Spring 2018 issue of Horizons

INDUSTRY UPDATE HEALTHCARE

Tax Cuts and Jobs Act: A Healthcare Perspective by Tom Zetlmeisl, CPA, CFE, CFF, CGMA

T he Tax Cuts and Jobs Act affects that are either specific to healthcare or impact many healthcare organizations. In addition, because the healthcare industry has many not-for-profits, the significant changes from a not-for-profit perspective flow through to those healthcare entities that are also not-for-profits. healthcare organizations and doctors in several ways. It includes provisions Healthcare-Specific Provisions Likely the most prominent impact from a healthcare perspective is that the Affordable Care Act (ACA) individual health insurance mandate was essentially repealed for months beginning after December 31, 2018.

For 2019, the penalty (shared responsibility payment) for failing to have minimum essential health insurance is zero. For 2018, the flat dollar amount for the penalty will be $695 plus an inflation adjustment (with a $2,085 maximum as of 2017). The coverage rules for employees were not addressed, nor was the premium tax credit. It is unclear what the overall impact of this will be on the ACA more broadly. However, as it relates to the insurance exchange, this will likely drive down the number of healthy individuals purchasing on the exchange, resulting in a negative impact on payors and increased premiums.

Tax Cuts and Jobs Act: A Healthcare Perspective

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