Your Next Healthcare Advisor Might Be Your Tax Guy

[AZ-Tax]

I knew HRB marketed Securities but will they start marketing Health Insurance?

http://news.yahoo.com/next-healthcare-advisor-might-tax-guy-210953294.html

[Koss]

Welcome to Obamacare

HRB is not selling, or marketing, health insurance. They aren't selling or marketing securities, either. They had a financial advisory unit at one time. They sold it off a few years ago.

If you read the article carefully, HRB claims to be offering advice about what kind of health insurance a person may be eligible for when the some of the more controversial provisions of Obamacare take effect, around the end of this year.

Some taxpayers will have to pay an additional tax if they do not buy health insurance. Most people know about that part of the law, and it has been hotly debated. The part that has not been discussed in great detail is what happens when lower and middle income taxpayers actually choose to buy insurance through the "exchanges," instead of paying the additional tax.

Enrollment through the state-run insurance exchanges is expected to begin this fall.

Lower and middle income taxpayers will qualify for a tax credit that is meant to help pay for the health insurance.

The credit will be available as an advance. It will be paid directly to the insurance carrier.

Taxpayers will begin enrollment in these programs this fall, with the insurance coverage taking effect on Jan. 1, 2014.

The amount of the advance credit will be determined by certain figures on the taxpayer's 2012 tax return, since that will be the most recent return available when they enroll.

But the amount of the actual credit will be calculated, and reconciled against the advance, when the 2013 tax return is prepared.

There is a "safe harbor" provision of some sort that basically says that if the amount of the actual credit is less than the amount of the advance, and the taxpayer's income is below a certain threshold, they will not have to pay back the difference.

The mechanics will be a lot like those goofy "rebates" that Congress played around with five or six years ago.

Here's a brief citation from an IRS summary of the Affordable Care Act provisions:

- - - -

Health Insurance Premium Tax Credit

Starting in 2014, individuals and families can take a new premium tax credit to help them afford health insurance coverage purchased through an Affordable Insurance Exchange. Exchanges will operate in every state and the District of Columbia. The premium tax credit is refundable so taxpayers who have little or no income tax liability can still benefit. The credit also can be paid in advance to a taxpayer’s insurance company to help cover the cost of premiums. On May 18, 2012, the Treasury Department and the IRS issued final regulations which provide guidance for individuals who enroll in qualified health plans through Exchanges and claim the premium tax credit, and for Exchanges that make qualified health plans available to individuals and employers. Additionally, on Jan. 30, 2013, the Treasury Department and IRS released final regulations on the premium tax credit affordability test for related individuals.

The portion of the law that will allow eligible individuals to use tax credits to purchase health coverage through an Exchange is not effective until 2014.

- - - -

Here's the link:

http://www.irs.gov/uac/Affordable-Care-Act-Tax-Provisions

And here's some more detailed information:

http://www.treasury.gov/press-center/Documents/36BFactSheet.PDF

I'm not sure what kind of advice HRB is offering its clients.

But there does seem to be a role for the tax advisor in this whole affair...

BMK

[David1980]

So the insurance company gets the government subsidy. I wonder if HRB can get a kickback / referral bonus from the insurance company if they send someone to buy insurance? If they could, probably anyone could. Always seems to be some people trying to make money anytime the government gets involved in paying out money.

[Black Bart]

Puhleeezzze guys!

Your Next Healthcare Advisor Might Be Your Tax Guy

I knew HRB marketed Securities but will they start marketing Health Insurance?

What next? I'm still trying to compete with the chains' giveaway coupons (thinking about throwing in a six-pack and 15 minutes with a local masseuse).