Will there be a separate tax beginning Jan 2011 for health care reform?

Right now we pay 7.65% for social security and medicare. Will there be an additional tax for health care reform that is similar to this?

New taxes and "revenue enhancers" (which are not really taxes but will cost you money):
– new tax on brand name pharmaceutical companies (will result in higher drug costs).
– increases tax for some withdrawals from HSA and MSA accounts from 10% to 20%.
– cannot use tax incentive funds for purchase of over the counter medications.
– new tax on all private health insurance policies (beginning FY12, will result in higher premium).
– Medicare Advantage cuts begin (will cause increases in premium and co-pays).
– Medicare cuts to home health begin.
– Medicare cuts for diagnostic imaging.
– Medicare cuts to ambulance services, diagnostic labs, DME.
– higher Part D premiums for "wealthier" seniors.
– Medicare cuts to long-term care hospitals (7/1/11)(will result in higher hospital charges).
– Additional Medicare cuts to hospitals, nursing homes, and inpatient rehab facilities (FY12).
– Require health insurance to cover preventive care w/no co-pay (will result in higher premium).

The increase in Medicare taxes and several additional taxes will go into effect in 2013.

9 thoughts on “Will there be a separate tax beginning Jan 2011 for health care reform?

  1. The benefit you get from your employer will be taxed.
    In other words.
    Lets say the employer pays $5,000 a year (his part) and you pay $5,000 a year (your part).
    Both of those parts $10,000 will now be taxed at your regular tax rate.

    There is much more coming – brace yourself.
    Now you know why the economy is in such a mess.
    /
    References :

  2. No.

    There are no additional taxes.

    The "Bush Tax Cuts" are set to expire on 12/31/10 (a date set by Republicans when the tax cuts were passed) but this is entirely unrelated to the health care bill.

    Judy lets her politics blind her advice sometimes.
    References :

  3. Across the board premiums will run between 12 to 30% more – depends on who you work for and what they will do. The child tax credit drops to $500 per child on Jan 1st. There are literally thousands of new taxes that will help cover the health care costs, as well as hundreds of service cuts. Remember, the bill is now well over 2,000 pages long. You will also have to be signed up for automatic enrollment (whether you choose it or not) and any taxes due will be deducted electronically, so no more of this getting a paper bill and then deciding when you will pay for it. The trick to avoiding the $750 overdraft fee will be to always have more than enough money in your account. The fee also applies if you refuse to choose an option, and it is per person, not family. So, a family of five where the parents did not choose an option would have a fine of 5 times $750, and on top of that, be billed the appropriate amount for the plan they are put into. A bit tricky and I suppose this is a great way to get it all paid for.
    References :

  4. You are not being taxed on your group health plan. In 2018 those Cadillac health plans will be taxed as income. Health reforms pertain to insurance company practices, not your payroll taxes. The employers who have less than 50 employees got a tax credit this year. Check the timeline on these websites for implementation of various provisions.

    http://edlabor.house.gov/blog/2010/03/affordable-health-care-for-ame.shtml
    http://dpc.senate.gov/dpcissue-hri.cfm
    References :

  5. Starting in 2011, the irs will require the employer to SHOW the health care benefit on the W-2. This is not going to be added to your income–even though the rumor mill assumed it would.
    References :

  6. No, there will be no new payroll taxes to individuals for health care reform.

    By the way, we do not pay 7.65% for social security and medicare taxes on medical insurance premiums now. In fact, we do not pay any payroll taxes at all on on medical insurance premiums now.
    References :

  7. New taxes and "revenue enhancers" (which are not really taxes but will cost you money):
    – new tax on brand name pharmaceutical companies (will result in higher drug costs).
    – increases tax for some withdrawals from HSA and MSA accounts from 10% to 20%.
    – cannot use tax incentive funds for purchase of over the counter medications.
    – new tax on all private health insurance policies (beginning FY12, will result in higher premium).
    – Medicare Advantage cuts begin (will cause increases in premium and co-pays).
    – Medicare cuts to home health begin.
    – Medicare cuts for diagnostic imaging.
    – Medicare cuts to ambulance services, diagnostic labs, DME.
    – higher Part D premiums for "wealthier" seniors.
    – Medicare cuts to long-term care hospitals (7/1/11)(will result in higher hospital charges).
    – Additional Medicare cuts to hospitals, nursing homes, and inpatient rehab facilities (FY12).
    – Require health insurance to cover preventive care w/no co-pay (will result in higher premium).

    The increase in Medicare taxes and several additional taxes will go into effect in 2013.
    References :
    Independent Agent

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