PPACA Tax Overview BenefitMall Reference Guide - (Page 12)

SECTION 5.0 MEDICAID & MEDICARE CHANGES & THE IMPACT ON EMPLOYERS Section 5.0 highlights several key changes to the Medicaid and Medicare Programs that will impact employers, including the Medicaid expansion, emphasis on prevention and related services, changes to Medicare Part D Program. PART A: The Expanding Medicaid Program 5.1 How did PPACA initially attempt to expand the Medicaid program? In keeping with its stated goal of providing health care coverage to all Americans, PPACA contains several provisions designed to significantly expand the number of persons covered under state Medicaid programs.25 The federal government initially attempted to expand the number of individuals with health care coverage by establishing one national standard for Medicaid participation. Beginning in 2014, states that choose to expand their eligibility criteria will allow individuals with modified adjusted gross incomes below 133% of the federal poverty level (FPL) to participate in a state Medicaid program. Also, children currently covered by state Children’s Health Insurance Programs (CHIP) in households with modified adjusted gross incomes (MAGI) between 100% and 133% of the FPL would be transitioned to Medicaid coverage. Under the expanded eligibility requirements, there would be no assets test or resource test. It was originally estimated that this expansion, on a nationwide basis, would cover 21 million or one-half of the targeted uninsured that would have been covered by PPACA. How did the U.S. Supreme Court ruling impact this expansion goal? The Medicaid expansion requirements were challenged by the Attorneys General of 26 states who argued the provisions were overly coercive and effectively threatened states with the loss of all Medicaid federal funding if a state refused to implement the expanded eligibility criteria. The U.S. Supreme Court agreed with this argument, and ordered the provisions be narrowed. 5.2 5.3 What practical impact will the Court’s decision have? Due to the Supreme Court decision, the number of persons that will be covered by state Medicaid programs will be less than originally anticipated. Large numbers of currently uninsured individuals reside in states such as Florida and Texas that have decided not to expand their Medicaid eligibility requirements due to budget constraints. In 2014, many residents of states that refuse to adopt the expanded criteria and who would have been covered will now be moving into the state health insurance exchanges, becoming eligible for federal subsidies. This will significantly increase the number of people covered by federal subsidized health insurance, and effectively shift some of the coverage costs away from states and back to the federal government. 12 Published by BenefitMall®

Table of Contents for the Digital Edition of PPACA Tax Overview BenefitMall Reference Guide

PPACA Tax Overview BenefitMall Reference Guide
Table of Contents
Individual Mandate & Tax Implications
Premium Subsidies
Employer Requirements & Tax Implications
PART A: Small Employer Tax Credits
PART B: Large Employer Tax Penalties
PART C: Employer W-2 Reporting Requirements
PART D: Employer Deductions for Retiree Drug Coverage
Additional PPACA Tax Provisions Impacting Employers & Employees
PART A: The Unearned Income Medicare Contribution Tax
PART B: Excise Tax on Comprehensive, High-Cost Health Insurance Plans
PART C: Assessing the Impact of PPACA on HSAs, MSAs, FSAs, & HRAs
Medicaid & Medicare Changes & the Impact on Employers
PART A: The Expanding Medicaid Program
PART B: Emphasis on Prevention & Related Services
PART C: Medicare Part D Updates
PART D: Putting the Coverage Puzzle Together

PPACA Tax Overview BenefitMall Reference Guide

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