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March 24, 2010 at 12:41 PM #531347March 24, 2010 at 12:43 PM #530416briansd1Guest
[quote=poorgradstudent]HSAs were never really intended as a way for people to dodge paying taxes with common household expenditures.
[/quote]Exactly. It closes a loophole. It’s not a new tax.
[quote=poorgradstudent]
I personally think we should have paid for these important reforms the way we pay for wars: income taxes. Health spending benefits the overall population more than bombs and guns do, and health issues kill way more Americans each year than terrorists could ever hope to.
[/quote]I agree.
But better to have health insurance than none.
[quote=poorgradstudent]
I also think the excise tax on high cost health plans will lead directly to the thresholds being the exact amount of coverage employers provide.
[/quote]Yes, and what was paid in health insurance benefits will be paid in salary. I see nothing wrong with that.
March 24, 2010 at 12:43 PM #530544briansd1Guest[quote=poorgradstudent]HSAs were never really intended as a way for people to dodge paying taxes with common household expenditures.
[/quote]Exactly. It closes a loophole. It’s not a new tax.
[quote=poorgradstudent]
I personally think we should have paid for these important reforms the way we pay for wars: income taxes. Health spending benefits the overall population more than bombs and guns do, and health issues kill way more Americans each year than terrorists could ever hope to.
[/quote]I agree.
But better to have health insurance than none.
[quote=poorgradstudent]
I also think the excise tax on high cost health plans will lead directly to the thresholds being the exact amount of coverage employers provide.
[/quote]Yes, and what was paid in health insurance benefits will be paid in salary. I see nothing wrong with that.
March 24, 2010 at 12:43 PM #530995briansd1Guest[quote=poorgradstudent]HSAs were never really intended as a way for people to dodge paying taxes with common household expenditures.
[/quote]Exactly. It closes a loophole. It’s not a new tax.
[quote=poorgradstudent]
I personally think we should have paid for these important reforms the way we pay for wars: income taxes. Health spending benefits the overall population more than bombs and guns do, and health issues kill way more Americans each year than terrorists could ever hope to.
[/quote]I agree.
But better to have health insurance than none.
[quote=poorgradstudent]
I also think the excise tax on high cost health plans will lead directly to the thresholds being the exact amount of coverage employers provide.
[/quote]Yes, and what was paid in health insurance benefits will be paid in salary. I see nothing wrong with that.
March 24, 2010 at 12:43 PM #531093briansd1Guest[quote=poorgradstudent]HSAs were never really intended as a way for people to dodge paying taxes with common household expenditures.
[/quote]Exactly. It closes a loophole. It’s not a new tax.
[quote=poorgradstudent]
I personally think we should have paid for these important reforms the way we pay for wars: income taxes. Health spending benefits the overall population more than bombs and guns do, and health issues kill way more Americans each year than terrorists could ever hope to.
[/quote]I agree.
But better to have health insurance than none.
[quote=poorgradstudent]
I also think the excise tax on high cost health plans will lead directly to the thresholds being the exact amount of coverage employers provide.
[/quote]Yes, and what was paid in health insurance benefits will be paid in salary. I see nothing wrong with that.
March 24, 2010 at 12:43 PM #531352briansd1Guest[quote=poorgradstudent]HSAs were never really intended as a way for people to dodge paying taxes with common household expenditures.
[/quote]Exactly. It closes a loophole. It’s not a new tax.
[quote=poorgradstudent]
I personally think we should have paid for these important reforms the way we pay for wars: income taxes. Health spending benefits the overall population more than bombs and guns do, and health issues kill way more Americans each year than terrorists could ever hope to.
[/quote]I agree.
But better to have health insurance than none.
[quote=poorgradstudent]
I also think the excise tax on high cost health plans will lead directly to the thresholds being the exact amount of coverage employers provide.
[/quote]Yes, and what was paid in health insurance benefits will be paid in salary. I see nothing wrong with that.
March 24, 2010 at 12:48 PM #530421blahblahblahParticipantIt is a drag to be sure. Actually canceling health insurance might not be a bad deal, even with the 2% penalty. Let’s say you make $100k a year, you pay the $2K penalty and then just go to TJ for all of your healthcare needs and prescriptions. You would still probably come out ahead of paying HI premiums and copays here.
