NCPA Statement on Senate Vote to Repeal 1099 Tax Reporting Provision

Alexandria, Va. - Feb. 3, 2011

National Community Pharmacists Association (NCPA) Executive Vice President and CEO Kathleen Jaeger issued the following statement today on the U.S. Senate's passage of an amendment that repeals a provision of the Patient Protection and Affordable Care Act (PPACA) which expanded 1099 tax reporting requirements for businesses that purchase goods and services of more than $600. The amendment was offered as part of the FAA Air Transportation Modernization and Safety Improvement Act last night, which is expected to pass the Senate.

"Community pharmacists strive to provide the best patient care possible, but have to devote an inordinate amount of their time to administrative tasks. While the Patient Protection and Affordable Care Act included some bipartisan provisions promoting patient access to pharmacy services, a major flaw is the 1099 tax reporting provision, which further shifts community pharmacists' responsibilities from the clinical to the clerical. We are part of the Small Business Coalition for Affordable Healthcare that has been vocal from the start in finding legislative solutions to this potential problem.

"We applaud the U.S. Senate for this bipartisan vote to repeal the 1099 provision, because full compliance with this requirement would prove daunting for independently owned pharmacy small businesses with limited staff and financial resources. Most importantly, our patients would suffer because the pharmacists would have less time to spend with them providing invaluable prescription drug services and counseling.

"We want to give special thanks to Senator Mike Johanns (R-Neb.) for his tremendous leadership throughout this process, and to Senator Debbie Stabenow (D-Mich.), who offered the amendment. The House will hopefully soon schedule a vote on a similar bill introduced by Representative Dan Lungren (R-Calif.). In his State of the Union Address, President Barack Obama mentioned his willingness to address this concern, so we expect the repeal to be signed into law this year."

Before the vote, NCPA sent a letter in support of the repeal to Senate Majority and Minority Leaders Harry Reid (D-Nev.) and Mitch McConnell (R-Ky.).

The National Community Pharmacists Association (NCPA®) represents the interests of America's community pharmacists, including the owners of more than 23,000 independent community pharmacies, pharmacy franchises, and chains. Together they represent a $93 billion health-care marketplace, have more than 315,000 employees including 62,400 pharmacists, and dispense over 41% of all retail prescriptions. To learn more go to or read NCPA's blog, The Dose, at

Ask Your Family Pharmacist TM