I 

113TH CONGRESS 

1ST SESSION H. R. 3639 

To eliminate sequestration for the security-related functions, to be offset 

through reductions in payments under Medicare, agricultural subsidies, 

federal retirement, and the application of chained CPI, and for other 

purposes. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 3, 2013 

Mr. BRIDENSTINE introduced the following bill; which was referred to the 

Committee on the Budget, and in addition to the Committees on Ways 

and Means, Energy and Commerce, Agriculture, Oversight and Government Reform, and House Administration, 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 eliminate sequestration for the security-related functions, 

to be offset through reductions in payments under Medicare, agricultural subsidies, federal retirement, and the 

application of chained CPI, and for other purposes. 

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; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Provide for the Common Defense Act of 2013’’. 


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1 (b) TABLE OF CONTENTS.—The table of contents of 

2 this Act is as follows: 

Sec. 1. Short title; table of contents. 

TITLE I—ELIMINATION OF SEQUESTRATION FOR REVISED 

SECURITY CATEGORY 

Sec. 101. Elimination of 251A reductions for revised security category in fiscal 

years 2014 and 2015. 

TITLE II—OFFSETTING PAYMENT CHANGES 

Subtitle A—Medicare 

Sec. 201. Adjustments to calculation of Medicare part B and part D premiums 

for high-income beneficiaries. 

Sec. 202. Increase in part B deductible for new enrollees. 

Subtitle B—Agriculture 

Sec. 211. Cap on overall rate of return for crop insurance providers. 

Sec. 212. Cap on reimbursements for administrative and operating expenses of 

crop insurance providers. 

Sec. 213. Reduction in share of crop insurance premium paid by Federal Crop 

Insurance Corporation. 

Subtitle C—Federal Retirement 

Sec. 221. Retirement contributions. 

Sec. 222. Annuity supplement. 

Sec. 223. Use of Chained Consumer Price Index. 

Subtitle D—Chained CPI 

Sec. 231. Change in index used to calculate Social Security cost-of-living adjustments. 

3 TITLE I—ELIMINATION OF SE4 QUESTRATION FOR REVISED 

5 SECURITY CATEGORY 

6 SEC. 101. ELIMINATION OF 251A REDUCTIONS FOR REVISED 

7 SECURITY CATEGORY IN FISCAL YEARS 2014 

8 AND 2015. 

9 (a) ELIMINATION OF THE ADJUSTMENT UNDER SEC10 TION 251A FOR FISCAL YEARS 2014 AND 2015.—Section 


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1 251A of the Balanced Budget and Emergency Deficit 

2 Control Act of 1985 (2 U.S.C. 901a) is amended— 

3 (1) in paragraphs (7)(B) and (8), by striking 

4 ‘‘On the date’’ in each instance and inserting ‘‘Sub5 ject to paragraph (12), on the date’’; and 

6 (2) by adding at the end the following new 

7 paragraph: 

8 ‘‘(12) NO REDUCTIONS FOR REVISED SECURITY

9 CATEGORY IN FISCAL YEARS 2014 AND 2015.—Para10 graphs (7)(B) and (8) shall have no force or effect 

11 for fiscal years 2014 and 2015 with respect to the 

12 revised security category.’’. 

13 (b) DISCRETIONARY SPENDING LIMITS FOR THE RE14 VISED SECURITY CATEGORY IN FISCAL YEARS 2014 AND

15 2015.—For purposes of section 251(c) of the Balanced 

16 Budget and Emergency Deficit Control Act of 1985 (as 

17 modified by section 251A(2) of such Act), for fiscal years 

18 2014 and 2015, the discretionary spending limit for the 

19 revised security category in each such fiscal year shall be 

20 $552,000,000,000 and $566,000,000,000, respectively. 