The one that really confuses me is this one:
A new 40% excise tax, beginning in 2013, on high-cost health plans, defined as those providing coverage in excess of $8,500 for individuals and $23,000 for families. The House’s package of modifications includes higher threshold amounts and an initial effective date of 2018.
What does that even mean to provide coverage in excess of some amount? Does that mean you are covered for more than $8500/year? Seems pretty low to me.
March 24, 2010 at 12:48 PM #530549blahblahblahParticipantIt is a drag to be sure. Actually canceling health insurance might not be a bad deal, even with the 2% penalty. Let’s say you make $100k a year, you pay the $2K penalty and then just go to TJ for all of your healthcare needs and prescriptions. You would still probably come out ahead of paying HI premiums and copays here.
The one that really confuses me is this one:
A new 40% excise tax, beginning in 2013, on high-cost health plans, defined as those providing coverage in excess of $8,500 for individuals and $23,000 for families. The House’s package of modifications includes higher threshold amounts and an initial effective date of 2018.
What does that even mean to provide coverage in excess of some amount? Does that mean you are covered for more than $8500/year? Seems pretty low to me.
March 24, 2010 at 12:48 PM #531000blahblahblahParticipantIt is a drag to be sure. Actually canceling health insurance might not be a bad deal, even with the 2% penalty. Let’s say you make $100k a year, you pay the $2K penalty and then just go to TJ for all of your healthcare needs and prescriptions. You would still probably come out ahead of paying HI premiums and copays here.
The one that really confuses me is this one:
A new 40% excise tax, beginning in 2013, on high-cost health plans, defined as those providing coverage in excess of $8,500 for individuals and $23,000 for families. The House’s package of modifications includes higher threshold amounts and an initial effective date of 2018.
What does that even mean to provide coverage in excess of some amount? Does that mean you are covered for more than $8500/year? Seems pretty low to me.
March 24, 2010 at 12:48 PM #531098blahblahblahParticipantIt is a drag to be sure. Actually canceling health insurance might not be a bad deal, even with the 2% penalty. Let’s say you make $100k a year, you pay the $2K penalty and then just go to TJ for all of your healthcare needs and prescriptions. You would still probably come out ahead of paying HI premiums and copays here.
The one that really confuses me is this one:
A new 40% excise tax, beginning in 2013, on high-cost health plans, defined as those providing coverage in excess of $8,500 for individuals and $23,000 for families. The House’s package of modifications includes higher threshold amounts and an initial effective date of 2018.
What does that even mean to provide coverage in excess of some amount? Does that mean you are covered for more than $8500/year? Seems pretty low to me.
March 24, 2010 at 12:48 PM #531357blahblahblahParticipantIt is a drag to be sure. Actually canceling health insurance might not be a bad deal, even with the 2% penalty. Let’s say you make $100k a year, you pay the $2K penalty and then just go to TJ for all of your healthcare needs and prescriptions. You would still probably come out ahead of paying HI premiums and copays here.
The one that really confuses me is this one:
A new 40% excise tax, beginning in 2013, on high-cost health plans, defined as those providing coverage in excess of $8,500 for individuals and $23,000 for families. The House’s package of modifications includes higher threshold amounts and an initial effective date of 2018.
What does that even mean to provide coverage in excess of some amount? Does that mean you are covered for more than $8500/year? Seems pretty low to me.
March 24, 2010 at 1:05 PM #530431SK in CVParticipantSloppy reporting
[quote=CONCHO]The one that really confuses me is this one:
A new 40% excise tax, beginning in 2013, on high-cost health plans, defined as those providing coverage in excess of $8,500 for individuals and $23,000 for families. The House’s package of modifications includes higher threshold amounts and an initial effective date of 2018.
What does that even mean to provide coverage in excess of some amount? Does that mean you are covered for more than $8500/year? Seems pretty low to me.[/quote]
Besides the reporting using only the original Senate bill, and not the reconciliation bill, which will be passed and signed into law later this week, it changes a few words which also changes the entire thrust of the law.
