Jan. 21, 2010
On January 19, 2011, the House of Representatives approved legislation
to repeal the Affordable Care Act. The final vote was 245-189 with 3
Democrats voting with the Republicans in favor of repeal. The Senate
has no plans to consider this bill at this time.
The House of Representatives also voted on a measure to instruct four
committees to draft alternative health care proposals that reflect
Republican priorities.
Taxes for All Residents
The U.S. Supreme Court unanimously held that the U.S. Treasury Department acted reasonably in promulgating a rule that says medical residents are not exempt from paying employment taxes under the Federal Insurance Contributions Act (FICA) (Mayo Foundation for Medical Education and Research v. United States, U.S., No. 09-837, 1/11/11). Furthermore, the decision means that taxes are due only on residents’ stipends paid after April 1, 2005.
The high court opinion by Chief Justice John G. Roberts Jr. dealt with regulations providing that medical residents who work more than 40 hours per week do not qualify for the student exception under Section 3121(b)(10) of the Internal Revenue Code. Chief Justice Roberts said the regulations address an area “to which Congress has not directly spoken,” and because the regulations were “a reasonable construction of what Congress has said,” they had to be upheld.
The case involved a rule change by the U.S. Department of Treasury in 2005 providing that the student exemption from the FICA tax does not apply if the individual works full-time. Eight of the nine Supreme Court justices considered the case, in which the U.S. Department of Treasury argued that the IRS should be allowed to collect Social Security and Medicaid taxes from medical residents who work and study at teaching hospitals. Justice Elena Kagan recused herself from the case because she signed the Justice Department's brief on behalf of the IRS while she was solicitor general.
In August, the AOA submitted a joint amicus curiae (friend of the court) brief in the case along with the Association of American Medical Colleges (AAMC), the American Association of Colleges of Osteopathic Medicine (AACOM) and several other higher education associations. In the brief, the AOA and the AACOM supported the eligibility of medical residents for exemption from FICA taxation
Thought of the Week
What do you think about the time and effort the government has spent on the ACA and now the government wants to repeal ACA? Is this productive, counter-productive?
New Physicians in Congress
Six new physicians will join the House of Representatives in the 112th Congress, including Joe Heck, DO (NV-03), the first osteopathic physician representative in the modern era. Other freshman joining Dr. Heck in the House of Representatives will be:
* Larry Bucshon, MD from the 8th district of Indiana
* Nan Hayworth, MD from the 19th district of New York
* Andy Harris, MD from the 1st district of Maryland
* Dan Benishek, MD from the 1st district of Michigan
* Scott DesJarlais, MD from the 4th district of Tennessee
The Senate will receive its third physician. Senator Rand Paul, MD won the election in Kentucky and will join physicians, John Barrasso, MD (Wyoming) and Tom Coburn, MD (Oklahoma).
2011 will bring a total of 20 physicians to the 112th Congress.
Important Upcoming Dates
DO Day on the Hill registration begins January 3! DO Day on the Hill, Thursday, April 7.
2011 Paul Ambrose Scholars Program Applications due Feb. 7
COSGP Meeting! January 26, 27, 28 in Philadelphia, Pennsylvania.
