Archive for June 3rd, 2009

Taxes for Health Care

Wednesday, June 3rd, 2009

planning ahead

The majority of those in the nonprofit community need not to worry about being taxed on health care benefits for two reasons.  First the health care benefit does not exceed the value of benefits provided to federal employees.  The second is that individuals do not earn more than $200,000.  This is one plan that nonprofits and its employees can support. 

The possible limiting of flexible spending accounts does not make sense when people have deductible plans.  It is self imposed managed care with ones own money that as a consumer is used carefully.  If anything the restriction that it be used in the current year should be lifted.  The current restriction forces one to incur costs each year and not save for that larger unexpected expense.  A sudden case of Lyme Disease cost one family $3,500 due to the deductible.  There should be no restriction on promoting one to save for their health care needs of the future. 

Health care overhaul is a joint responsibility.  The use of taxes to change behavior has shown to be successful.   Therefore, taxes on any item that is considered unhealthy is a good approach to decrease the health effects. 

Those against changes in the health care system are promoting a gloom and doom scenario.