Now That Obamacare Has Passed, Here's What It's Going To Cost You
Mandi Woodruff|Jun. 28, 2012, 11:54 AM|3,957|18 Now that President Obama's health care overhaul has won the last stamp of approval from the U.S. Supreme court, the question you're probably asking is, Who's going to pay for it?
The Affordable Care Act will extend health care coverage to some 30 million uninsured consumers along with an expansion of Medicaid services. It also promises a slew of tax credits for small business and middle-income families to help offset the costs of mandatory coverage.
Much of the cost burden will be shouldered by the health care industry and employers that provide workers with insurance. On an individual consumer level, however, it'll be the wealthiest Americans that feel the sting of Obamacare末and, strangely enough, people who hit the tanning bed.
You can find a pretty thorough list of tax credits and provisions included in the Affordable Care Act at
www.irs.gov and in a detailed list from the Kaiser Family Foundation.
Here are a few that stand out:
The Tan Tax: Since July 2010, tanning bed users have been burned by a 10 percent tax hike that will stay put now that Obamacare's been upheld. While it doesn't apply to doctor-prescribed phototherapy services, some gym tanning services, or spray tans, the tax does apply to typical tanning salons. (See the this fact sheet on Indoor Tanning Services Tax Center for more information).
Medicare surtaxes: Here's where wealthier Americans will feel the effects of Obamacare. As of Jan. 1, 2013, a 3.8 percent surtax will be levied against surplus investments reported by the following groups: single filers reporting $200,000; married couples reporting $250,000; and married couples filing separately reporting $125,000.
In addition to the investment surtax, high-earning households will see their Medicare tax spike by 0.9 percent on their earned income, according to the Kaiser Family Foundation. The tax will apply to individuals earning more than $200,000 and married couples filing jointly who make more than $250,000. It goes into effect Jan. 1, 2013.
Consumer penalties: Part of the controversy surrounding health care reform was that the law would mandate coverage for all Americans on pain of penalties. Those penalties will be tiered and rise over a three-year period that kicks off in 2014, according to the National Association of Consumer Protection:
2014: Families末$285 or 1 percent of total household income, whichever is greater. Individual adults末$95.
2015: Families末$975 or 2 percent of income, whichever is greater. Individual adults末$325.
2016: Families末$2,085 or 2.5 percent of income, whichever is greater. Individual adults末$695.
If you're not covered by your employer, you'll have to pick from a list of government-mandated health insurance packages. Some exceptions do apply, including low-income families who can prove financial hardship.
Flex spending account limits: In addition to capping Flexible spending accounts at $2,500 in 2013, new rules limiting what you can buy with flex accounts will remain. They've been effective since Jan. 2011 and apply to OTC medications unless you have a prescription, excluding the following: "Insulin, even if purchased without a prescription, or other health care expenses such as medical devices, eye glasses, contact lenses, co-pays and deductibles," per the IRS.
Read more:
http://www.businessinsider.com/what-obamas-affordable-care-act-will-cost-consumers-2012-6#ixzz1z6wQr0ti
