Marketplace plan residency requirements

[nataliaqueensly]

Let's say I'm a resident of State A (e.g driver's license and voter registration are there) I've moved to State B, where I plan to be for 8-9 months. After that, I'm planning to move permanently to State C. I have no intention of returning to State A. I don't want to bother with establishing things like a driver's license and voting residency in State B. But I would like to sign up for marketplace health insuranc e in B since I'm living there. Can I?

Assume I'm happy for coverage to start Jan 1 under normal enrollment rather than a SEP.

From my research, the health exchange seems to care more about "living" in a state than some marker of legal residency, like a driver's license...Is that right?

 

[elev8]

@nataliaqueensly Yes as soon as you move to a new state, that's your state of residency.

 

[lizzie18]

@nataliaqueensly

I don't want to bother with establishing things like a driver's license and voting residency in State B.

Insurance aside, that is likely breaking the laws of state B. Most require anyone working there to switch plates and DLs within 30-60 days, even if you intend to move later.

People tend not to, because there are few chances to enforce it, but you'd likely lose access to hospital/clinic financial assistance or have your car towed and impounded by the state once either realizes what's happening.

On the car side, your insurer will likely deny claims for fraud or backdate and surcharge your coverage if you file a claim in a state that doesn't match your DL...because now your coverage didn't either.

Healthcare.gov rarely asks for IDs, because they use the in and out system. You need at least 2 of the 3 categories, usually, from both the old state and the new one. That would be almost impossible to do without the government or insurer ones because, unlike the bills, they MUST be on embossed letterhead. https://www.healthcare.gov/help/prove-move/

Plus, some states run their own marketplaces with their own rules. MN for example will almost assuredly require an ID, because you need AT LEAST one from each of these categories.

https://www.mnsure.org/new-customers/enrollment-deadlines/special-enrollment/sep-le/move/index.jsp

There is a hidden points system they don't tell you, such that Mortgage and DL are the only things that can stand alone.

 

[nataliaqueensly]

@lizzie18 The prove move stuff is for SEP's right? Does that come up during open enrollment?

Curious what snowbirds do with the whole plates and licenses thing. I'd seen other posts saying snowbirds are fine to sign up for insurance in the state they're snowboarding to as they are "living" there...

 

[lizzie18]

@nataliaqueensly It will be REQUIRED for SEPs, but you'd be doing yourself an extreme disservice by not switching things to state B now. Should it come to state C not taking your utility bill, or you don't cancel it in line with the date your lease/mortgage ends, it's going to come to the Government category.

Snowbirds basically can't shop on healthcare.gov outside open enrollment in their residency state. Very few states offer nationwide coverage anymore, so they basically need to get a plan from that state and get all non-ER care there. Some plans allow out-of-state Minute Clinics, Urgent Cares, and Pharmacies, but not for repeat use.

Non-ACA/off-marketplace plans are a terrible idea because an increasing number of states either ban or heavily restrict them, even if bought from another state. E.g. MN only allows two separate 120-day plans within 18 months. If you go over that, by say buying a 1-year plan from Florida, the hospital/doctor must ignore it and bill you full price.

Snowbirds, by definition, pay for property in more than one state and switch between them seasonally. They never stay more than 3-4 months, so their DL and Plates are in the residency one. As mentioned earlier, this makes it IMPOSSIBLE for them to legitimately get any Special Enrollment Periods. Some try, but then the IRS realizes what's happening and orders the plan retroactively terminated or claws the subsidies back.

Snowbirds still need to tell the insurer the car is "garaged" elsewhere, but not many insurers play ball with that especially in states with stricter insurance laws.

E.g. people who go to FL to avoid MN taxes then get shellacked with FLs higher insurance prices which then gets worse when MNs higher limits are forced onto that same policy when the garage location changes.

They also have access to ZERO services in the other state, so they can be royally fucked by hospital bills, court judgements, employment/taxes, and the like because they have either two of something or only protection for the one (e.g. MN hospitals can't garnish a MN house or MN taxed income beyond a payment plan).