Presented by Cherry, Bekaert & Holland, L.L.P.

Presented byCherry, Bekaert & Holland, L.L.P. Healthcare Reform Act: How Does Recent Legislation Impact Your Business?

Cherry, Bekaert & Holland, L.L.P. 1180 West Peachtree Street, Suite 1400 Atlanta, Georgia 30309 404.209.0954 Matthew May Anne Alvarez Audit Tax 404.545.4430 404.733.3266 mmay@cbh.com aalvarez@cbh.com

Presenter – Matthew May Matthew is a Certified Public Accountant and Senior Audit Manager with over 10 years of experience. Based in Cherry, Bekaert and Holland’s Atlanta practice, Matthew manages financial statement audits and consulting projects for publicly and privately held clients across a variety of industries, including technology, manufacturing, retail, and communications. His clients have ranged from venture backed development stage companies to multi-national public companies with revenues up to $500 million revenue. Matthew has extensive experience with SEC matters, financial reporting, internal control over financial reporting, operational accounting, and venture and private equity backed entities. He is experienced in a variety of transactions including initial public offerings; secondary offerings; debt, venture capital, and private equity financings; and mergers and acquisitions. During his career Matthew was the Vice President of Finance and Controller for a communications company for four years. He directly supervised all accounting functions including financial reporting, accounts payable, accounts receivable, purchasing, fixed assets, payroll, general ledger, and financial planning and analysis. Matthew received his Bachelor of Business Administration degree with a major in Accounting from Baylor University. He is a member of the American Institute of Certified Public Accountants. Matthew also leads internal trainings on a variety of topics with audiences ranging from first year staff to partners.

Presenter – Anne Alvarez Anne is a Certified Public Accountant and a Tax Senior in the Atlanta office of Cherry, Bekaert and Holland LLP. She sits on the Firm’s Legislative Liaison Board, which is charged with staying on the cutting edge of newly enacted and proposed tax law. She provides compliance and consulting advice to a variety of clients, and is the Firm’s lead expert on TaxStream implementation and use for ASC 740 Tax Provisions (f.k.a. FAS 109). Prior to joining CB&H, Anne spent time in industry managing tax projects for REITs, as well as spending two years at PricewaterhouseCoopers LLP in Atlanta. Anne graduated from the Georgia Institute of Technology with highest honors. She is a member of both the American Institute of Certified Public Accountants, as well as the Georgia Society of Certified Public Accountants.

New legislation • The Patient Protection and Affordable Care Act (PPACA) – enacted March 23, 2010 • Health Care and Education Reconciliation Act of 2010 (RECON) – enacted March 30, 2010

2010 – Employee Education • Insurer Regulations on Providing Coverage • Pre-existing conditions • Mandatory coverage of preventative health services • High risk individuals • No rescission • Coverage up to age 26 • No lifetime limits • Adoption credits

2010 – Potential Tax Impacts • Economic Substance Doctrine Codification • Underpayment Penalty • Tax Credit for Investments in New Health Care Therapies • Tax Credits for Small Businesses Offering Health Insurance (2010 – 2013)

2010 - Other • Excise Tax on Indoor Tanning Services

2011 – Employee Education • FSA – Changes to Definition of Qualified Medical Expenses • Nonqualified HSA & MSA Distributions Penalty Increases

2011 – Corporate Reporting • Employers Must Report Health Care Plan Values on W-2

2011 – Other • Pharmaceutical Industry – Annual Fee • IRS to share certain taxpayer information with the SSA and HHS

2012 – Corporate Reporting • New 1099 requirements • Goods and services • $600 or more • Exception for payments to corporations eliminated

2013 – Employee Education • Medicare Tax for High-Income Individuals Increases • Medicare Tax on Investment Income for High-Income Individuals, Estates and Trusts • FSA Contributions Limited • Modification of Itemized Deduction for Medical Expenses

2013 – Potential Tax Impacts • Excise Tax on Medical Device Sales • Executive Compensation Deduction Limited • Deduction for Medicare Part D Ends • Charitable Hospitals – new requirements

2014 – Employee Education • Health Insurance Market Reforms • Individuals Requirement - • Minimum Essential Health Coverage • Pay penalty, a.k.a. “Shared Responsibility Payment” • Certain individuals are exempt from the penalty and/or from carrying coverage • Premium Assistance Credit • Administration – penalties, levies, and informational returns

2014 – Potential Tax Impacts • Penalty on Large Employers for not Providing “Minimum Essential Coverage” • Penalty on Large Employers Offering Coverage, but with Employees Receiving Credits from State Exchange Offered Plans

2014 – Potential Tax Impacts (cont’d) • Free Choice Vouchers • American Health Benefit Exchange and SHOP Exchange • Small Employer Health Insurance Credit • Corporate Estimated Payments

2014 – Corporate Reporting • Employers Must Report Health Coverage Information Annually to the Secretary of the Treasury and to Employees

2014 – Other • Annual Fee Imposition on Health Care Provider Industry

2018 – Potential Tax Impact • Health Insurer Excise Tax on High-Cost “Cadillac” Plans

Georgia Chimes In! • Georgia is one of 19 states jointly filing suit • Georgia State Senate Bill 411: • prohibits the State from requiring that individuals participate in a public or private health plan • states that no business or individual would be liable to fines for not carrying or offering health insurance • Federal Act requires each State to establish an Exchange by January 1, 2014

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Presented by Cherry, Bekaert & Holland, L.L.P.