| Issue: # 47 |
March 29, 2010 |
Just like you, we have watched the events in Washington DC unfold and are trying to figure out exactly what all of this means. Rather than forward you links to articles with all of the technical details of the changes,our focus will be to point out the areas that effect you in 2010. We will highlight those items and simplify as best we can. 
As always, if you have any questions email Bill or Vanessa. We hope you find these newsletters helpful, please forward to anyone who may find this of interest. To learn more about Advantage Benefits click here.
Anyone can get you a "rate", but very few understand all the nuances behind the scenes and have strong relationships with the carriers.
The Masters next week April 8-11, which means Spring is here.
Sincerely,
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| Healthcare Reform
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Here in Massachusetts most of the issues in the new laws are already in place in some fashion. Please note below the highlights of The National Model and the Massachusetts Model:
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Starting in 2010, the Federal Government will require extended family coverage for young adults until age 26. In Massachusetts, we do this, but limit children to age 25 and require dependents to be either full-time students or a dependent on the subscriber's tax return within the past two years.
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Starting in 2014, the Federal Government will require employers with 50 or more employees to pay a penalty, if they do not offer a group sponsored health insurance plan. Massachusetts already does this for employers with 11 or more employees.
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Starting in 2018, the Federal Government will impose a 40 percent tax on the most expensive plans, know as "Cadillac plans". It is estimated that 8,600 out of the 6.2 million insured (only 1% of total in Mass.) would be subject to that tax.
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Starting in 2013, the Federal Government will increase the Medicare tax rate from 1.45% to 2.35%, if you make over $200,000 (individual) or $250,000 (family).
We are trying to clarify item #2 above as to whether an employee can now add a 25 year child to their family plan even if they are not a full-time student and not a dependent on the subscriber tax return the past two years. As we get better definition we will provide updates.
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Small Business Tax Credit
Confusing, consult with you CPA
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Perhaps the most interesting item is the addition of a Small Business Tax Credit in 2010. This may be of interest to our clients, but we are having a difficult time getting clear answers on this issue. Depending on what you read, we have seen conflicting statements, please consult with your tax advisor.
Some highlights of this credit include businesses with 10 or fewer full-time-equivalent employees earning less than $25,000 a year on average will be eligible for a tax credit of 35% of health insurance costs. Companies with between 11 and 25 workers and an average wage of up to $50,000 are eligible for partial credits.
As we get better definition of the new changes we will pass the information along to you.
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