Tuesday we discussed some immediate provisions of the new Health Care Reform law. Let's discuss some of the later provisions. Because much of the act doesn't materialize until 2014, you'll have time to plan how these best fit your particular situation.
1) If you have a flexible spending account you may be affected. Starting in 2013 your contributions will be capped at $2,500. This cap will increase with inflation.
2) High wage workers will now have a hospital tax increase of 0.9%. If you don't earn much but have significant investment income this tax may affect you also.
3) Families making less than 400 percent of the poverty line each year will qualify for tax credits to go toward health insurance beginning in 2014.
4) Finally, Employers and individuals without health insurance will begin paying penalties in 2014. The penalty for an individual without appropriate health insurance is $95 in the first year and increases each year after.
Of course, all of this may change before 2014. However, the most prudent plan isn't to wait for the government to change their mind, or to base your financial plans on political rhetoric. The safe move is to keep your financial plan up to date by examining each new piece of legislation that may affect your financial picture.