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Journey Toward Financial Freedom Flora Digby And Sheila M. Wilkinson-Sanders Economic Development Chairs Phase II – Plan In Motion Income Taxes & Obama.

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Presentation on theme: "Journey Toward Financial Freedom Flora Digby And Sheila M. Wilkinson-Sanders Economic Development Chairs Phase II – Plan In Motion Income Taxes & Obama."— Presentation transcript:

1 Journey Toward Financial Freedom Flora Digby And Sheila M. Wilkinson-Sanders Economic Development Chairs Phase II – Plan In Motion Income Taxes & Obama Care

2 2 On March 23, 2010 The Journey Continued... Our President Barack Obama signed the Affordable Care Act

3 3 Objective To provide COMPREHENSIVE health insurance reform Reform IMPACT will expand 4 years and beyond To promote INDIVIDUAL health care responsibility Open enrollment begins 10/1/2013

4 4 Application Process As with all new programs the application process may be OVERWHELMING TIME CONSUMING COMPLEX and will be posted online by the Health & Human Services Department

5 5 When the dominos fall, the three main groups of tax payers impacted will be: [1] Uninsured – to apply through new state based insurance markets [2] Middle Class – be eligible for tax credits to help pay private programs [3] Low Income – be steered toward Medicaid Who is Impacted !

6 6 ALL Americans will be required to have Health Coverage. Those without Health Coverage could face a penalty of $95 or 1% of the household income ~ whichever is GREATER This penalty will continue each year to a max of $695 or 2.5% of household income ~ through 2016 By The Year 2014

7 7 The Affordable Care Act was signed in 2010 and the ground work was laid at that time. Lets look at the annual impact of the act beginning with Prior 2012 and go forward. Where Does It All Begin? MULTIPLE YEAR IMPACT !

8 8 Δ MEDICAID – States given additional federally matched funds to cover additional low income family coverage Δ SENIOR Donut Hole occurs when Seniors reach the coverage gap for prescription drug coverage; Seniors given One Time tax free $250 rebate check Prior 2012

9 9 Δ EARLY RETIREES – Expansion of medical coverage for those between 55 and 65 years of age Δ PREEXISTING CONDITION [PCIP] – Those uninsured for at least 6 months because of a preexisting condition; prohibited 2014 Prior 2012

10 10 Δ INTEGRATED HEALTH SYSTEMS – effort to encourage physicians to join ACO, Accountable Care Organizations - organization promotes a synergy of services to help prevent disease and reduce unnecessary hospital admissions The Year 2012

11 11 Δ PAPERWORK & ADMINISTRATION COST REDUCTION – [1] standardize billing [2] encourage electronic information exchange [3] reduce costs associated with paper, ink, etc. The Year 2012

12 12 Δ HEALTH INSURANCE MARKET – Concept introduction; place where individuals and small businesses can buy Affordable & Qualified health benefit plans Δ PREVENTIVE HEALTH COVERAGE – Efforts that encourage preventive techniques, i.e. Wellness Programs The Year 2013

13 13 Δ MEDICAID PAYMENTS – Increased for Primary Care doctors paying 100% of the rates – federally funded ! Δ BUNDLING – Pilot Program of encouraging hospitals, doctors and other providers to work as a team and agree to payment at a flat rate The Year 2013

14 14 Δ OPEN ENROLLMENT begins October 1, 2013 The Year 2013

15 15 Δ HEALTH CARE REFORM ! The Year 2014

16 16 Some of the Pros of the HEALTH CARE REFORM include: Online applications Online what if scenarios after answering a few questions Online Clearing House called Data Services Hub, which allows the systems of services to interact and provide options based on information provided, i.e. Social Security, IRS, Homeland Security Reform

17 17 Some of the Cons of the HEALTH CARE REFORM include: Cumbersome applications Changes in household income requiring additional documentation System based upon income from Reform

18 18 The HEALTH CARE MARKETPLACE will be available to compare companies and prices Increased access to MEDICAID available Those interested in applying have income limits of $14,000 for Individuals & $29,000 for families of 4 The Year 2014

19 19 Income for 2012 Impacting 2014 Δ What should be done at this point: Δ income is the basis for the reform platform Δ 2012 – income is earned and documented Δ 2012 – can reduce income by making retirement contributions

20 20 Income for 2012 Impacting 2014 Δ What should we pay attention to: Δ the LAST year that medical costs over 7.5% over the Adjusted Gross Income can be deducted Δ 2013 – the deductable amount increases to 10% over AGI; IF you turn 65 before 12/31/13 you will continue to use 7.5%

21 21 Income for 2012 Impacting 2014 Δ What should we pay attention to: Δ 2013 – high income earners will pay an additional.9% Medicare payroll tax OVER $200,000 individuals / $250,000 couples Δ high income earners will pay a 3.8% Medicare tax on interest, dividends, capital gains, rent & royalties

22 22 Continue the Journey Affordable Care Act for all the details of the act HealthCare.gov

23 23 Continue the Journey Will post on website Will post of Facebook Will post on Youtube page CACEconomicDevelop Send questions.

24 24 Continue the Journey Join us next month for ARPIL - 30 Days of Financial Fortitude

25 25 Share the Knowledge

26 Journey Toward Financial Freedom Flora Digby And Sheila M. Wilkinson-Sanders Economic Development Chairs Phase II – Plan In Motion Income Taxes & Obama Care


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