Medical Practice Management News for January 2024
Harding, Shymanski & Company, P.S.C.
We believe in relationships beyond the numbers.
2024: Things to Know
1.) Medical FSA limit has increased to $3,200 (additional $150 over prior year.)
2.) HSA maximum contributions are:
3.) The maximum deferral an employee can contribute to their 401(k) retirement plan is $23,000 - this is a $500 increase from 2023 limits. If you are aged 50 or over in 2024, you may elect to defer an additional $7,500.
The maximum employer plus employee contribution to defined contribution retirement plans for 2024 is $69,000. For those age 50 or over, an additional $7,500 may be contributed. This is a $3,000 increase from 2023 limits.
2023 Tax Matters
1.) Bonus and Section 179 Changes:?Bonus depreciation has dropped to 80% the cost of qualifying assets in 2023. It is set to decrease 20% each year until 2027. Section 179 remains at 100% qualifying assets and may be more beneficial for 2023 and beyond.
2.) Deduction for meals has returned to 50% for 2023 and entertainment remains 100% nondeductible.
Indiana Medicaid Rate Equalization
Good news for Indiana Medicaid providers.
Due to a 2020 CMS final rule, Indiana Medicaid is required to reimburse with consistent rates across all programs. Instead of reducing the HIP rates to Medicaid rates, they have agreed to raise the Medicaid rates for professional services to 100% of the prior year’s Medicare rates. Thus, all Indiana Medicaid and Indiana HIP plans will pay at the 2023 Medicare rates starting in January 2024.? See the Indiana Health Coverage Programs (IHCP) bulletin BT2023149 dated October 31, 2023, for more information.?
2024 Medicare Fee Schedule
The IRS has announced 2024 indexing adjustments to the applicable dollar amount used to calculate employer-shared responsibility payments under the Affordable Care Act.
As background, applicable large employers (ALEs) may be liable for an employer shared responsibility penalty under Code § 4980H(a) if they fail to offer minimum essential coverage to a sufficient number of full-time employees.
Alternatively, ALEs may be subject to a Code § 4980H(b) penalty if they offer minimum essential coverage to the required number of full-time employees, but the offered coverage is not affordable or does not provide minimum value. The adjusted penalty amount per full-time employee for failures occurring in the 2024 calendar year will be $2,970 under Code § 4980H(a) (a $90 increase from 2023) and $4,460 under Code § 4980H(b) (a $140 increase from 2023). (Current and previous penalty amounts are available on an IRS Q/A page.)
Read the full article: https://hsccpa.com/wp-content/uploads/2024/01/Medicare-Physician-Payment-Schedule-and-QPP-Final-Rule-Summary-_-AMA.pdf