House Republicans push through health reform repeal.  In a vote strictly along party lines, on April 15 the House of Representatives passed H.Con. Res. 34, the 2012 federal budget, by a vote of 235-193, which includes a repeal of the Patient Protection and Affordable Care Act (PPACA). HCR 34 also would change significantly the way in which Medicare benefits are delivered and paid for. This is the second time Republicans in the House have pushed through a repeal of the PPACA. In February, the House voted to defund the PPACA in the 2011 budget bill; the final version of the 2011 budget did not include this provision but did kill two specific PPACA provisions.

The following bills introduced over the month would:

• authorize the Department of Labor's voluntary protection program and to expand the program to include more small businesses. Labor Department Voluntary Occupational Safety Program (H. 1511). Introduced 4/13/2011 by Rep. Tom Petri (R-Wis). Referred to Education and the Workforce.
• amend the Fair Labor Standards Act of 1938 to provide more effective remedies to victims of discrimination in the payment of wages on the basis of sex, and for other purposes. Effective Remedies for Victims of Sex-Based Wage Discrimination (H. 1519). Introduced 4/13/2011 by Rep. Rosa L. DeLauro (D-Conn). Referred to Education and the Workforce.
• amend Chapter 23 of Title 5, United States Code, to clarify the disclosures of information protected from prohibited personnel practices, require a statement in nondisclosure policies, forms, and agreements that such policies, forms, and agreements conform with certain disclosure protections, provide certain authority for the special counsel, and for other purposes. Whistleblower Protection Enhancement Act of 2011 (S. 743). Introduced 4/6/2011 by Sen. Daniel Akaka (D-Hawaii). Referred to Homeland Security and Governmental Affairs.
• amend the Fair Labor Standards Act of 1938 to ensure that employees are not misclassified as non-employees, and for other purposes. Classification of Employees Under Fair Labor Standards Act (S. 770). Introduced 4/8/2011 by Sen. Sherrod Brown (D-Ohio). Referred to Health.
• amend the Fair Labor Standards Act of 1938 to prohibit discrimination in the payment of wages on account of sex, race, or national origin, and for other purposes. Wage Discrimination Prohibitions (S. 788). Introduced 4/12/2011 by Sen. Tom Harkin (D-Iowa). Referred to Health.
• authorize the Department of Labor's voluntary protection program and to expand the program to include more small businesses. Labor Department Voluntary Occupational Safety Program (S. 807). Introduced 4/13/2011 by Sen. Mike Enzi (R-Wyo). Referred to Health.
• prohibit employment discrimination on the basis of sexual orientation or gender identity. Employment Discrimination Prohibitions Based on Sexuality (S. 811). Introduced 4/13/2011 by Sen. Jeff Merkley (D-Ore). Referred to Health.

Employee Benefits Top of Page

Supreme Court refuses to speed up health law challenge.  Virginia Attorney General Ken Cuccinelli, one of the most vocal opponents of last year's health care law, lost a bid on April 25, 2011 to bypass lower courts and take his case directly to the U.S. Supreme Court. Cuccinelli said he was disappointed by the decision but not surprised, since the Supreme Court does not regularly agree to take cases directly from federal district courts, according to The Wall Street Journal. Cuccinelli filed a challenge to the health care overhaul on March 23, 2010, the day President Obama signed it into law. U.S. District Judge Henry Hudson ruled in Cuccinelli's favor that the law was unconstitutional, triggering an appeals process. The U.S. Department of Justice, which is defending the law, had argued in favor of following the usual appeals court process. Appeals courts in several states are getting ready to hear challenges to the law, and the Supreme Court could still take up one of them in the months ahead.

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Congress repeals reporting requirement in health reform law.   The Senate, on April 5, passed by a vote of 87 to 12, H.R. 4, the Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011. The bill, already passed by the House of Representatives, repeals Form 1099 reporting requirements included in the Patient Protection and Affordable Care Act (PPACA). This is the first amendment to the PPACA since its passage in March 2011. The PPACA revised the Form 1099 reporting requirements so that all businesses would have to file a Form 1099 to identify vendors to whom they pay $600 or more in a year. Although the additional reporting was intended to improve tax compliance, Congress acknowledged that the administrative burden on small businesses merited repeal.

Specifically, H.R. 4 repeals the PPACA reporting changes to IRC Sec. 6041 that provide rules for payments to corporations, provide additional regulatory authority, and impose a reporting requirement with respect to gross proceeds from property. The repeal is effective for payments made after Dec. 31, 2011, which is the effective date of the original PPACA provision.

Pension Law Top of Page

President Obama appoints new member to PBGC Advisory Committee. President Obama has appointed Joyce A. Mader to serve as a member of the Advisory Committee of the Pension Benefit Guaranty Corporation (PBGC). Ms. Mader is a partner with the firm of O'Donoghue & O'Donoghue, LLP in Washington, and a former member and chair of the ERISA Advisory Council at the U.S. Department of Labor. She holds a bachelor's degree from Dickinson College, Carlisle, Pa., and a J.D. from The Columbus School of Law at the Catholic University of America, where she has also served as a lecturer in employee benefits law. Ms. Mader's term on the PBGC Advisory Committee will expire in 2013.