Part 7 of the mini-series on tax provisions under the new health care act discusses something that affects all tax payers, and should be more prominent and important in the minds and eyes of consumers; Fees on Health Plans. Under the new provision, and more specifically section 4375, a fee will be imposed on each specified health insurance policies. This fee is small, but customers should be made aware of it in order to plan for the extra fee and also, so that they know the steps being taken in the taxation of their Health Plans, after all Americans fought long and hard to have representation and a better understanding of their taxation system.
The Fee Amount:
The fee that is to be charged is equal to 2 dollars (1 dollar for policies ending in the year 2013), multiplied by the average number of lives covered under the policy. The issuer is liable for the payment of the fee. For any policy beginning after September 30, 2014 the dollar amount is equal to the sum of
- the dollar amount for policies ending in the prior year plus
- an amount equal to the product of (A) the dollar amount for policy years ending in the preceding fiscal year, multiplied by (B) the percentage increase in the projected per capita amount of National Health Expenditures, as most recently published by the Secretary before the beginning of the fiscal year.
These fees are for any plan, policy or portion of a plan or policy that begins on or after October 1,2012.
With all the additional fees and other tax stresses coming at you in the coming years,it is important that you understand tax policy now, so that it will be easier to adapt in the future. At Check City, our Tax Professionals can help you sort out all of your tax questions and issues. Bring in your 1040 to us before it’s too late, along with the 50% off coupon, found on the Check City Website, and our tax professionals can help you figure out your taxes, and get you every penny, nickle and dime you deserve from your tax refund. Visit Check City Online or in one of our Store Locations today to get started.
