Obama and Dems Stick it to Working Families

[GoPackGo]

Well Obama and them Dems decided to jam it to working families with the new healthcare legislation. Not only is the deduction floor going from 7.5% to 10%, starting in 2011 a ban on using funds from flexible spending accounts, health reimbursement arrangements or health savings accounts for the cost of over-the-counter medications.


http://finance.yahoo.com/family-hom...orm-tax-hikes-on-the-way?mod=insurance-health

Oh and you employee seniors and provide drug coverage? No more deduction for you!!!

Oh and that FSA you like to use...you are getting cut from 3500 to 2500....

This "reform" is an F-ING Joke....

 

[bl4ckfl4g]

Ok thanks for the info.....

 

[feralkid]

Cool half-rant, bro.

 

[Fern]

I haven't heard of this before, well not that it made it into the bill.

3. A requirement that businesses include the value of the health care benefits they provide to employees on W-2s, beginning with W-2s for 2011.

If it's what it sounds like, employer provided HC benfits (insurance etc) will be taxable. That would be a huge tax increase for an awful lot of people.

However, it may be just be for informational purposes. I.e., the amount of the benefit provided is reported on the W-2 but not taxed. I suspect this is what they mean.

Fern

 

[EagleKeeper]

I haven't heard of this before, well not that it made it into the bill.

3. A requirement that businesses include the value of the health care benefits they provide to employees on W-2s, beginning with W-2s for 2011.

If it's what it sounds like, employer provided HC benfits (insurance etc) will be taxable. That would be a huge tax increase for an awful lot of people.

However, it may be just be for informational purposes. I.e., the amount of the benefit provided is reported on the W-2 but not taxed. I suspect this is what they mean.

Fern

One way of verifiying that people have coverage.

No W2 coverage indication - fine is calculated up front. Then one may have to file proof of coverage to get the fine back.

Few people hit the 7.5% threshold and itemize.

The flex spending on OTC items is a loophole that was not intended.

 

[Mxylplyx]

Why should someone's Tylenol be tax deductible?

Also, the goal the bill attempts to achieve is to curb excessive spending on healthcare. People being given gold plated high value health plans encourages needless spending. Also, with the upcoming mandate for comprehensive health insurance, the need for an HSA is mostly removed, so they should lower the deduction.

 

[dmcowen674]

Well Obama and them Dems decided to jam it to working families with the new healthcare legislation. Not only is the deduction floor going from 7.5% to 10%, starting in 2011 a ban on using funds from flexible spending accounts, health reimbursement arrangements or health savings accounts for the cost of over-the-counter medications.


http://finance.yahoo.com/family-hom...orm-tax-hikes-on-the-way?mod=insurance-health

Oh and you employee seniors and provide drug coverage? No more deduction for you!!!

Oh and that FSA you like to use...you are getting cut from 3500 to 2500....

This "reform" is an F-ING Joke....

Good as long as you and the rest of the Republicans are along for the ride too. Enjoy

 

[Fern]

-snip-
Also, with the upcoming mandate for comprehensive health insurance, the need for an HSA is mostly removed, so they should lower the deduction.

How so?

HSA are designed to lower HC costs and encourage HI coverage.

Are we back again to the conundrum of encouraging more coverage by eliminating more coverage (options)?

The part about reducing HC costs is that an HSA is designed to encourage HI with high deductibles. This, like your remark about gold plated plans, means those with with higher deductibles are less likely to use HC unless really needed. See, under an HSA if you don't use your deductible you can roll it over to cover next year's costs.

I thought the promise was that we could keep the HI we had if we wanted? Or is this a 'stealth tax' increase? (If you know much about HSA'a that would be your conclusion I'm afraid)

Presently, I don't see how eliminating/reducing HSA's does anything to advance the publicly touted objective of HCR.

Fern

 

[xj0hnx]

Why should someone's Tylenol be tax deductible?

Also, the goal the bill attempts to achieve is to curb excessive spending on healthcare. People being given gold plated high value health plans encourages needless spending. Also, with the upcoming mandate for comprehensive health insurance, the need for an HSA is mostly removed, so they should lower the deduction.

So to insure everyone, take away from those that were responsible enough to get good insurance. Liberals

 

[woolfe9999]

I haven't heard of this before, well not that it made it into the bill.



If it's what it sounds like, employer provided HC benfits (insurance etc) will be taxable. That would be a huge tax increase for an awful lot of people.

However, it may be just be for informational purposes. I.e., the amount of the benefit provided is reported on the W-2 but not taxed. I suspect this is what they mean.

Fern

Well, they ARE taxing employer provided HC benefits. It's called the high premium insurance tax. For that, they will need this particular information. However, the tax doesn't kick in until 2018, so I'm not sure why they need the information just yet.

- wolf

 

[Fern]

Well, they ARE taxing employer provided HC benefits. It's called the high premium insurance tax. For that, they will need this particular information. However, the tax doesn't kick in until 2018, so I'm not sure why they need the information just yet.

