Envisioned New Tax Plan May Affect Even Social Security Disability for Children

1. April 26, 2017 Envisioned New Tax Plan May Affect Even Social Security Disability for Children Image 1: New Tax Reform Plan and the Social Security Disability for Children The supposed ACA replacement may have fallen through, but people relying on social security shouldn’t heave a sigh of relief just yet. A new tax reform is being worked on, and analysts are purporting that this might affect social security itself. The uncertainty has hospitals and healthcare facilities worried about the continued eligibility of many of the patients they serve. P a g e 1 | 3

2. The Status Quo The payroll tax is similar to income tax, but the main difference between the two is that the former funds employee benefits, while income tax is what is owed to the government. In the current set up, the payroll tax funds Social Security and a portion of Medicare as well. This tax is generated by deducting a percentage of the worker’s wages, with the employer contributing an equal amount. Tax Reform Proposal Nothing is set in stone yet, but according to reports, the new tax plan will see the elimination of the payroll tax. This may seem like a good thing because this would mean more take home pay, but this removal might also eliminate contributions to social security. This tax reform proposal, therefore, will essentially kill off the social security disability program. Directly affected are the people subscribed to the system and relying on it for their day-to-day living expenses and those who receive benefits from social security disability for children. The Effects on Social Security Disability for Children For years, Social Security benefits for disabled children have helped ease the financial burden of families with children who have disabilities that hinder them from fully functioning physically. Children whose condition meets the recognized list of disabilities on their Blue Book are eligible to receive the benefits. Although social security, by its history, was meant to take on the form of a retirement insurance benefit, the extension it allows for the children with disabilities is a way of helping parents keep up with the special needs of their children. If the new tax reform plan pushes through, the retirement benefit wouldn’t be the only one to end. Financial support for disabled children might also be removed. Not only that, but a good portion of Medicaid will also be affected. The threat of the ACA repeal had already shown how much of a problem that can be for hospitals and other medical organizations. P a g e 2 | 3

3. As this new tax reform proposal takes on a more concrete shape, there is no doubt that health institutions will once again have to make adjustments in dealing with social security disability and Medicaid. In the meantime, companies like DECO will continue to assist medical organizations improve their revenue cycle management processes by helping with efficient ACA enrollment and Medicaid and SSDI eligibility services. This results in better coverage for individuals and increased revenue for healthcare institutions. About DECO: We at DECO provide efficient and streamlined ACA enrollment services, Medicaid eligibility services and SSDI eligibility services to improve a healthcare facility's revenue cycle management processes. We aim to provide exemplary service to our clients – empathetic, compassionate, and advocating for patient concerns. Contact us to learn how our revenue cycle management improvement services can help. Sources: Trump’s Proposal to Eliminate the Social Security Payroll Tax May Be His Worst Idea Yet. LATimes.com How Can My Child Qualify for Social Security Disability? NOLO.com P a g e 3 | 3