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Jun 23, 2010

Is This In The Future For The U.S.?

From the U.S. Social Security Administration's International Update:
Updated regulations, effective May 1, simplify and modernize the coordination process among the social security systems in the European Union (EU) member states, which in recent years had become increasingly complex and cumbersome. EU regulations on social security coordination do not replace national systems, but create linkages between systems to guarantee that individuals can have uninterrupted coverage when moving from one country to another within the region.

The updated rules apply to all citizens of EU member states covered under national social security programs, including workers and their families, tourists, and those who are not in the workforce such as job seekers and pensioners. Citizens will be issued a limited number of portable documents (including the European Health Insurance Card) by the social security institution where they are insured. These documents will be used to verify entitlement to coverage for each country. In addition, the new regulations require citizens to be temporarily assigned to a specific social security system if social security institutions in different EU countries cannot agree on which national legislation applies in a particular case. Thus, individuals will not be denied medical treatment or access to sickness insurance benefits while their status is being resolved.

A major information network, the Electronic Exchange of Social Security Information, will be implemented by May 2012 in all EU countries. The system will streamline application processing and benefits administration through the electronic sharing of information among EU countries. The EU will also launch a Web site with an updated citizens' guide and access to an online directory of social security institutions in Europe.

The world is getting smaller. I can imagine the U.S. eventually participating in this and other international social security electronic exchange programs. I do not think that many people would claim that the Social Security treaties that the U.S. has is place now are working very well for anyone other than those seeking to avoid paying Social Security taxes to two countries.

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