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SOURCE Jackson Hewitt Tax Service Inc.
For Non-Expanding States, Shared Responsibility Costs Could Reach $1.3 Billion Annually
PARSIPPANY, N.J., March 13, 2013 /PRNewswire/ -- As healthcare changes resulting from the Affordable Care Act (ACA) start to be implemented, one of the first decisions to be made comes at the state level, with each state determining whether or not it will expand Medicaid for certain low-income adults. Yet while implications on these individuals are being discussed, one area that has not been fully explored is what the decisions mean for employers in states choosing not to expand – and how significant the related costs to them could be.
As a company keeping a close eye on the ACA roll-out and its implications for both businesses and individuals, national tax preparation firm Jackson Hewitt Tax Service® today released its first report on the topic, The Supreme Court's ACA Decision and Its Hidden Surprise for Employers. With health insurance coverage expansions so closely connected to the Federal tax code, Jackson Hewitt® is working to inform taxpayers about healthcare implications and what they need to know.
Authored by the Company's first Senior Vice President for Health Policy, Brian Haile, the report explores how states that do not expand Medicaid leave employers (with fifty or more full time equivalent employees) exposed to higher shared responsibility payments under the ACA. Paradoxically, it also looks at how state government efforts to constrain Medicaid costs growth in and after 2017 may lead to higher net taxes for employers in such jurisdictions beginning in 2014.
"In the 22 states that have opposed, are leaning against or remain undecided about expanding Medicaid, we predict employer shared responsibility costs could total $876 million to $1.3 billion each year," said Haile. "As some states are still evaluating their participation, it is critical that any projections of the 'net' costs of Medicaid expansions also reflect the very real costs of the shared responsibility penalties to employers in any particular state."
About Jackson Hewitt Tax Service Inc. Jackson Hewitt Tax Service Inc. is an industry-leading provider of full service individual federal and state income tax preparation, with 6,800 franchised and company-owned locations throughout the United States, including 2,800 located in Walmart stores nationwide, and more than 400 Sears stores in the United States and Puerto Rico for the 2013 tax season. Jackson Hewitt Tax Service® also offers an online tax preparation product at www.JacksonHewittOnline.com. For more information, or to locate your neighborhood Jackson Hewitt® office, visit www.JacksonHewitt.com or call 1-800-234-1040. Jackson Hewitt can also be found on Facebook and Twitter, or check out Jackson Hewitt's "On the Street" video series, hosted by Chief Tax Officer Mark Steber and available on YouTube at http://www.youtube.com/jacksonhewitt.