Things to consider
...As a Canadian working or traveling for longer periods outside of Canada
Health Coverage
Auto Coverage
Taxation
Maintaining your Provincial Health Card
There are a few factors to consider as a Canadian working or traveling for longer periods outside of Canada (greater than 26-30+ weeks) . . .
Every province has different rules for maintaining health coverage. And it is a good idea to keep your card active if you plan to return to Canada and possibly receive medical care. If you were to let your provincial health card lapse, you risk having to pay a lot for any health care, walk in appointment, hospitalization, etc. if you need care while back in Canada.
Planning to be out of Canada 7 months or less?
Most Canadian travel nurses fall under this category because we intend to just do 1 or 2 contracts per year so we are well under 7 months (even after including any personal vacation/travelling).
For example, Ontario-OHIP will allow you to be outside of Canada for up to 212 days (roughly 7 months). This is often called the '7-Month-Rule' so it is easier to remember.
Double check what your province states as their rules!
Planning to be out of Canada 7 months or longer?
For OHIP/Ontario, if you plan to be outside Canada for more than seven months in any 12-month period you can keep your OHIP coverage for up to two years if you:
- Have a valid health card
- Make Ontario your primary home
- Will be in Ontario for at least 153 days a year in each of the two years immediately before you leave the country
But you will need to apply for an extension of your provincial health coverage (See OHIP-Coverage-Outside-of-Canada for more info).
Applying for an Extension (Ontario)
If you need to ask for an extension because you will be out of the province for greater than 212 days (roughly 7 months) in any 12-month period and still want to maintain your Ontario health insurance coverage, follow these steps:
- You may need to book an appointment at your nearest Service Ontario. Check on their website for more information and to ensure they will actually deal with extensions for the health coverage at that location. Click-Here-for-Service-Ontario
- Bring your health card and proof of residency (e.g. mortgage, lease or rental agreement, property tax bill, valid driver’s license).
- Proof of your employment in the U.S. (e.g. 1. TN Visa and 2. either your Employment Letter from your agency or your contract from your agency). *If you are extending your current hospital contract when filing for an extension, include the new contract or notice of extending your contract at that hospital with your documents.
- Fill out the following form: Change-of-Information (fill out sections A, D, and sign your name in the section labelled as 'G'.
- Request an extension for as much time as you feel you will need to cover your contract and any possible delays or side-adventures before you return back to Canada. There is a spot to input your 'expected return date' and I recommend giving yourself some cushion room in case you end up staying a bit longer than expected.
- If you are outside of Ontario, you can mail or sometimes email the forms and documents from wherever you are on your assignment.
- If mailing your documents, be sure to include a photo of the front and back of your current most recent health card.
Once approved, a health card takes approx. 4-6 weeks to be mailed to you.
For more information: OHIP coverage while outside Canada | ontario.ca & OHIP Coverage -Short Absences from Ontario
For more information re. Other Provinces...
*** Here is the information for Alberta: AHCIP-Leaving-Alberta-Extended-Periods
*** Here is the information for B.C.: MSP-Leaving-B.C.-Temporarily
*** Here is the information for Manitoba: MB-Health-Leaving-Manitoba-Temporarily
*** Here is the information for Quebec: RAMQ-Absence-From-Quebec
*** Here is the information for Saskatchewan: EhealthSask-Leaving-Sask-Temporarily
Alternative(s): Buy International Health Insurance and then you can travel as much as you want all year anywhere in the world (and possibly just change your plan for U.S. coverage while travel nursing in the United States). Possibly see if there is a credit card that includes medical coverage (explicitly see if it includes the U.S. and/or how long the coverage is for and any terms that must be met).
Stay tuned for a future article on emergency/travel medical insurance!
Maintaining your Auto Insurance
If you are bringing your car with you, it is important to know how long you are allowed to take it out of Canada and still get auto insurance coverage.
For some insurers, they will allow you to take your car out of Canada for up to 26 weeks. Sometimes insurers also recommend getting additional coverage (e.g. 2-5 million coverage) in case you get in an accident and get sued.
If looking for American car insurers, there are some insurers who might be able to transfer your coverage to their American company (e.g. All State). Otherwise, you could get American auto insurance (e.g. Geico, Progressive), but there may be additional paperwork needed (e.g. a drivers abstract).
Alternatives: Leasing a vehicle for the duration of an assignment, flying and using transit, or walking to and from your assignment hospital, etc.
Stay tuned for future articles on roadside assistance, importing a car, and other types of insurance!
A Glimpse into How Leaving for Extended Periods Affects Your Taxes...
If you are gone from Canada and have no residential ties and truly, truly, become a nomad who travels the world in between your assignments in the U.S., this will impact your Canadian income taxes. So too will residing in the U.S. permanently (as you may want to look into severing ties with Canada for income tax purposes).
Your classification as a resident or non-resident will impact your filing
requirements and possibly your stipends (re. having a tax home and
where that tax home is located).
Additionally, you can stay at a facility in a city/metropolitan area for up to 12 months minus one day as a travel nurse over the span of 24 months. Should you go beyond this length of time (which you certainly can), you will need to be fully taxed on any stipends you have already/will receive and potentially taxed in full for future years. The rationale is if you have spent 12 out of 24 months in one metropolitan area, it has now become your tax home as far as the IRS are concerned.
Advice: Rather than taking advice from me, other nurses, or your recruiter, always, always, always, get the final answer from an actual accountant.
Stay tuned for several future articles on taxes!
Personally, I plan to do one contract per year for approx. 13 weeks and spend the remaining four months living in a foreign country. Then return to Canada for the rest of the year (approx. 5 months). Thus...
- I will not exceed 26 weeks with my car outside of Canada (which will ensure my auto insurance does not get cancelled).
- I will not be outside of Canada longer than 7 months (which will maintain my OHIP).
- I maintain a casual RN position in Canada (which requires working one shift minimum every 6 months to remain casual) to keep my skills up between U.S. contracts and to keep as a back up option just in case.
- And I will continue filing U.S. and Canadian income taxes (because I work in the U.S. and live in Canada).
