Income Tax Implications of The Healthcare Reform Act - Obama Care

On March 23, 2010 President Obama signed the Landmark Health Care Reform Act and was immediately challenged in court. The result was that many people were left confused about the law and its' effect your personal bottom line and taxes in particular.

The new law which incorporates a slew of new regulations and requirements for businesses and individuals is intended to increase the number of people covered by medical insurance and by doing so reduce the cost for everyone. The Health Care Reform Act commonly referred to as Obama Care is being phased in over the course of eight years with the vast majority of the law in place by the end of 2014.

Healthcare

One of the ways the law is intended reduce costs is through the creation of state-based exchanges. These exchanges allow lower income individuals and families to purchase coverage by taking advantage of cost sharing. Small businesses may also purchase insurance through the state exchanges and take advantage of similar cost benefits. The state exchanges will be available to individuals and families who are between 133-400% of the federal poverty level which is incomes from about ,050. to ,200 for a family of four.

Income Tax Implications of The Healthcare Reform Act - Obama Care

The Health Care Reform Act, Obama Care does require that individuals without employer provided health coverage purchase their own or be subject to a tax penalty. The penalty for not purchasing coverage is based on income and therefore varies. The tax penalty will be eased into effect and at its' maximum will run from 5 to ,085. per year. For a family of four with a household income of ,054. the average tax penalty will be about ,251. per year.

The majority of households, estimates range from 70-80%, who do not have some form of employer based health coverage will be eligible for premium support and as such will have access to state exchanges. The average family of four with a household income of ,000 a year will pay about ,400 a year for insurance.

The cost for an average family of four breaks down as follows:

Household Income: ,000.

Total Cost of Insurance: ,853.

Tax Credit: ,468.

Final Cost to Taxpayer: ,385.

The Henry Kaiser Family Foundation website provides a great tool to calculate your actual cost for health insurance beginning with the year 2014. The health reform subsidy calculator allows you to put in your family income, size and your age and calculates exactly what your costs will be.

Employers

In most cases businesses who employ more then 50 people, full-time, will be required to provide health insurance coverage under this law. The law states that if you have more then 50 full-time employees and at least one of them receives the premium support tax credit a fee (tax penalty) of ,000 per full-time employee (excluding the first 30) will be assessed. This applies only to employers who do not offer health coverage already.

For employers who do offer coverage but still have a full-time employee who receives a premium support tax credit the employer will have to pay a tax penalty of ,000. for each full-time employee receiving a credit or ,000. per employee, excluding the first 30, whichever is less.

It is important to note that all the tax penalties for employers pertain to full-time employees only. For example a business with 100 employees of which only 49 are full-time is exempt from providing coverage.

Income Tax Implications of The Healthcare Reform Act - Obama Care

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Differences Between the Republican and Democratic Healthcare Reform Bills

The Republican Party has spent the past several months serving as vocal opposition to the healthcare reform bills supported by the Barack Obama administration and Democratic members of Congress. During that time, they have seen success in influencing public opinion. However, many were frustrated that Republicans hadn't offered their own plan. Surely they didn't believe that the health insurance system in the U.S. is perfect the way it is? Well, the wait is over. Senate Minority Leader John Boehner has acknowledged the public's demand for an alternative with the debut of the GOP's healthcare reform bill. Obviously, a party that has disagreements with most parts of the Democrats' bills in the House of Representatives and Senate has written a significantly different bill. How exactly are the proposals different?

• Length: The Democrats' bill is a whopping 1,990 pages long. Meanwhile, the Republican version clocks in at a more reasonable 230 pages. Most politicians should find the latter's length (akin to the average novel) more manageable than the entire encyclopedia that is the former.
• Mandate: Republicans have eliminated the mandate that would require virtually all individuals to buy health insurance plans, as well as one that would force employers to provide insurance. Those mandates are central to the Democratic bill; their intent is to make sure that the cost of health insurance is spread among a large pool, as opposed to only the sickest of our population.
• Pre-existing Conditions: Unlike the bills proposed by the Democrats, the Republican bill would not ban health insurance companies from denying coverage to those with pre-existing conditions. This falls in line with the party's more anti-regulatory stance on business.
• Interstate Insurance Sales: People will be allowed to buy a health insurance plan across state lines under the Republican bill. Insurance is cheaper in some states, since there are fewer requirements or restrictions on what insurers do or do not cover.
• Abortion Coverage: The Republican bill includes stricter prohibitions on funding of abortions. Democrats have already included a provision that would prevent federal subsidies (given to low income individuals to buy insurance) from being used directly on abortion services. However, the Republicans go further by preventing people who receive the subsidies from buying any health insurance plan that covers abortion entirely--even if they never end up using that particular option. The Republican party has a stronger pro-life base, so this provision could help draw them in. On the other hand, this could also backfire against the Republicans, who have capitalized off the grassroots anger over the possibility of a government bureaucracy making your health care decisions for you.
• Medical Malpractice: Trial lawyers have been loyal contributors to Democratic politicians. That may be why there isn't significant legislation involving medical tort reform in their bill. Republicans would like to limit jury awards for things like pain and suffering. The most plaintiffs could be awarded would be 0,000 in medical malpractice cases (excluding actual, proven economic harm)
• Cost: The most recent estimates show the Democrats' plan as costing over trillion over the next decade, while Republicans haven't yet revealed how much their plan will cost. Given how much they complain about the Democratic proposals super-sizing the national debt, it can reasonably be expected that their bill will have a lower price tag.

