I 
112TH CONGRESS 
2D SESSION 
H. R. 4224 
To repeal the Patient Protection and Affordable Care Act and the Health 
Care and Education Reconciliation Act of 2010, to amend the Internal 
Revenue Code of 1986 to repeal the percentage floor on medical expense 
deductions, expand the use of tax-preferred health care accounts, and 
establish a charity care credit, to amend the Social Security Act to 
create a Medicare Premium Assistance Program and reform EMTALA 
requirements, and to amend the Public Health Service Act to provide 
for cooperative governing of individual and group health insurance cov-
erage offered in interstate commerce. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 20, 2012 
Mr. BROUN of Georgia introduced the following bill; which was referred to the 
Committee on Energy and Commerce, and in addition to the Committees 
on Ways and Means, Education and the Workforce, the Judiciary, Nat-
ural Resources, Rules, Appropriations, 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 com-
mittee concerned 
A BILL 
To repeal the Patient Protection and Affordable Care Act 
and the Health Care and Education Reconciliation Act 
of 2010, to amend the Internal Revenue Code of 1986 
to repeal the percentage floor on medical expense deduc-
tions, expand the use of tax-preferred health care ac-
counts, and establish a charity care credit, to amend 
the Social Security Act to create a Medicare Premium 
Assistance Program and reform EMTALA requirements, 
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and to amend the Public Health Service Act to provide 
for cooperative governing of individual and group health 
insurance coverage offered in interstate commerce. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS; CON-
STRUCTION. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Offering Patients True Individualized Options Now Act 
of 2012’’ or the ‘‘OPTION Act of 2012’’. 
(b) TABLE OF CONTENTS.—The table of contents of 
this Act is as follows: 
Sec. 1. Short title; table of contents; construction. 
TITLE I—REPEAL OF PPACA AND HCERA 
Sec. 101. Repeal of PPACA and HCERA. 
TITLE II—HEALTH CARE TAX REFORM 
Subtitle A—HSA Reform 
Sec. 201. Repeal of high deductible health plan requirement. 
Sec. 202. Increase in deductible HSA contribution limitations. 
Sec. 203. Medicare eligible individuals eligible to contribute to HSA. 
Sec. 204. HSA Rollover to Medicare Advantage MSA. 
Sec. 205. Repeal of additional tax on distributions not used for qualified med-
ical expenses. 
Subtitle B—Other Health Care Tax Reform 
Sec. 206. Elimination of 7.5-percent floor on medical expense deductions. 
Sec. 207. Repeal of prescribed drug limitation on certain tax benefits for med-
ical expenses. 
Sec. 208. Repeal of 2-percent miscellaneous itemized deduction floor for med-
ical expense deductions. 
Sec. 209. Charity care credit. 
Sec. 210. COBRA continuation coverage extended. 
Sec. 211. HSA charitable contributions. 
TITLE III—MEDICARE PREMIUM ASSISTANCE PROGRAM 
Sec. 301. Replacement of Medicare part A entitlement with Medicare Reform 
Premium Assistance Program. 
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TITLE IV—EMTALA REFORMS 
Sec. 401. EMTALA reforms. 
TITLE V—COOPERATIVE GOVERNING OF INDIVIDUAL AND GROUP 
HEALTH INSURANCE COVERAGE 
Sec. 501. Cooperative governing of individual and group health insurance cov-
erage. 
(c) CONSTRUCTION.—Nothing in this Act shall be 
construed to preclude or prohibit a health care provider 
or health insurance issuer from publicly disclosing any 
pricing of services provided or covered. 
TITLE I—REPEAL OF PPACA AND 
HCERA 
SEC. 101. REPEAL OF PPACA AND HCERA. 
The Patient Protection and Affordable Care Act and 
the Health Care and Education Reconciliation Act of 2010 
are each repealed, effective as of the respective date of 
enactment of each such Act, and the provisions of law 
amended or repealed by such Acts are restored or revived 
as if such Acts had not been enacted. 
TITLE II—HEALTH CARE TAX 
REFORM 
Subtitle A—HSA Reform 
SEC. 201. REPEAL OF HIGH DEDUCTIBLE HEALTH PLAN RE-
QUIREMENT. 
(a) IN GENERAL.—Section 223 of the Internal Rev-
enue Code of 1986 is amended by striking subsection (c) 
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and redesignating subsections (d) through (h) as sub-
sections (c) through (g), respectively. 
(b) CONFORMING AMENDMENTS.— 
(1) Subsection (a) of section 223 of such Code 
is amended to read as follows: 
‘‘(a) DEDUCTION ALLOWED.—In the case of an indi-
vidual, there shall be allowed as a deduction for a taxable 
year an amount equal to the aggregate amount paid in 
cash during such taxable year by or on behalf of such indi-
vidual to a health savings account of such individual.’’. 
(2) Subsection (b) of section 223 of such Code 
is amended by striking paragraph (8). 
(3) Subparagraph (A) of section 223(c)(1) of 
the Internal Revenue Code of 1986 (as redesignated 
by subsection (b)(1)) is amended— 
(A) by striking ‘‘subsection (f)(5)’’ and in-
serting ‘‘subsection (e)(5)’’, and 
(B) in clause (ii)— 
(i) by striking ‘‘the sum of—’’ and all 
that follows and inserting ‘‘the dollar 
amount in effect under subsection (b)(1).’’. 
(4) Section 223(f)(1) of such Code (as redesig-
nated by subsection (b)(1)) is amended by striking 
‘‘Each dollar amount in subsections (b)(2) and 
(c)(2)(A)’’ and inserting ‘‘In the case of a taxable 
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year beginning after December 31, 2010, each dollar 
amount in subsection (b)(1)’’. 
