Health Reform….still

From the American Benefits Council

The Baucus framework also proposes to impose a 35 percent excise tax on health insurance coverage above $8,000 for individuals and $21,000 for family coverage.

The tax would apply to amounts in excess of the thresholds and would be adjusted for inflation. Both insured and self-insured plans would be subject to the tax, but it would not apply to coverage in the individual insurance market. Other proposed revenue provisions would require employers to report on the value of employee health coverage using the annual Form W-2; limit annual contributions to flexible spending accounts (FSAs) to $2,000; require employers to include retiree prescription drug subsidies for corporate income tax purposes; standardize the definition of qualified medical expenses for health savings accounts (HSAs), flexible spending accounts (FSAs), and health reimbursement arrangements (HRAs); and increase the excise tax penalty for the use of HSA funds for non-qualified medical expenses from 10 percent to 20 percent.

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