Healthcare Reform: The Affordable Care Act Tax Provisions
The landmark legislation known as the Patient Protection and Affordable Care Act (PPACA), signed into law in 2010, affects a wide range of institutions in the United States in some way. It imposes healthcare-related requirements on health plans, health insurers and employers.

In addition to imposing various tax increases to increase revenue, the PPACA uses a carrot and stick approach to ensure compliance with its provisions, offering tax credits for compliance and imposing tax penalties for non-compliance. This course will review the principal provisions of the law and will examine its tax impact on individuals and businesses.
In so doing, it will consider the:
  • Coverage-related provisions of the PPACA addressing –
    • Plan grandfathering pursuant to which health coverage in force at the time of the law's passage may be continued,
    • The prohibition of pre-existing condition exclusions,
    • The proscription of lifetime and annual benefit limits,
    • The limitation of health coverage rescissions,
    • The requirement for certain patient protections, and
    • The requirement that plans covering children extend child coverage until age 26;
  • Tax credits available to small businesses to encourage them to sponsor employee health plans;
  • Shared responsibility for certain large employers to provide employee health coverage and the tax penalties imposed for noncompliance;
  • Various personal income tax changes affecting taxpayers; and
  • Tax credits authorized to help individuals maintain minimum essential coverage.

Course Publication Date: February 12, 2024

This course is available with NO ADDITIONAL FEE if you have an active self study membership or all access membership or can be purchased for $40.00!

Author:Paul Winn
Course No:TAX-ACAPROV-3064
Recommended CPE:5.00
Delivery Method:QAS Self Study
Level of Knowledge:Overview
Advanced Preparation:None
Recommended Field of Study:Taxes
Learning Objectives
  • Identify the rules applicable to grandfathered health plans.
  • Identify the rules applicable to the use of pre-existing condition exclusions.
  • Identify the rules applicable to annual and lifetime benefit limits.
  • List the conditions that would permit an insurer to rescind health insurance coverage and the applicable notice requirements.
  • Recognize the requirements imposed by healthcare reform legislation with respect to patient protection provisions.
  • Recognize the requirements imposed by healthcare reform legislation with respect to dependent coverage to young adults.
  • Identify the changes made by the PPACA related to the treatment of costs for over-the-counter drugs and medical expense FSA contributions.
  • Identify the changes made by the PPACA related to the tax penalty for nonqualified Archer MSA and HSA distributions.
  • Identify the changes made by the PPACA related to medical expense deductions.
  • Identify the changes made by the PPACA related to the additional taxation on the earnings of high-income taxpayers.
  • Identify the changes made by the PPACA related to the additional tax on high-income taxpayers’ net investment income.
  • Identify the changes made by the PPACA related to the additional tax on estate’s and non-grantor trust’s undistributed net investment income.
  • Calculate the amount of the premium assistance tax credit available to taxpayers whose household income is less than 400.
  • Identify the W-2 reporting requirements imposed on employers providing employer-sponsored health coverage.
  • Identify the transition relief provided applicable to W-2 reporting.
  • Define “full-time employee” and “full-time equivalent employee” for purposes of employer tax credits and penalties under the PPACA.
  • Recognize the rules that apply to a small employer’s eligibility for a health insurance premium credit.
  • Recognize the nature of a “qualifying arrangement” under which an employer pays premiums for employee health insurance coverage.
  • Identify the types of coverage that meet the PPACA definition of health insurance coverage for purposes of the small employer health insurance premium credit.
  • Apply the various limitations that may reduce the amount of health insurance premium credit available to an otherwise eligible small employer.
  • Calculate the potential penalties applicable to large employers under the PPACA.
  • Identify the transition relief available to applicable large employers.
  • Identify the annual return and notification requirements imposed by the PPACA on applicable large employers.

CPE Depot Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website:

Sponsor Number: 109423


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