journey toward financial freedom flora digby and sheila m. wilkinson-sanders economic development...
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Journey Toward Financial Freedom
Flora DigbyAnd
Sheila M. Wilkinson-SandersEconomic Development Chairs
Phase II – Plan In Motion Income Taxes & Obama CareIncome Taxes & Obama Care
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On March 23, 2010 The Journey Continued . . . On March 23, 2010 The Journey Continued . . .
Our President Barack
Obama signed the
Affordable Care Act
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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
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Application ProcessApplication Process
As with all new programs the application process may be OVERWHELMING TIME CONSUMING COMPLEXand will be posted online by the Health & Human Services Department
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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 !Who is Impacted !
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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 By The Year 2014
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The Affordable Care Act was signed in 2010 and the ground work was laid at that time.Let’s look at the annual impact of the act beginning with Prior 2012 and go forward.
Where Does It All Begin?Where Does It All Begin?
MULTIPLE YEAR IMPACT !
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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 2012Prior 2012
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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 2012Prior 2012
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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 2012The Year 2012
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Δ PAPERWORK & ADMINISTRATION COST REDUCTION –
[1] standardize billing
[2] encourage electronic information exchange
[3] reduce costs associated with paper, ink, etc.
The Year 2012The Year 2012
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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 2013The Year 2013
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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 2013The Year 2013
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Δ OPEN ENROLLMENT begins October 1, 2013
The Year 2013The Year 2013
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Δ HEALTH CARE REFORM !
The Year 2014The Year 2014
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∆ 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
2014 - Reform2014 - Reform
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∆ Some of the Cons of the HEALTH CARE REFORM include:
∆ Cumbersome applications
∆ Changes in household income requiring additional documentation
∆ System based upon income from 2012
2014 - Reform2014 - Reform
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∆ 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 2014The Year 2014
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Income for 2012 Impacting 2014
Δ What should be done at this point:Δ 2012 - income is the basis for the reform
platformΔ 2012 – income is earned and documentedΔ 2012 – can reduce income by making
retirement contributions
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Income for 2012 Impacting 2014
Δ What should we pay attention to:Δ 2012 - 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%
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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 2013 - high income earners will pay a 3.8% Medicare tax on interest, dividends, capital gains, rent & royalties
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Continue the Journey
Affordable Care Actfor all the details of the act
HealthCare.gov
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Continue the Journey
Will post on website www.ChicagoDeltas.com
Will post of Facebook www.facebook.com/chicagodeltas
Will post on Youtube pageCACEconomicDevelop
Send questions. [email protected]
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Continue the Journey
Join us next month for ARPIL - 30 Days of Financial
Fortitude
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Share the Knowledge
Journey Toward Financial Freedom
Flora DigbyAnd
Sheila M. Wilkinson-SandersEconomic Development Chairs
Phase II – Plan In Motion Income Taxes & Obama CareIncome Taxes & Obama Care