Listed below are a summary of the important provisions of the health care bill that may have an impact on you, and the effective dates:
2010
| Provisions | Effective Date |
| Adoption credit increased (to $13,170 from $12,170 in 2010), extended through 2011 and made refundable. | after 12/31/09 and before 1/1/12 |
| An insurance credit is allowed to small employers paying at least 50% of employees’ health insurance costs. The average annual wage of employees must be under $25,000. The credit is as high as 35% (50% after 2013). | after 12/31/09 |
| 50% credit provided to small businesses for investments in certain qualifying therapeutic discovery projects for 2009 and 2010. | amounts paid or incurred for tax years after 12/31/08 |
| Income exclusion for employer-provided health insurance extended to children under age 27. | after 3/30/10 |
| Exclusion for employer-provided adoption assistance increased by$1,000. | after 12/31/09 |
| Self-employed health insurance premium includes premiums paid by taxpayers for children under age 27. | after 3/30/09 |
| Penalty increased to 20% for nonqualified HSA and FSA distributions after 2010. | after 12/31/09 |
| 10% excise tax on indoor tanning services. | performed after 7/1/10 |
2011
| Provisions | Effective Date |
| FSA, HSA, HRA, and MSA qualified distributions include withdrawals for prescription drugs and insulin only, no over-the-counter drugs. | after 12/31/10 |
|
Establish simple cafeteria plans for small employers. |
after 12/31/10 |
| Cost of employer-sponsored health coverage must be shown on W-2. | after 12/31/10 |
2012
| Provisions | Effective Date |
| Adoption credit increased (to $13,170 from $12,170 in 2010), extended through 2011 and made refundable. | after 12/31/09 and before 1/1/12 |
2013
| Provisions | Effective Date |
| Medical expense deduction increases to 10% after 2012, after 2017 for people 65 or older. | tax years after 12/31/12 |
| FSA contributions limited to $2,500. | after 12/31/12 |
| Medicare premium increases by 0.9% for taxpayers whose AGI exceeds $200,000 single and $250,000 MFJ. | after 12/31/12 |
|
Medical expense deduction increases to 10% after 2012, after 2017 for people 65 or older. |
after 12/31/12 |
| .09% employee Medicare tax increase on wages over $200,000 ($250,000 combined wages MFJ). | after 12/31/12 |
|
New 3.8% Medicare tax assessed on net investment income of individuals, estates, and trusts with income over $200,000 single and $250,000 MFJ. |
after 12/31/12 |
2014
| Provisions | Effective Date |
| Individuals between 100% and 400% of federal poverty level will qualify for refundable tax credit (“premium assistance credit”) to offset exchange-purchased health insurance premiums. | after 12/31/13 |
|
Exclusion from income of free choice vouchers. |
after 12/31/13 |
| Deduction allowed to employer for free choice vouchers. | after 12/31/13 |
| Employers with at least 50 full-time employees may be subject to penalty if not providing health insurance coverage to employees. | after 12/31/13 |
| “Shared responsibility penalty” assessed against taxpayers who do not have health coverage. Penalty is phased in over 3 years starting in 2014 at $95 per individual ($285 per family); in2015 at $325 per individual ($975 per family); and in 2016 at $695 per individual ($2,085 per family). | after 12/31/13 |
| Reporting of employer health insurance coverage. | after 12/31/13 |
2018
| Provisions | Effective Date |
| 40% excise tax assessed against “Cadillac” employer-sponsored health plans where the premium exceeds $10,200 for individual coverage and $27,500 for family coverage. | after 12/31/17 |
