Health Care Repeal Bill Advances in House of Representatives

United_States_Capitol_dome_daylight.jpgWasting no time, the House of Representatives on Friday voted 236-181 in favor of a rule to consider the Repealing the Job-Killing Health Care Law Act (H.R. 2), (pdf) one of many bills introduced this week to repeal the Affordable Care Act. Only 4 Democrats joined 232 Republicans in voting for the rule. The rule provides for several hours of debate on the measure without any amendments. The vote on whether to pass this legislation is scheduled to take place on Wednesday, January 12. Although the House is expected to approve the bill, it will likely die in the Senate where Democrats still hold a slim majority. Even if the Senate were to clear the repeal measure, President Obama has already stated that he would exercise his veto power to save the health care law. The House’s symbolic gesture, however, now paves the way for the introduction of smaller bills aimed to chip away at the Affordable Care Act and deny funding to implement it.

A number of such bills have already been introduced. While three separate bills were introduced the first day of the 112th Congress to simply repeal the Affordable Care Act – H.R. 2, 105, and 141 – other bills target specific provisions. Both H.R. 60 and H.R. 144 seek to repeal the controversial business tax reporting requirement that will require 1099 reporting of any purchases of $600 or more starting in 2012. The repeal of this reporting requirement will likely come to fruition this year, as both parties have found fault with it and introduced similar legislation in 2010 seeking to repeal it.

Another bill, the Reclaiming Individual Liberty Act (H.R. 21), would amend the Internal Revenue Code (IRC) to repeal the mandate that individuals purchase health insurance. H.R. 118 would amend the Affordable Care Act to allow states to elect not to establish a health benefit insurance exchange, which states are currently required to do by 2014.

Another anticipated strategy to dismantle the health care law is to hamstring its implementation by cutting off critical funding. Several bills – H.R. 38, 127, 154 – would rescind funds already allocated and/or prohibit the use of additional funds to carry out some or all of the Affordable Care Act. Similarly, H.R. 119 would prohibit the IRS from hiring additional staff members to implement, administer, or enforce health insurance reform.

Other bills are designed to make the receipt of health benefits less attractive. The Health Care Incentive Act (H.R. 42) would provide a credit for certain health care benefits in determining the minimum wage. Specifically, this bill would allow certain employers to include the value of creditable health care benefits they provide to their employees in determining the required minimum wage. H.R. 171 would amend the IRC to allow a deduction for amounts paid for health insurance and prescription drug costs of individuals.

The rule passed today also provides for consideration of a resolution (H. Res. 9) instructing certain committees to report legislation replacing the Affordable Care Act.

On the other end of the health care spectrum, Rep. Lynn Woolsey (D-CA) introduced a measure (H.R. 191) that would amend the Affordable Care Act to establish a public health insurance option.

The vote and introduction of these bills coincides with a recent report by the nonpartisan Congressional Budget Office (CBO) that claims repealing the Affordable Care Act would result in a federal deficit of approximately $230 billion over the next 10 years.

This entry was written by Ilyse Schuman.

Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.