Johanns introduces 1099 bill matching House measure

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.

“I’ve introduced the House version of 1099 repeal in hopes that it might get it to the president’s desk more quickly,” Johanns said in a statement. “If advancing the House bill means this looming mandate is repealed sooner rather than later, then let’s get it done.”

Johanns, one of the leaders of the Senate effort to repeal the provision, said the bill also would reduce the deficit by more than $166 million in the first 10 years. It additionally would repeal the expanded 1099 mandate on owners of certain rental properties.

On Tuesday, House Ways and Means ranking member Sander Levin (D-Mich.) said he would seek another offset for the measure that will be marked up by the panel on Thursday. 

The other 1099 bill under consideration is sponsored by Rep. Dan Lungren, (R- Calif.) that doesn’t offset the $22 billion cost to repeal the 1099 provision. 

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. 

Democrats, Republicans and the White House agree the 1099 provision should be repealed but have disagreed on how to pay for it, the main reason the bill was held up last year.