Good morning!
Last week we looked at the changes this bill created for 2010.  This week we highlight the changes for 2011 and 2012.

2011 Highlights

• A new national employee-funded long-term care benefit known as the “Community Living Assistance Services and Supports Act” (CLASS Act).  Estimated monthly premium of $120 for a $50/day benefit
• The value of employer provided group health coverage to be reported on each employee’s W2
• Distributions of proceeds from HRAs, FSAs and HSAs will no longer be non-taxable for over-the counter medications.
• Any distributions from HSAs and MSAs for non-medical expenses will have an additional 20% penalty tax (currently 10% for HSAs and 15% for MSAs
• Brand-name drug manufacturers and importers will pay an added $2.5 billion in annual taxes

2012 Highlights

• Employers must provide a Summary Plan Description (SPD) of group policies to all employees
• A new tax of $2/covered individual will be assessed to all those covered by self-insured health plans.
• Payors (including all corporations) will need to issue 1099s to report all payments of $600 or more for goods and services purchased.

Next week we will look at this “1099 Nightmare” in more detail.

Questions or Comments?
You can add comments here, call 919-847-2981, or visit our web site. We look forward to hearing from you.

Mark Vitek, CPA/PFS, CFP®
…until next week.