091813 ppaca slide deck flinchbaugh
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SEK&Co, Strickler Agency and Capital Blue Cross Presented a Seminar on Affordable Care Act Compliance Issues for Employers and Individuals.
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091813 ppaca slide deck flinchbaugh
- 1. An overview of the administrative and tax requirements of the Law⦠2010⦠2011⦠2012⦠2013⦠2014⦠2015⦠2016⦠2017⦠2018⦠» The Patient Protection and Affordable Care Act Joel A. Flinchbaugh, CPA Member of the Firm Smith Elliott Kearns & Company, LLC Jflinchbaugh@sek.com www.SEK.com SMITH ELLIOTT KEARNS & COMPANY, LLC WWW.SEK.COM
- 2. SMITH ELLIOTT KEARNS & COMPANY, LLC WWW.SEK.COM
- 3. President Obama Signs law March 23, 2010 now what??? SMITH ELLIOTT KEARNS & COMPANY, LLC WWW.SEK.COM
- 4. 35% tax credit applicable for: β’ Businesses with less than 25 FTE employees & average wages less than $50,000. β’ Credit reduced as # of employees exceeds 10 and average wage exceeds $25K. Small Business Health Insurance Credits Begin SMITH ELLIOTT KEARNS & COMPANY, LLC WWW.SEK.COM 2010
- 5. Tax applicable for services rendered after July 1, 2010. 10% Excise Tax on Indoor Tanning Services SMITH ELLIOTT KEARNS & COMPANY, LLC WWW.SEK.COM 2010
- 6. SMITH ELLIOTT KEARNS & COMPANY, LLC WWW.SEK.COM
- 7. β’ Over the counter drugs NO LONGER qualify. β’ Non-qualified distributions subject to 20% penalty vs. 10% under old law. Modifications to qualified expenses from FSAβs, HSAβs, and HRAβs and increased penalties. SMITH ELLIOTT KEARNS & COMPANY, LLC WWW.SEK.COM 2011
- 8. Medical Loss Ratio Limits Begin β’ Small group and individual insurers-80%. β’ Large group-85%. β’ Excess premiums must be refunded. SMITH ELLIOTT KEARNS & COMPANY, LLC WWW.SEK.COM 2011
- 9. SMITH ELLIOTT KEARNS & COMPANY, LLC WWW.SEK.COM
- 10. Reporting of Health Insurance on W-2 β’ Employers issuing more than 250 W-2βs required to report health benefits on W-2 β’ Still waiting for final regulations regarding companies with less than 250 β’ Not taxable β just information SMITH ELLIOTT KEARNS & COMPANY, LLC WWW.SEK.COM 2012
- 11. Summary of Benefits Required β’ Renewals on or after 9/23/12 β’ Notice of change in benefits must be provided 60 days before change β’ Insurance company should be providing this reporting for employers SMITH ELLIOTT KEARNS & COMPANY, LLC WWW.SEK.COM 2012
- 12. Employers Begin to Receive MLR rebates β’ Can be used to offset future premiums. β’ If employees contribute to premiums, they must receive proportionate share of rebate. SMITH ELLIOTT KEARNS & COMPANY, LLC WWW.SEK.COM 2012
- 13. SMITH ELLIOTT KEARNS & COMPANY, LLC WWW.SEK.COM
- 14. Increased Medicare Tax (Hospital Insurance Tax) ⒠.9% of wages in excess of⦠⒠$200,000 if single. ⒠$250,000 MFJ. ⒠Employers MUST withhold on wages paid in excess of $200,000 to individual. SMITH ELLIOTT KEARNS & COMPANY, LLC WWW.SEK.COM 2013
- 15. Unearned Income Medicare Contribution Surtax β’ 3.8% on lessor of: β’ Net investment income or β’ Excess of modified AGI over $200/S, $250/MFJ. β’ Investment income (interest, dividends, royalties, rents, sale of passive activity, passive activity). SMITH ELLIOTT KEARNS & COMPANY, LLC WWW.SEK.COM 2013
