I 

113TH CONGRESS 

1ST SESSION H. R. 1908 

To repeal certain provisions of the Patient Protection and Affordable Care 

Act relating to the premium tax credits and cost-sharing subsidies. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 9, 2013 

Mr. SALMON (for himself, Mr. LAMALFA, Mr. HUELSKAMP, Mr. JONES, Mr. 

FRANKS of Arizona, Mr. RADEL, Mr. SCHWEIKERT, Mr. MEADOWS, Mr. 

YOHO, Mr. GOSAR, and Mr. DUNCAN of South Carolina) introduced the 

following bill; which was referred to the Committee on Ways and Means, 

and in addition to the Committees on Energy and Commerce and Education and the Workforce, for a period to be subsequently determined by 

the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To repeal certain provisions of the Patient Protection and 

Affordable Care Act relating to the premium tax credits 

and cost-sharing subsidies. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Federal Repeal of Ex5 pensive Exchanges Act’’ or the ‘‘FREE Act’’. 

6 SEC. 2. FINDINGS. 

7 The Congress finds the following: 


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1 (1) The Patient Protection and Affordable Care 

2 Act makes health care more expensive and less ac3 cessible, while also driving up the Federal deficit and 

4 debt. 

5 (2) This increase in cost is most noticeable in 

6 the health insurance exchanges established under 

7 such Act, which would increase the Federal deficit 

8 by $1.017 trillion over an eleven-year timeframe, as 

9 stated in a July, 2012 Congressional Budget Office 

10 report. 

11 (3) The Federal mandate to establish health in12 surance exchanges directly assaults the States’ tradi13 tional authority to regulate health insurance. 

14 (4) Such Federal mandate imposes unknown in15 surance costs on consumers and administrative costs 

16 on States. 

17 (5) Such Federal mandate imposes a ‘‘one-size18 fits-all’’ approach that ignores State differences. 

19 (6) Such Federal mandate undermines choice 

20 and competition and guarantees further consolida21 tion of the health insurance markets. 


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1 SEC. 3. REPEAL OF THE PATIENT PROTECTION AND AF2 FORDABLE CARE ACT PREMIUM TAX CRED3 ITS AND COST-SHARING SUBSIDIES. 

4 (a) PREMIUM TAX CREDITS.—The Internal Revenue 

5 Code of 1986 is amended by striking section 36B. 

6 (b) ADVANCE DETERMINATION AND PAYMENT OF

7 PREMIUM TAX CREDITS AND COST-SHARING REDUC8 TIONS.—The Patient Protection and Affordable Care Act 

9 is amended by striking section 1412. 

10 (c) COST-SHARING.—The Patient Protection and Af11 fordable Care Act is amended by striking section 1402. 

12 (d) CONFORMING AMENDMENTS.— 

13 (1) INTERNAL REVENUE CODE OF 1986.— 

14 (A) Section 280C of the Internal Revenue 

15 Code of 1986 is amended by striking subsection 

16 (g). 

17 (B) Clause (iii) of section 6055(b)(1)(B) of 

18 such Code is amended to read as follows: 

19 ‘‘(iii) in the case of minimum essential 

20 coverage which consists of health insurance 

21 coverage, information concerning whether 

22 or not the coverage is a qualified health 

23 plan offered through an Exchange estab24 lished under section 1311 of the Patient 

25 Protection and Affordable Care Act, and’’; 

26 and 


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1 (C) Section 6103(l)(21) of such Code is 

2 amended— 

3 (i) by striking ‘‘any premium tax 

4 credit under section 36B or any cost-shar5 ing reduction under section 1402 of the 

6 Patient Protection and Affordable Care 

7 Act or’’ in the matter preceding subpara8 graph (i), 

9 (ii) by striking ‘‘(as defined in section 

10 36B)’’ in subparagraph (A)(iv), and 

11 (iii) by adding at the end the fol12 lowing: 

13 ‘‘(D) MODIFIED ADJUSTED GROSS IN14 COME.—For purposes of this paragraph, the 

15 term ‘modified adjusted gross income’ means 

16 adjusted gross income increased by— 

17 ‘‘(i) any amount excluded from gross 

18 income under section 911, 

19 ‘‘(ii) any amount of interest received 

20 or accrued by the taxpayer during the tax21 able year which is exempt from tax, and 

22 ‘‘(iii) an amount equal to the portion 

23 of the taxpayer’s social security benefits 

24 (as defined in section 86(d)) which is not 


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1 included in gross income under section 86 

2 for the taxable year.’’. 

3 (D) Section 6211(b)(4)(A) of such Code is 

4 amended by striking ‘‘36B,’’. 

5 (E) The table of sections for subpart C of 

6 part IV of subchapter A of chapter 1 of such 

7 Code is amended by striking the item relating 

8 to section 36B. 