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1 TITLE II—OFFSETTING 

2 PAYMENT CHANGES 

3 Subtitle A—Medicare 

4 SEC. 201. ADJUSTMENTS TO CALCULATION OF MEDICARE 

5 PART B AND PART D PREMIUMS FOR HIGH6 INCOME BENEFICIARIES. 

7 (a) INCREASE IN APPLICABLE PERCENTAGE USED

8 TO CALCULATE PREMIUMS.—Section 1839(i)(3)(C)(i) of 

9 the Social Security Act (42 U.S.C. 1395r(i)(3)(C)(i)) is 

10 amended— 

11 (1) by inserting after ‘‘IN GENERAL.—’’ the fol12 lowing: 

13 ‘‘(I) YEARS BEFORE 2017.—For 

14 calendar years prior to 2017:’’; and 

15 (2) by adding at the end the following new sub16 clause: 

17 ‘‘(II) 2017 AND SUBSEQUENT

18 YEARS.—For calendar year 2017 and each 

19 subsequent calendar year: 

‘‘If the modified adjusted The applicable 

gross income is: percentage is: 

More than $85,000 but not more than $107,000 ............................. 40

More than $107,000 but not more than $160,000 ........................... 55

More than $160,000 but not more than $214,000 ........................... 70

More than $214,000 .......................................................................... 90.’’. 

20 (b) TEMPORARY ADJUSTMENT TO INCOME THRESH21 OLDS USED TO CALCULATE PREMIUMS.— 


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1 (1) IN GENERAL.—Section 1839(i)(6) of the 

2 Social Security Act (42 U.S.C. 1395r(i)(6)) is 

3 amended in the matter preceding subparagraph (A) 

4 by striking ‘‘December 31, 2019’’ and inserting 

5 ‘‘December 31 of the year after 2019 that is the 

6 first year after the year in which at least 25 percent 

7 of individuals enrolled under this part are subject to 

8 a reduction under this subsection to the monthly 

9 amount of the premium subsidy applicable to the 

10 premium under this section.’’. 

11 (2) APPLICATION OF INFLATION ADJUST12 MENT.—Section 1839(i)(5) of the Social Security 

13 Act (42 U.S.C. 1395r(i)(5)) is amended— 

14 (A) in subparagraph (A), by striking ‘‘In 

15 the case’’ and inserting ‘‘Subject to subpara16 graph (C), in the case’’; and 

17 (B) by adding at the end the following new 

18 subparagraph: 

19 ‘‘(C) TREATMENT OF YEARS AFTER TEM20 PORARY ADJUSTMENT PERIOD.—In applying 

21 subparagraph (A) for the first year beginning 

22 after the period described in paragraph (6) and 

23 for each subsequent year, the 12-month period 

24 ending with August 2006 described in clause 

25 (ii) of such subparagraph shall be deemed to be 


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1 the 12-month period ending with August of the 

2 last year of such period described in paragraph 

3 (6).’’. 

4 SEC. 202. INCREASE IN PART B DEDUCTIBLE FOR NEW EN5 ROLLEES. 

6 Section 1833 of the Social Security Act (42 U.S.C. 

7 1395l) is amended— 

8 (1) in the first sentence of subsection (b), by in9 serting ‘‘(subject to subsection (z))’’ after ‘‘for a 

10 subsequent year’’; and 

11 (2) by adding at the end the following: 

12 ‘‘(z) HIGHER DEDUCTIBLE FOR NEW ENROLLEES.— 

13 In the case of an individual who is not enrolled under this 

14 part before January 1, 2017, the amount of the deductible 

15 under subsection (b)— 

16 ‘‘(1) for 2017 shall be the amount otherwise de17 termined under such subsection for 2017 increased 

18 by $25; 

19 ‘‘(2) for 2018 shall be the amount otherwise de20 termined under such subsection for 2018, taking 

21 into account the application of the previous para22 graph; 

23 ‘‘(3) for 2019 shall be the amount otherwise de24 termined under such subsection for 2019, taking 


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1 into the application of the previous paragraphs, , in2 creased by $25; 

3 ‘‘(4) for 2020 shall be the amount otherwise de4 termined under such subsection for 2020, taking 

5 into account the application of the previous para6 graphs, increased by $25; 

7 ‘‘(5) for 2021 shall be the amount otherwise de8 termined under such subsection for 2021, taking 

9 into account the application of the previous para10 graphs, increased by $25; and 

11 ‘‘(6) for any subsequent year shall be the 

12 amount otherwise determined under such subsection 

13 for such year, taking into account the application of 

14 the previous paragraphs and this paragraph for pre15 vious years.’’. 

