During his first day as President of the United States, President Donald Trump signed an executive order on the repeal of the Affordable Care Act. The order was meant to alert all government agencies to his intention to repeal the Affordable Care Act (ACA), as soon as possible. While congress is working to repeal the law, the president asked all applicable agencies to “take all actions consistent with law to minimize the unwarranted economic and regulatory burdens of the Act, and prepare to afford the States more flexibility and control to create a more free and open healthcare market.”
The president also asked the heads of all agencies, when applicable to “waive, defer, grant exemptions from, or delay the implementation of any provision or requirement of the Act that would impose a fiscal burden on any State or a cost, fee, tax, penalty, or regulatory burden on individuals, families, healthcare providers, health insurers, patients, recipients of healthcare services, purchasers of health insurance, or makers of medical devices, products, or medications.”
There changes that are coming to healthcare have far reaching implications for all Americans. The following are a few of the farthest reaching tax implications included within the ACA:
- Requirement to maintain minimum essential coverage and the tax penalty for not maintaining minimum coverage
- Premium Tax Credit offered to those who qualify subject to income limitations
- Increase in AGI adjustment for the medical expense itemized deduction from 7.5 to 10%
- Additional 0.9% medicare tax on those who make over $200,000 single or $250,000 married filing joint
Keep watching for more tax developments related to healthcare in the coming months.
To read the executive order in its entirety, click this link.
