The House passed its version of health reform back in

early November. Its bill, the "Affordable Health Care

for America Act," also extends coverage and pays for it

with a different collection of taxes and fees from

those in the Senate bill.

Both bills are massive and contain provisions that

would affect individuals, businesses, and the medical

and insurance industries. A conference of members from

the House and Senate will be held in January to work

out the differences between the two bills and fashion

one piece of legislation. When that bill comes out of

conference, it must be passed by the House of

Representatives and the Senate before it can be sent to

the President to be signed into law.

Among the tax provisions in the Senate bill:

* A 40% excise tax on employer-provided health

  insurance plans with annual premiums over $8,500 for

  individuals and $23,000 for families. Somewhat higher

  limit for retirees and those in high-risk professions

.

* A penalty excise tax on individuals who fail to

  maintain health insurance coverage, starting at $95

  in 2014 and increasing to $750 by 2016.

Among the tax provisions in the House bill:

* A 5.4% surtax on single taxpayers with incomes over

  $500,000 and joint filers with incomes over $1 million.

* An additional tax levied on those who fail to obtain

  health insurance coverage of either 2.5% of their

  adjusted income or the average cost of insurance

  premiums available on the new health care exchange.

  Exemptions provided for lower-income individuals.

Both the Senate and the House bills provide individuals

and businesses with tax credits to help with the costs

of insurance. It's important to note that the provisions

in the final bill may differ significantly from those

in either of the current bills, so as you begin your tax

planning for 2010, remember that health reform and the

taxes connected with it are still a work in progress,

not a final law.