Rising tax burdens to pay for extended healthcare coverage will be a worry for businesses owners contemplating the financial impact of the healthcare reform bill recently approved by Congress, according to Liz Miller, president of Summit Place Financial Advisors.

“Many wealthy families were worried their personal healthcare coverage would be forced to change. They are happy they will keep they coverage they desire and value.  For many, though, who are business owners, they will be burdened with tax penalties for offering high quality coverage to their families and employees. This is not welcomed,” Miller said. Summit Place Financial Advisors is based in Short Hills, N.J.

The health care reform – a signature issue for President Barack Obama – involves measures including extending coverage 32 million more US citizens in a change that is regarded as the biggest in decades. Critics of the measure, such as the Republican Party, argue that the package is unaffordable as the US is wrestling with a huge public debt, and say it will push up insurance premiums across the board.

As far as Miller is concerned, she says the changes that affect her clients revolve around taxes and any preparations by clients should focus on this point: “Medicare taxes that now include their investment income and taxes on the healthcare plans they offer at their businesses or have procured through their family foundations or family offices. Wealthy families that cover their entire family through their businesses or family offices may find more health care plans available with a broader range of options and prices.  This may be desirable."

“Even wealthy clients worry about the costs of a catastrophic illness for themselves or a family member. Wealth managers need to continually help clients consider their lifestyle and legacy goals in light of the potential costs of a catastrophic illness in the family," Miller added.