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Individual Shared Responsibility |
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The Individual Shared Responsibility is a part of the new
law that you will not be able to escape. Click on this
link to learn more. |
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Stay on Your Parents Plan Until Age 26 |
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Sec.
2714
See the entire law
Goes into effect September 2010.
If
you're an entrepreneur that isunder the age of 26 you can be
insured under your parents plan. Howevwer, if you
parents are on medicare an certain retirement plans they
won't be able to add you to their plan.
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Increase Cost |
The Congressional Budget Office
Premiums are
expected to go higher. According to the
Congressional Budget Office individual and small group
premiums will cost more under the new law. |
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Pre-Existing Conditions |
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Sec.
2704/1101
See the entire law
Takes effect in 2014. You will no
longer be denied coverage for pre-existing conditions by
insurance companies.
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Health Savings Account (HSA) |
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Sec.9004
See the entire law
The IRS penalty will go from 10% to 20%
for non-allowable purchases made using funds in the
Health Savings Accounts or Flexible Savings Accounts.
Starting in 2011 you will not be able to
buy over the counter drugs such as aspirin, tylenol,
etc. with these funds. You will have to get a
prescription first. The funds will
only be allowed for buying prescription drugs. |
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Flexible Savings Account (FSA) |
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Sec.9005
See the entire law Effective
in 2013. Currently individuals can
make unlimited tax-free contributions to their FSA's.
Under the new law those contributions will be limited to
only $2,500 a year. |
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Fewer Medical Tax Deductions |
Sec.9013
See the entire law
Effective in 2013.
Previously you
were able to deduct expenses that exceeds 7.5% of your
income. Under the new law your expenses will have
to exceed 10% before you can get the deduction. |
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Health Insurance Exchanges |
Sec. 1311/1
See the entire law
Health Insurance Exchanges also
known as American Health Benefit Exchange. The
states are required to establish the exchanges by
January 2013 under the law. If the states do not
establish the exchanges the federal government can
establish it for them.
If you
work for yourself you will be able to get insurance
coverage on the exchange in your respective state.
If you're a legal immigrant you can get your
insurance through the exchanges.
The only people
who can't get insurance through the exchanges are those
on Medicare, Medicaid and businesses.
See
which states will or will not establish the Exchanges:
The Commonwealth Fund interactive map
Kaiser Family Foundation
state listing
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Medicare Tax |
Sec.9015
See the entire law
If you have an adjusted gross income above
$200,000 (or $250,000 for a couple) you will be
subjected to the 3.8% Medicare Tax on Unearned
Income if you sell your home or another investment and
make a profit.
The 3.8% Medicare Tax is in
addition to the capital gains tax.
Visit the IRS Q&A web page on Medicare Tax.
See the IRS proposed Regulation. |
