The Washington Report
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July 31, 2019
Legislative
House Passes Budget Bill; Moves to Senate
On July 25, 2019, the House approved with a 284–149 vote the Bipartisan Budget Act of 2019 (H.R. 3877). The two-year, $2.7 trillion dollar agreement moves to the Senate, where it is expected to pass this week. President Trump has stated he supports the bill and will sign it into law.
The full text of H.R. 3877 is available here.
House Approves Bill Providing Loans to Multiemployer Defined Benefit Plans
On July 24, 2019, the House passed with a 264–169 vote the Rehabilitation for Multiemployer Pensions Act of 2019 (H.R. 397). Among other provisions, the bill would amend the Internal Revenue Code of 1986 to create a Pension Rehabilitation Trust Fund and also establish a Pension Rehabilitation Administration within the Department of the Treasury to make loans to multiemployer defined benefit plans. The bill moves to the Senate, where passage is uncertain.
The full text of H.R. 397 is available here.
Congress Adjourns for Summer Recess
The House and Senate will adjourn for summer recess during the month of August. The chambers are tentatively scheduled to return to the Hill on September 9, 2019.
Health
IRS Releases ACA Indexing Adjustments for Affordability and Premium Tax Credit Determinations
On July 22, 2019, the Internal Revenue Service (IRS) released Revenue Procedure 2019-29, which provides indexing adjustments required by statute for certain provisions under the Affordable Care Act (ACA). Specifically, Revenue Procedure 2019-29 updates the applicable percentage table in Section 36B(b)(3)(A)(i) (Applicable Percentage Table) to provide the Applicable Percentage Table for calendar year 2020. This table is used to calculate an individual’s premium tax credit. The Revenue Procedure also updates the required contribution percentage in Section 36B(c)(2)(C)(i)(II) for plan years beginning after calendar year 2019 (Section 36B Required Contribution Percentage). This percentage is used to determine whether an individual is eligible for affordable employer-sponsored minimum essential coverage under Section 36B.
For more details, please see the Aon bulletin IRS Publishes 2020 Indexed Affordability Threshold in the Publications section.
Revenue Procedure 2019-29 is available here.
Aon Publications
IRS Publishes 2020 Indexed Affordability Threshold
The Internal Revenue Service (IRS) published Revenue Procedure 2019-29, updating the indexed 2020 contribution percentage used for determining whether employer-sponsored health insurance is affordable under the Affordable Care Act’s employer mandate.
The applicable adjusted percentage for 2020 is 9.78%, down from 9.86% for 2019. The lower percentage for 2020 means that 2019 employee contributions just meeting the affordability safe harbor threshold may have to be lowered for 2020.
The Aon bulletin, which provides more details regarding Revenue Procedure 2019-29, is available here.