Healthcare Reform: The Affordable Care Act Tax Provisions

5 Credits: Taxes


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Healthcare Reform: The Affordable Care Act Tax Provisions

Course Level
CPE Credits

5 Credits: Taxes

Course Description

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.

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Learning Objectives

Upon successful completion of the course, participants will be able to:

Chapter 1

  • Identify the rules applicable to –

·grandfathered health plans,

·the use of pre-existing condition exclusions, and

·annual and lifetime benefit limits;

  • List the conditions that would permit an insurer to rescind health insurance coverage and the applicable notice requirements; and
  • Recognize the requirements imposed by healthcare reform legislation with respect to –

·patient protection provisions, and

·dependent coverage to young adults.

Chapter 2

  • Identify the changes made by the PPACA related to –

·the treatment of costs for over-the-counter drugs and medical expense FSA contributions,

·the tax penalty for nonqualified Archer MSA and HSA distributions,

·medical expense deductions,

·the additional taxation on the earnings of high-income taxpayers,

·the additional tax on high-income taxpayers’ net investment income, and

·the additional tax on estate’s and non-grantor trust’s undistributed net investment income; and

  • Calculate the amount of the premium assistance tax credit available to taxpayers whose household income is less than 400% of the federal poverty line.

Chapter 3

  • Identify the –

·W-2 reporting requirements imposed on employers providing employer-sponsored health coverage, and

·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, and

·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; and
  • Identify the –

·transition relief available to applicable large employers, and

·annual return and notification requirements imposed by the PPACA on applicable large employers.

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Course Specifics

Course ID
Revision Date
January 13, 2023

There are no prerequisites

Advanced Preparation


Compliance Information

NASBA Provider Number: 103220
IRS Provider Number: 0MYXB
IRS Course Number: 0MYXB-U-02150-22-S
IRS Federal Tax Update Credits: 5
CTEC Provider Number: 2071
CTEC Course Number: 2071-CE-1405
CTEC Federal Tax Update Credits: 5

CFP Notice: Not all courses that qualify for CFP® credit are registered by Western CPE. If a course does not have a CFP registration number in the compliance section, the continuing education will need to be individually reported with the CFP Board. For more information on the reporting process, required documentation, processing fee, etc., contact the CFP Board. CFP Professionals must take each course in it’s entirety, the CFP Board DOES NOT accept partial credits for courses.

CTEC Notice: California Tax Education Council DOES NOT allow partial credit, course must be taken in entirety. Western CPE has been approved by the California Tax Education Council to offer continuing education courses that count as credit towards the annual “continuing education” requirement imposed by the State of California for CTEC Registered Tax Preparers. A listing of additional requirements to register as a tax preparer may be obtained by contacting CTEC at P.O. Box 2890, Sacramento, CA, 95812-2890, by phone toll-free at (877) 850-2832, or on the Internet at

Meet The Experts

Paul J. Winn

Paul J. Winn CLU ChFC is a writer with more than 30 years experience in the life insurance and securities industry as an agent/registered representative, an agency head, a marketing vice president for a life insurance company and the president of a corporate registered investment adviser. He was a long serving member of the advisory board to the New York State insurance department. He is a published book author and creator of more than 200 taxation, insurance and securities training courses.