U.S. Senate supports repeal of 1099 provision

Feb 2, 2011

The U.S. Senate on February 2 voted 81-17 to approve an amendment to repeal the so-called "1099 provision," which requires American businesses to file a form with the Internal Revenue Service for every vendor with which they conduct transactions worth $600 or more.

In a statement released February 3, the ADA commended Sen. Debbie Stabenow's (D-MI) leadership in bringing about the Senate's vote to exempt dentists and other small businesses from the law. The requirement is a provision in last year's health reform law that the ADA and others believe did not reflect the intent of Congress or the president.

"Including this provision in the health reform law was a mistake that would place a huge administrative burden on dentists and would have no positive effect on the law's intended reforms of the nation's healthcare system," said ADA President Raymond Gist, DDS. "The Senate vote demonstrates Congress's recognition that dentists, physicians, and other small businesses should never have been subjected to this requirement."

In a separate vote on February 2, the Senate failed to repeal the Patient Protection and Affordable Care Act, the centerpiece of President Barack Obama's healthcare reform program.

The repeal measure, identical to the repeal bill passed by the House of Representatives last month, was introduced by Senate Minority Leader Mitch McConnell (R-KY). The measure required 60 votes to pass; it received 47, with 51 senators voting against it.

In a statement, House Speaker John Boehner (R-OH) praised Senate Republicans for their effort.

"The need for repeal continues to become more clear, whether it's in the courts or the court of public opinion," he said. "We will keep our word to the American people and continue working to repeal this job-destroying healthcare law and replace it with common-sense reforms that lower costs and increase access without putting more Americans out of work."