Healthcare Reform Act:
How Does Recent Legislation
Impact Your Business?
Presented by
Cherry, Bekaert & Holland, L.L.P.
1
The Firm of Choice.
www.cbh.com
Cherry, Bekaert & Holland, L.L.P.
1180 West Peachtree Street, Suite 1400
Atlanta, Georgia 30309
404.209.0954
Matthew May
Audit
404.545.4430
mmay@cbh.com
The Firm of Choice.
Anne Alvarez
Tax
404.733.3266
aalvarez@cbh.com
www.cbh.com
Presenter – Matthew May
Matthew is a Certified Public Accountant and Senior Audit Manager with over 10 years of experience.
Based in Cherry, Bekaert and Holland’s Atlanta practice, Matthew manages financial statement audits and
consulting projects for publicly and privately held clients across a variety of industries, including
technology, manufacturing, retail, and communications. His clients have ranged from venture backed
development stage companies to multi-national public companies with revenues up to $500 million revenue.
Matthew has extensive experience with SEC matters, financial reporting, internal control over financial
reporting, operational accounting, and venture and private equity backed entities. He is experienced in a
variety of transactions including initial public offerings; secondary offerings; debt, venture capital, and
private equity financings; and mergers and acquisitions.
During his career Matthew was the Vice President of Finance and Controller for a communications company
for four years. He directly supervised all accounting functions including financial reporting, accounts
payable, accounts receivable, purchasing, fixed assets, payroll, general ledger, and financial planning and
analysis.
Matthew received his Bachelor of Business Administration degree with a major in Accounting from Baylor
University. He is a member of the American Institute of Certified Public Accountants. Matthew also leads
internal trainings on a variety of topics with audiences ranging from first year staff to partners.
The Firm of Choice.
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Presenter – Anne Alvarez
Anne is a Certified Public Accountant and a Tax Senior in the Atlanta office of Cherry,
Bekaert and Holland LLP. She sits on the Firm’s Legislative Liaison Board, which is charged
with staying on the cutting edge of newly enacted and proposed tax law. She provides
compliance and consulting advice to a variety of clients, and is the Firm’s lead expert on
TaxStream implementation and use for ASC 740 Tax Provisions (f.k.a. FAS 109).
Prior to joining CB&H, Anne spent time in industry managing tax projects for REITs, as well
as spending two years at PricewaterhouseCoopers LLP in Atlanta.
Anne graduated from the Georgia Institute of Technology with highest honors. She is a
member of both the American Institute of Certified Public Accountants, as well as the Georgia
Society of Certified Public Accountants.
The Firm of Choice.
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New legislation
• The Patient Protection and Affordable Care Act
(PPACA) – enacted March 23, 2010
• Health Care and Education Reconciliation
Act of 2010 (RECON) – enacted March 30, 2010
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2010 – Employee Education
• Insurer Regulations on Providing Coverage
• Pre-existing conditions
• Mandatory coverage of preventative health services
• High risk individuals
• No rescission
• Coverage up to age 26
• No lifetime limits
• Adoption credits
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2010 – Potential Tax Impacts
• Economic Substance Doctrine Codification
• Underpayment Penalty
• Tax Credit for Investments in New Health Care
Therapies
• Tax Credits for Small Businesses Offering Health
Insurance (2010 – 2013)
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The Firm of Choice.
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2010 - Other
• Excise Tax on Indoor Tanning Services
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2011 – Employee Education
• FSA – Changes to Definition of Qualified Medical Expenses
• Nonqualified HSA & MSA Distributions Penalty Increases
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2011 – Corporate Reporting
• Employers Must Report Health Care Plan Values on
W-2
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2011 – Other
• Pharmaceutical Industry – Annual Fee
• IRS to share certain taxpayer information
with the SSA and HHS
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2012 – Corporate Reporting
• New 1099 requirements
• Goods and services
• $600 or more
• Exception for payments to corporations
eliminated
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2013 – Employee Education
•
•
•
•
Medicare Tax for High-Income Individuals
Increases
Medicare Tax on Investment Income for HighIncome Individuals, Estates and Trusts
FSA Contributions Limited
Modification of Itemized Deduction for Medical
Expenses
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2013 – Potential Tax Impacts
• Excise Tax on Medical Device Sales
• Executive Compensation Deduction
Limited
• Deduction for Medicare Part D Ends
• Charitable Hospitals – new requirements
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2014 – Employee Education
•
•
•
•
Health Insurance Market Reforms
Individuals Requirement • Minimum Essential Health Coverage
• Pay penalty, a.k.a. “Shared Responsibility Payment”
• Certain individuals are exempt from the penalty and/or
from carrying coverage
Premium Assistance Credit
Administration – penalties, levies, and informational
returns
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2014 – Potential Tax Impacts
•
Penalty on Large Employers for not Providing
“Minimum Essential Coverage”
•
Penalty on Large Employers Offering Coverage, but
with Employees Receiving Credits from State
Exchange Offered Plans
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2014 – Potential Tax Impacts (cont’d)
• Free Choice Vouchers
• American Health Benefit Exchange and SHOP
Exchange
• Small Employer Health Insurance Credit
• Corporate Estimated Payments
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2014 – Corporate Reporting
•
Employers Must Report Health Coverage
Information Annually to the Secretary of the
Treasury and to Employees
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2014 – Other
•
Annual Fee Imposition on Health Care Provider
Industry
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2018 – Potential Tax Impact
•
Health Insurer Excise Tax on High-Cost
“Cadillac” Plans
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Georgia Chimes In!
•
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Georgia is one of 19 states jointly filing suit
Georgia State Senate Bill 411:
• prohibits the State from requiring that individuals
participate in a public or private health plan
• states that no business or individual would be liable to
fines for not carrying or offering health insurance
• Federal Act requires each State to establish an
Exchange by January 1, 2014
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Questions?
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