Health Care Reform Bill Guide for Landlords, Property Managers and Property Management Companies
President Obama signed a sweeping health reform bill ” The Patient Protection and Affordable Care Act on March 23rd. According to the Congressional Budget Office, it is expected to reduce the federal deficit by $124 billion.
Meanwhile its long term impact on landlords, property managers, property management companies and real estate professionals is not clear. If you fall into one of the above categories, you have to consider whether you are an independent contractor, employee or employer as it has different impact on you.
How Health Care Reform rolls out and what happens to who and when:
Insurance Companies Insurance companies have to remove life-time caps on illness costs, cannot drop you if you fall ill and cannot deny coverage to kids with pre-existing conditions.
Independent Contractor Property Managers, Real Estate Professionals and EmployeesChildren up to the age of 26 can stay on their parents plan.
Medicare D participants receive $250 credit.
Retirees between age 55-64 are offered re-insurance program.
Employers ” Property Management Companies If you own a property management company that offers health insurance, you get a 35% tax credit from premium paid.
Small employers can get tax credit up to 50% of premium paid.
Employees contributions to Flexible Spending Plans are capped at $2,500 limiting the amount that can be used to purchase health care with pre-tax dollars.
Penalty for non-qualified withdrawals from Health Savings Account (HSA) increases from 10 to 20 percent and 15 to 20 per cent for Archer Medical Savings Accounts (Archer MSAs).
Itemized deductions for unreimbursed medical expenses rises from 7.5 to 10 per cent. It has an impact on individuals who itemize deductions.
Subsidies for payment of insurance cost are offered and family of four earning up to $88,000 (four times the federal poverty level) will get a subsidy.
To subscribe to our blog, click here.