(5) Section 26(b)(U) of such Code is amended 
by striking ‘‘section 223(f)(4)’’ and inserting ‘‘sec-
tion 223(e)(4)’’. 
(6) 
Sections 
35(g)(3), 
220(f)(5)(A), 
848(e)(1)(v), 4973(a)(5), and 6051(a)(12) of such 
Code are each amended by striking ‘‘section 223(d)’’ 
each place it appears and inserting ‘‘section 223(c)’’. 
(7) Section 106(d)(1) of such Code is amend-
ed— 
(A) by striking ‘‘who is an eligible indi-
vidual (as defined in section 223(c)(1))’’, and 
(B) by striking ‘‘section 223(d)’’ and in-
serting ‘‘section 223(c)’’. 
(8) Section 408(d)(9) of such Code is amend-
ed— 
(A) in subparagraph (A) by striking ‘‘who 
is an eligible individual (as defined in section 
223(c)) and’’, and 
(B) in subparagraph (C) by striking ‘‘com-
puted on the basis of the type of coverage under 
the high deductible health plan covering the in-
dividual at the time of the qualified HSA fund-
ing distribution’’. 
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(9) Section 877A(g)(6) of such Code is amend-
ed 
by 
striking 
‘‘223(f)(4)’’ 
and 
inserting 
‘‘223(e)(4)’’. 
(10) Section 4973(g) of such Code is amend-
ed— 
(A) by striking ‘‘section 223(d)’’ and in-
serting ‘‘section 223(c)’’, 
(B) in paragraph (2), by striking ‘‘section 
223(f)(2)’’ and inserting ‘‘section 223(e)(2)’’, 
and 
(C) by striking ‘‘section 223(f)(3)’’ and in-
serting ‘‘section 223(e)(3)’’. 
(11) Section 4975 of such Code is amended— 
(A) in subsection (c)(6)— 
(i) by striking ‘‘section 223(d)’’ and 
inserting ‘‘section 223(c)’’, and 
(ii) by striking ‘‘section 223(e)(2)’’ 
and inserting ‘‘section 223(d)(2)’’, and 
(B) in subsection (e)(1)(E), by striking 
‘‘section 
223(d)’’ 
and 
inserting 
‘‘section 
223(c)’’. 
(12) Section 6693(a)(2)(C) of such Code is 
amended by striking ‘‘section 223(h)’’ and inserting 
‘‘section 223(g)’’. 
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(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2011. 
SEC. 202. INCREASE IN DEDUCTIBLE HSA CONTRIBUTION 
LIMITATIONS. 
(a) IN GENERAL.—Paragraph (1) of section 223(b) 
of the Internal Revenue Code of 1986 is amended by strik-
ing ‘‘the sum of the monthly’’ and all that follows through 
‘‘eligible individual’’ and inserting ‘‘$10,000 ($20,000 in 
the case of a joint return)’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Subsection (b) of such Code is amended by 
striking paragraphs (2), (3), and (5) and by redesig-
nating paragraphs (4), (6), and (7) as paragraphs 
(2), (3), and (4), respectively. 
(2) Paragraph (2) of section 223(b) of such 
Code (as redesignated by paragraph (1)) is amended 
by striking the last sentence. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2011. 
SEC. 203. MEDICARE ELIGIBLE INDIVIDUALS ELIGIBLE TO 
CONTRIBUTE TO HSA. 
(a) Subsection (b) of section 223 of the Internal Rev-
enue Code of 1986 is amended by striking paragraph (7). 
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(b) Paragraph (1) of section 223(c) of such Code is 
amended by adding at the end the following new subpara-
graph: 
‘‘(C) SPECIAL RULE FOR INDIVIDUALS EN-
TITLED TO BENEFITS UNDER MEDICARE.—In 
the case of an individual— 
‘‘(i) who is entitled to benefits under 
title XVIII of the Social Security Act, and 
‘‘(ii) with respect to whom a health 
savings account is established in a month 
before the first month such individual is 
entitled to such benefits, 
such individual shall be deemed to be an eligible 
individual.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2011. 
SEC. 204. HSA ROLLOVER TO MEDICARE ADVANTAGE MSA. 
(a) IN GENERAL.—Paragraph (2) of section 138(b) 
of the Internal Revenue Code of 1986 is amended by strik-
ing ‘‘or’’ at the end of subparagraph (A), by adding ‘‘or’’ 
at the end of subparagraph (C), and by adding at the end 
the following new subparagraph: 
‘‘(C) a HSA rollover contribution described 
in subsection (d)(5),’’. 
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(b) HSA ROLLOVER CONTRIBUTION.—Subsection (c) 
of section 138 of such Code is amended by adding at the 
end the following new paragraph: 
‘‘(5) ROLLOVER CONTRIBUTION.—An amount is 
described in this paragraph as a rollover contribu-
tion if it meets the requirement of subparagraphs 
(A) and (B). 
‘‘(A) IN GENERAL.—The requirements of 
this subparagraph are met in the case of an 
amount paid or distributed from a health sav-
ings to the account beneficiary to the extent the 
amount is received is paid into a Medicare Ad-
vantage MSA of such beneficiary not later than 
the 60th day after the day on which the bene-
ficiary receives the payment or distribution. 
‘‘(B) LIMITATION.—This paragraph shall 
not apply to any amount described in subpara-
graph (A) received by an individual from a 
health savings account if, at any time during 
the 1-year period ending on the day of such re-
ceipt, such individual received any other amount 
described in subparagraph (A) from a health 
savings account which was not includible in the 
individual’s gross income because of the appli-
cation of section 223(f)(5)(A).’’. 
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