Health Care Act Upheld – Now What?

The ruling by the Supreme Court issued a couple weeks back had even news organizations confused – reporting it was struck down at first, then changing the story to the act being upheld, which was the correct reading.  So what does this mean for all of you?

There are some still holding out hope for the Republican charge to repeal the act entirely, especially with the November elections coming.  Assuming they are unable to do so, here are some of the key parts of the act that will go into effect starting in 2013.

  • The amount employees can set aside in Flexible Spending Accounts (FSA’s) will be limited to $2,500 per year
  • The amount of Medicare tax withheld from paychecks will increase from 1.45% to 2.35% for single taxpayers earning more than $200,000 in wages, and for couples earning $250,000 or more in combined wages.
  • Medical expenses will be deductible to the extent the exceed 10% of AGI, rather than 7.5% currently.

We’ll keep our eyes open to see if the repeal effort gains traction, and keep you updated with all the latest developments.