Health-Related Revenue Provisions: Changes Made by H.R. 4872, the Health Care and Education Reconciliation Act of 2010

Janemarie Mulvey
Specialist in Aging Policy

On March 23, the President signed into law H.R. 3590, the Patient Protection and Affordable Care Act (PPACA; P.L. 111-148) as passed by the Senate on December 24, 2009, and the House on March 21, 2010. The new law will, among other things, raise revenues to pay for expanded health insurance coverage by imposing excise taxes and fees on industries in the health care sector, limiting tax-advantaged health accounts, and increasing the Medicare payroll tax on upperincome households. 

On March 21, the House also passed an amendment in the nature of a substitute to H.R. 4872, the Health Care and Education Reconciliation of 2010 (hereinafter referred to as the Reconciliation bill). The Reconciliation bill amends provisions in PPACA and is now before the Senate for consideration. 

This report summarizes the health-related revenue provisions (Title 1, Subtitle E) in the Reconciliation bill as they relate to PPACA. Specifically, the report discusses the amendments to the revenue provisions related to changes to thresholds, implementation date, and other provisions relating to the 40% excise tax on high-cost health insurance plans. The Reconciliation bill also includes provisions to add a 3.8% tax on net investment income and convert the fee on medical device manufacturers to an excise tax based on sales revenue. The bill would also delay implementation dates for a number of other revenue provisions in PPACA, including implementation of the flexible spending account limitations, and provisions to eliminate the deduction for expenses allocable to the Medicare Part D subsidy. .


Date of Report: March 24, 2010
Number of Pages: 11
Order Number:R41128
Price: $29.95

Document available electronically as a pdf file or in paper form.
To order, e-mail congress@pennyhill.com or call us at 301-253-0881.