16 Subtitle B—Agriculture 

17 SEC. 211. CAP ON OVERALL RATE OF RETURN FOR CROP 

18 INSURANCE PROVIDERS. 

19 Section 508(k) of the Federal Crop Insurance Act (7 

20 U.S.C. 1508(k)) is amended— 

21 (1) by designating paragraph (3) as subpara22 graph (A) (and adjusting the margin two ems to the 

23 right); 

24 (2) by inserting before subparagraph (A) (as so 

25 designated) the following: 


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1 ‘‘(3) RISK.—’’; and 

2 (3) by adding at the end the following new sub3 paragraph: 

4 ‘‘(B) CAP ON OVERALL RATE OF RE5 TURN.—The target rate of return for all the 

6 companies combined for the 2014 and subse7 quent reinsurance years shall be 12.8 percent of 

8 retained premium.’’. 

9 SEC. 212. CAP ON REIMBURSEMENTS FOR ADMINISTRATIVE 

10 AND OPERATING EXPENSES OF CROP INSUR11 ANCE PROVIDERS. 

12 Section 508(k)(4) of the Federal Crop Insurance Act 

13 (7 U.S.C. 1508(k)(4)) is amended by adding at the end 

14 the following new subparagraph: 

15 ‘‘(G) ADDITIONAL CAP ON REIMBURSE16 MENTS.—Notwithstanding subparagraphs (A) 

17 through (F), total reimbursements for adminis18 trative and operating costs for the 2014 insur19 ance year for all types of policies and plans of 

20 insurance shall not exceed $935,000,000. For 

21 each subsequent insurance year, the dollar 

22 amount in effect pursuant to the preceding sen23 tence shall be increased by the same inflation 

24 factor as established for the administrative and 


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1 operating costs cap in the 2011 Standard Rein2 surance Agreement.’’. 

3 SEC. 213. REDUCTION IN SHARE OF CROP INSURANCE PRE4 MIUM PAID BY FEDERAL CROP INSURANCE 

5 CORPORATION. 

6 (a) CATASTROPHIC RISK PROTECTION.—Section 

7 508(d)(2)(A) of the Federal Crop Insurance Act (7 U.S.C. 

8 1508(d)(2)(A)) is amended by striking ‘‘sufficient to cover 

9 anticipated losses and a reasonable reserve’’ and inserting 

10 ‘‘for all crops for which catastrophic risk protection cov11 erage is available shall be reduced by the percentage equal 

12 to the difference between the average loss ratio for such 

13 crop and 100 percent, plus a reasonable reserve’’. 

14 (b) ADDITIONAL COVERAGE.—Section 508(e)(2) of 

15 the Federal Crop Insurance Act (7 U.S.C. 1508(e)(2)) is 

16 amended— 

17 (1) in subparagraph (B)(i), by striking ‘‘67’’ 

18 and inserting ‘‘64’’; 

19 (2) in subparagraph (C)(i), by striking ‘‘64’’ 

20 and inserting ‘‘61’’; 

21 (3) in subparagraph (D)(i), by striking ‘‘59’’ 

22 and inserting ‘‘56’’; and 

23 (4) in subparagraph (E)(i), by striking ‘‘55’’ 

24 and inserting ‘‘52’’. 


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1 (c) ENTERPRISE AND WHOLE FARM UNITS.—Sec2 tion 508(e)(5)(C) of the Federal Crop Insurance Act (7 

3 U.S.C. 1508(e)(5)(C)) is amended by striking ‘‘80’’ and 

4 inserting ‘‘77’’. 

5 (d) AREA REVENUE PLANS.—Section 508(e)(6) of 

6 the Federal Crop Insurance Act (7 U.S.C. 1508(e)(6)) is 

7 amended— 

8 (1) in subparagraph (A)(i), by striking ‘‘59’’ 

9 and inserting ‘‘56’’; and 

10 (2) in subparagraph (B)(i), by striking ‘‘55’’ 

11 and inserting ‘‘52’’. 

12 (e) AREA YIELD PLANS.—Section 508(e)(7) of the 

13 Federal Crop Insurance Act (7 U.S.C. 1508) is amend14 ed— 

15 (1) in subparagraph (A)(i), by striking ‘‘59’’ 

16 and inserting ‘‘56’’; 

17 (2) in subparagraph (B)(i), by striking ‘‘55’’ 

18 and inserting ‘‘52’’; and 

19 (3) in subparagraph (C)(i), by striking ‘‘51’’ 

20 and inserting ‘‘48’’. 