Healthcare

As you can see, there are significant differences in the bills. Above all, Republicans acknowledge that their bill would insure less people than the Democratic bill. Although both parties care about lowering the percentage of uninsured individuals and families in addition to the budget deficit, there is a trade-off. The latter appears to be a higher priority for the GOP. It appears inevitable that healthcare reform will pass at some point, possibly before the end of this year. The details of the Democratic proposals have been discussed for weeks, while the solutions presented by the Republicans have just made their formal debut. Boehner plans to finalize his party's bill soon, in order for it to be presented when debate on the finalized Democratic bill begins on the House floor. So far, neither strategy for reforming our healthcare system seems ideal. Despite that, it is positive that more options are being presented to the American people. The greater number of minds put together, the faster we can fix the unavailability of affordable health insurance plans in this country.

Differences Between the Republican and Democratic Healthcare Reform Bills

Differences Between the Republican and Democratic Healthcare Reform Bills

Yamileth Medina is an up and coming expert on Health Insurance and Healthcare Reform. She aims to help people realize that they can get affordable health insurance plans right now while waiting for a public option, if it ever gets passed. Yamileth lives in Miami, FL.

Muslim Exemption to Obamacare - Injurious Aspects of the Healthcare Reform Act

The Patient Protection and Affordable Care Act (PPACA), the upcoming health insurance mandate (Obamacare) does not kick in until the year 2014 but it has already created controversy. One accusation in particular is that Muslims will be exempt from paying into the program. The act does not specifically exempt any particular religion from health insurance requirements. It does however include a general "religious conscious" clause which establishes a religious conscientious exemption. If your religion has an established history of spurning gambling then maybe you have a chance of skipping out of the tax. Let's just bypass for a moment the injustice of my government placing one group of Americans over another and examine the legalistic claim of gambling.

Is insurance really a form of gambling? Gambling involves a certain level of uncertainty but uncertainty does not equate to gambling. The purpose of insurance is to transfer risk elsewhere so that you are not burdened by catastrophic financial costs. In the event of property damage or loss for instance, the policy payout is not in the form of winnings but merely a "return of capital" to restore that asset to its pre-incident condition. In such an instance the settlement money received is not even taxed by the IRS. Contrast that with lottery and other gambling winnings which most certainly are taxed.

Healthcare

Even religions that do not allow gambling allow exceptions for certain types of insurance which are required by law, such as automobile insurance, homeowner's insurance and social security. That's right; U.S. Muslims pay into the Social Security system and also accept Social Security payments.

Muslim Exemption to Obamacare - Injurious Aspects of the Healthcare Reform Act

OASDI, which stands for Old Age, Survivors and Disability Insurance, is a comprehensive federal benefits program that was established by Congress in 1935. The program includes retirement benefits, disability income, veteran's pension, public housing, and even the food stamp program. The Social Security tax is used to pay for the program. By law, the program is administered by the Social Security Administration. Today we just commonly refer to this blessed program as "Social Security."

It is an insurance program. The government is prohibited from ordering you to pay insurance premiums and so therefore they designate the payroll contributions as a tax and use the IRS to collect the funds to pay for the whole thing. OASDI (Social Security) is an insurance program and American Muslims are required to participate in this program.

We are not perfect but Americans collectively believe in fairness. If government health care is required to provide benefits then all able recipients should be required to pay. What if you can opt out of PPACA? If certain groups collectively decide not to participate in government health care are we then to deny them medical attention? Are hospitals to potentially turn away injured and dying Muslims and their children because they refused to pay into the health system? Of course not. If the benefits apply to everyone then so should the cost.

