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Posts Tagged ‘Wood Dale’

IRS Gears up for Impact of Health Care Reform on Tax Season

Friday, October 3rd, 2014

Accounting Today reports:

“Internal Revenue Service commissioner John Koskinen told a congressional subcommittee about the IRS’s progress on the Affordable Care Act and the impact that tax subsidies will have next tax season.

In a hearing before the House Ways and Means Health Subcommittee on Wednesday, Koskinen talked about how the IRS would be processing the premium tax credit, which helps subsidize the cost of health insurance coverage for eligible taxpayers.

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Another Month Of Fixes For Health Care Website

Friday, November 1st, 2013

Insurance News Net reports:

“The Obama administration has set a rough timetable of the end of November for completing a long list of fixes to the new, trouble-plagued government website for uninsured Americans to get health insurance coverage, the linchpin of the president’s signature legislative achievement.

Summarizing a week’s worth of intensive diagnostics, the administration acknowledged Friday the HealthCare.gov website has dozens of complex problems and tapped a private company to oversee fixes.

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Quick Facts about Health Care Reform and Premiums

Tuesday, July 23rd, 2013

AHIP Coverage reports:

“Given recent attention on the impact of health care reform on health care costs and premiums, we wanted to share the following facts:

  • The impact the ACA will have on premiums will vary considerably depending on a where a person lives, what coverage they have today, and their age, gender, and health status.  Simply looking at averages does not explain what these changes will mean for a particular person in a particular state.  To learn more about the wide variation in impact, visit www.TimeforAffordability.org/changes.

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Health benefit safe harbors put Payroll in the driver’s seat

Monday, June 17th, 2013

Business Management reports:

“The Affordable Care Act health care reform law requires employers of 50 or more full-time em­­ployees to play—by offering them affordable health benefits that provide minimum value—or pay free-rider penalties (See “IRS issues regs on ACA’s employer play-or-pay provision.”)

What’s affordable: Benefits are affordable if employees’ contributions don’t exceed 9.5% of their household income and employers pay at least 60%.

Dilemma: Since you don’t know what 9.5% of employees’ household income is, you’re in a bind. The IRS, as promised, has created three optional affordability safe harbors.(78 F.R. 217, 1-2-13)

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Quick Guide to ACA Affordability, Penalty & Subsidy Calculations

Tuesday, April 2nd, 2013

Flex reports:

The U.S. Department of Health and Human Services (HHS) and the Internal Revenue Service (IRS) have jointly issued rules that define affordable coverage. Employers and employees still have several questions about how this affects penalty calculations and subsidy eligibility. The following offers some insight on these key issues:

Employers

 

“Failure to Offer” Penalty

Employers that have 50 or more full-time equivalent employees must offer group health insurance to their employees next year or pay a penalty. The penalty is $2,000 per full-time employee with an exemption for 30 employees.

 

For example, if an employer had 100 full-time employees the penalty would be applied to 70 employees, which would result in a $140,000 penalty. The penalty is pro-rated on a monthly basis for employers that offer coverage for only a portion of the year.

“Unaffordability” Penalty

Employers (with 50+ employees) that choose to offer health insurance coverage must then make sure it is considered affordable, or be faced with a different penalty. Coverage is considered affordable if the employee cost for self-only coverage is less than 9.5% of their compensation, as reported in Box 1 of their W-2 statement.

 

For example, an employee making $35,000 would have to be charged $277.08 or less per month ($35,000 x 9.5% = $3,325/12) for self-only coverage for it to be considered affordable.

 

The employer can charge additional premium for employees that elect to cover dependents. There is actually no contribution requirement that the employer must make towards dependent coverage, and this is not taken into account to determine if the employer is offering affordable coverage.

 

If the coverage is considered unaffordable the employer may be subject to a penalty. The penalty is $3,000 per employee, and it is only applicable to employees in which coverage is considered unaffordable, and that apply for coverage through a public exchange and qualify for a premium tax subsidy. The penalty would also be pro-rated on a monthly basis if the employer provided affordable coverage for only a portion of the year.

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Millions Face Sticker Shock When ‘Open Enrollment’ Begins

Monday, March 25th, 2013

Insurance News Net reports:

“ST. LOUIS – President Obama’s ambitious goal that all Americans have access to health care will take a huge step forward this fall with the opening of federal and state insurance exchanges.

But it is too soon to tell whether these bold creations of the Affordable Care Act will actually bring “affordable” care to consumers. Some observers say that escalating health-care costs will still find ways to tap and drain the bank accounts of small businesses, individuals and families.

With less than seven months until health-insurance exchanges begin open enrollment in many states, regulators are scrambling to implement the new law’s most sweeping – and most expensive – changes.

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New health care markets on the way

Wednesday, February 13th, 2013

Yahoo News reports:

“Buying your own health insurance will never be the same.

This fall, new insurance markets called exchanges will open in each state, marking the long-awaited and much-debated debut of President Barack Obama’s health care overhaul.

The goal is quality coverage for millions of uninsured people in the United States. What the reality will look like is anybody’s guess — from bureaucracy, confusion and indifference to seamless service and satisfied customers.

(more…)

State eyeing five health insurance exchange bids

Friday, November 9th, 2012

PJ Star reports:

“Illinois officials are reviewing five bids to build the state’s health insurance exchange – a required component of the federal health care overhaul that Gov. Pat Quinn intends to implement regardless of who wins the presidency on Election Day.

By 2014, each state must have a working exchange where people and small businesses can comparison shop online for commercial health plans based on quality and cost. The concept has been described as Travelocity for health insurance, and it’s intended to make buying insurance simpler and more affordable.

(more…)

Don’t Get Hit With Fines Under Health Care Reform

Monday, July 30th, 2012

FOX Small Business Center reports:

“With more than 500 provisions, the Patient Protection and Affordable Care Act contains hefty tax implications for small business owners.

Of the 500 provisions in health-care reform, more than 40 of these provisions affect the Internal Revenue Code, including incentives and tax breaks to individuals and small businesses to offset health-care expenses.

(more…)

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