It’s not too late to register for the 29th Annual Insurance Tax Seminar taking place in Washington, D.C. June 1-2. Gain firsthand knowledge from professionals about the latest on the American Health Care Act (AHCA). Learn from experts and IRS personnel about developments affecting the taxation of insurance companies and insurance products, including legislative activity. Exchange ideas and network with law and tax professionals who specialize in tax issues and insurance. Sign up at www.fedbar.org/instax.com.
While the AHCA is still several steps from becoming law, Republicans have begun outlining aspects of the healthcare reform bill, including the nature of the tax credits the AHCA will offer. Specifically, the AHCA would eliminate about $1 trillion in taxes used to pay for the additional spending in the Affordable Care Act. As a result, it would drastically lower the federal government’s tax revenue baseline.
This bill, if it becomes law, could repeal-and-replace large portions of the Affordable Care Act (Obamacare), changing the rules and subsidies for people who buy their own insurance coverage, and make major cuts to the Medicaid program, which funds care for the poor and disabled. For some, insurance will become more affordable and/or their taxes will be lower. Others will lose out on financial support or health care coverage.
House Minority Leader Nancy Pelosi, D-Calif., characterized the AHCA’s pre-existing conditions clause as a “sad, deadly joke.” Rep. Frank Pallone, D-N.J., said the bill would allow “insurance companies to discriminate against the 129 million Americans with pre-existing conditions.” Stated another way, states may be able to waive Obamacare’s protections against pre-existing condition discrimination. States could conceivably allow insurance companies to charge people more money if they have a pre-existing condition like autism, depression, bipolar disease, etc. Meanwhile, health insurance coverage for those with disabilities may no longer be affordable.
Helen Morrison of Ernst & Young LLP will moderate the discussion at the Insurance Tax Seminar on “The Affordable Care Act: Where It Is Now” with Rachel Levy (Groom Law Group), Anne Phelps (Deloitte Advisory) and Philip L. Lindenmuth (IRS) offering key insight into the bill’s policies.
“It is a huge tax cut for guys like me,” billionaire Warren Buffett says of the Republican plan to repeal-and-replace Obamacare. While the Affordable Care Act raised taxes on the rich to subsidize health insurance for the poor, the repeal-and-replace bill passed by House Republicans this year would redistribute hundreds of billions of dollars, delivering a sizable tax cut to the rich, while reducing government subsidies for Medicaid recipients.
Under Obamacare, health insurance must cover “essential health benefits,” including doctors, hospital care, prescription drugs, childbirth, drug treatment, and mental health services. AHCA allows states to waive these necessities, enabling insurers to sell cut-rate plans that won’t pay for any real care when you need them.
The Insurance Tax Seminar will present a unique opportunity for meaningful dialogue between government personnel and private sector specialists on a variety of tax issues affecting insurance companies and their policyholders. Speakers will review the AHCA while evaluating insurance marketplaces, guaranteed coverage, and insurance subsidies. Register today for the Insurance Tax Seminar by visiting www.fedbar.org.instax.com.
Stacy Slotnick, Esq. holds a J.D., cum laude, from Touro Law Center and a B.A., summa cum laude, from the University of Massachusetts Amherst. She performs a broad range of duties as an entertainment lawyer, including drafting and negotiating contracts; addressing and litigating trademark, copyright, patent, and other IP issues; and directing the strategy and implementation of public relations, blogging, and social media campaigns.