The reconciliation bill changes the amounts to $10,200 and $27,500. The tax has nothing to do with benefits, only premiums. Insurance companies will pay a 40% excise tax on the amount of premiums that exceed those amounts. For an individual, a policy that costs $11,200 a year would be subject to a $400 excise tax, to be paid by the insurance company. Those taxes will be built into the premium cost, so for every premium dollar over the limit, the insurance company will actually raise their rates by roughly 67% to cover the tax. (A policy with annual premiums of $11,200 would be priced at $11,867. 40% excise tax on the amount over $10,200, or $1,667 would be $667. Insurance company ends up with $1,000 more in net premiums.)
March 24, 2010 at 1:05 PM #530559SK in CVParticipantSloppy reporting
[quote=CONCHO]The one that really confuses me is this one:
A new 40% excise tax, beginning in 2013, on high-cost health plans, defined as those providing coverage in excess of $8,500 for individuals and $23,000 for families. The House’s package of modifications includes higher threshold amounts and an initial effective date of 2018.
What does that even mean to provide coverage in excess of some amount? Does that mean you are covered for more than $8500/year? Seems pretty low to me.[/quote]
Besides the reporting using only the original Senate bill, and not the reconciliation bill, which will be passed and signed into law later this week, it changes a few words which also changes the entire thrust of the law.
The reconciliation bill changes the amounts to $10,200 and $27,500. The tax has nothing to do with benefits, only premiums. Insurance companies will pay a 40% excise tax on the amount of premiums that exceed those amounts. For an individual, a policy that costs $11,200 a year would be subject to a $400 excise tax, to be paid by the insurance company. Those taxes will be built into the premium cost, so for every premium dollar over the limit, the insurance company will actually raise their rates by roughly 67% to cover the tax. (A policy with annual premiums of $11,200 would be priced at $11,867. 40% excise tax on the amount over $10,200, or $1,667 would be $667. Insurance company ends up with $1,000 more in net premiums.)
March 24, 2010 at 1:05 PM #531010SK in CVParticipantSloppy reporting
[quote=CONCHO]The one that really confuses me is this one:
A new 40% excise tax, beginning in 2013, on high-cost health plans, defined as those providing coverage in excess of $8,500 for individuals and $23,000 for families. The House’s package of modifications includes higher threshold amounts and an initial effective date of 2018.
What does that even mean to provide coverage in excess of some amount? Does that mean you are covered for more than $8500/year? Seems pretty low to me.[/quote]
Besides the reporting using only the original Senate bill, and not the reconciliation bill, which will be passed and signed into law later this week, it changes a few words which also changes the entire thrust of the law.
The reconciliation bill changes the amounts to $10,200 and $27,500. The tax has nothing to do with benefits, only premiums. Insurance companies will pay a 40% excise tax on the amount of premiums that exceed those amounts. For an individual, a policy that costs $11,200 a year would be subject to a $400 excise tax, to be paid by the insurance company. Those taxes will be built into the premium cost, so for every premium dollar over the limit, the insurance company will actually raise their rates by roughly 67% to cover the tax. (A policy with annual premiums of $11,200 would be priced at $11,867. 40% excise tax on the amount over $10,200, or $1,667 would be $667. Insurance company ends up with $1,000 more in net premiums.)
March 24, 2010 at 1:05 PM #531108SK in CVParticipantSloppy reporting
[quote=CONCHO]The one that really confuses me is this one:
A new 40% excise tax, beginning in 2013, on high-cost health plans, defined as those providing coverage in excess of $8,500 for individuals and $23,000 for families. The House’s package of modifications includes higher threshold amounts and an initial effective date of 2018.
What does that even mean to provide coverage in excess of some amount? Does that mean you are covered for more than $8500/year? Seems pretty low to me.[/quote]
Besides the reporting using only the original Senate bill, and not the reconciliation bill, which will be passed and signed into law later this week, it changes a few words which also changes the entire thrust of the law.
The reconciliation bill changes the amounts to $10,200 and $27,500. The tax has nothing to do with benefits, only premiums. Insurance companies will pay a 40% excise tax on the amount of premiums that exceed those amounts. For an individual, a policy that costs $11,200 a year would be subject to a $400 excise tax, to be paid by the insurance company. Those taxes will be built into the premium cost, so for every premium dollar over the limit, the insurance company will actually raise their rates by roughly 67% to cover the tax. (A policy with annual premiums of $11,200 would be priced at $11,867. 40% excise tax on the amount over $10,200, or $1,667 would be $667. Insurance company ends up with $1,000 more in net premiums.)
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