- wolf

True, but my understanding is that the 40% excise tax is paid by the insurance company selling the high cost policy, not the employee or even employer. (I.e., the policy costs will rise by 40% too.)

If this is for that tax, they'll need to require the name of the insurance company too. I.e., I kind of doubt it's for the excise tax, but can't say I do know it's purpose.

Common Curtesy's suggestion sounds the best, but IIRC, that tax/penalty doesn't kick-in until 2014. I suspect they're getting people used to providing this info on W-2's ASAP so all hell doesn't break loose when these taxes/penalties hit. It's gonna take a while before those doing payroll and issuing W-2's get it right. If a bunch of faulty/incomplete W-2's are issued when the IRS is accessing taxes/penalties based upon them there will be all sorts of administrative problems/complaints.

Fern

 

[her209]

I suspect they're getting people used to providing this info on W-2's ASAP so all hell doesn't break loose when these taxes/penalties hit. It's gonna take a while before those doing payroll and issuing W-2's get it right. If a bunch of faulty/incomplete W-2's are issued when the IRS is accessing taxes/penalties based upon them there will be all sorts of administrative problems/complaints.

Fern

What this also does it shows the employee how much their health insurance is actually costing them.

 

[Hayabusa Rider]

Why should someone's Tylenol be tax deductible?

Also, the goal the bill attempts to achieve is to curb excessive spending on healthcare. People being given gold plated high value health plans encourages needless spending. Also, with the upcoming mandate for comprehensive health insurance, the need for an HSA is mostly removed, so they should lower the deduction.

That's bullshit. I have coverage and I'm going to pass the current limit and so will a lot of other people. News flash, it's not because we want to. Whatever we have left over would be taken by the government, but that never happens because we have expenditures such that we could us a higher limit.

I also like "excessive spending" which means if you have need, you are going to be punished.

Did you ever figure out why people would want to spend money on "gold plated" insurance plans? It's often because of a chronic condition or something catastrophic and paying for the lesser means financial ruin.

It's awful when it happens unless the government makes it so. Then it's OK.

Wonderful.

 

[GoPackGo]

High Deductible Health Plans with HSA's along with limited purpose FSA's were introduced as a way to health care premiums and make those of us with that type of plan more responsible / informed of how we spend our health care dollars.

But now they want to change that. By allowing me to use my FSA/HSA to purchase over the counter meds that might mean I avoid a trip to the doctor. But if the only way I can use those dollars is taking a trip in to the doctor...then that is what I will need to do...how does that save money?

 

[nobodyknows]

So to insure everyone, take away from those that were responsible enough to get good insurance. Liberals

Your ignorance continually astounds me. I don't think I've heard a semi-intelligent comment out of you yet? You sir are a prime canidate for my ignore list.

 

[nobodyknows]

Did you ever figure out why people would want to spend money on "gold plated" insurance plans? It's often because of a chronic condition or something catastrophic and paying for the lesser means financial ruin.

Your concern for the people who can afford "gold plated" insurance plans is duly noted.

 

[piasabird]

If your doctor says to take an aspirin every morning that is health care. Why do you need a perscription for something to be considered health care? Lots of medications that were prescription only are now over the counter. That does not mean they are any different now than they once were whether that is the cure for a yeast infection of some hay fever medicine like Zyrtec.

 

[glenn1]

Obama and Dems Stick it to Working Families

Whatever - conservatives don't give a shit about "working families" any more than do Democrats.

 

[piasabird]

I dont plan on kissing the Government's behind when I need some healthcare.

 

[alkemyst]

it's an empowerment issue. It is getting the poor voting which unfortunately is doing what the wealthy really want.

Eliminate the middle class.

Unfortunately it's not a democrat/republican thing...the bipartizan system is just muddying the waters and no one is seeing the big picture because of it.

 

[GoPackGo]

Your concern for the people who can afford "gold plated" insurance plans is duly noted.

So my high deductible health plan is gold plated?

I'm in the middle class and higher premiums, higher co-pays are killing us.

Thats ok....the dems and obama want to control us and taking away my attempt at being more responsible.

 

[GoPackGo]

If your doctor says to take an aspirin every morning that is health care. Why do you need a perscription for something to be considered health care? Lots of medications that were prescription only are now over the counter. That does not mean they are any different now than they once were whether that is the cure for a yeast infection of some hay fever medicine like Zyrtec.

I guess its not fair...so you should have to pay full price since you are rich and can afford it right?

 

[GoPackGo]

Good as long as you and the rest of the Republicans are along for the ride too. Enjoy

So drag everyone down so that its all crap coverage?

 

[Patranus]

High Deductible Health Plans with HSA's along with limited purpose FSA's were introduced as a way to health care premiums and make those of us with that type of plan more responsible / informed of how we spend our health care dollars.

But now they want to change that. By allowing me to use my FSA/HSA to purchase over the counter meds that might mean I avoid a trip to the doctor. But if the only way I can use those dollars is taking a trip in to the doctor...then that is what I will need to do...how does that save money?

But if you like your current plan you can keep it

 

[GoPackGo]

But if you like your current plan you can keep it

you dont understand...this new law changes my current plan...