Here's Who Pays for Health Care Reform

Universal coverage isn't free; CNN breaks down the costs
By Kevin Spak,  Newser Staff
Posted Jun 26, 2012 3:48 PM CDT
Here's Who Pays for Health Care Reform
Someone's paying for the affordable care act.   (Shutterstock)

Assuming the Supreme Court doesn't strike it down, the Affordable Care Act will extend health care to millions of Americans—which isn't a cheap proposition. CNN breaks down who would wind up paying for the law, and how:

  • The wealthy: Starting next year there's a Medicare surtax on incomes above $200,000 a year, or $250,000 for a married couple. It also adds a Medicare tax on capital gains and dividends.
  • People with awesome insurance: If your employer-sponsored plan costs more than $10,200 a year, or $27,500 for family coverage, it'll be subject to an excise tax in 2018.

  • HSA users: The amount of money they'll be able to put into a flexible spending account tax-free will be capped at $2,500 next year. There will also be a 20% penalty if participants use those funds for non-health spending.
  • The uninsured: Anyone choosing not to buy insurance will have to pay a penalty under the individual mandate. That will start in 2014 with a cap at $285 per family, or 1% of income, whichever is higher, and eventually rising to $2,085 per family, or 2.5%, in 2016. For single adults, it starts at $95 and rises to $625. Those with very low incomes are among the exceptions.
  • The really sick: Right now, you can deduct medical costs that exceed 7.5% of your income. That's going up to 10%, though the jump will be waived for seniors until 2016.
  • The Jersey Shore cast: And anyone else using tanning salons, which are subject to a new 10% excise tax.
(More ObamaCare stories.)

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