FREE Act

To repeal certain provisions of the Patient Protection and Affordable Care Act relating to the premium tax credits and cost-sharing subsidies. 1. Short title This Act may be cited as the Federal Repeal of Expensive Exchanges Act FREE Act 2. Findings The Congress finds the following: (1) The Patient Protection and Affordable Care Act makes health care more expensive and less accessible, while also driving up the Federal deficit and debt. (2) This increase in cost is most noticeable in the health insurance exchanges established under such Act, which would increase the Federal deficit by $1.017 trillion over an eleven-year timeframe, as stated in a July, 2012 Congressional Budget Office report. (3) The Federal mandate to establish health insurance exchanges directly assaults the States’ traditional authority to regulate health insurance. (4) Such Federal mandate imposes unknown insurance costs on consumers and administrative costs on States. (5) Such Federal mandate imposes a one-size-fits-all (6) Such Federal mandate undermines choice and competition and guarantees further consolidation of the health insurance markets. 3. Repeal of the Patient Protection and Affordable Care Act premium tax credits and cost-sharing subsidies (a) Premium tax credits The Internal Revenue Code of 1986 is amended by striking section 36B. (b) Advance determination and payment of premium tax credits and cost-Sharing reductions The Patient Protection and Affordable Care Act is amended by striking section 1412. (c) Cost-Sharing The Patient Protection and Affordable Care Act is amended by striking section 1402. (d) Conforming amendments (1) Internal Revenue Code of 1986 (A) Section 280C of the Internal Revenue Code of 1986 is amended by striking subsection (g). (B) Clause (iii) of section 6055(b)(1)(B) of such Code is amended to read as follows: (iii) in the case of minimum essential coverage which consists of health insurance coverage, information concerning whether or not the coverage is a qualified health plan offered through an Exchange established under section 1311 of the Patient Protection and Affordable Care Act, and ; and (C) Section 6103(l)(21) of such Code is amended— (i) by striking any premium tax credit under section 36B or any cost-sharing reduction under section 1402 of the Patient Protection and Affordable Care Act or (ii) by striking (as defined in section 36B) (iii) by adding at the end the following: (D) Modified adjusted gross income For purposes of this paragraph, the term modified adjusted gross income (i) any amount excluded from gross income under section 911, (ii) any amount of interest received or accrued by the taxpayer during the taxable year which is exempt from tax, and (iii) an amount equal to the portion of the taxpayer's social security benefits (as defined in section 86(d)) which is not included in gross income under section 86 for the taxable year. . (D) Section 6211(b)(4)(A) of such Code is amended by striking 36B, (E) The table of sections for subpart C of part IV of subchapter A of chapter 1 of such Code is amended by striking the item relating to section 36B. (2) Fair Labor Standards Act of 1938 (A) Section 18B(a) of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 218b(a) (i) by inserting and (ii) by striking paragraph (2) and redesignating paragraph (3) as paragraph (2). (B) Section 18C(a) of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 218c(a) (3) Public Health Service Act Title XXVII of the Public Health Service Act ( 42 U.S.C. 300gg et seq. (A) in section 2705(l)(3)(A) ( 42 U.S.C. 300gg–4(l)(3)(A) (i) by striking the em dash before clause (i) and inserting will not result in any decrease in coverage. (ii) by striking clauses (i) and (ii); and (B) in section 2793(c) (300gg–93(c))— (i) by inserting and (ii) by striking ; and (iii) by striking paragraph (5). (4) Patient Protection and Affordable Care Act The Patient Protection and Affordable Care Act ( Public Law 111–148 (A) in section 1303(b) by striking paragraph (2); (B) in section 1311(c)(5)(B) (42 U.S.C. 18031(c)(5)(B)), by striking or eligible for a premium tax credit or cost-sharing reduction (C) in section 1311(d)(4) ( 42 U.S.C. 18031(d)(4) (i) in subparagraph (G), by striking after the application of any premium tax credit section 1402 (ii) in subparagraph (I), by striking clause (ii); (D) in section 1311(i)(3)(B) (42 U.S.C. 18031(i)(3)(B)), by striking , and the availability of premium tax credits section 1402 (E) in section 1312(e) ( 42 U.S.C. 18032(e) (i) in paragraph (1), by striking ; and (ii) by striking paragraph (2); and (iii) by striking brokers— to