To The Point Podcast

On March 24, 2017 a vote was scheduled to take place on the House floor regarding the Republican proposed American Health Care Act, but it didn’t happen. This podcast will review why not, what alternative measures may be used to attempt repealing or amending the current law, and advice to employers on what to do next.

Section 125 plans provide a simple and effective way to add employee benefits, especially for businesses with a number of employees who regularly have medical and childcare expenses. Employees can deduct their insurance premiums pretax and set aside pretax funds to use toward qualified medical and dependent care expenses. Business owners can experience decreased company payroll and tax liabilities for social security, Medicare, and unemployment. But, before you start pre-taxing, be sure to have the right documents in place!

In January 2017, the IRS Office of Chief Counsel issued a memorandum clarifying the tax treatment of certain types of fixed indemnity plans offered by employers. Since the memorandum was released, several fixed indemnity plan insurance carriers have pushed back, stating that the interpretation of the IRS memo was too broad and should not affect the taxation of such plans. Listen in to learn how and if this affects various types of hospital and critical care reimbursement plans, cancer and accident plans, and other similar type lump sum reimbursement arrangements.

Overview of the American Health Care Act, the Republican proposal to replace Obamacare. Impact on employers and suggestions for the near future.