PATIENT PROTECTION AND AFFORDABLE CARE ACT (PPACA)By: Malcolm F. Buckhanan.

WHAT IS PPACA?

Federal statute

Signed by President Obama. March 23, 2010

OTHER NAMES OF PPACA.

Affordable Care Act (ACA)

Obamacare

Health Reform Law

OBAMACARE RULES & REGULATIONS.

Guaranteed Availability of Coverage Fair Health Insurance Premiums Single Risk Pool Guaranteed Renewability of Coverage Catastrophic Plans

ESS

EN

TIA

L H

EA

LTH

BEN

EFIT

S

1.Ambulatory patient services

2.Emergency services

3.Hospitalization

4.Maternity and newborn care

5.Mental health and substance use disorder services, including behavioral health treatment

6.Prescription drugs

7.Rehabilitative and facilitative services and devices

8.Laboratory services

9.Preventive and wellness services and chronic disease management

10.Pediatric services, including oral and vision care

THE AFFORDABLE CARE ACT — TAX IMPLICATIONS FOR

EMPLOYERS

Tax Points.

PAY-OR PLAY Employer contributions, employer penalty

Tax-deductible business expenses for the employer.

Payments are not tax-deductible.

Profit Paying $3,000 in premiums is a lower net cost than paying $3,000 in penalties.

New reporting requirements

Allowed the to calculate the penalties.

IRS (Internal Revenue Service)

The IRS has not yet issued guidance on those requirements, but it is expected during the coming year.

PCORI FEES TRANSITIONAL REINSURANCE FEES SMALL BUSINESS TAX CREDITS &

ADDITIONAL MEDICARE TAX.

PCORI fees

Tax-deductible business expenses for the employer.

Transitional Reinsurance fees

Tax-deductible business expenses for the employer.

Small Business Tax Credits

The maximum credit is 35 percent of employer (2013);

The maximum credit is 50 percent of employer (2014);

The credit reduces the amount that the employer would otherwise be able to claim as a deductible expense.

Additional Medicare Tax.

The employer does have to calculate it, withhold it from the employee’s pay.

CONSUMER COST Not exceed to:

$6350 per individual

$1270 per family

Employers identified the top three costliest provisions as:

The Patient-Centered Outcomes Research Institute fee—38 percent

General administrative costs—35 percent

Explaining provisions to participants—28 percent

WEB-SITES http://

www.arkansasbusiness.com/article/94074/the-affordable-care-act-tax-implications-for-employers?page=a

http://obamacarefacts.com/obamacare-health-insurance-rules.php

http://en.wikipedia.org/wiki/Patient_Protection_and_Affordable_Care_Act

http://www.volokh.com/2013/08/13/ppacas-consumer-cost-caps-delayed/