Health Reform Rule Uses Health Insurance Executive Salary Taxes to Fund Medicare

A new health reform tax rule will limit how much executive pay health insurance companies can deduct from their taxes, according to an American Medical News report.

Until the March enactment of the Patient Protection and Affordable Care Act, health plans could deduct as much as $1 million in salaries paid to company leaders.

The IRS could not touch stock options, deferred compensation and other noncash payments. Now health plans can only deduct the first $500,000 of what they pay executives.

The new rule is expected to raise $651 million in the next 10 years for Medicare.

Read the American Medical News report on the health insurance company tax rule.

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