The Affordable Care Act will bring several major tax consequences for medical practices in the new year. Physicians need to be aware of important changes to health care law taking effect in 2013. These changes will affect both patients and providers. A few of these key changes are as follows.
Patients with flexible spending accounts may find their usefulness limited. In January, a new cap comes into effect, limiting FSA spending to $2,500 per year. Furthermore, the threshold for unreimbursed medical expenses will increase from 7.5% of adjusted gross income to 10%. This burden will be waived for patients 65 and older until 2016. High income earners will see a 0.9% Medicare tax hike, as well as a 3.8% medicare tax assessment on unearned income.
Primary care physicians will see an increase in Medicaid payments. For 2013 and 2014, the new rate is 100% of the Medicare payment rate. Finally, new excise taxes will be imposed on certain medical devices. Given the significant number of changes in 2013, good planning will save taxes.
© 2013 Parsonage Vandenack Williams LLC
For more information, contact info@pvwlaw.com
VW Health Care Law Blog 