Course Information

Course No:  9521222

Course Name:  Healthcare Reform - Affordable Care Act Tax Provisions

Field of Study:    Tax Law Topic

Course Description:  

The landmark legislation known as the Patient Protection and Affordable Care Act (PPACA), signed into law in 2010, is likely to affect virtually every person and institution in the United States in some way. It imposes healthcare-related requirements on health plans, health insurers, employers and individuals.

In addition to imposing various tax increases to increase revenue, the PPACA uses a carrot and stick approach to ensure compliance with its provisions, offering tax credits for compliance and imposing tax penalties for non-compliance. This course will review the principal provisions of the law and will examine its tax impact on individuals and businesses.

In so doing, it will consider the: a) Coverage-related provisions of the PPACA addressing – Plan grandfathering pursuant to which health coverage in force at the time of the law's passage may be continued, The prohibition of pre-existing condition exclusions, The proscription of lifetime and annual benefit limits, The limitation of health coverage rescissions, The requirement for certain patient protections, and The requirement that plans covering children extend child coverage until age 26; b) Tax credits available to small businesses to encourage them to sponsor employee health plans; c) Shared responsibility for certain large employers to provide employee health coverage and the tax penalties imposed for noncompliance; d) Various personal income tax changes affecting taxpayers; and e) Tax credits authorized to help individuals maintain minimum essential coverage.

Learning objectives: After completing this section, you should be able to:

  • Identify the rules applicable to –
  • grandfathered health plans,
  • the use of pre-existing condition exclusions, and
  • annual and lifetime benefit limits;
  • List the conditions that would permit an insurer to rescind health insurance coverage and the applicable notice requirements; and
  • Recognize the requirements imposed by healthcare reform legislation with respect to –
  • patient protection provisions,
  • the individual’s requirement to maintain minimum essential coverage, and
  • dependent coverage to young adults.
  • Identify the changes made by the PPACA related to –
  • the treatment of costs for over-the-counter drugs and medical expense FSA contributions,
  • the tax penalty for nonqualified Archer MSA and HSA distributions,
  • medical expense deductions applicable to years after 2012,
  • the additional taxation on the earnings of high-income taxpayers,
  • the additional tax on high-income taxpayers’ net investment income, and
  • the additional tax on estate’s and non-grantor trust’s undistributed net investment income;
  • Recognize the tax penalties generally applicable to individuals who fail to maintain minimum essential coverage; and
  • Calculate the amount of the premium assistance tax credit available to taxpayers whose household income is less than 400% of the federal poverty line.
  • Identify the –
  • W-2 reporting requirements imposed on employers providing employer-sponsored health coverage, and
  • transition relief provided applicable to W-2 reporting;
  • Define “full-time employee” and “full-time equivalent employee” for purposes of employer tax credits and penalties under the PPACA;
  • Recognize the –
  • rules that apply to a small employer’s eligibility for a health insurance premium credit, and
  • nature of a “qualifying arrangement” under which an employer pays premiums for employee health insurance coverage;
  • Identify the types of coverage that meet the PPACA definition of health insurance coverage for purposes of the small employer health insurance premium credit;
  • Apply the various limitations that may reduce the amount of health insurance premium credit available to an otherwise eligible small employer;
  • Calculate the potential penalties applicable to large employers under the PPACA; and
  • Identify the –
  • transition relief available to applicable large employers, and
  • annual return and notification requirements imposed by the PPACA on applicable large employers.

Course Material: Online Material

Program level: Overview

Prerequisites: General understanding of federal income taxation.

Advance preparation: None

Type of delivery method: QAS Self-study

Recommended CPE credits:   4.0

Final examination expiration date:   The program participant will have one year from the date of purchase to complete the course and final examination.