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.
I should clarify the point in #3 I was trying to make. Because you don’t have to own a car, even though your state may mandate car insurance, they do not force anyone who doesn’t own a car, to have car insurance. Unlike this federal healthcare mandate which will not let anyone opt out of having any health insurance.
Thanks - I copied it and will add to is as more info. comes. But I remember somewhere an editorial where the argument showed that car insurance is not like HC ...
Thanks - I copied it and will add to is as more info. comes. But I remember somewhere an editorial where the argument showed that car insurance is not like HC ... very in-depth.
You are exactly right. We also pay most of our out-of-pocket health expenses with pre-tax dollars. We can contribute any amount, but it has to be used by the end of the year or we lose it. Not after this year, though! $2500 will be the limit. Definitely a TAX INCREASE and we do not make more than $250,000/year.
We had one of these for years. Put $5000 every year without fail and used every cent. Now we’re retired, but were we still working this cut would be costing us no small amount in additional taxes.
Of course you can deduct medical expenses on Schedule A if you exceed 7.5% of your income, but that exclusion is increasing to 10% of income, another tax increase on folks with less than 250K income.
Needless to say the treason-media complex is silent on these broken promises.
Obviously the company pays each of its employees over $250,00 a year, since hbo ‘promised’ that he would not raise taxes on anyone receiving less than that per year.
I’m not sure that every state requires car insurance, but regardless, the requirement is from the state, not the federal govt. That’s a key difference. Here the federal govt is compelling you to engage in a private commercial transaction. The constitution gives it no such power.
The state probably does have that power.
Also, driving a car is an option. Here the feds say everyone has to have health insurance.
I think that’s a Cafeteria Plan, not an MSA.
I’ve gotten several answers like that ... what I was looking for was this editorial that laid it out pretty good. Not saying that the statements here are bad, but someone wrote a great piece on it ... thanks for your answer too ....
Sorry to hear how that impacts you. It’s a shame this is taking place.
IMO, this is going to do massive damage to the middle-class in our nation. The amount of things the bottom group in our society is about to get, will tank the middle-class IMO.
So what incentive is there to work hard these days?
I guess it all comes down to character. You’ll work because it’s your ethic, but for little else as Obama levels the playing field.
That’s what I did and have. Even after the first $2,500 I will have to pay 20% of all costs up to $10,000. I might as well buy another private insurance policy to cover tests and preventative care. I can’t figure out how any of this will benefit those of us who have worked our entire lives to have coverage. The costs of even the smallest biopsy are over $3,000. Can you imagine how much you can rack up in a short period of time while they try to figure out what you have? All this help for the middle class is BS. Just wait until the newly insured get a load of how little having insurance will cover. They’ll wish for the bad old days when they could free-load at the ER with all their hearts.
If I’m hearing right, it appears that some companies are talking about eliminating perception drug benefits for retirees and a change in the benefits (not to the good) for new and existing employees. I take care of my mom who takes a suitcase full of drugs....none of which can be stopped.....unless of course I’m supposed to stand in line for a blue pill because she’s using up too much air.
Even the VA is spinning on its head. The clinic in town sent my brother (who I also support) to the VA hospital because it appears he’s headed for a flesh eating disease. Yesterday when he showed up to check in, they gave him some cream and antibiotics and sent him home. The last time they did this he ended up in the emergency room and was hospitalized for 6 days with follow-up care at home for 6 weeks.
I retired early (no social security, never paid into it) so that I could take care of my mother and brother, and now it appears that I won’t be able to afford my own insurance if they don’t help with percriptions. Since Obeyme made a deal with PHARMA, who knows what will happen.
The difference is with car insurance you’re insuring against you damaging others’ property or persons. There is no law requiring you to insure yourself. Only liability is required by law.
My wife’s company’s insurance has the same savings plan. They sent out an email yesterday and she’s afraid to open it.
Exactly - and exactly what the credit card outfits did.
obmamama and gang announced they were going to pass restrictions on how much they could raise their rates - NOT HOW HIGH THEY COULD CAP OUT AT.
So, even for excellent card holders, the rates were raised at the highest one time jump I have ever seen, preemptively - and no negotiating this time. (I used to work for what was then the biggest Mastercard co. in the world. I never seen such a one time leap. My chase rate went up by almost 7 points! At the same time, they raised my limit by several thousand becasue I'm "such a good customer!" I informaed them I would no longer be using the card.
Not to worry about paying out a Lot for health insurance under the new plan though. By the time they get everything in the plan along with all their other moves in the making, we'll ALL qualify for free health care.
They problem is gong to be the governments. When they reduce the poplulation all to the poverty level, where are they going to get the tax monies to pay for everything?
ONe of Atlas's shoulders is already sagging pretty bad...
Yes I wonder too, a 125 Flex plan. One difference is Health/Medical Savings Accounts roll balances to the next year and 125 Flex or “cafeteria” plans do not, if you don’t use the balance in the plan year you lose it.
Ive gotten several answers like that ... what I was looking for was this editorial that laid it out pretty good. Not saying that the statements here are bad, but someone wrote a great piece on it ... thanks for your answer too ....
Your situation is the perfect example that proves this thing is about socialism...spreading the wealth. Some will pay so others will be covered.
First tax increase? Hardly. Every single working American paid $200 more in income tax 2009 than they did in 2008 ($600 rebate in 2008 v. $400 rebate in 2009). Cigarette taxes when up within weeks of Obama’s inauguration. And on January 1 of this year, individual tax deductions were eliminated for state and local taxes. The $4,000 college tuition deduction was eliminated as was the $1,000 homeowners deduction for those who don’t itemize. Also, the AMT was not indexed, meaning that many middle-class Americans will be hit by that tax.
I was actually surprised to my first visit to my doctor for bloodwork under the HSA...the total bill was less than what got charged to the insurance company on previous visits...not a lot, just enough to take notice of. they still like be paid at the time of service, not 6 months later.
Reminds of the good ole days before HMO’s (that were suppose to bring down costs and save us as well), you got sick you went to the good Doctor and paid out of pocket, health insurance was an 80/20 split for major services
Just about every insurance company is refusing to fill or refill RX unless it’s generic.
For most employers, enrollments are in October.
I have a different prescription coming due in a few weeks. We’ll see.
At least it isn’t just us.
The next tax I expect to see immediately is on “medical devices”. People have no idea how many things that covers.
Know anyone who has had a colostomy? Guess what a colostomy bag is....a medical device.
Women’s sanitary products?? The Administration has been labeling those items “medical devices” for imports for some time now.
Know anyone who is on permanent tube feeding?? Guess what those supplies are?? Medical devices.
Know anyone who is diabetic?? Guess what they need lots of every day...medical devices.
The list is endless, and the taxes on those items start immediately, so not only is out ability to pay for the supplies we need impaired, the prices and the taxes are going up right now.
A tampon tax?
This began in NJ several months ago.
Call your pharmacy and see if they will cover your RX as usual.
It’s more than that - your car is an asset of more importance to some than others. Your life is an asset only when you die and only if you have life insurance. You can insure your car, your house, your boat and your life. You cannot insure your health. Interestingly when you insure your car, you can also get coverage for damaged caused by an uninsured motorist. Cars and health aren’t even apples and oranges - more like dishwashing soap and buffalo stew!