House Actions to Repeal PPACA

The 112th session of the U.S. House of Representatives convened on January 5, 2011. On this first day of the session, several bills were placed in the hopper to defund, amend or repeal the Patient Protection and Affordable Care Act (PPACA).

On January 8, the House approved a procedural rule as part of a Republican attempt to repeal the new health care law. Congressional House members voted 236-182 in favor of approving the rule, a House requirement setting the parameters of debate on underlying legislation. The actual vote to repeal PPACA, based on one or more of the bills summarized below, will be voted on in the near future.

Overview of House Bills
The following bills seek to amend PPACA:

• H.R. 21: Amends the Internal Revenue (Tax) Code of 1986 to repeal the recent mandate that individuals purchase health insurance. Sponsor: Scott Garrett (RNJ)
• H.R. 118: Amends PPACA to permit a state to elect not to establish a health insurance exchange. Sponsor: John Fleming (R-LA)
• H.R. 119: Prevents the hiring of additional employees by the IRS to implement, administer or enforce health insurance reform. Sponsor: John Fleming (R-LA)

Four bills seek outright repeal of PPACA:

• H.R. 2: Repeals PPACA through the Job-Killing Health Care Law Act, as well as the Health Care and Education Reconciliation Act of 2010. Sponsor: Eric Cantor (R-VA)
• H.R. 141: Repeals PPACA and the Health Care and Education Reconciliation Act of 2010. Sponsor: Steve King (R-IA)
• H.R. 105: Repeals PPACA and all related health care provisions while providing incentives to encourage health insurance coverage among other purposes. Sponsor: Dan Burton (R-IN)
• H.R. 145: Repeals PPACA and related health care provisions. Sponsor: Connie Mack (R-FL)

Bills seeking to restrict or eliminate the funding of the PPACA:

• H.R. 38: Withdraws funds appropriated to the Health Insurance Reform Implementation Fund under the Health Care and Education Reconciliation Act of 2010. Sponsor: John Fleming (R-LA)
• H.R. 127: Withdraws allotment of funds for PPACA, as well as the 2010 Health Care and Education Reconciliation Act. Sponsor: Tom Graves (R-GA)
• H.R. 154: Prohibits the use of funds being used for the implementation or enforcement of any federal mandate requiring individuals to purchase health insurance. Sponsor: Ted Poe (R-TX)

And finally, H.R. 191: Amends PPACA to establish a public health insurance option. Sponsor: Lynn C. Woolsey (D-CA), whom seeks to significantly increase the scope of PPACA.

Congressional Battle Ahead
Of the above bills, H.R. 2, offered by Rep. Cantor, is receiving the most media attention. Rep. Cantor is using the power of his position as Majority Whip to push his bill along. Pundits are predicting a strong probability of passage in the House. It will probably meet a different fate in the U.S. Senate due to Democratic control.

The combined caucus of Democrats and the two Independents hold a 53-47 voting majority in the Senate. While it’s possible to think Republicans could focus their efforts on three or four of the 10 Democrats who run for re-election in 2012 in states that ran heavily Republican in the 2010 election, it will be another matter to gather the 60 votes to close debate on a bill. The Democrats will be able to kill any Republican effort to repeal by filibuster. Even if Republicans could somehow pass a repeal, President Obama has already stated he would veto the bill. Repeal may play well to the Republican core constituencies, but the odds are stacked against any effort becoming law.

In contrast to efforts to repeal the entire law, Republican House members will likely use a more focused effort to repeal or defund what they perceive as the more onerous aspects of the bill. Several of the limited-scope bills could pass the House and would face a more favorable prospect in the Senate, but would still be challenged by a Democratic President who is more than willing to veto any initiative to make significant changes to this signature legislation of his first term.

However, if the economy continues to stagnate, this could force the issue in the direction of the Republicans. Unemployment remains at the top of the list of key issues, and if enough Democrats become sincerely concerned about their re-election prospects, their votes to amend or repeal the PPACA may become more probable. Rep. Cantor’s bill is aptly named: “Repealing the Job-Killing Health Care Law Act.” As with this past election, it will be a matter of jobs, and if the public perceives PPACA as a job killer, the opportunities to repeal or significantly amend it will only improve.

To access the details of the bills listed above, visit the Library of Congress website at http://thomas.loc.gov/home/bills_res.html.

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The views expressed in this legislative alert do not necessarily reflect the official policy, position, or opinions of BenefitMall. This update is provided for informational purposes. Please consult with a licensed accountant or attorney regarding any legal and tax matters discussed herein.