Legislative Alert: Congress Passes Government Funding, Tax Reform Bill Before Adjourning Until January
Before adjourning for the rest of the year,
Republicans Secure
On
The bill repeals the Affordable Care Act's tax penalty for individuals who do not have qualifying health care coverage. As of 2019, the penalty will not be enforced. The
The final tax package also addresses the medical expense deduction for those who itemize their individual tax returns. Under current law, medical expenses that exceed 10% of adjusted gross income (AGI) may be deducted. The Tax Cuts and Jobs Act would reduce this threshold to 7.5% for 2017 and 2018 and return it to 10% for 2019 and thereafter.
The bill imposes a 21% excise tax on compensation exceeding
Under current law, interest on qualified private activity bonds, including 501(c)(3) hospital bonds, is excludable from gross income. Despite an effort to eliminate this advantageous tax status for private activity bonds, the final legislation did not include this provision.
Beyond health care, this legislation includes a number of changes to both the individual and corporate tax rates. These include:
* An increase of the standard deduction from
* A doubling of the current estate tax exemption
* An increase of the exemption amount from the alternative minimum tax
* A lowering of the corporate tax rate from 35% to 21%
Shutdown Averted with Short-Term Funding Bill/Includes CHIP Funding/No Medicare Sequester in 2018
The
The CR also waives a Pay-As-You-Go (PAYGO) requirement that potentially would have resulted in a Medicare cut of 3.75% in 2018.
Additional provisions in the CR include:
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*
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Outstanding Healthcare Issues
When
In the
* Medicare Dependent Hospital Program and the Low-Volume Adjustment Program
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* Exceptions process for Medicare with the repeal of the therapy caps
* Extension of the Medicare geographic payment cost index for physician payments
* Ground Ambulance Add-Ons
* Special needs plans (SNPs)
* State Health Insurance Assistance Programs (SHIPs).
Outside of health care and the government funding issue,
AMGA will remain involved in the many pending issues before
Sen. Johnson Subpoenas OPM Documents Over Congressional Special Treatment Under Obamacare
Signed Into Law: Tax Reform
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