Nelson, Begich suggest using stimulus funds to pay for repeal of 1099 requirement

By Vicki Needham - 09/13/10 08:36 PM ET

With the small business bill slated for action on Tuesday, two Democratic senators have proposed an alternative for repealing a 1099 requirement that taps unused economic stimulus funds.

Sens. Ben Nelson (Neb.) and Mark Begich (Alaska) introduced the amendment Monday because of concerns over a Republican proposal that cuts billions in funding from wellness programs.

"Sen. Begich and I are offering an alternative because of concerns that the small business amendment now before the Senate is doomed for cutting funding to successful wellness and prevention programs,” Nelson said.

Nelson is talking about the amendment offered by Sen. Mike Johanns (R-Neb.) that nixes the 1099 requirement and pays for it by lowering the affordability exemption for the new individual mandate from 8 percent to 5 percent, making fewer people subject to the individual health insurance mandate. The amendment also proposes that a $15 billion fund for wellness programs receive money until 2018 that is included in the healthcare law.

The 1099 provision is supposed to raise about $17.1 billion to pay for the healthcare law.

"I am hearing from Nebraskans that they don’t want to cut wellness programs that help reduce the medical costs for both employers and employees," Nelson said. "Our new proposal would preserve those wellness programs, while also lifting the burden on small businesses in the health reform law.”

The Senate will hold a cloture vote on Tuesday morning on the Johanns amendment. That provision and a Democratic alternative authored by Sen. Bill Nelson (D-Fla.) probably won't move through the chamber, leaving lawmakers to find another way to repeal the 1099 requirement.

Nelson has said that he will support various efforts to repeal the new 1099 reporting burdens on small businesses.

"But simply voting for something isn’t enough,” he said. "I am committed to finding a solution that will attract enough votes to pass the Senate and get the job done for Nebraska’s small businesses."