NAIFA President Terry Headley released the following statement on the House of Representatives’ vote to repeal the burdensome Form 1099 reporting expansion included in the Patient Protection and Affordable Care Act:
“NAIFA commends the House of Representatives for recognizing that the expansion of 1099 reporting requirements by last year’s health care law places an onerous and costly burden on small businesses. NAIFA members operate small businesses providing middle-market consumers with insurance and financial services in communities across America. The expanded 1099 reporting requirements would stretch the resources of many of these firms. We are pleased that the House has voted to rescind this section of the law and look forward to seeing actions by the Senate and President Obama to complete the repeal.
“NAIFA strongly supports efforts, such as this one, to fix the flaws in last year’s health care reform measure. We would also encourage lawmakers to remove agent compensation from medical loss ratio computations. Leaving the MLR as it now stands will likely carry the unintended consequence of reducing customer service at a time when the health care system is getting even more complex. Congress should also enhance the appropriate use of flexible spending accounts either by repealing the $2,500 cap or allowing participants to roll over unused funds.”