Let us take another tack as we reconnoiter this gambling charge. As I sit here writing this article my personal Social Security Statement shows that I have been paying Social Security and Medicare taxes since the age of 16. The minimum legal gambling age in most states is either 18 or 21. If insurance is a form of gambling, then governments and even private companies are breaking the law by collecting both Social Security and Medicare taxes from minors. Since there is documented proof that my government forced me into sinful debauchery at such a young and impressionable age then America is guilty of contributing to the delinquency of a minor. If insurance equates to gambling then I demand a full refund plus interest, or at the very least some free therapy.

Muslim Exemption to Obamacare - Injurious Aspects of the Healthcare Reform Act

Todd Lester's career has spanned across many years and numerous industries. He has been registered with the Securities and Exchange Commission and licensed to sell investments and insurance, worked as a retail manager, turned wrenches as an automotive mechanic, served cubicle time as an office manager and even owned his own business for many years restoring car interiors. And that is just since graduating college with a Finance degree. During much of this time, he was also a citizen soldier, serving twenty one years in the Army National Guards of both Louisiana and Texas as an Army bandsman. He has even performed as a clown with the Shrine Circus.

Universal Health Care - Ethical Issues in Health Care Reform

Universal health care seems to be a hotly debated topic whenever health care reform in the United States is discussed. 

Those who maintain that health is an individual responsibility do not want a system that requires them to contribute tax dollars to support fellow citizens who do not act responsibly in protecting or promoting their own health. They argue that they want the freedom to choose their own physicians and treatments, and suggest that government cannot know what is best for them.  These people argue that preserving the current system with improvements to provide better insurance coverage for citizens who remain uninsured or under insured for their medical care needs is the only reform that is needed.

Health Care

Those who believe health care is an individual right support a universal health care system with the argument that every citizen deserves to have access to the right care at the right time and that a government's responsibility is to protect its citizens, sometimes even from themselves.

Two opposing arguments arising from two opposing ideologies.  Both are good arguments but neither can be the supporting argument for implementing or denying universal health care.  The matter must be resolved through an ethical framework.

Examination of the ethical issues in health care reform would require consideration of much different arguments  than those already presented.   Ethical issues would center on the moral right.  Discussion would begin with not "What is best for me?" but rather  "How should we as a society be acting so that our actions are morally correct?"

Ethics refers to determining right and wrong in how humans relate to one another.  Ethical decision making for health care reform then would require human beings to act in consideration of our relationships to each other not our own individual interests.

Examination of some of the common ethical decision making theories can provide a foundation for a different perspective than one that is solely concerned  with individual rights and freedoms. 

Ethical decision making requires that specific questions be answered in order to decide on whether intended actions are good or morally correct.  Here are some questions that could be used in ethical decision making for health care reform.

• What action will bring the most good to the most people?
• What action in and of itself is a good act and helps us to fulfill our duties, obligations, and responsibilities to each other?
• What action in and of itself shows caring and concern for all citizens?

As the answer to all  these questions, universal health care can always be considered the right thing to do.

The United States is in the most advantageous position there is when it comes to health care reform.  They are the only developed country without a national health care system in place for all citizens.  They have the opportunity to learn from the mistakes that have been made by all the other countries that have already gone down the universal health care road. They have an opportunity to design a system that can shine as a jewel in the crown of universal health care systems everywhere. 

However, all ethical decision making is structured around values.  In order for universal health care to be embraced by all citizens in the United States, they will first have to agree to the collective value of equity and fairness and embrace the goal of meeting their collective responsibility to each other while maintaining individual rights and freedoms. That may prove to be the most difficult obstacle of all.

Universal Health Care - Ethical Issues in Health Care Reform

Beverly Hansen OMalley is a nurse with over 35 years experience in nursing education. She is health promotion specialist and is passionate about the necessity to address social determinants of health as part of overall health promotion strategies. She is the owner of http://www.registered-nurse-canada.com where she provides information on the Canadian health care system, the nursing profession in Canada, and the nursing entrance tests for the US and Canada.

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Scenarios For Health Care Reform

With the health care debate raging in the United States, many experts have already forecasted many possible scenarios for what could be the end result, but are they accurate? As lawmakers continue to wrestle over such issues as the public option, and extending coverage to the uninsured, there is no debate that the government is looking to cut costs in the health care system, which could spell trouble for the pharmaceutical industry.  The pharmaceutical industry knows that with health-care reform on the way, the prescription drugs industry will be the first to get the axe, losing major pricing power, especially in the Medicare market.  While it is still up in the air whether a public option will pass, the pharmaceutical industry knows that a strong government controlled pricing plan spells big problems for the industry.