9 (2) FAIR LABOR STANDARDS ACT OF 1938.— 

10 (A) Section 18B(a) of the Fair Labor 

11 Standards Act of 1938 (29 U.S.C. 218b(a)) is 

12 amended— 

13 (i) by inserting ‘‘and’’ at the end of 

14 paragraph (1), and 

15 (ii) by striking paragraph (2) and re16 designating paragraph (3) as paragraph 

17 (2). 

18 (B) Section 18C(a) of the Fair Labor 

19 Standards Act of 1938 (29 U.S.C. 218c(a)) is 

20 amended by striking paragraph (1) and by re21 designating paragraphs (2) through (5) as 

22 paragraphs (1) through (4), respectively. 

23 (3) PUBLIC HEALTH SERVICE ACT.—Title 

24 XXVII of the Public Health Service Act (42 U.S.C. 

25 300gg et seq.) is amended— 


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1 (A) in section 2705(l)(3)(A) (42 U.S.C. 

2 300gg–4(l)(3)(A))— 

3 (i) by striking the em dash before 

4 clause (i) and inserting ‘‘will not result in 

5 any decrease in coverage.’’; and 

6 (ii) by striking clauses (i) and (ii); 

7 and 

8 (B) in section 2793(c) (300gg–93(c))— 

9 (i) by inserting ‘‘and’’ at the end of 

10 paragraph (3); 

11 (ii) by striking ‘‘; and’’ at the end of 

12 paragraph (4); and 

13 (iii) by striking paragraph (5). 

14 (4) PATIENT PROTECTION AND AFFORDABLE

15 CARE ACT.—The Patient Protection and Affordable 

16 Care Act (Public Law 111–148, as amended) is 

17 amended— 

18 (A) in section 1303(b) by striking para19 graph (2); 

20 (B) in section 1311(c)(5)(B) (42 U.S.C. 

21 18031(c)(5)(B)), by striking ‘‘or eligible for a 

22 premium tax credit or cost-sharing reduction’’; 

23 (C) in section 1311(d)(4) (42 U.S.C. 

24 18031(d)(4))— 


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1 (i) in subparagraph (G), by striking 

2 ‘‘after the application of any premium tax 

3 credit’’ and all that follows through ‘‘sec4 tion 1402’’; and 

5 (ii) in subparagraph (I), by striking 

6 clause (ii); 

7 (D) in section 1311(i)(3)(B) (42 U.S.C. 

8 18031(i)(3)(B)), by striking ‘‘, and the avail9 ability of premium tax credits’’ and all that fol10 lows through ‘‘section 1402’’; 

11 (E) in section 1312(e) (42 U.S.C. 

12 18032(e))— 

13 (i) in paragraph (1), by striking ‘‘; 

14 and’’ and inserting a period; 

15 (ii) by striking paragraph (2); and 

16 (iii) by striking ‘‘brokers—’’ and all 

17 that follows through ‘‘to enroll’’ and insert18 ing ‘‘brokers to enroll’’; 

19 (F) in section 1313(a)(6)(A) (42 U.S.C. 

20 18033(a)(6)(A)), by striking ‘‘, including pay21 ments of premium tax credits and cost-sharing 

22 reductions through the Exchange’’; 

23 (G) in section 1331(d)(3)(A)(i) (42 U.S.C. 

24 18051) is amended by inserting ‘‘and the FedVerDate Mar 15 2010 04:31 May 15, 2013 Jkt 029200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H1908.IH H1908

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1 eral Repeal of Expensive Exchanges Act had 

2 not been enacted’’ before the period at the end; 

3 (H) in section 1332(a) (42 U.S.C. 

4 18052(a))— 

5 (i) in paragraph (2)— 

6 (I) by striking subparagraph (C); 

7 and 

8 (II) in subparagraph (D) by 

9 striking ‘‘36B, 4980H,’’ and inserting 

10 ‘‘4980H’’; and 

11 (ii) in paragraph (3), by striking 

12 ‘‘premium tax credits, cost-sharing reduc13 tions’’; 

14 (I) in section 1334(c) (42 U.S.C. 

15 18054(c)) by striking paragraph (3); 

16 (J) in section 1401(c)(1)(A), by striking 

17 clause (i); 

18 (K) in section 1411 (42 U.S.C. 18081)— 

19 (i) in subsection (a)(1)— 

20 (I) by striking ‘‘or who is claim21 ing a premium tax credit or reduced 

22 cost-sharing,’’; and 

23 (II) by striking ‘‘sections 

24 1312(f)(3), 1402(e), and 1412(d)’’ 

25 and inserting ‘‘section 1312(f)(3)’’; 


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1 (ii) in subsection (a), by striking para2 graph (2); 

3 (iii) in subsection (b), by striking 

4 paragraphs (3) and (4); 

5 (iv) in subsection (e)— 

6 (I) in paragraph (2), by amend7 ing subparagraph (A) to read as fol8 lows: 

9 ‘‘(A) ELIGIBILITY FOR ENROLLMENT.—If 

10 information provided by an applicant under 

11 paragraphs (1) and (2) of subsection (b) is 

12 verified under subsections (c) and (d) the indi13 vidual’s eligibility to enroll through the Ex14 change shall be satisfied.’’; and 

