Health Care Update: FDA Food Labeling Rule & 1099 Repeal

Some good news out of Washington last week: both the House and the Senate passed H.R. 4, which repealed the 1099 provisions in the Patient Protection and Affordable Care Act (PPACA).

IAAPA members may remember the PPACA expanded the 1099 reporting obligation as a revenue-raising measure to pay for the legislation. Previously corporations needed to file a Form 1099 with the IRS when they purchased more than $600 in services from an independent contractor, or other unincorporated business. Under the PPACA, beginning in 2012, 1099 reporting was expanded to include the purchase of goods over $600 and payments to corporations (except non-profits).

If the repeal is signed by President Obama, the rules will revert back and a 1099 will only be necessary if a business is buying services from an unincorporated business. Stay tuned for more information.

FDA Labeling Proposal Released
Last week the U.S. Food and Drug Administration released proposed rules on the menu labeling provisions of the PPACA. The PPACA requires restaurants with 20 or more locations, serving substantially the same menu, to provide nutritional information on the menu or menu board. The rule was supposed to be out by March 23, but it got held up in the regulatory process.

There are two proposed rules: one for menu labeling, and one for vending machines.

Overall, IAAPA’s Government Relations department thinks the rules are good for the industry. We are also pleased the rules are in the proposal stage and that there are 60 days to offer comments. But this is where we need your help: tell us if the proposed rules will work for your facility. If they won’t, what changes can be made to them? IAAPA intends to file a comment with the FDA, so if you would like us to include your input, please let us know by May 30!