UPDATE ON THE PROPOSED HEALTHCARE REFORM LEGISLATION

The latest version of the Senate Finance Committee’s proposed Healthcare Reform Legislation would provide health coverage to 29 million uninsured Americans.  However, it will also cost an estimated $856 billion that will be paid for with higher taxes imposed on companies and individual taxpayers.  But that is not all.  The proposed legislation will also impact companies and individuals in other ways and these changes could take effect as early as January 1, 2010.
For example, did you know that the current proposal would require companies to report the value of employer provided health insurance benefits on each employee’s W-2?  Existing law does not require any tracking and reporting of employer paid health benefits.  If multiple plans are provided (medical, dental, vision, etc.), then the aggregate value of all of these benefits would need to be reported.
Also proposed with an effective date of January 1, 2010, are changes to allowable expenses for reimbursement under Flexible Spending Accounts (FSA) and Health Spending Accounts (HSA).  The proposed legislation would no longer allow the reimbursement for the cost of over-the-counter medicines unless prescribed by a physician.
Another aspect of the proposed legislation would be the allowance of employee paid long term care insurance premiums paid by employees to be reimbursed under Flexible Spending Account plans.  Current law does not allow for long term care insurance premiums to be paid with pre-tax dollars. 
Whether or not these provisions are included in the final legislation is anyone’s guess.  However, experts now project that some form of healthcare reform will pass before the end of 2009.  And if history is any indication, once a law of this nature and magnitude is passed, it will never be repealed.  So stay informed, and keep your congressmen informed of your opinions/