Last nights’ election keeps President Obama in office for another four years and secures the victory for healthcare reform. The threat of repeal and replace of ObamaCare is gone and now home care providers that do not take action to make changes to their home care business might be behind the pack.
There are still many challenges in ObamaCare to address; however, the fact that on January 1st, 2013, there are major ObamaCare taxes that will come into force:
The ObamaCare Medical Device Manufacturing Tax
This 2.3 percent tax on medical device makers will raise the price of pacemakers, prosthetics, stents, and operating table. This tax is worrisome because it is levied on gross sales of the medical device manufacturing companies.
The ObamaCare High Medical Bills Tax
Today, Americans are allowed to deduct medical expenses on their 1040 form to the extent the costs exceed 7.5 percent of one’s adjusted gross income. With the new ObamaCare provision, that will be raised to 10 percent. This tax will impact pre-retirement seniors the most.
The ObamaCare Flexible Spending Account Cap
The 24 million Americans who have Flexible Spending Accounts will face a new federally imposed $2,500 annual cap. These pre-tax accounts, which currently have no federal limit, are used to purchase everything from assisted daily life equipment such as handle bars in showers or tubs to mobility products.
This tax dubbed the “medicine cabinet tax” which has prevented millions of Americans with Health Savings Accounts from purchasing over-the-counter medicines with pre-tax funds.
As a home care provider, these taxes that go into effect in less than two months can make a difference on a personal and business level. How will your home care business address the upcoming tax liability? Post a comment to start the conversation.