6LH 1/26/14

Fill-in host Shannon Bream went over some of the new Obamacare taxes and fees expected to hit Americans in 2014. Citing analysis by USA Today, Bream noted that some counties lack even “bronze” plans for 40-year-old couples making a little too much to qualify for financial assistance. Further, for 50-year-olds who don’t qualify for any subsidies, “more than a third of the counties don’t offer an affordable individual plan in any of the four tiers of plans — bronze, silver, gold, and certainly not platinum,” she said.
As of Dec. 26, more than six million Americans had reportedly lost their insurance plans, which critics argue is due to Obamacare. Using an example from Alabama, the hosts said new Obamacare fees can add $23 a month to an individual’s monthly premium, or about $278 a year.’s Chris Stirewalt argued the Obama administration regularly refers to such increases as “fees” instead of “taxes” because it is better for them politically. Starting in 2014, President Barack Obama’s health care law will expand coverage to some 30 million uninsured people. At the same time, insurers no longer will be allowed to turn away those in poor health, and virtually every American will be required to have health insurance — or pay a fine. Insurance will be available through an employer or a government program or by buying it on their own.
But the wealthiest two percent of Americans will take the biggest hit, starting next year. And roughly 20 million people eventually will benefit from tax credits that start in 2014 to help them pay insurance premiums.
Here’s a look at some of the major taxes and fees, estimated to total nearly $700 billion over 10 years. Upper-income households. Starting Jan. 1, individuals making more than $200,000 per year, and couples making more than $250,000 will face a 0.9 percent Medicare tax increase on wages above those threshold amounts. They’ll also face an additional 3.8 percent tax on investment income. Together these are the biggest tax increase in the health care law.
– Employer penalties. Starting in 2014, companies with 50 or more employees that do not offer coverage will face penalties if at least one of their employees receives government-subsidized coverage. The penalty is $2,000 per employee, but a company’s first 30 workers don’t count toward the total.
– Health care industries. Insurers, drug companies and medical device manufacturers face new fees and taxes. Companies that make medical equipment sold chiefly through doctors and hospitals, such as pacemakers, artificial hips and coronary stents, will pay a 2.3 percent excise tax on their sales, expected to total $1.7 billion in its first year, 2013. They’re trying to get it repealed. The insurance industry faces an annual fee that starts at $8 billion in its first year, 2014. Pharmaceutical companies that make or import brand-name drugs are already paying fees; they totaled $2.5 billion in 2011, their first year.
– People who don’t get health insurance. Nearly 6 million people who don’t get health insurance will face tax penalties starting in 2014. The fines are estimated to raise $6.9 billion in 2016. Average penalty in that year: about $1,200. Indoor tanning devotees. The 10 percent sales tax on indoor tanning sessions took effect in 2010. It’s expected to raise $1.5 billion over 10 years. The 28 million people who visit tanning booths and beds each year — most of them are women under 30, according to the Journal of the American.
Affordable Care Act Tax Provisions for Individuals and Families:contains new health insurance coverage and financial assistance options for individuals and families. The IRS will administer the tax provisions included in the law.
The premium tax credit can help make the cost of purchasing health insurance coverage through the Marketplace more affordable for individuals and families with low to moderate incomes.
Beginning Oct. 1, 2013. When you get health insurance through the marketplace, you may be able to get advance payments of the premium tax credit that will immediately help lower your monthly premium.
· If you do not have a tax filing requirement, you do not need to file a 2013 federal tax return to establish future eligibility or qualify for future financial assistance. Certain employers are required to report the value of the health insurance coverage they provide. Code DD on your Form W-2 is not taxable. You can deduct your unreimbursed medical and dental expenses that exceed 10 percent of your adjusted gross income on your 2013 tax return. The 7.5 percent threshold will remain for those 65 and older for tax years 2013 through 2016.
· To claim the premium tax credit, you must get insurance through the Marketplace. You can elect to have advance payments of the tax credit sent directly to your insurer during 2014, or wait to claim the credit when you file your tax return in 2015. If you choose to have advance payments sent to your insurer, you will have to reconcile the payments on your 2014 tax returnStarting January 2014, you and your family must either have health care coverage, have an exemption from coverage, or make a payment when you file your 2014 tax return in 2015. Most people already have qualifying health care coverage and will not need to do anything more than maintain that coverage throughout 2014.
If you are receiving advance payments of the premium tax credit to help pay for your insurance coverage, you should report changes such as income or family size to your market place
· Fewer than 25 full-time equivalent employees may be eligible for a Small Business Health Care Tax Credit to help cover the cost of providing coverage.
· Generally 50 or fewer employees may be eligible to buy coverage through the Small Business Health Options Program (SHOP). Learn more at
50 or more full-time equivalent employees will need to file an annual return reporting whether and what health insurance they offered employees.
The open enrollment period to purchase health insurance coverage for 2014 through the Health Insurance Marketplace runs from Oct. 1, 2013, through March 31, 2014 refund payments issued to certain small tax-exempt employers claiming the refundable portion of the Small Business Health Care Tax Credit under Internal Revenue Code Section 45R, are subject to sequestration. . The sequestration reduction rate will be applied unless and until a law is enacted that cancels or otherwise impacts the sequester, at which time the sequestration reduction rate is subject to change.
Beginning in 2011, insurance companies are required to spend a specified percentage of premium dollars on medical care and quality improvement activities, meeting a medical loss ratio (MLR) standard. Insurance companies that are not meeting the MLR standard will be required to provide rebates to their consumers beginning in 2012.
Sources—acajason howerton, the blaze, firewire usa today


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