Updated: 12/10/2012 5:36 PM KSTP.com
Starting in 2014, President Barack Obama’s health care law will expand coverage to some 30 million uninsured people. At the same time, insurers will no longer be allowed to turn away those in poor health and virtually every American will be required to have health insurance, through an employer, a government program, or by buying their own.
For the vast majority of people, the health care law won’t mean sending more money to the IRS. But the wealthiest 2 percent of Americans will take the biggest hit, starting next year.
And roughly 20 million people eventually will benefit from tax credits that start in 2014 to help them pay insurance premiums.
A look at some of the major taxes and fees, estimated to total nearly $700 billion over 10 years.
_ Upper-income households
Starting Jan. 1, individuals making more than $200,000 per year, and couples making more than $250,000 will face a 0.9 percent Medicare tax increase on wages above those threshold amounts.
They’ll also face an additional 3.8 percent tax on investment income. Together these are the biggest tax increase in the health care law.
_ Employer penalties
Starting in 2014, companies with 50 or more employees that do not offer coverage will face penalties if at least one of their employees receives government-subsidized coverage. The penalty is $2,000 per employee, but a company’s first 30 workers don’t count toward the total.
_ Health care industries
Insurers, drug companies and medical device manufacturers face new fees and taxes.
Companies that make medical equipment sold chiefly through doctors and hospitals, such as pacemakers, artificial hips and coronary stents, will pay a 2.3 percent excise tax on their sales, expected to total $1.7 billion in its first year, 2013. They’re trying to get it repealed.
The insurance industry faces an annual fee that starts at $8 billion in its first year, 2014.
Pharmaceutical companies that make or import brand-name drugs are already paying fees that totaled $2.5 billion in 2011, their first year.
_ People who don’t get health insurance
Nearly 6 million people who don’t get health insurance will face tax penalties starting in 2014. The fines will raise $6.9 billion in 2016. Average penalty in that year: about $1,200.
_ Indoor tanning devotees
The 10 percent sales tax on indoor tanning sessions took effect in 2010. It’s expected to raise $1.5 billion over 10 years.
The 28 million people who visit tanning booths and beds each year _ most of them women under 30, according to the Journal of the American Academy of Dermatology_ are already paying.
Tanning salons were singled out because of strong medical evidence that exposure to ultraviolet lights increases the risk of skin cancer.
(Copyright 2012 by The Associated Press. All Rights Reserved.)