Tarpley & Underwood
Financial Advisors, LLC
“OBAMACARE” – SEPARATING FACTS FROM MYTHS
What does health care reform include … REALLY?
Confusing doesn’t even begin to describe it. Throughout the very long debate over health care reform, a great deal of misinformation (spurred by presumption or misunderstanding) was circulating. Additionally, many changes and alterations to the proposed law were made along the way. At this point, some of the arguments your friends, neighbors or co-workers continue to debate don’t even factor into the legislation signed by President Obama. So what’s the truth behind the Affordable Health Care for America Act?
Q: Will I be forced to change insurance?
A: No. That’s a MYTH.
If you’re satisfied with your current plan, you can keep it.2
Q: Will illegal immigrants now be covered by our money?
A: No. That’s a MYTH.
In fact, undocumented immigrants are expressly excluded from coverage. Only legal immigrants who pay their share will be covered.3
Q: Will I go to jail or be harassed by the IRS if I don’t have health coverage?
A: No. That’s a MYTH.
In 2014 Americans (except Native Americans, Inmates or those with religious objections) will be required to have health insurance or pay an annual penalty. True. However, the law prevents the IRS from using levies, liens or seizing property. Additionally, the IRS cannot impose criminal penalties (such as time in jail).4
Q: I heard there was going to be a 10% tax increase across the board. Is that true?
A: No. That is a MYTH.
While there will be tax implications, most of the biggest changes apply to medical manufacturers, insurers and pharmaceutical companies. In fact, some Americans may see no changes at all. Tax changes that could affect average individuals include …
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A 10% sales tax on indoor tanning (yes, really)
A 10% sales tax on indoor tanning (yes, really)•A 0.9% increase on the Medicare tax rate
A 0.9% increase on the Medicare tax rate•A 3.8% tax on investment income for individuals earning more than $200,000 and households earning more than $250,000 5
A 3.8% tax on investment income for individuals earning more than $200,000 and households earning more than $250,000 5• Taxes on high-end or “Cadillac” health care plans (this excise tax would not begin until 2018 and only apply to insurers of plans that exceed $10,200 annually for individual coverage, or $27,500 annually for family coverage) 6
