There are more than 200,000 physician practices in the United States. Practicing medicine can be hard, but doing your taxes can be even harder. At Tax Reduction Concierge, we can be your experts on captive insurance and a wide range of other tax related issues.
As part of our dedication to you, we want you to understand what the future may bring when it comes to tax laws. Keep reading for our guide on the matter.
Stark Law Changes
As part of a broader effort to roll back regulations, President Trump’s administration is considering changes to the “Stark Law”. The Stark Law is actually a series of laws that govern where doctors can refer patients to. If a physician has a financial stake in another practice, in the form of an investment, kickback, or any other form of compensation, they are not allowed to refer a patient to that practice.
More relevant to what we do, however, concerns taxes. The Stark Law sets up a series of billing procedures designed to make the whole system more transparent. Changes in what doctors have to report may reflect changes in the law, which could have huge tax implications. In addition, Congress is considering a reduction in fines.
Medicare and Medicaid Reform
House Speaker Paul Ryan has not been shy about his desire to make market-based reforms to these entitlement programs. The institution of premiums for Medicaid beneficiaries and a new requirement involving purchasing premiums may totally change how clinics receive their income. Keeping a close eye on any changes to either of these programs is necessary if you are an administrator or doctor.
Fraud
The National Healthcare Anti-Fraud Association estimates that fraud costs Americans $68 billion every single year. Certain groups are calling for more stringent reporting measures so that people can be sure that no fraud is going on.
If you run a medical practice, you may have to change how you report your taxes. An action that did not trigger an audit in the past may cause you to come under further scrutiny in the future. Committing fraud leads to very serious punishments, including fines and possibly a prison sentence.
The Affordable Care Act
The Affordable Care Act, otherwise known as Obamacare, came under intense scrutiny last year. As part of the new tax bill, Congress repealed the Individual Mandate. It is possible, and even likely, that additional changes to American healthcare law will come in 2018.
Independent Practices vs. Hospitals
Since 2000, the number of physicians who are practicing independently is down to 57%. Doctors join hospitals and leave them for their own reasons. A partner at a clinic is taxed differently from an employee at a hospital. Usually, hospitals are in urban or suburban environments. This leaves rural communities underserved. It is possible that politicians will notice this change, and provide tax incentives to help people in less populated parts of the country.
If you have any questions about how much you are paying to the government, we can help. Our team provides tax solutions, and we can cut your liability up to 45%. Our comprehensive approach means that you are not paying a dime more than you have to. Contact us today for more information.