The Supreme Court ruling upholding the individual mandate in the Patient Protection and Affordable Care Act (PPACA) was based in part on the government’s taxing authority. Deloitte Development has produced a document that summarizes all of the law’s revenue and tax provisions.
With PPACA now the law of the land, it is important to review how its tax provisions will affect those who will be buying health insurance in the future. These provisions include additional taxes on individuals who do not purchase health insurance (the individual mandate), which can reach 2.5 percent of income per adult in a household; the “Cadillac” tax on very generous health benefit plans; the penalties on firms with more than 50 employees that do not provide health insurance coverage (employer mandate) and a number of other tax and revenue provisions. Deloitte’s analysis describes the provisions and provides the “score” given by the Congressional Budget Office, which estimates the gains or losses of revenue resulting from the implementation of each provision.
Click here for the Deloitte revenue and tax provisions document.
The American Rental Association (ARA) has been working with others in the small business community to repeal two of these provisions: the employer mandate and the Health Insurance Tax (HIT). Those efforts will continue in the coming months. In addition, ARA will follow the development of regulations defining minimum credible coverage and setting of the rules for insurance exchanges. Minimum credible coverage is designed to set a floor on what a plan is required to offer, which can have a major impact on cost. The exchange rules will determine how insurance will be sold and how companies participate in the market.