Just the Facts on Health Care Reform, Part Deux

These are some of the items that slipped in as part of Health Care Reform that you may not be aware of just yet. In true political form, some items were slid in from both sides that have no bearing on health care.

• Form 1099-Misc: We have come to know and love the requirements for the Form 1099-Misc over the years; businesses are required to report payments that are not to corporations that exceed $599 on those pretty little pink forms. Starting in 2012, the reporting requirements will require that all payments, corporate or not, over $599 be included. This requirement includes payments for property and services. 
• I would suggest that your business begin to work on that compliance in 2011 to ensure that you work out any kinks in your internal processes. This will indeed become a costly and cumbersome process for small and large businesses alike, but small businesses will face the largest hardship.
• The adoption tax credit has been extended through 2011, increases to $13,170 and is now refundable. This is big news for those involved in or considering the adoption process.
• SAFRA – The Student Aid and Fiscal Responsibility Act: If you go to the Committee on Education and Labor website (http://edlabor.house.gov/blog/2009/07/student-aid-and-fiscal-respons.shtml) you will clearly see the villagers rejoiced! However, according to Neal McCluskey of www.forbes.com, “Contrary to what Kline suggests, guaranteed lending is about as close to a free market as a biplane is to the Starship Enterprise. Under FFEL, Washington guarantees lenders--including Fannie's cousin, Sallie--a profit on student loans, reimbursing them almost completely on defaults and paying big subsidies.”
• The Doughnut Hole Provision: It’s a $250 rebate in 2010 to seniors participating in Medicare Part B prescription coverage. For 2010, there is a coverage gap in Medicare Part B, referred to as the Doughnut Hole. This rebate is intended to assist seniors with their cost of prescription medications. In 2011, when a senior reaches the doughnut hole, they will be given a 50% discount on the cost of brand name drugs while in this gap. 
• Calorie Count: If you’ve been to a fast food restaurant lately, you may have noticed calorie counts next to menu items. I noticed this recently at a visit to Panera Bread. I was quite surprised at the information those calorie counts provided. I’m sure the plan is to make us consider better options when visit a fast food joint, but I suspect that most of us are aware there are few great caloric options before we visit such an establishment. This provision also applies to food and drinks in vending machines. Be prepared for guilt to accompany your mid-afternoon calorie laden boost!

Gov't Website on Health Care Reform


*****Remember, the new credit card laws go into effect today, August 23, 2010. Be vigilant about watching your statements!