Last month, the Senate passed its 1099 repeal as an amendment to the reauthorization of Federal Aviation Administration programs. The amendment would offset the cost of the repeal by requiring the Office of Management and Budget to rescind $44 billion in appropriated—but unspent—discretionary funds from various sources. The Departments of Defense and Veterans Affairs and the Social Security Administration would be exempt from those budgetary rescissions.
On March 3, the House approved its own repeal (HR 705) of the provision, which would offset the cost by changing a reform law provision to allow the federal government to recapture subsidy overpayments to consumers who purchase health coverage through state-based health insurance exchanges, regardless of whether the overpayments were made because of changes in income or by accident.
Senators are now debating how to pay for the bill and are looking at using a modified version of the House bill.