Skip to comments.Our first tax increase under Obamacare
Posted on 03/26/2010 1:22:00 PM PDT by Bean Counter
My wife informs me that the Company she works for has already announced what will be a significant change to one of the programs they offer employees, and it means that many people's taxes have already gone up, proving what a liar Premier Hussein really is.
Several years ago, the company started offering a type of medical savings account to employees. The employee signs up during the annual enrollment period at year end, and chooses how much that account will be worth, let's say, $2000. As soon as the new year starts, you can begin using that account to pay authorized medical expenses up to the $2000 limit, and a set amount is deducted from your weekly pay to satisfy the account by year end. All expenses have to be medical and you must provide receipts, but you can spend that $2000 in the first 2 months of the year, then pay it back incrementally for the rest of the year.
It's a pretty good deal and is of tremendous help with meeting your deductibles and co-pays on health expenses. I've had some significant health challenges for a while now and every year we pay significant money out of our pocket for medical expenses.
In addition, the money is pre-tax; that is, it is exempt from Federal and State taxes. They do that to encourage people to use it, and enable them to stay current on their medical bills.
Last year we took $3500 and used it all. The top limit for 2010 is $5000, and the wife signed up for that amount this year. That will be five grand that is exempt from taxes and we will use every bit of it this year....and it is the last year we will get that much of a benefit.
She was just notified by the Company, that with the passage of Obamacare, the maximum allowable amount for those accounts starting with the next enrollment period is now $2500, period.
Our medical expenses will not decrease, nor will the amount we have to pay out of pocket be cut in half...but the amount we were able to shield from taxes just got slashed, and with more money to tax, our total taxes will increase.
Thank you very little, US CON-gress, Comrade Peloski and Premier Hussein...
I am not surprised. This is one of the few things they could have done to actually help people with medical expenses. But no, that takes money out of their hands and gives people actual control of their lives. We can’t have that.
My wife’s employer just told the 100 or so employees that the company is not paying any more towards their health care than they are right now and the next increase(s) will come out of their pockets. For 3 years increases have been flat with their insurnace company but they are being warned now with Obama care to expect a 25% increase so her costs would go up 50%.
I’ve been trying to find this car insurance vs health insurance article where the argument is they’re not the same. Anybody know?
I just had a prescription denied today by my insurer. Had NEVER had that happen.
Much of the price increases that have happened and will happen this year are DEFENSIVE. Any company that is told it is going to be subject to confiscatory taxes, etc., will defensively raise rates, etc. ahead of time, trying to damage limit.
that with the passage of Obamacare, the maximum allowable amount for those accounts starting with the next enrollment period is now $2500, period.
I got into a HSA this year just to save myself some money..The new HSA $2500 limit is going to hurt me as my insurance does not kick in until I have paid $3000 out of pocket.
We ain’t seen nothin’ yet!
Everyone, say goodbye to any semblance of a decent standard of living.
We’re already eating ramen noodles 3 nights a week and I haven’t grilled a steak in over a year.
Poverty is the new middle class under Øbama.
Is the employee enrollment period before the November elections?
One of the bones to the insurance industry in the package is that they can no longer be used for over the counter drugs without a prescription.
aw hell naw- bambi said everyone’s premiums was going down by 3,000 percent.
If another democrat is elected in this nation in the next 20 years it’d be too soon.
P.S. The Left has always hated medical savings accounts. You see, they only benefit people who have “extra” and who are wise enough to save and plan ahead. They are only for the greedy rich.
Just to add to how much this can hurt, we put in $4000 for 2009-2010 and used every bit of it covering my wife’s chronic problems and two children. What’s that, almost a $1600 tax saving for the year?
I’m in the same boat. Waiting for more “unexpected” gottchas...
Yeah, thank the Democrats for limiting the amount you can put into a Flex Spending account. No other reason for them to do this other than to divert revenue to the government.
That is easy. Operating a motor vehicle is a privilege. Breathing is a necessity.
Make him produce the birth cert. and all this comes to a screeching halt. He knows it too.
This is the start. My guess is that if Repeal and Replace does not occur, your wife's company will be dropping your coverage in 2014. She and the other employees will then be buying coverage through the Gubmint exchanges, and if your family makes $88,001 or more, you'll be footing the entire bill.
Your situation is one of millions like it, all bad. But, as Max Baucus said, we've been suffering from a "mal-distribution" of income in this country, and it's time for income to flow to the lower classes.
No but I can tell you.
1. States may mandate car insurance. 10th Amendment issue reserved to the states and the people.
2. If you don’t like the law if your state does this, you can go to another state that doesn’t mandate it. You have nowhere to go if the fed govt mandates it.
3. You don’t have to own a car. Plenty of people take buses and other forms of public transportation.
4. Car insurance is to cover you for injuries and damage you cause to others. Health insurance is to cover injury and damage to yourself.
5. The government does not have a public option (ie govt plan) for car insurance and thus not only regulate but compete with other private car insurance companies, like it will be doing with healthcare insurance.