Tag: "Health Savings Accounts"

Here Comes the Pain

Most summaries of ObamaCare focus on the benefits of reform and when they phase in. The Karen Davis summary, for example, lists only benefits — as though the entire package was one big free lunch. Benefits must be paid for, however. Here is how paying for reform phases in:

2010

• 10% tax on tanning salons

2011

• Tax on brand name drugs ($2.5 billion).
• Medicare cut $1 billion ($22 per senior/disabled)
• Medicare Advantage cut $2 billion ($195 per senior)
• Increase in tax on non-medical Health Savings Account withdrawals from 15% to 20%
• Over-the-counter drugs become taxable ($400 million)

2012

• Tax on brand name drugs increased to $3 billion.
• Medicare cut $5 billion ($112 per senior)
• Medicare Advantage cut $6 billion ($585 per senior)
• Tax on Over-the-counter drugs ($600 million)

2013

• Taxes on wage income rises from 1.45 to 2.35% for singles earning more than $200,000 a year (families above $250,000).
• New tax on investment income: 3.8%  for singles earning more than $200,000 a year (families above $250,000).
• New taxes on wheelchairs and other medical devices (2.9%)
• Flexible Spending Account contributions limited to $2500 annually
• Floor for deductible medical expenses increased from 7.5% of AGI to 10%
• Medicare cut $9 billion ($201 per senior)
• Medicare Advantage cut $9 billion ($877 per senior)
• Tax on Over-the-counter drugs ($600 million)

2014

• Individual Mandate: fine: $95
• Employer Mandate: fine: $2,000 per-worker
• Medicare cut $13 billion ($290 per senior)
• Medicare Advantage cut $13 billion ($1,267 per senior)
• Tax on Over-the-counter drugs ($600 million)
• Tax on health insurers ($6.1 billion)