NATIONAL HEALTH COVERAGE PARTICIPATION

National Health Coverage Participation

National health coverage participation

Recission abuse (Section 162)

As for Section 162, currently, public corporations can be effectively maintained through an unlimited number of executive compensation on its federal corporate income tax return. Although section 162 (M) of the Tax Code is to limit such deductions to $ 1,000,000 per year for the executive. Section 162 (m) (4) contains a loophole big enough to sail mega yachts by: deductions are still allowed for any "performance based "pay, no matter how high (www.healthreformwatch.com).

Internal Revenue Service has interpreted 162 (m) (4) to allow virtually any compensation plan to be examined, even when executive compensation is tied to the ridiculously low performance. Thus, article 162 (m) has turned out to be a dead letter with unlimited amount of executive compensation can be based on performance-based, and therefore deducted for federal income tax purposes (www.healthreformwatch.com).

Current bill seeks to revive Section 162 (m) by removing the play on exceptions. However, the bill applies only to corporate salary health insurance executives, and not to compensation for employees in any other industry. Under the bill, health insurance companies will only be able to deduct compensation up to $ 500,000 (or, considering the amendment, Senator Blanche Lincoln of Arkansas, $400,000). Moreover, health insurance companies will be denied the section 162(m)(4) loophole for performance pay. These insurance companies can still pay their executives large amounts, but the taxpayers' money will no longer subsidize the salary through the corporate income tax deductions (www.healthreformwatch.com).

Prohibition existing condition exclusions (Section 111)

This provision prevents any health insurer from denying coverage for pre-existing conditions (angrybear.blogspot.com). This, if executed in a very strong combination, insurance companies must accept all comers, regardless of physical or mental condition, the charge for each individual or family in the area at the same speed, with few exceptions, ...