The following is a timeline of PPACA provisions that could affect you. With the recent Supreme Court decision upholding the Patient Protection and Affordable Care Act (PPACA), there has been greater interest in the details of the law and how it will impact individuals. Below is a timeline on the implementaion of key provisions of the law that was created by the Utah Association fo Independent Insurance Agents.
2013
*Increase Medicare tax rate on wages by 0.9% (from 1.45% to 2.35%) on earnings over $200,000 for individual taxpayers ($250,000 for joint filers).
*3.8% tax increase on investment income for taxpayers making $200,000 per year ($250,000 for joint filers); however in real estate transactions there is an exemption in current law for $250,000 on the sale of a principal residence ($500,000 for joint filers).
*Contributions to FSAs limited to $2,500 per year.
*(IMPLEMENTATION OF THIS PROGRAM HALTED INDEFINITELY BY HHS) CLASS Act:
A national long term care assistance/disability insurance plan is established. The benefit is tied to one's inability to perform two or three Activities of Daily Living (ADLs) and the benefit amount is varied based on the "scale of functional ability" with a $50-7/day cash benefit. All working adults will be automatically enrolled in the program unless they choose to opt-out.
2014
*Exchanges are created and open to individuals and small businesses (2-100 employees). Exchanges will include four tiers of private plans(Bronze- 60% actuarial value, Silver-70%, Gold-80%, Platinum- 90%, and Catastrophic coverage).
*Premium tax credits (subsidies for purchase of health insurance) available via exchanges for individuals/families with incomes between 100% and 400% of federal poverty level who do not receive employer based coverage.
