If you have a health care FSA through your employer, you can no longer set aside more than $2,500 per year into that account. Your employer may choose to limit your annual deferral even further.
Starting with tax year 2013 and beyond, your maximum pretax contribution from your salary is $2,500. Anything more is not allowed.
Check with your employer’s health benefits administrator if you have questions regarding FSA limits.
The Medicare payroll tax increased by 0.9 % on individuals making more than $200,000 and couples making more than $250,000 per year. Unearned income, which has been exempt from the payroll tax, is now subject to a 3.8 % tax.
Medical device manufacturers must now pay a 2.9 % sales tax on the products they sell, except for eyeglasses, contact lenses and hearing aids. If you need a medical device that is eligible for the sales tax increase, such as a heart pacemaker, the manufacturer may pass the additional cost on to you (although technically, it’s their responsibility to pay it.)
Individuals and small businesses begin buying more affordable qualified health benefit plans in the new Health Insurance Marketplace. This first open enrollment lasts from October 1, 2013, through March 31, 2014.
You still have options. You may qualify for the state’s Medicaid program.
you may be eligible to buy health insurance, but pay less for it. Based on your income, you may qualify for “advance premium tax credits” to help you pay your monthly premiums and cost-sharing reductions to help reduce your out-of-pocket costs.. Even if you’re not currently on government assistance, earning below a certain income means you will most likely get help with your health care costs.
you may buy health insurance directly, on your own, if your income is above a certain level.
Beginning in 2015, if you’re an employer with more than 100 full-time equivalent employees, do not offer affordable health benefits and at least one of your workers receives a premium tax credit to reduce the cost of coverage they buy through the Marketplace, you will be charged a $2,000 fee for each uninsured employee if 70% of your workers are not covered. The first 30 employees are exempt from the penalty.
The law requires you to purchase health care coverage by 2014 or pay a penalty of whichever is greater: $95 or 1% of your annual income. In 2015, that goes up to $325 or 2% of your annual income.
Though the dates are not yet finalized, the Administration has proposed that the open enrollment period for coverage effective on January 1, 2016 will run from October 1, 2015 – December 15, 2015
The law requires you to purchase health care coverage by 2014 or pay a penalty. In 2016, the penalty increases from $325 or 2% of annual income penalty to whichever is greater: $695 or 2.5% of income.
If your state enters into a Health Care Choice Compact with another state you may be able to purchase health insurance from insurers outside your state. This is designed to spark competition, which could lower costs. If you’re a business owner, you can now consider coverage options outside of the state in which you operate your business.
Companies with more than 100 employees may be allowed to participate in the state-based Health Insurance Marketplace.
Midsize businesses (with 50-99 employees) and large businesses must offer coverage to at least 95% of employees in 2016 or be subject to a penalty if at least one of their workers receives a premium tax credit through the Marketplace. The first 30 employees are exempt from the penalty.
This provision will add a 40% non-deductible excise tax or “Cadillac tax” on high cost employer-sponsored health plans. The 40% tax is imposed only on the total cost of coverage that exceeds certain thresholds. These threshold are initially set at $10,200 for self-only coverage and $27,500 for other coverage, but may be adjusted due to a number of factors.
Currently, if you have Medicare and the cost of your prescription drugs exceeds the initial coverage amount of your plan, you are required to pay the higher cost of those drugs until you reach the catastrophic-coverage threshold of your plan (this in-between phase is called the “donut hole”). By the start of 2020, the coverage gap will have closed, there will be no more “donut hole” and you will pay only 25% of the costs of your drugs until you reach your yearly spending limit.