- 16. Increased Threshold for Deducting Medical Expenses β’ Threshold raised to 10% of AGI. β’ If over 65 - 7.5% limit still applies through December 31, 2017. SMITH ELLIOTT KEARNS & COMPANY, LLC WWW.SEK.COM 2013
- 17. Flexible Spending Account Limits β’ Annual limit of $2,500 for contributions to flexible spending accounts. β’ No impact on premium or dependent care. SMITH ELLIOTT KEARNS & COMPANY, LLC WWW.SEK.COM 2013
- 18. 2.3% Excise Tax on Medical Device Manufacturers β’ Exemptions β’ Eyeglasses. β’ Contacts. β’ Any device generally purchased by the public at retail. SMITH ELLIOTT KEARNS & COMPANY, LLC WWW.SEK.COM 2013
- 19. Patient Centered Outcomes Research Institute Fee - PCOR β’ Assessed on medical plans β usually paid by carrier. β’ Employer may be subject with any type of self insurance. β’ $1 per covered life, increasing to $2 than indexed with inflation. SMITH ELLIOTT KEARNS & COMPANY, LLC WWW.SEK.COM 2013
- 20. Notice of Coverage- Due 10/1/13 β’ Employers required to provide β’ Must include: β’ Description of services offered on Exchange β’ Potential eligibility for premium credit β’ Info about impact of purchasing through Exchange SMITH ELLIOTT KEARNS & COMPANY, LLC WWW.SEK.COM 2013
- 21. SMITH ELLIOTT KEARNS & COMPANY, LLC WWW.SEK.COM
- 22. Individual Mandate β’ Maintain βminimum essential coverageβ or: β’ 2014 - Penalty (Tax) greater of 1% of household income OR $95 per uninsured β’ 2015 β Penalty (Tax) greater of 2% of household income or $325 per uninsured β’ Penalty Cap of $2,250 per household β’ There are some exceptions to the penalty SMITH ELLIOTT KEARNS & COMPANY, LLC WWW.SEK.COM 2014
- 23. βTax Creditsβ for Individuals Purchasing Through Exchange β’ A subsidy for purchasing insurance through the Exchange. β’ For people with income above Medicaid limits, but below 400% of federal poverty level. SMITH ELLIOTT KEARNS & COMPANY, LLC WWW.SEK.COM 2014
- 24. Expansion of small business Health Insurance Credit to a 50% credit for small businesses who purchase insurance through SHOP (Exchange). Small Business Health Insurance Credits SMITH ELLIOTT KEARNS & COMPANY, LLC WWW.SEK.COM 2014
- 25. SMITH ELLIOTT KEARNS & COMPANY, LLC WWW.SEK.COM
- 26. Pay or Play Employer Mandate Employers with 50 or more FTE employees must either offer health insurance, or pay a penalty β’ $2,000/employee, but first 30 are not counted β’ Still subject to penalty even if coverage is offered, but employee receives tax credit SMITH ELLIOTT KEARNS & COMPANY, LLC WWW.SEK.COM 2015
- 27. SMITH ELLIOTT KEARNS & COMPANY, LLC WWW.SEK.COM
- 28. States May Allow Larger Employers to buy on Exchange β’ Businesses with more than 100 employees may be able to purchase insurance in the SHOP SMITH ELLIOTT KEARNS & COMPANY, LLC WWW.SEK.COM 2017
- 29. SMITH ELLIOTT KEARNS & COMPANY, LLC WWW.SEK.COM
- 30. Excise Tax on βCadillacβ Plans β’ 40% Excise tax on plans with costs exceeding: β’ $10,700 for individuals β’ $27,500 for family SMITH ELLIOTT KEARNS & COMPANY, LLC WWW.SEK.COM 2018
- 31. That was Easy!!!! SMITH ELLIOTT KEARNS & COMPANY, LLC WWW.SEK.COM 2018