I 

113TH CONGRESS 

2D SESSION H. R. 3851 

To repeal sections 1341 and 1342 of the Patient Protection and Affordable 

Care Act, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 10, 2014 

Mr. LANCE introduced the following bill; which was referred to the Committee 

on Energy and Commerce 

A BILL 

To repeal sections 1341 and 1342 of the Patient Protection 

and Affordable Care Act, 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. 

4 This Act may be cited as the ‘‘No Bailouts for Insur5 ance Industry Act of 2014’’. 

6 SEC. 2. FINDINGS; PURPOSE. 

7 (a) FINDINGS.—Congress finds the following: 

8 (1) According to the most recent United States 

9 Census, employer-based health insurance is the larg10 est source of health insurance coverage in the 


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1 United States. Of those employed, 70 percent receive 

2 employment-based health insurance. Of unemployed 

3 Americans, 30 percent receive employer-sponsored 

4 health insurance. 

5 (2) Despite the large percentages of coverage, 

6 as health care costs climb, the percentage of Ameri7 cans who receive health insurance through employers 

8 has fallen significantly over the last decade—from 

9 70 percent nationwide in 2000 to 60 percent in 

10 2011, according to a report by the Robert Wood 

11 Johnson Foundation. 

12 (3) According to recent surveys done by the Na13 tional Business Group on Health and the Kaiser 

14 Family Foundation, most companies continue to 

15 provide health insurance for employees and wish to 

16 continue doing so into the future. 

17 (4) Employers that offer insurance will not con18 tribute additional risk to the Health Insurance Ex19 changes established in the Patient Protection and 

20 Affordable Care Act (in this Act referred to as 

21 ‘‘PPACA’’). 

22 (5) The transitional reinsurance program, es23 tablished in section 1341 of PPACA, is intended to 

24 stabilize risk in the individual health insurance marVerDate Mar 15 2010 02:02 Jan 11, 2014 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3851.IH H3851

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1 ket during the first three years of the Health Insur2 ance Exchanges, as established by that Act. 

3 (6) PPACA also requires that the Treasury col4 lect a fee for each employer-sponsored covered life in 

5 order to pay for the transitional reinsurance pro6 gram. 

7 (7) This fee is a disincentive for employers to 

8 continue offering coverage to all employees, and does 

9 not give employers any benefits of the transitional 

10 reinsurance program. 

11 (b) PURPOSE.—It is the purpose of this Act to re12 move the current funding mechanism for the transitional 

13 reinsurance program in order that employer-sponsored in14 surance is supported so that Americans can sustain qual15 ity health coverage. 

16 SEC. 3. REPEAL OF SECTIONS 1341 AND 1342 OF PPACA. 

17 (a) REPEAL OF SECTION 1341.— 

18 (1) IN GENERAL.—Section 1341 of PPACA (42 

19 U.S.C. 18061) is repealed. 

20 (2) EFFECTIVE DATE.—The repeal of such sec21 tion shall apply to plan years beginning after the 

22 date of the enactment of this Act. 

23 (3) APPLICATION.—In applying such section be24 fore the effective date of such repeal— 


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1 (A) any reference in such section to ‘‘the 

2 3-year period beginning January 1, 2014’’ or to 

3 ‘‘the 36-month period beginning January 1, 

4 2014’’ is deemed a reference to the period be5 ginning January 1, 2014, and ending on the 

6 date of the enactment of this Act; 

7 (B) with respect to the amounts specified 

8 in clauses (iii) and (iv) of subsection (b)(3)(B) 

9 of such section, the amounts for 2014 shall be 

10 reduced in a pro-rata manner to reflect only the 

11 portion of 2014 occurring before the date of the 

12 enactment of this Act and no amounts shall be 

13 provided for periods after such date; 

14 (C) in applying subsection (b)(4)(A) of 

15 such section, amounts collected may only be 

16 used for 2014 and, notwithstanding subsection 

17 (b)(4)(B) of such section, amounts remaining 

18 unexpended as of December 2014 shall be re19 turned, in a pro rata manner, to health insur20 ance issuers making contributions under such 

21 section; and 

22 (D) the reference in subsection (c)(1)(A) of 

23 such section to the first 3 years of operation 

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1 eration ending not later than December 31, 

2 2014. 

3 (4) CONSTRUCTION.—Nothing in this sub4 section shall be construed as affecting the authority 

5 of a State, without regard to section 1341 of 

6 PPACA, to implement reinsurance programs with 

7 respect to health insurance coverage offered in the 

8 State. 

9 (b) REPEAL OF SECTION 1342.— 

10 (1) IN GENERAL.—Section 1342 of PPACA (42 

11 U.S.C. 18062) is repealed. 

12 (2) EFFECTIVE DATE.—The repeal made by 

13 paragraph (1) shall apply to calendar years begin14 ning after the date of the enactment of this Act. 

Æ 


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