The information below may not directly affect you, but may affect someone that you know and has, thus, been included for informational purposes to help keep you educated.

By Lisa Zamosky

WebMD Health News

Health Insurance Exchanges Go Online

The big story to watch in 2013 will be the development of state-based health insurance exchanges. These marketplaces will allow uninsured people and small businesses to shop for, compare, and enroll in health plans. Only through the exchanges will people learn if they qualify for and can take advantage of federal tax subsidies to help cover the cost of insurance. Exchanges must be up and running by Oct. 1, 2013, and it's going to be a mad rush to get the job done.

States were given the option to build their own exchanges and had until Dec. 14 to decide. Just 18 states and the District of Columbia agreed to build their own. Seven states have opted for a partnership exchange, a model where the states and federal government work together to operate the marketplace. That leaves the federal government to put in place health insurance exchanges in the remaining 25 states that declined to participate.

Increased Medicare Taxes on the Wealthy 

If you have Medicare coverage and earn more than $200,000 a year or are part of a married couple earning more than $250,000 annually, get ready to pay higher taxes for Medicare hospital insurance (Medicare Part A) in 2013.

Starting in January, taxes will rise by 0.9%, up to 2.35%, on earnings above $200,000 for individual taxpayers. In addition, income earned from investments (as opposed to salary) will face a 3.8% tax assessment.

Together, these two Medicare tax increases are expected to raise a total of $210 billion over 10 years to help pay for the changes brought by the health reform law.

Changes to Itemized Medical Deductions

For years we've been allowed to deduct unreimbursed medical costs that amount to 7.5% of our adjusted gross income. Starting next year, anyone under the age of 65 will see that threshold increase to 10%.
 

Limits to FSA Contributions

Flexible spending accounts (FSAs) allow people to set aside pre-tax salary dollars to pay for medical expenses not covered by insurance. Starting in January, contributions to these accounts will be limited to $2,500 a year.

Medicaid Expansion Becomes Optional

The Supreme Court's ruling earlier this year brought changes to the part of the law that expanded the Medicaid program to include more low income Americans. The expansion allows for individuals who earn about $15,400 a year and families that earn about $26,300 annually to participate. In its decision, the court said the Medicaid expansion will be optional for states, not a requirement.

In response, many governors opposed to the law said they would refuse to expand their Medicaid programs. To date, 18 states have agreed to broaden rules for their Medicaid program, 11 states have said they would not expand their programs, and 16 remain undecided.

"[Rural America] is the source of our food - accessible, affordable food that gives us a more secure nation. It is the source of our water. It is the source of an ever-increasing amount of our fuel and energy. It is a job creator and it is a place where our values are rooted. The future of this country is linked to its past and the values that were created when this country was founded. And they are rural values." - Secretary Tom Vilsack

 USDA Secretary Tom Vilsack announced last week that he will return in his position for President Barack Obama's second term.

The 62-year-old Democrat previously served as an Iowa state senator, as the mayor of Mt. Pleasant, Iowa, and two terms as Iowa Governor. He is the 30^th Secretary of Agriculture.

"President Obama and I share a deep appreciation for rural America and its unlimited potential in the years ahead to feed a growing world population, revolutionize America's energy, further protect our natural resources and create more jobs here at home," Vilsack said in a statement late Monday. "We will continue to urge Congress to pass a Food, Farm and Jobs Bill that will help us continue USDA's wide range of efforts to support this work. As we look ahead to a promising future in our small towns and rural communities, I am pleased to continue working alongside President Obama to grow more opportunity in rural America."

Click this link to view an interview courtesy of The Voice of Agriculture - American Farm Bureau Federation.

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