Thursday, April 7, 2011
U.S. Senate votes to repeal 1099 reporting requirement
WASHINGTON (Reuters)—Bowing to pressure from business groups worried about an avalanche of paperwork, the U.S. Senate voted Tuesday to rescind the Form 1099 tax reporting requirement included in last year's health care overhaul law. With bipartisan support, the Senate voted 87-12 to pass legislation sponsored by Sen. Mike Johanns, R-Neb., that repeals a requirement for businesses and landlords to file a Form 1099 document with the Internal Revenue Service for purchases of goods and services exceeding $600 a year. The tax filing requirement did not directly relate to health care but was intended to help pay for the health care law that is considered one of President Barack Obama's top legislative achievements. The legislation earlier was passed by the House of Representatives and now goes to President Obama, who is expected to sign it into law. It was approved in Congress despite concerns by some Democrats to the way the $22 billion cost to the U.S. Treasury of repealing the tax reporting provision is covered. The bill adjusts the health insurance tax subsidies to be given to middle-income people under the health care law. It would require anyone who receives excessive tax subsidies for health insurance to pay back a greater share than currently required under the law. The Form 1099 reporting provision was meant to improve tax compliance and help pay for the health care law. But small firms and the self-employed complained it would bury them in paperwork. Lawmakers in both parties agreed that the tax reporting requirement should go. To view the full artcile click here.
House Committee Bill Would Restrict Funding for State-Based Exchanges
The ability of the Obama administration to provide unlimited funds to states to establish health exchanges would be ended under legislation reported out by a House committee late Tuesday. The House Energy & Commerce Committee legislation, H.R. 1213, would strike the unlimited direct appropriation of funds provided under the healthcare reform law for creation of state-based exchanges. The bill would also order that unspent money in the hands of the Department of Health and Human Services to provide funds to the states be returned to the Treasury. The bill is among five bills that would rescind authority to fund the law, the Patient Protection and Affordable Care Act. Rep. Fred Upton, R-Mich., chairman of the panel, says the committee passed the bills to “limit the Department of Health and Human Services’ unprecedented power, and restore Congress’ fiduciary duty as representatives of the people.” To view the full article click here.
Monday, March 21, 2011
Certain health care reform law requirements delayed
WASHINGTON—Employers will be given until Jan. 1, 2012, to comply with certain health care reform law requirements, the Labor Department has decided.
One delay involves a reform provision in which health plan enrollees have to be notified of an urgent care coverage decision within 24 hours of receipt by the employer or plan administrator That is a big change from a decade-old Labor Department rule that requires such notifications be made within 72 hours.
In rules issued last July, federal regulators said the 24-hour notification requirement would go into effect Jan. 1, 2011. Then in technical guidance issued in September, the Labor Department said it was establishing an “enforcement grace period” running until July 1, 2011, in which no action would be taken against employers that were working in good faith to comply with the new standard by July 1. The latest Labor Department guidance issued last week extends that grace period to Jan. 1, 2012.
The same Jan. 1, 2012, grace period extension also applies to another new mandate, which requires that notices of available internal and external claims appeals and review processes be provided in a “culturally and linguistically appropriate manner.”
The Labor Department said the delay will enable it to take into account comments it has received on the regulations. It said it will amend those regulations, but gave no indication of what those changes will be.
To read the full article click here.
One delay involves a reform provision in which health plan enrollees have to be notified of an urgent care coverage decision within 24 hours of receipt by the employer or plan administrator That is a big change from a decade-old Labor Department rule that requires such notifications be made within 72 hours.
In rules issued last July, federal regulators said the 24-hour notification requirement would go into effect Jan. 1, 2011. Then in technical guidance issued in September, the Labor Department said it was establishing an “enforcement grace period” running until July 1, 2011, in which no action would be taken against employers that were working in good faith to comply with the new standard by July 1. The latest Labor Department guidance issued last week extends that grace period to Jan. 1, 2012.
The same Jan. 1, 2012, grace period extension also applies to another new mandate, which requires that notices of available internal and external claims appeals and review processes be provided in a “culturally and linguistically appropriate manner.”
The Labor Department said the delay will enable it to take into account comments it has received on the regulations. It said it will amend those regulations, but gave no indication of what those changes will be.
To read the full article click here.
Monday, February 28, 2011
Obama Supports Easing Health Law Mandates for States
WASHINGTON — Seeking to appease disgruntled governors, President Obama announced Monday that he supported amending the 2010 health care law to allow states to opt out of its most burdensome requirements three years earlier than currently permitted.
In remarks to the National Governors Association, Mr. Obama said he backed legislation that would enable states to request federal permission to withdraw from the law’s mandates in 2014 rather than in 2017 as long as they could prove that they could find other ways to cover as many people as the original law would and at the same cost. The earlier date is when many of the act’s central provisions take effect, including requirements that most individuals obtain health insurance and that employers of a certain size offer coverage to workers or pay a penalty.
“I think that’s a reasonable proposal; I support it,” Mr. Obama told the governors, who were gathered in the State Dining Room of the White House.
To read the entire artile click here.
In remarks to the National Governors Association, Mr. Obama said he backed legislation that would enable states to request federal permission to withdraw from the law’s mandates in 2014 rather than in 2017 as long as they could prove that they could find other ways to cover as many people as the original law would and at the same cost. The earlier date is when many of the act’s central provisions take effect, including requirements that most individuals obtain health insurance and that employers of a certain size offer coverage to workers or pay a penalty.
