Does the IRS consider Foreign Insurance Coverage Minimum Essential Health Coverage?
Confusion around Healthcare ‘approval’ by the IRS
There has been some confusion around whether or not the IRS considers non-US plans approved in meeting the minimum essential healthcare coverage as required by the Affordable Care Act.
This confusion stems from the fact that the Center for Medicare and Medicaid services https://www.cms.gov has provided approval status for certain foreign plans. From the standpoint of a US taxpayer residing abroad, this is a red herring – we do not recommend pursuing this route on your tax returns.
Regardless of the approval status for certain foreign plans by CMC, we do not advise giving away the foreign exemption and insisting that you are covered through a qualified foreign plan. There is nothing for you to gain, yet the risk of problems with the IRS is material.
Whole Story at TFX.