Provisions of the Affordable Care Act Effective for 2010
Rick Evans, CPA
On March 23, 2010, the Affordable Care Act was officially enacted. The act contains several provisions that are effective for 2010 and others that will be implemented during the next several years. Some of the provisions that are effective for 2010 include the following:
- Effective July 1, 2010, a 10% excise tax is to be assessed on indoor UV tanning services. There are some exemptions for licensed medical professionals and physical fitness facilities.
- There is a one-time $250 rebate available in 2010 to assist Medicare Part D recipients who have reached their Medicare drug plan’s coverage gap.
- A small business health care tax credit is available to businesses during 2010 as long as the business meets certain criteria. A qualifying employer must have less than the equivalent of 25 full-time workers and must pay average wages below $50,000. The credit is worth up to 35% of a small business’ premium cost in 2010 including premiums paid prior to the enactment of the law.
- Effective March 30, 2010, health care coverage provided for an employee’s children under age 27 is now generally tax-free to the employee. The Act requires plans that provide dependent coverage of children to continue to make the coverage available for an adult child until the child reaches age 27. This new age 27 standard replaces the lower age limits that applied under prior tax law.