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4 ways the tax bill affects healthcare providers

Congress sent a tax reform bill to President Donald Trump that will cut the corporate tax rate and eliminate the penalty for not obtaining health insurance, a key component of the ACA, according to The Washington Post.

 

Here are four ways the bill will impact healthcare:

1. The bill voids ACA requirements for obtaining healthcare insurance, which is estimated to reduce government spending by around $300 billion in around 10 years. However, the Congressional Budget Office estimates the move will lead to 13 million fewer Americans with insurance, and young, healthy individuals may opt not to purchase insurance.

2. The corporate tax rate is lowered from 35 percent to 21 percent, which will affect healthcare companies.

3. Included in the bill are limitations on interest deductions, which could make financing for capital projects more costly. Organizations that depend on debt financing may need to reconsider which areas to invest in based on these limitations.

4. The bill levies a 21 percent excise tax on compensation exceeding $1 million for the top five highest paid employees of nonprofit hospitals and organizations, according to HealthLeaders Media.

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