, you may be able to purchase health insurance through a commercial insurance company.
New immigrants who have just received their green cards
As a result of the Affordable Care Act (ACA), or Obamacare, legal residents of the United States, including U.S. citizens, legal immigrants (green cards), and other legal long-term residents, are required to have health insurance that meets the standards of the ACA.

The government will impose a penalty through the IRS if you do not have health insurance or if your health insurance does not meet the standards of the ACA. 2017 penalties are $695 per adult and $347.50 per child, up to a maximum of $2,085 per family, or 2.5% of your household income, whichever is greater.

New immigrants may apply for travel health insurance as transitional coverage prior to arrival in the United States. New immigrants may also apply for Obamacare coverage as a special life change event within 60 days if they are new immigrants who arrive in the U.S. after January 31, 2017 (the end of the open application period).
Obtaining a U.S. Green Card or Becoming a Citizen
New immigrants who have just arrived in the U.S. (green card) must be eligible to apply for government-provided publicly funded health insurance, such as Medicare or Medicaid coverage, after they have been granted immigration status and have lived in the U.S. for at least five years.

Commercial insurance companies in the U.S. offer domestic health insurance to U.S. citizens and legal immigrants. Usually insurance companies require a period of residence in the U.S. ranging from three months to one year to apply for domestic health insurance.

If you find a job after immigrating to the U.S., you must pay 1.45% of your wages as a Medicare tax. After you have worked in the U.S. and paid the Medicare tax for 10 years or 40 quarters or more, you can qualify for Medicare when you turn 65 years old. This is a federally organized health care insurance for seniors in the United States.

Many people arrange for their parents in China to immigrate to the United States once they have settled in the United States. If your parents are over the age of 65 when they come to the United States, they are not automatically eligible for Medicare when they first immigrate to the United States. They must have held a green card for more than five years before they can make contributions to the government’s Medicare program to purchase a medical care insurance plan.

Finally, I would like to say that you should understand how important it is for immigrants to have health insurance in the United States. The U.S. healthcare market is well developed and the level of healthcare is world class. However, without proper medical insurance, expensive medical costs will deter you from seeing a doctor in the United States, so the first thing new immigrants should do when they arrive in the United States is to purchase medical insurance as soon as possible. After applying for health insurance, you will get a health insurance card, and you will be billed to the insurance company according to this card and the card number. From then on, you can live happily in the United States with peace of mind.