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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘No Bailouts for Insur-
ance Industry Act of 2014’’. 
SEC. 2. FINDINGS; PURPOSE. 
(a) FINDINGS.—Congress finds the following: 
(1) According to the most recent United States 
Census, employer-based health insurance is the larg-
est source of health insurance coverage in the 
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United States. Of those employed, 70 percent receive 
employment-based health insurance. Of unemployed 
Americans, 30 percent receive employer-sponsored 
health insurance. 
(2) Despite the large percentages of coverage, 
as health care costs climb, the percentage of Ameri-
cans who receive health insurance through employers 
has fallen significantly over the last decade—from 
70 percent nationwide in 2000 to 60 percent in 
2011, according to a report by the Robert Wood 
Johnson Foundation. 
(3) According to recent surveys done by the Na-
tional Business Group on Health and the Kaiser 
Family Foundation, most companies continue to 
provide health insurance for employees and wish to 
continue doing so into the future. 
(4) Employers that offer insurance will not con-
tribute additional risk to the Health Insurance Ex-
changes established in the Patient Protection and 
Affordable Care Act (in this Act referred to as 
‘‘PPACA’’). 
(5) The transitional reinsurance program, es-
tablished in section 1341 of PPACA, is intended to 
stabilize risk in the individual health insurance mar-
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ket during the first three years of the Health Insur-
ance Exchanges, as established by that Act. 
(6) PPACA also requires that the Treasury col-
lect a fee for each employer-sponsored covered life in 
order to pay for the transitional reinsurance pro-
gram. 
(7) This fee is a disincentive for employers to 
continue offering coverage to all employees, and does 
not give employers any benefits of the transitional 
reinsurance program. 
(b) PURPOSE.—It is the purpose of this Act to re-
move the current funding mechanism for the transitional 
reinsurance program in order that employer-sponsored in-
surance is supported so that Americans can sustain qual-
ity health coverage. 
SEC. 3. REPEAL OF SECTIONS 1341 AND 1342 OF PPACA. 
(a) REPEAL OF SECTION 1341.— 
(1) IN GENERAL.—Section 1341 of PPACA (42 
U.S.C. 18061) is repealed. 
(2) EFFECTIVE DATE.—The repeal of such sec-
tion shall apply to plan years beginning after the 
date of the enactment of this Act. 
(3) APPLICATION.—In applying such section be-
fore the effective date of such repeal— 
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