PPACA & Governments

PPACA & the Federal Government

PPACA Administration

  • Independent Payment Advisory Board.  IPAB (or the Board) is charged with developing proposals to “reduce the per capita rate of growth in Medicare spending.” The Secretary of Health and Human Services (the Secretary) is directed to implement the Board’s proposals automatically unless Congress affirmatively acts to alter the Board’s proposals or to discontinue the automatic implementation of such proposals.

PPACA Regulations

  • As of March 2013, more than 20,000 pages of rules related to the Affordable Care Act had been released, a stack of paper 7 feet 3 inches high and weighing more than 300 pounds.
  • American Action Forum (AAF) calculates that as of March 2013, these regulations imposed $31.3 billion in regulatory costs and liabilities, as well as 71.5 million hours of paperwork.

PPACA Financing

Part of PPACA’s costs are financed through higher taxes and the balance through Medicare savings.

  • Excise Tax on Indoor Tanning Services. A 10-percent excise tax on indoor UV tanning services went into effect on July 1, 2010.  The tax doesn’t apply to phototherapy services performed by a licensed medical professional on his or her premises. There’s also an exception for certain physical fitness facilities that offer tanning as an incidental service to members without a separately identifiable fee. For more information on the tax and how it will be administered, see IRS news release, video, questions and answers and legal guidance.
  • Changes to Flexible Spending Arrangements. Effective Jan. 1, 2011, the cost of an over-the-counter medicine or drug cannot be reimbursed from Flexible Spending Arrangements or health reimbursement arrangements unless a prescription is obtained. The change does not affect insulin, even if purchased without a prescription, or other health care expenses such as medical devices, eye glasses, contact lenses, co-pays and deductibles. The new standard applies only to purchases made on or after Jan. 1, 2011, so claims for medicines or drugs purchased without a prescription in 2010 can still be reimbursed in 2011, if allowed by the employer’s plan. A similar rule goes into effect on Jan. 1, 2011 for Health Savings Accounts (HSAs), and Archer Medical Savings Accounts (Archer MSAs). For more information, see IRS news release IR-2010-95, Notice 2010-59, Revenue Ruling 2010-23 and questions and answers.

PPACA & Medicare

PPACA & Medicaid

PPACA & The States


2 Responses to “PPACA & Governments”

  1. Premiere Final Says:

    NAHU’s tax timeline is unavailable unless you have a logon to their site.

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