enroll brokers to enroll (F) in section 1313(a)(6)(A) ( 42 U.S.C. 18033(a)(6)(A) , including payments of premium tax credits and cost-sharing reductions through the Exchange (G) in section 1331(d)(3)(A)(i) ( 42 U.S.C. 18051 and the Federal Repeal of Expensive Exchanges Act had not been enacted (H) in section 1332(a) ( 42 U.S.C. 18052(a) (i) in paragraph (2)— (I) by striking subparagraph (C); and (II) in subparagraph (D) by striking 36B, 4980H, 4980H (ii) in paragraph (3), by striking premium tax credits, cost-sharing reductions (I) in section 1334(c) ( 42 U.S.C. 18054(c) (J) in section 1401(c)(1)(A), by striking clause (i); (K) in section 1411 ( 42 U.S.C. 18081 (i) in subsection (a)(1)— (I) by striking or who is claiming a premium tax credit or reduced cost-sharing, (II) by striking sections 1312(f)(3), 1402(e), and 1412(d) section 1312(f)(3) (ii) in subsection (a), by striking paragraph (2); (iii) in subsection (b), by striking paragraphs (3) and (4); (iv) in subsection (e)— (I) in paragraph (2), by amending subparagraph (A) to read as follows: (A) Eligibility for enrollment If information provided by an applicant under paragraphs (1) and (2) of subsection (b) is verified under subsections (c) and (d) the individual’s eligibility to enroll through the Exchange shall be satisfied. ; and (II) in paragraph (4)(B), by striking clauses (ii) and (iii) and redesignating clause (iv) as clause (ii); (v) by striking subsection (f)(2); (vi) in subsection (g)(1)— (I) by striking or for a premium tax credit or cost-sharing reduction (II) by striking , determine eligibility, and determine the amount of the credit or reduction and determine eligibility (vii) in subsection (g)(2) by striking or to claim a premium tax credit or cost-sharing reduction or the amount of the credit or reduction (L) in section 1413(e)(1) ( 42 U.S.C. 18083(e)(1) , including the premium tax credits under section 36B (M) by striking section 1415 ( 42 U.S.C. 18084 (N) in section 2901 ( 25 U.S.C. 1623 (5) Social Security Act Section 1943(b) of the Social Security Act (42 U.S.C. 1396w–3(b)) is amended— (A) in paragraph (1)(C)— (i) by striking and, if applicable, premium assistance section 1412 of the Patient Protection and Affordable Care Act), (ii) by striking reduced cost-sharing for eligible individuals under section 1402 of the Patient Protection and Affordable Care Act, and any other any (B) in paragraph (1)(D), by striking , child health assistance, or premium assistance, or child health assistance, (C) by striking paragraph (2); and (D) in paragraph (4), by striking and who is eligible to receive premium credit assistance for the purchase of a qualified health plan under section 36B of the Internal Revenue Code of 1986 4. Repeal of Employer and Individual Mandates (a) Employer Mandate (1) In general Chapter 43 (2) Information return (A) Chapter 61 of such Code is amended by striking section 6056, and the table of sections for such chapter is amended by striking the item relating to section 6056. (B) Section 6724(d) of such Code is amended— (i) in paragraph (1)(B) by inserting or or and (ii) in paragraph (2) by inserting or or and (3) Patient Protection and Affordable Care Act conforming amendments (A) Section 1332(a)(2)(D) of the Patient Protection and Affordable Care Act (as amended by section 3(d)(4)(H) of this Act) is amended by striking Sections 4980H Section (B) Section 1513 of the Patient Protection and Affordable Care Act is amended by striking subsection (c). (b) Repeal of individual health insurance mandate (1) In general Section 5000A (h) Termination This section shall not apply with respect to any month beginning after December 31, 2013. . (2) Conforming amendment Section 1311(d)(4) of the Patient Protection and Affordable Care Act ( 42 U.S.C. 18031(d)(4) (c) Effective date The amendments made by this section shall apply as if included in the respective sections the Patient Protection and Affordable Care Act to which such amendments relate.

Summary: Federal Repeal of Expensive Exchanges Act or the FREE Act - Repeals provisions of the Internal Revenue Code and the Patient Protection and Affordable Care Act (PPACA) providing for: (1) a health insurance premium assistance tax credit and advance payments for credit amounts, (2) reductions in out-of-pocket health care expenses for certain low income taxpayers (cost-sharing) and advance payments of cost-sharing amounts, (3) the individual mandate to purchase health care coverage under PPACA, and (4) the employer mandate to provide health care coverage to employees under PPACA and the reporting requirements with respect to such mandate.