21 (f) EFFECTIVE DATE.—The amendments made by 

22 this section shall apply with respect to the first contract 

23 change date for a contract under the Federal Crop Insur24 ance Act occurring after the date of the enactment of this 

25 Act. 


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1 Subtitle C—Federal Retirement 

2 SEC. 221. RETIREMENT CONTRIBUTIONS. 

3 (a) CIVIL SERVICE RETIREMENT SYSTEM.— 

4 (1) INDIVIDUAL CONTRIBUTIONS.—Section 

5 8334(c) of title 5, United States Code, is amended— 

6 (A) by striking ‘‘(c) Each’’ and inserting 

7 ‘‘(c)(1) Each’’; and 

8 (B) by adding at the end the following: 

9 ‘‘(2) Notwithstanding any other provision of this sub10 section, the applicable percentage of basic pay under this 

11 subsection for civilian service by an employee or Member 

12 shall, for purposes of computing an amount— 

13 ‘‘(A) for a period in calendar year 2014, be 

14 equal to the applicable percentage under this sub15 section for calendar year 2013 plus an additional 0.4 

16 percentage point; 

17 ‘‘(B) for a period in calendar year 2015, be 

18 equal to the applicable percentage under this sub19 section for calendar year 2014 (as determined under 

20 subparagraph (A)) plus an additional 0.4 percentage 

21 point; 

22 ‘‘(C) for a period in calendar year 2016, be 

23 equal to the applicable percentage under this sub24 section for calendar year 2015 (as determined under 


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1 subparagraph (B)) plus an additional 0.4 percentage 

2 point; and 

3 ‘‘(D) for a period in any calendar year after 

4 2016, be equal to the applicable percentage under 

5 this subsection for calendar year 2015 (as deter6 mined under subparagraph (C)). 

7 ‘‘(3)(A) Notwithstanding subsection (a)(2), any ex8 cess contributions under subsection (a)(1)(A) (including 

9 the portion of any deposit under this subsection allocable 

10 to excess contributions) shall, if made by an employee of 

11 the United States Postal Service or the Postal Regulatory 

12 Commission, be deposited to the credit of the Postal Serv13 ice Fund under section 2003 of title 39, rather than the 

14 Civil Service Retirement and Disability Fund. 

15 ‘‘(B) For purposes of this paragraph, the term ‘ex16 cess contributions’, as used with respect to contributions 

17 made under subsection (a)(1)(A) by an employee of the 

18 United States Postal Service or the Postal Regulatory 

19 Commission, means the amount by which— 

20 ‘‘(i) deductions from basic pay of such employee 

21 which are made under subsection (a)(1)(A), exceed 

22 ‘‘(ii) deductions from basic pay of such em23 ployee which would have been so made if paragraph 

24 (2) had not been enacted.’’. 


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1 (2) GOVERNMENT CONTRIBUTIONS.—Section 

2 8334(a)(1)(B) of title 5, United States Code, is 

3 amended— 

4 (A) in clause (i), by striking ‘‘Except as 

5 provided in clause (ii),’’ and inserting ‘‘Except 

6 as provided in clause (ii) or (iii),’’; and 

7 (B) by adding at the end the following: 

8 ‘‘(iii) The amount to be contributed under clause (i) 

9 shall, with respect to a period in any year beginning after 

10 December 31, 2013, be equal to— 

11 ‘‘(I) the amount which would otherwise apply 

12 under clause (i) with respect to such period, reduced 

13 by 

14 ‘‘(II) the amount by which, with respect to such 

15 period, the withholding under subparagraph (A) ex16 ceeds the amount which would otherwise have been 

17 withheld from the basic pay of the employee or elect18 ed official involved under subparagraph (A) based on 

19 the percentage applicable under subsection (c) for 

20 calendar year 2013.’’. 

