Discussion:Health Care Bill & PPAC Act summary

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Discussion Forum Index --> General Chat --> Health Care Bill & PPAC Act summary


Natalie (talk|edits) said:

April 3, 2010
The Journal of Accountancy just published a summary of the health care bill and its amendment. (I was going to add it to one of the other discussions, but they're getting quite long.) JOA article - good summary

Natalie (talk|edits) said:

May 31, 2010
Is anyone aware of a provision in this law that requires employer-paid medical premiums to be included as compensation? Someone mentioned that to me last week, but I haven't seen any news on it.

Trillium (talk|edits) said:

31 May 2010
I've been reading that that is a common misperception brought about by the fact that the premiums paid will need to be reported on the W-2 (for informational purposes, not as part of taxable wages), starting for the 2011 tax year.

The premium info is a key component of identifying the insurers who will be subject to the excise tax on Cadillac plans, which itself doesn't kick in until 2018, but I gather that the info will also be used to calculate regional averages and other stats that do get used prior to 2018. Apparently the W-2 reporting requirement has been either misreported or overly summarized as "included on your W-2" which is what is making people fear that the premiums are going to be included as compensation.

Natalie (talk|edits) said:

June 1, 2010
Thanks Trillium. I hadn't seen anything about it being taxable or why someone might think it were taxable, so that's very helpful.

Actionbsns (talk|edits) said:

1 June 2010
Did anyone else catch the Medicare Tax on investment income starting in 2012? My husband keeps saying this bill will either be overturned or changed substantially. I'm beginning to think that there are going to be some loud noises come 2013 when some of the more insidious parts of the bill make their presence known.

Trillium (talk|edits) said:

1 June 2010
Medicare tax on investment income IF taxpayer has AGI over $250k MFJ/ $125k MFS/ $200k all other filing statuses, and only on the portion over the applicable threshold. The JOA article Natalie linked in her first post has a good explanation with more details than what I've written here.

And, if income is excluded from tax (e.g., Sec 121), then it's not part of net investment income for this calculation anyway.

Sapcpa (talk|edits) said:

17 June 2010
Amounts that can be contributed to flexible spending accounts under sec 125 are going to be limited to $2,500.00 starting in 2013. I cannot determine if that includes insurance premiums paid pre-tax. Anyone know?

Trillium (talk|edits) said:

17 June 2010
The $2,500 limit for Health FSAs is from Sec. 9005 of the act, and the JCT Technical explanation has an excellent explanation of that provision. See pages 78-81 of the pdf (labelled as pages 74-77).

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