Bills Would Repeal, Deny Funding to Portions of Affordable Care Act

padlocked money2.JPGWhile provisions of the massive health care reform law and its implementing regulations start to take effect, several lawmakers are introducing legislation to thwart or repeal some or all of this measure. Last week, before the House of Representatives began its six-week recess, a handful of bills were introduced that would either deny funds to or amend provisions of the Patient Protection and Affordable Care Act (“Affordable Care Act”) and the Health Care and Education Reconciliation Act of 2010 (“Reconciliation Act”), collectively known as the health care reform bill signed into law in March of this year.

The most sweeping of such bills, H.R. 5882, would stipulate that no funds be appropriated to carry out the provisions of the Affordable Care Act or the Reconciliation Act. Although a number of bills were introduced earlier in the year to repeal both laws, the odds of such measures advancing are low. Therefore, this new tactic would essentially deny the administration the funding it would need to carry out the health care law’s provisions.

Two other bills introduced last week would make less drastic changes. The Restoring Assistance for Families’ and Seniors’ Health Expenses Act of 2010 (H.R. 5936) would repeal the Affordable Care Act’s limitation on itemized deductions for medical expenses and certain medical and health-related accounts, and treat high deductible health plans as qualified health plans under the Act. Specifically, as explained in a press release, the measure would restore the 7.5 percent income threshold to deduct out-of-pocket medical expenses, which was increased to 10 percent by the Affordable Care Act; repeal the $2,500 cap on the maximum annual contribution to Flexible Savings Accounts (FSAs); and repeal the ban that prohibits holders of FSAs and Health Savings Accounts (HSAs) from using money from their accounts to purchase over-the-counter (OTC) medications.

A similar bill was introduced in the House and Senate the same day H.R. 5936 made its debut. The Patients Freedom to Choose Act (H.R. 5923, S. 3673) would also repeal the Affordable Care Act provisions that cap contributions to FSAs at $2,500 and prevent individuals from using funds in their FSAs and HSAs to purchase OTC medicines.

On Friday, Democratic lawmakers introduced a bill, H.R. 5982, that would have repealed the health law’s provision that requires all businesses, charities, and state and local governments to file 1099 forms if they purchase $600 or more in goods from another business after December 31, 2011. This move was designed to preempt similar legislation introduced by Republicans from gaining ground.  Because the bill introduced on Friday included a tax on foreign business operations, it was defeated largely along party lines, as anticipated.

This entry was written by Ilyse Schuman.

Photo credit: Kent Weakley

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.