Health care, insurance costs and tax policy are prominent topics in the current election cycle.  Health care costs encompass many different factors such as medications, physician visits, medical testing and prosthetics.  The United States outspends the world in health care and health insurance; but paying more does not mean a healthier country. Studies show that comparable countries have longer life spans and are healthier. The rising costs of health insurance and health care has given life to the myth that paying more means better care.

Tax policy has a dramatic impact on healthcare.  Traditionally, preparers helped taxpayers with medical deductions on their tax returns.  Income tax rules for medical deductions are constantly changing.  Over the years, the role of the tax professional and financial planner has become more entwined with healthcare.  The Affordable Care Act enforces a “shared responsibility payment” on certain taxpayers without healthcare coverage.  The Consolidated Omnibus Budget Reconciliation Act (COBRA) provides for continuing health care coverage between jobs.  Health care savings accounts and flexible spending accounts impact tax reporting.  Individual Retirement Accounts have special exceptions regarding medical expenses, insurance and disability.  The landscape of healthcare options is growing more complex and changing every day.

How do we navigate the new health care landscape?  Understanding health care, insurance, and tax law and their implications can help America get healthier and live longer.