The Affordable Care Act contains several important revenue-raising and tax-related provisions. These include, in general terms:
- Beginning in 2018, a 40% excise tax on high-value “Cadillac” healthcare plans, imposed on the insurance providers who offer them. High-value Cadillac plans are employer-provided healthcare plans whose value exceeds a threshold amount, the calculation of which is complex.
- Beginning in 2013, a 0.9% increase in the employee’s portion of the Medicare tax imposed by FICA, with a corresponding increase in the self-employment tax which is not deductible, on income in excess of a threshold amount.
- Beginning in 2013, a 3.8% tax imposed on the lesser of (i) net investment income and (ii) modified adjusted gross income in excess of threshold amounts.
- Beginning in 2013, new requirements for charitable hospitals, relating to financial assistance, emergency medical care policies, and billing policies under 501(r) of the Internal Revenue Code.
These provisions will go into effect at different times, and additional guidance is expected from Treasury/IRS. The descriptions above are not intended to be complete.