15 (II) in paragraph (4)(B), by 

16 striking clauses (ii) and (iii) and re17 designating clause (iv) as clause (ii); 

18 (v) by striking subsection (f)(2); 

19 (vi) in subsection (g)(1)— 

20 (I) by striking ‘‘or for a premium 

21 tax credit or cost-sharing reduction’’, 

22 and 

23 (II) by striking ‘‘, determine eli24 gibility, and determine the amount of 


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1 the credit or reduction’’ and inserting 

2 ‘‘and determine eligibility’’; and 

3 (vii) in subsection (g)(2) by striking 

4 ‘‘or to claim a premium tax credit or cost5 sharing reduction or the amount of the 

6 credit or reduction’’; 

7 (L) in section 1413(e)(1) (42 U.S.C. 

8 18083(e)(1)), by striking ‘‘, including the pre9 mium tax credits under section 36B of the In10 ternal Revenue Code of 1986 and cost-sharing 

11 reductions under section 1402’’; 

12 (M) by striking section 1415 (42 U.S.C. 

13 18084); and 

14 (N) in section 2901 (25 U.S.C. 1623), by 

15 striking subsection (a). 

16 (5) SOCIAL SECURITY ACT.—Section 1943(b) of 

17 the Social Security Act (42 U.S.C. 1396w–3(b)) is 

18 amended— 

19 (A) in paragraph (1)(C)— 

20 (i) by striking ‘‘and, if applicable, pre21 mium assistance’’ and all that follows 

22 through ‘‘section 1412 of the Patient Pro23 tection and Affordable Care Act),’’; and 

24 (ii) by striking ‘‘reduced cost-sharing 

25 for eligible individuals under section 1402 


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1 of the Patient Protection and Affordable 

2 Care Act, and any other’’ and inserting 

3 ‘‘any’’; 

4 (B) in paragraph (1)(D), by striking ‘‘, 

5 child health assistance, or premium assistance,’’ 

6 and inserting ‘‘or child health assistance,’’; 

7 (C) by striking paragraph (2); and 

8 (D) in paragraph (4), by striking ‘‘and 

9 who is eligible to receive premium credit assist10 ance for the purchase of a qualified health plan 

11 under section 36B of the Internal Revenue 

12 Code of 1986’’. 

13 SEC. 4. REPEAL OF EMPLOYER AND INDIVIDUAL MAN14 DATES. 

15 (a) EMPLOYER MANDATE.— 

16 (1) IN GENERAL.—Chapter 43 of the Internal 

17 Revenue Code of 1986 is amended by striking sec18 tion 4980H, and the table of sections for such chap19 ter is amended by striking the item relating to sec20 tion 4980H. 

21 (2) INFORMATION RETURN.— 

22 (A) Chapter 61 of such Code is amended 

23 by striking section 6056, and the table of sec24 tions for such chapter is amended by striking 

25 the item relating to section 6056. 


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1 (B) Section 6724(d) of such Code is 

2 amended— 

3 (i) in paragraph (1)(B) by inserting 

4 ‘‘or’’ at the end of clause (xxiii), by strik5 ing ‘‘or’’ at the end of clause (xxiv) and in6 serting ‘‘and’’, and by striking clause 

7 (xxv), and 

8 (ii) in paragraph (2) by inserting ‘‘or’’ 

9 at the end of subparagraph (FF), by strik10 ing ‘‘or’’ at the end of subparagraph (GG) 

11 and inserting ‘‘and’’, and by striking sub12 paragraph (HH). 

13 (3) PATIENT PROTECTION AND AFFORDABLE

14 CARE ACT CONFORMING AMENDMENTS.— 

15 (A) Section 1332(a)(2)(D) of the Patient 

16 Protection and Affordable Care Act (as amend17 ed by section 3(d)(4)(H) of this Act) is amend18 ed by striking ‘‘Sections 4980H’’ and inserting 

19 ‘‘Section’’. 

20 (B) Section 1513 of the Patient Protection 

21 and Affordable Care Act is amended by striking 

22 subsection (c). 

23 (b) REPEAL OF INDIVIDUAL HEALTH INSURANCE

24 MANDATE.— 


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1 (1) IN GENERAL.—Section 5000A of the Inter2 nal Revenue Code of 1986 is amended by adding at 

3 the end the following new subsection: 

4 ‘‘(h) TERMINATION.—This section shall not apply 

5 with respect to any month beginning after December 31, 

6 2013.’’. 

7 (2) CONFORMING AMENDMENT.—Section 

8 1311(d)(4) of the Patient Protection and Affordable 

9 Care Act (42 U.S.C. 18031(d)(4)) is amended by 

10 striking subparagraph (H). 

11 (c) EFFECTIVE DATE.—The amendments made by 

12 this section shall apply as if included in the respective sec13 tions the Patient Protection and Affordable Care Act to 

14 which such amendments relate. 

Æ 


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