House Democrats seeking another way to pay for 1099 repeal

That bill adds an offset that would recapture improper overpayments of exchange subsidies established under the new healthcare law for those consumers earning more than 400 percent of the poverty line. Those making less than that would have to pay back a greater portion than they are required to pay back under current law. 

Congress approved a similar change to recapture overpayments last year as part of “doc fix” legislation, and congressional Democrats and the Obama administration supported that move.

The Senate recently approved its own repeal to the Federal Aviation Administration, which is still under consideration on the Senate floor. That amendment would pay for the repeal with unused previously appropriated federal funds to ensure the repeal’s cost is covered. 

The difference between the House and Senate bills will force lawmakers to figure out a final way forward on the requirement, which doesn’t go into effect until next year, making the chance of passage more difficult on an issue in which Democrats, Republicans and the White House agree. 

The repeal was held up last year because lawmakers couldn’t reach an agreement on paying for the lost revenue out of the healthcare bill.