Affordable Care Act

[gwendally]

Oh my God. The more I learn about the actual implementation of the Affordable Care Act, the more my jaw drops. I have already spent a bunch of time analyzing how the massive subsidies will play out (and the associated incentives to make sure your income stays low enough to qualify for those same subsidies) but today I went to the other end, how the

Comments

[haikujaguar]

O_O

[coercedbynutmeg]

Geez.

[gwendally]

Words are coming down from the insurance companies. Remember, most of them are not-for-profit. In MA I think *all* of them are not-for-profit.

They've been told that they have to do massive amounts of overhead stuff AND that they can't get paid for it. They've also been told they have to cover pre-existing conditions, and that only the people with pre-existing conditions actually need to sign up.

Oh, and that rate increases will have to be approved in advance.

They've essentially been told they have to operate very close to a loss, while facing unimagined risks from moral hazards that no insurance company has ever had to face before.

What I'm hearing is that a lot of companies are gearing up and prepared to take a loss for a year or two.

The unsaid part of this is "and then they'll quit." Because you don't take a loss for more than a year or two unless you are a slave.

[wyllenn]

Wow. That hits close to home.

What specific taxes are you talking about? Anyplace you can point me for some resources?

[gwendally]

A couple of the Bush tax cuts went away, including the one that prevented itemized deductions from phasing out and the one that prevented exemptions from phasing out

[gwendally]

Boston Tax Institute's Lou Gauthier is the most brilliant strategic tax accountant I've ever met, and he is presenting a workshop in Portland on Nov. 21 called "Current Tax Developments / New Tax Laws" that costs a mere $175 to attend.

http://bostontaxinstitute.com/?page_id=100

[gwendally]

http://www.hd-cpa.com/online-newsletter/2013/04/23/higher-income-taxpayers-hit-with-exemption-itemized-deductions-phase-out/

These phaseouts start at $250K single or $300K MFJ.

So, yeah, not a huge deal for most of us, although two professionals making $155K each should look long and hard at why they're married.

But the exemption and deduction phaseouts were just TWO of the things hitting that same income group. It goes on from there.

[gwendally]

I am also hearing that signing on the healthy young isn't going to work, because they turn out to not be so healthy after all under the new plan's designation: all the plans now cover mental illness, and they have eating disorders and depression and ADHD and bipolar and any of a vast array of mental health issues that a counselor paid for with OPM could be helpful with.

http://www.wzzm13.com/news/article/272661/2/Mental-health-bills-may-threaten-Obamacare

http://www.nytimes.com/2013/09/29/business/lacking-rules-insurers-balk-at-paying-for-intensive-psychiatric-care.html?_r=0