The Health Care Reform: Where are we now?

On Wednesday, January 19, 2011 the House voted to repeal the landmark health care overhaul enacted last year.  The party-line vote was 245-189, as three Democrats joined all 242 Republicans in supporting repeal. But as expected, on Wednesday, February 2, 2011, Senate Democrats blocked the Republican effort with a vote of 47-51 (with two not voting) with all 47 Republican Senators voting for repeal and all 51 Democrats voting against the measure.

However, one element of the legislation, known as the 1099 provision, was successfully repealed. The Senate voted 81-17 to repeal one of the most unpopular parts of the health care law that would require businesses to file tax forms for every supplier involving expenditures over $600. The provision proved so unpopular with the business community that even President Obama denounced it in his State of the Union address.

Although the total repeal of the health care overhaul by Congress is dead for now, the efforts by the newly inducted Congress were not completely futile.  Senate Republicans used the opportunity to emphasize their grievances with the law and show commonality with House members who voted weeks earlier to repeal it. Senator John Cornyn (R) of Texas said the vote marked the “first steps in a long road that will culminate in 2012 whereby we will expose the flaws and the weaknesses in this legislation.”

Along with efforts to repeal or defund the measure, the Senate Judiciary Committee held a hearing on the legislation’s constitutionality on the same day that the Senate voted down the repeal of the measure. The committee mainly focused on the individual mandate provision – a stipulation, scheduled to be effective in 2014, that would require Americans to purchase health insurance or face a fine.

For the majority of the hearing, the experts on the panel fought to dismiss the idea that the mandate is unconstitutional and the notion that it would cause increased government regulation.  Supporters of the law have said that individual mandate ensures that insurance companies will be able to offer coverage to all Americans, especially those with preexisting medical conditions.

However, opponents of the bill strongly refute the claim saying that the required purchase of health insurance in unlawful. Senator Mike Lee (R) of Utah even compared the insurance mandate to requiring Americans to purchase gym memberships and “$200 worth of leafy greens every month.” 

But the debate on health care isn’t contained strictly to the House and Senate. Recently, two federal district courts (in Virginia and Florida) ruled the individual mandate provision unconstitutional. The District Court in Virginia ruled the remainder of the law’s requirements were valid. However, the District Court in Florida ruled the entire law was invalid. The Florida court refused to issue an injunction against the enforcement of the law. The Obama Administration has stated it will continue with the implementation and enforcement of the existing requirements, pending a decision on the case by the United States Supreme Court. 

What should you do?

You, like many other employers, may be wondering what and if you should do anything in light of all the recent decisions and debates occurring in the House and Senate.  For the time being, the health care reform is still in effect.  And whether you agree with health care reform or not, this means that employers should take the proper steps to comply with all of its laws and regulations.  By being compliant, you can avoid paying penalties that may be occurred otherwise.