Even though the pharmaceutical industry has reason to be concerned, according to some pharmaceutical sales consultants all over the country, health care reform is not all bad news.  Because of the 46 million uninsured U.S. citizens likely to get some form of health care in the next 5 years, that equates for big profits for the pharmaceutical industry.  With more insured Americans getting more access for branded and generic prescription drugs, this will only mean more business for drug makers and a boost in demand.  But the pharmaceutical industry is not so convinced.  Because half of large drug company sales come from overseas, they see this boost as being inconsequential to the money they are going to lose on the federal price gauging that is likely to take place.

Health Care

Here are some possible health care scenarios, some which may be good for the pharmaceutical industry, some which could even be disastrous.  One scenario is that the government will use its buying power, through Medicare programs, to demand lower drug prices from the pharmaceutical industry.  This program could lower the drug prices in Medicare up to 15%, with the burden of cost falling directly on the pharmaceutical companies.  However, with Medicare only representing about 20% of drug spending in the United States, and roughly half that world-wide, it would only amount to about a 2% decrease in the cost of pharmaceutical drugs.  However, this is not the only scenario.  Some expect that with the increase in coverage from formally uninsured citizens, the government will demand Medicaid pricing for this group, possibly slashing prices of U.S. drugs up to 10%.

Even though the pharmaceutical companies support health care reform, they may not be eagerly supporting a nationalized health care plan.  A nationalized plan, although unlikely at this point, could cut prescription drugs up to 15% even to 30% if the national plan offers very little choice for consumers.  Under this worst case scenario for the pharmaceutical industry, they could see their stock values fall up to 40%.  Any pharmaceutical consultant will tell you this scenario is unlikely, but it is speculations like these that fuel the passion and uncertainty that has become the health care reform debate.  Only time well tell.

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Scenarios For Health Care Reform

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Health Care Reform - How Does It Affect Senior Citizens?

Quite rightly, a great deal of our senior citizens are going to be worried about what the effects of the new health care reform bill are. It's true that seniors often use the health care system a lot more often than most young people do, and so they probably have a bigger interest than most. The frightening thing is, for any senior citizen with a fixed income, there is going to be little room for maneuver in their budgets should the cost of health care rise.

So is the new health care reform bill brought about by Barack Obama going to have any direct affects on senior citizens? The answer is "yes".

Health Care

However, there are also a lot of complications to this answer, and whether the new affects are good or bad for you will depend much on your individual circumstances.

Let's take a look at some of the specifics concerning older citizens:

Cuts in Medicare

One of the biggest changes that we'll see is that under the new bill, the federal governments regular payments to the Medicare Advantage program are set to be cut over the next 10 years by 2 billion. This has been justified by the government who say that people under these plans typically receive more from the government than those who are under regular Medicare receive.

It's true that there are often additional benefits on offer to seniors in a Medicare Advantage program, which aren't available to seniors under a traditional Medicare program. It's likely that there extra benefits will be cut from Medicare Advantage plans once these new cuts are felt.

This reduction is to be phased in during the next 3 years in most states, beginning in 2011, though there are a few states where this will take more time.

The new healthcare reform bill doesn't introduce any cuts to the traditional Medicare program however. Despite this pledge though, Medicare contributions towards home healthcare are set to be cut by billion from 2011 until 2019, and there will also be reductions in payments to hospitals over the same period, totaling billion.

Enhancements to Medicare

Medicare's existing prescription medicine's benefit is set to be bolstered by the new bill however, as it addresses its "donut hole" problem.

As it stands now, a senior citizen who spends up to 00 on medicines is covered. However, once passed that mark, coverage stops. If that same person manages to spend up to ,154 on medicine, coverage will begin again, hence the nickname "donut hole".

Starting now in 2010, anyone who falls in this donut hole will be eligible for 0 aid from the government. Afterwards, the bill states that the US government will make annual increases to the amount of medicinal costs it will pay for anyone who falls in this "donut hole". By the year 2020, the government will pay for 75% of medicine costs for senior citizens who fall into this ,700 to ,154 gap. As well as this, annual Wellness visits by senior citizens are set to be provided for by Medicare.

Medicare Payments Board

The new healthcare reform bill will also see the establishment of an Independent Payment Advisory Board for Medicare, one that is made up of 15 members. It's principal task is to submit ideas and proposals for legislation in order to cut the per capita spending of Medicare, if this spending starts growing too fast and becomes unsustainable.

The "Too fast" designation will be defined as anything that exceeds the Consumer Price Index's growth rate during a 5 years period ending in 2013.

If this happens, then the board will meet in 2014 to discuss and submit proposals to be considered by the House of Congress and the US president.

Many critics have claimed that this board will be the tool for future Medicare reductions. Some of the legislative wording in the new bill states that the Independent Payments Advisory Board is prohibited from proposing an idea that would raise taxes, ration care or alter benefits.

Health Care Reform - How Does It Affect Senior Citizens?

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