Health Care Reform - 2013

Health Care Reform (The Affordable Care Act, or Obamacare) is the law of the land. Changes have been rolling out since 2011. In 2013 the following changes will take place.

• Medicare payment bundling: Medicare pilot program is established nationally on payment bundling to encourage doctors, hospitals and other care providers to better coordinate patient care.

• New Flexibile Spending Account (FSA) limit: Beginning on January 1, 2013, contributions to FSAs will be capped at $2,500 per year.

• Medical tax deduction: The threshhold for claiming medical expense tax deductions is raised from 7.5 percent to 10 percent of adjusted gross income. If you file an itemized tax return, you can deduct qualified medical expenses in excess of that threshold. The threshold remains at 7.5 percent for the elderly through 2016. See IRS Publication 502 for more information.

• Medicare payroll tax: is raised to 2.35 percent from 1.45 percent for individuals earning more than $200,000 and married couples with incomes over $250,000. The tax is imposed on some investment income for that income group.

In Washington State, the federally mandated Health Insurance Exchange is being established by the Health Care Authority. The name will be Washington Health Plan Finder. Licensed and certified insurance agents in Washington will be able to help people navigate the system.

My practice includes health insurance for all ages. I will be active helping my clients and all others with choosing and enrolling to a health insurance plan when the Health Plan Finder is up and running. In the meantime, check with me about your options prior to January 2014.