“I think that’s a reasonable proposal; I support it,” Mr. Obama told the governors, who were gathered in the State Dining Room of the White House.
To read the entire artile click here.
Thursday, February 17, 2011
House panel votes to repeal 1099 reporting requirement
WASHINGTON—The House Ways and Means Committee on Thursday unanimously approved legislation that would to repeal a health care reform law requirement that employers to furnish 1099 statements whenever they do more than $600 in business with a corporate vendor.
The measure, H.R. 4, now goes to the full House.
A similar proposal passed the Senate this month with strong bipartisan support. By the end of the week, the Senate is expected by supporters to approve the broader bill, S. 223, which authorizes funds for the Federal Aviation Administration.
Small employers in particular have complained that the 1099 reporting requirement that is scheduled to go into effect in 2012 is too great a burden.
Full article
The measure, H.R. 4, now goes to the full House.
A similar proposal passed the Senate this month with strong bipartisan support. By the end of the week, the Senate is expected by supporters to approve the broader bill, S. 223, which authorizes funds for the Federal Aviation Administration.
Small employers in particular have complained that the 1099 reporting requirement that is scheduled to go into effect in 2012 is too great a burden.
Full article
Monday, January 31, 2011
U.S. Judge strikes down Health Care Reform law
A federal judge in Florida has struck down the Obama administration's requirement that nearly all Americans buy health insurance, and questioned the constitutionality of the entire health care law.
"I must reluctantly conclude that Congress exceeded the bounds of its authority in passing the Act with the individual mandate," wrote U.S. District Judge Roger Vinson, the second federal jurist to rule against law that Obama signed last year.
Two other judges have sided with the administration on the issue that may well wind up in the Supreme Court.
Obama and his aides said the requirement that all Americans, known as the individual mandate, is essential to financing the plan -- and that is exactly the reason opponents of the health care law have targeted it in a series of federal lawsuits. The law requires nearly all Americans to have health insurance in 2014, or face fines.
Vinson, appointed by President Ronald Reagan in 1983, drew a case filed by GOP attorney generals within hours of the law's signing in March; eventually 26 states joined in the lawsuit.
Congressional Republicans who fought the health care bill last year hailed the ruling.
Senate Minority Leader Mitch McConnell, R-Ky., sakid the decision confirms that "the health spending bill is a massive overreach and Democrats 'exceeded the bounds' of Congressional authority." Sen. Orrin Hatch, R-Utah, praised the ruling, saying that "Congress does not have the legal authority to tell Utahns and other Americans that they must buy health insurance or else."
For the entire article click here
"I must reluctantly conclude that Congress exceeded the bounds of its authority in passing the Act with the individual mandate," wrote U.S. District Judge Roger Vinson, the second federal jurist to rule against law that Obama signed last year.
Two other judges have sided with the administration on the issue that may well wind up in the Supreme Court.
Obama and his aides said the requirement that all Americans, known as the individual mandate, is essential to financing the plan -- and that is exactly the reason opponents of the health care law have targeted it in a series of federal lawsuits. The law requires nearly all Americans to have health insurance in 2014, or face fines.
Vinson, appointed by President Ronald Reagan in 1983, drew a case filed by GOP attorney generals within hours of the law's signing in March; eventually 26 states joined in the lawsuit.
Congressional Republicans who fought the health care bill last year hailed the ruling.
Senate Minority Leader Mitch McConnell, R-Ky., sakid the decision confirms that "the health spending bill is a massive overreach and Democrats 'exceeded the bounds' of Congressional authority." Sen. Orrin Hatch, R-Utah, praised the ruling, saying that "Congress does not have the legal authority to tell Utahns and other Americans that they must buy health insurance or else."
For the entire article click here
Bill would repeal employer health care coverage mandate
WASHINGTON—The health care reform law mandate that requires employers to offer coverage to employees or pay a penalty would be repealed under legislation introduced by Sen. Orrin Hatch, R-Utah.
“The employer mandate would force businesses to let people go or raise the cost of doing business to such an extent that they don’t start hiring,” Sen. Hatch said in a statement last week. “Let’s repeal this job-crushing provision so businesses can (get) back in the business of hiring,” he said.
Sen. Hatch’s proposal, S. 20, has 23 co-sponsors, all Republicans.
Effective in 2014, the health care reform law will require employers with more than 50 employees to offer qualified health care coverage or pay an annual assessment of $2,000 for each employee working at least 30 hours a week. In computing the amount of the assessment, the first 30 employees are excluded.
For the full article click here
“The employer mandate would force businesses to let people go or raise the cost of doing business to such an extent that they don’t start hiring,” Sen. Hatch said in a statement last week. “Let’s repeal this job-crushing provision so businesses can (get) back in the business of hiring,” he said.
Sen. Hatch’s proposal, S. 20, has 23 co-sponsors, all Republicans.
Effective in 2014, the health care reform law will require employers with more than 50 employees to offer qualified health care coverage or pay an annual assessment of $2,000 for each employee working at least 30 hours a week. In computing the amount of the assessment, the first 30 employees are excluded.
For the full article click here
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