Buried deep into The Patient Protection and Affordable Care Act is a paragraph or two dedicated to every individual who is conducting a business while acquiring an affordable health insurance policy. Beginning with January 1, 2012 all self-employed entrepreneurs, small business owners and large corporations will be expected to be taking a bath in Federal Form 1099 as per the Internal Revenue Service.
The insurance industry and the medical health community is very upset because of the sea of paper work this will generate and the amount of time that will be involved. How this belongs wrapped neatly within a health care reform bill is anyone’s guess, but most who are involved will be spending more time filling out these troublesome forms than conducting the business they began.
You just have to wonder how many self-employed entrepreneurs and small businesses will be ultimately exchanging federal form 1099 because they purchase products from each other. This certainly will become a health nightmare unless the government sees fit to reconsider what they are asking, which is what they have recently accomplished.
The health insurance providers and every medical health physician will need to hire a team of temporary employees just to get through the enormous pile of paper work they will be filling out and filing annually when there is no sound reason for this to be accomplished.
Now, according to what was written into the health reform bill, any purchase of six hundred dollars or more for a vendor will require you to collect the name, address, and federal identification number as per the requirements of the Internal Revenue Service. Can you imagine the crates of federal form 1099′s that will be trucked to the Internal Revenue Service?
Perhaps the additional federal employees that are being hired to scrutinize your individual health insurance policy will also be designated to swim through the sea of federal form 1099 to match them up with each sender and each receiver. What any of this has to do with health reform leaves a multitude of questions and very few answers, but such is the wisdom of the Internal Revenue Service.
It will be very interesting to see how the universal health care will be applicable to insurance after this debacle with the federal form 1099 has them lost in a sea they will have a difficult time swimming out of in the future. How well do you think they will be operating your low cost health insurance policy?