Posts for May 18, 2010

AON CONSULTING'S HEALTH CARE REFORM WEEKLY BRIEFING

May 18, 2010 – Aon Consulting

Last Week in Washington
Administration officials continue translating the health reform law into regulations and are beginning the implementation process. The Internal Revenue Service issued new guidance on the small business health care tax credit and the Congressional Budget Office (CBO) expanded its initial estimate of health reform legislation cost.

IRS Issues Guidance on Small Business Health Care Tax Credit
On May 17, the IRS issued new guidance to help small businesses determine whether they are eligible for the new health care tax credit under the Affordable Care Act and how large a credit they will receive. The guidance clarifies that small businesses receiving state health care tax credits may still qualify for the full federal tax credit. Additionally, the guidance allows small businesses to receive the credit not only for regular health insurance, but also for add-on dental and vision coverage. More information about the credit, including a step-by-step guide and answers to frequently asked questions, is available on the IRS Affordable Care Act page.

CBO Releases Estimate of Potential Discretionary Costs of Implementing Health Reform
On May 11, the Congressional Budget Office (CBO) released a letter identifying possible discretionary spending of at least $115 billion over the 2010-2019 period, as a result of the Patient Protection and Affordable Care Act. The CBO estimate was met with criticism from Republican lawmakers about the increased cost of health reform legislation. The next day, the CBO provided clarification, saying their findings were misinterpreted and that much of the discretionary spending authorized in the bill already exists. In a blog posting, Office of Management and Budget Director Peter Orszag indicated that, "even if such authorizations were fully funded, they would not add a dime to the federal budget."

Looking Ahead:
Agency guidance on the "grandfathering" rule is anticipated to be released very soon.

In Case You Missed It:
Congressional Research Service released a report on May 7, analyzing the constitutionality of the recently enacted health care law that requires individuals to purchase health insurance.

Families USA issued a report, "Health Reform: Help for Americans with Pre-Existing Conditions," which presents the number of Americans with diagnosed pre-existing conditions who, absent reform, would be at risk of being denied coverage in the individual insurance market.

AARP released two fact sheets on changes to the Medicare Advantage and Medicare prescription drug benefit programs brought about by passage of the Patient Protection and Affordable Care Act.

CAN GM REPAY GOV'T LOANS?

May 18, 2010 – Today in Manufacturing.net

After roaring back from bankruptcy to a quarterly profit, there are signs that GM is on track to sustain its income and repay billions of dollars in government aid ... continue

GOVERNMENT TO LOSE $1.6B ON CHRYSLER LOAN

May 18, 2010 – Today in Manufacturing.net
Treasury officials said government had no plans to boost its stake in the new Chrysler to cover $1.6 billion loss on a loan made to the automaker in early 2009 ... continue

IRS PROPOSAL TO REQUIRE DISCLOSURE OF UNCERTAIN TAX POSITIONS

May 18, 2010 - by Peter J. Perla & Hank S. Vanderhage Holland and Hart

A recent IRS proposal would require certain corporate taxpayers to notify the IRS of uncertain tax positions (UTP) in their returns. Under the proposal, corporate taxpayers with assets of at least $10 million would be required to disclose such positions on new Schedule UTP if they issue audited financial statements (or are included in a related party’s audited financial statements) and determine their U.S. federal income tax reserves under FIN 48 or other accounting standards relating to uncertain tax positions. Schedule UTP would be required beginning with the 2010 tax year and, at least initially, only for taxpayers that file Forms 1120, 1120 F, 1120 PC, and 1120 L.1

Positions requiring disclosure would be those for which a tax reserve must be established under FIN 48 or other accounting standards, as well as those for which no reserve has been recorded because the taxpayer either expects to litigate the position or has concluded that the IRS has a general administrative practice not to examine the issue.
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QUESTAR BOARD OF DIRECTORS CONDITIONALLY APPROVES SPIN-OFF OF EXPLORATION & PRODUCTION BUSINESS

May 18, 2010 – UB Daily

Questar Corporation announced that its board of directors has authorized management to proceed with a tax-free spin-off to shareholders of its natural gas and oil exploration and production (E&P) and midstream field services businesses to form an independent, publicly traded company to be named QEP Resources, Inc. Questar previously announced on April 21, 2010 that it has been considering a separation of those businesses. The transaction is subject to market conditions, successful restructuring of certain credit facilities, and final approval of certain material agreements by the boards of both companies.
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REPORT FINDS IT WASN'T JUST A 'MANCESSION'

May 18, 2010 – Zions Direct
Congressional Report Outlines The Adverse Impact Of The Recession On Working Women They’ve called it the “Mancession” — a recession that’s affected men disproportionately, because of its brutal impact on male-dominated sectors like construction and manufacturing.But that term rings hollow to women like Sara Wade, an Illinois schoolteacher who became the sole supporter of two school-aged children - possibly for good, she fears - when her ex-husband, a carpenter and contractor, stopped paying child support 15 months ago.Or to Martha Gonzalez, a divorced mother of three in Texas who had to take a second, part-time job when her work in real estate became scarcer. She lost her benefits, too, and for the first time in her adult working life...

WHOLESALE PRICES EDGE DOWN IN APRIL

May 18, 2010 – Today in Manufacturing.net

Labor Department said Tuesday that wholesale prices edged down 0.1 percent last month, the second decline in the past three months ... continue