Can someone explain this section of the Healthcare Bill to me?

[B2G]

Because my mom is all freaked out.

From Section 6002 on page 1435:

INCLUSION OF COST OF EMPLOYER-SPONSORED HEALTH COVERAGE ON W–2

The definition of taxable income is revised to include "the aggregate cost of applicable employer-sponsored coverage". . .

"The amendments made by this section shall apply to taxable years beginning after December 31, 2009."


http://finance.senate.gov/press/Bpress/2009press/prb101909.pdf

[bbinacan]

1. It means bend over

and you won't get kissed first.

[cbayer]

2. To me it says that employer paid premiums for insurance will now become a taxable

benefit to the employee.

She probably should be freaked out.

:hi:

[B2G]

3. I guess maybe I should be too?

And this starts in 2010? The bill won't even go into effect until 2013, right??

[silverweb]

4. "The" healthcare bill?

There's no such thing yet in anything near a final form.

Any "bill" you're reading parts of now is still just a proposal, yet to be amended, reconciled, and merged with the various other proposals before a real version of "The Bill" is born.

[B2G]

5. That's supposed to make me feel better? n/t

[silverweb]

20. Yes.

You're freaking out over something that doesn't even really exist yet... and I see that you're already discussing this farther down-thread, so I'll leave you to it.

[sandnsea]

6. "applicable" The Cadillac plans

Although I don't know the numbers on that.

[B2G]

7. But the 'cadillac plans' are referenced elsewhere

This section seems to deal with all premiums. I don't see any language that just specifies certain plans.

[sandnsea]

9. 6051 is the w-2 reporting law

"IRS. 26 U.S.C. Sec. 6051(a) provides that an employer who is required to deduct and withhold taxes from its employees must furnish to each employee a statement, the W-2 form, that sets forth the amount of wages the employee earned and the amount withheld in taxes. 26 U.S.C. Sec. 6051(d) provides that the employer must also file a duplicate of the statement with the IRS. This duplicate is the W-3 form."

The section you're referring to says employers have to report the "applicable" figures in accordance with section 6051. Those "applicable" premium figures are the Cadillac plans that are referenced elsewhere. Or anything else that goes through the employer, like maybe stimulus credits although I don't know how that will work yet because we don't have a final law.

[quakerboy]

8. Sounds like we will have our HC benifits included in our income

Which, to be honest, is how it should be. Resources that you get are resources that you get, whether they are cash, health benifits, or stock options. We "hide" so many things, its no wonder that people are confused.

[DrToast]

10. I agree. They should start that ASAP.

People need to know how fast their health care costs are going up.

[B2G]

11. How will doing that lower healthcare costs??

[sandnsea]

13. Generating revenue for subsidies

To help people pay their premiums. The more people who have health coverage, the more people who will use preventive care and the healthier everyone will be, reducing health costs.

But they aren't taxing everybody's premiums because people already freaked out over that.

[quakerboy]

16. That has nothing to do with lowering costs

I would just maintain that our current system is messed up by all the hidden and convoluted schemes. Employees have no idea what costs or benefits their employers achieve with hiring them.

[sandnsea]

12. Except that's not what it is

It's a bookkeeping amendment in reference to the "Cadillac" plans which will be taxed. We already went through this freak-out with the right wingers, let's not help them resurrect it.

[B2G]

14. So is this correct?

If my family coverage (both my contribution and my employers) is less than $21,000, I will be assessed no additional taxes?

[sandnsea]

15. Correct, afaik

The only good thing I can think of is, for the very few working class folks that might get hit with this, they'll see how much income they're losing to premiums. Most family insurance is not that expensive though, and workers might demand something cheaper if they start having to pay tax on it.

[B2G]

17. But

A good amount of people have excellent coverage through their employers and they don't currently pay taxes on it. All these folks have been hearing is if you like your current coverage, you can keep it.

What hasn't been said is there is an additional cost to keep it. Backlash anyone?

[Kdillard]

18. We don't even know if that will be struck down or amended . There is no final bill.

Anything the House passes is not final and anything the Senate passes is not final. Everything has to be merged and there will be things taken out and things added. I am hoping the good things will remain in the final bill after conference. Also seriously nothing is free. It must be paid for somehow and I don't know why people don't get that point.

[sandnsea]

19. Most coverage isn't that much

This is targeted at executives, not the average worker. I have the state insurance pool for people with pre-existing conditions and the full rate for me and my husband is $1200 a month. So that isn't even $21,000 a year or even $16,000 a year. Very few people will be hit by this.

[B2G]

21. And you're quite sure

That no one will pay a tax on healthcare that totals less that $21,000 a year for family coverage?

That was my entire question. Thanks...

[sandnsea]

22. That's what the Baucus plan says

It's just one more element that we need to keep an eye on between now and the final House-Senate conference bill.

[B2G]

23. These bills are a nightmare to read

How in the hell is anyone supposed to be able to interpret them without a law degree?? And possbibly not even then...

[sandnsea]

24. They absolutely are

I read Kennedy's plan and the main House plan. I haven't read all of the Baucus plan yet, and there's 2 other House plans out there too. Then there is so much of the gateways and the public option that is left up to HHS after a bill is passed. That's part of what happened to NCLB, Republican Ed Dept implemented it in ways that were never imagined. Who knows what will happen in the end, even if we win on all the issues.

[B2G]

25. Problem is...

how will we even know if we've won since no one seems to know what's even in them?

[sandnsea]

26. lol, well we know a bit

But there isn't any way to know what will be in the final bill until there is actually a final bill. That's why the fight has really just begun. Pick something you care deeply about and find like-minded people and call call call.