Lots of observers, including some very well placed ones in Congress, argue that health care will just be put aside now for a time and will wait for a later opportunity. They say it’s time to turn to tax reform. The “put it aside” argument assumes that the Trump administration will just continue to administer Obamacare as it has been, which is unlikely. This fall we may well see a much expanded “hardship exemption” for the individual mandate that could render the mandate essentially void, and the administration may also stop providing funds for cost-sharing reduction payments if Congress does not appropriate money for them.
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Senate Minority Leader Chuck Schumer says he and his colleagues are ready to work with Republicans on an adjustment to the ACA “that stabilizes markets, that lowers premiums.” However, framing the purpose of the talks in this way discourages rank-and-file Republicans to participate in negotiation that has the singular purpose of shoring up the ACA. What is needed is a thorough, top-to-bottom negotiation between both parties over fundamental aspects of the entire health system. For example: How much flexibility should states have to run Medicaid? What can be done to bring more cost discipline to the entire system? What can be done to ensure major health entitlement programs are affordable over the long-term?
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Health insurers appeared likely to offer Affordable Care Act plans in all U.S. counties next year, despite months of drama and worries among some state officials about last-minute exits, ahead of a late-Wednesday deadline.
Some major insurers that had signaled that they might pull back, including Cigna Corp. , Health Care Service Corp., Molina Healthcare Inc., Highmark Health and Independence Blue Cross, this week said they would stick to the states and regions where they had filed to offer ACA coverage.
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This week, the Tax Court gave Benjamin and Delores Gibson the bad news that they would have to pay back a premium credit of $4,628.80 that went to Benjamin Jr. The Gibsons filed their 2014 return claiming Junior as a dependent even though he had not been living with them for much of the year. There is an interesting practice question here. Dependency is a matter of fact, not an election, but when it comes to older kids not living at home, it can be treated as, in effect, an election. Preparers need to be alert to the health care credit implications of claiming a dependent and weigh that against other benefits.
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