21 (b) INDIVIDUAL CONTRIBUTIONS UNDER THE FED22 ERAL EMPLOYEES’ RETIREMENT SYSTEM.—Section 

23 8422(a)(3) of title 5, United States Code, is amended— 

24 (1) by redesignating subparagraph (B) as sub25 paragraph (C); and 


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1 (2) by inserting after subparagraph (A) the fol2 lowing: 

3 ‘‘(B) Notwithstanding any other provision of this 

4 paragraph, the applicable percentage under this para5 graph for civilian service by employees or Members other 

6 than revised annuity employees shall— 

7 ‘‘(i) for a period in calendar year 2014, be 

8 equal to the applicable percentage under this para9 graph for calendar year 2013 plus an additional 0.4 

10 percentage point; 

11 ‘‘(ii) for a period in calendar year 2015, be 

12 equal to the applicable percentage under this para13 graph for calendar year 2014 (as determined under 

14 clause (i)) plus an additional 0.4 percentage point; 

15 ‘‘(iii) for a period in calendar year 2016, be 

16 equal to the applicable percentage under this para17 graph for calendar year 2015 (as determined under 

18 clause (ii)) plus an additional 0.4 percentage point; 

19 and 

20 ‘‘(iv) for a period in any calendar year after 

21 2016, be equal to the applicable percentage under 

22 this paragraph for calendar year 2016 (as deter23 mined under clause (iii)).’’. 


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1 SEC. 222. ANNUITY SUPPLEMENT. 

2 Section 8421(a) of title 5, United States Code, is 

3 amended— 

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

5 (3)’’ and inserting ‘‘paragraphs (3) and (4)’’; 

6 (2) in paragraph (2), by striking ‘‘paragraph 

7 (3)’’ and inserting ‘‘paragraphs (3) and (4)’’; and 

8 (3) by adding at the end the following: 

9 ‘‘(4) No annuity supplement under this section shall 

10 be payable in the case of an individual who first becomes 

11 subject to this chapter after December 31, 2013.’’. 

12 SEC. 223. USE OF CHAINED CONSUMER PRICE INDEX. 

13 (a) IN GENERAL.—Paragraph (15) of section 8331 

14 of title 5, United States Code, is amended to read as fol15 lows: 

16 ‘‘(15) the term ‘price index’ means the Chained 

17 Consumer Price Index (all items-all urban con18 sumers) published monthly by the Bureau of Labor 

19 Statistics;’’. 

20 (b) EFFECTIVE DATE.—The amendment made by 

21 subsection (a) shall take effect on January 1, 2015, and 

22 shall apply with respect to any cost-of-living adjustment 

23 taking effect under section 8340 or 8462 of title 5, United 

24 States Code, on or after that date. 


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1 Subtitle D—Chained CPI 

2 SEC. 231. CHANGE IN INDEX USED TO CALCULATE SOCIAL 

3 SECURITY COST-OF-LIVING ADJUSTMENTS. 

4 (a) IN GENERAL.—Section 215(i)(1) of the Social Se5 curity Act (42 U.S.C. 415(i)(1)) is amended— 

6 (1) in subparagraph (G), by striking the period 

7 at the end and inserting ‘‘; and’’; and 

8 (2) by adding at the end the following new sub9 paragraph: 

10 ‘‘(H) the term ‘Consumer Price Index’ means 

11 the Chained Consumer Price Index for All Urban 

12 Consumers (C–CPI–U, as published in its initial 

13 version by the Bureau of Labor Statistics of the De14 partment of Labor).’’. 

15 (b) APPLICATION TO PRE-1979 LAW.— 

16 (1) IN GENERAL.—Section 215(i)(1) of the So17 cial Security Act as in effect in December 1978, and 

18 as applied in certain cases under the provisions of 

19 such Act as in effect after December 1978, is 

20 amended— 

21 (A) in subparagraph (C), by striking the 

22 period at the end and inserting ‘‘; and’’; and 

23 (B) by adding at the end the following new 

24 subparagraph: 


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1 ‘‘(D) the term ‘Consumer Price Index’ means 

2 the Chained Consumer Price Index for All Urban 

3 Consumers (C–CPI–U, as published in its initial 

4 version by the Bureau of Labor Statistics of the De5 partment of Labor).’’. 

6 (2) CONFORMING CHANGE.—Section 215(i)(4) 

7 of the Social Security Act (42 U.S.C. 415(i)(4)) is 

8 amended by inserting ‘‘and by section 231 of the 

9 Provide for the Common Defense Act of 2013’’ after 

10 ‘‘1986’’. 

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

12 this section shall apply with respect to adjustments effec13 tive with or after December 2014. 

Æ 


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