Health Care "Reform" - 2011

The following provisions of the Affordable Health Care for America Act take effect beginning January 1, 2011:

  1. Numerous and extensive changes to the Medicare rules, including payment cuts to providers and facilities.
  2. Pregnant women receiving Medicaid must not smoke or stop smoking by January 1, 2011, in order to remain Medicaid-eligible.
  3. Individuals may no longer use flexible spending accounts, health reimbursement accounts, or health savings accounts to pay for over-the-counter medications.
  4. Penalty for unqualified withdrawals from health savings accounts increases from %10 to %20.
  5. $2.5b tax (for 2011) on brand-name pharmaceutical companies and importers, based on their relative market shares. Increases to $3b/yr in 2016, $4.2b/yr in 2018, and decreases to $2.8b/yr in 2019.
  6. Businesses that purchase more than $600 in goods in one year from one seller must report the purchases to the IRS and provide the seller with a W-2. Legislatively repealed, Feb. 2011.

Source: Center for Health Transformation [PDF]

Tom G Varik