What's in store for 2011 and 2012 | Dissecting the Healthcare Bill - Part 2 of 4 | Tax Tip of the Week | No. 47
Last week we looked at the changes this bill created for 2010. This week we highlight the changes for 2011 and 2012.2011 Highlights
- A new national employee-funded long-term care benefit known as the “Community Living Assistance Services and Supports Act” (CLASS Act). Estimated monthly premium of $120 for a $50/day benefit
- The value of employer provided group health coverage to be reported on each employee’s W2
- Distributions of proceeds from HRAs, FSAs and HSAs will no longer be non-taxable for over-the counter medications.
- Any distributions from HSAs and MSAs for non-medical expenses will have an additional 20% penalty tax (currently 10% for HSAs and 15% for MSAs
- Brand-name drug manufacturers and importers will pay an added $2.5 billion in annual taxes
2012 Highlights
- Employers must provide a Summary Plan Description (SPD) of group policies to all employees
- A new tax of $2/covered individual will be assessed to all those covered by self-insured health plans.
- Payors (including all corporations) will need to issue 1099s to report all payments of $600 or more for goods and services purchased.
Next week we will look at this “1099 Nightmare” in more detail.Questions or comments? In Dayton, call 937-436-3133 and in Xenia, call 937-372-3504. Or visit our web site.Rick Prewitt - the guy behind TTW...until next week.