I 
113TH CONGRESS 
1ST SESSION H. R. 1908 
To repeal certain provisions of the Patient Protection and Affordable Care 
Act relating to the premium tax credits and cost-sharing subsidies. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 9, 2013 
Mr. SALMON (for himself, Mr. LAMALFA, Mr. HUELSKAMP, Mr. JONES, Mr. 
FRANKS of Arizona, Mr. RADEL, Mr. SCHWEIKERT, Mr. MEADOWS, Mr. 
YOHO, Mr. GOSAR, and Mr. DUNCAN of South Carolina) introduced the 
following bill; which was referred to the Committee on Ways and Means, 
and in addition to the Committees on Energy and Commerce and Edu-
cation and the Workforce, for a period to be subsequently determined by 
the Speaker, in each case for consideration of such provisions as fall with-
in the jurisdiction of the committee concerned 
A BILL 
To repeal certain provisions of the Patient Protection and 
Affordable Care Act relating to the premium tax credits 
and cost-sharing subsidies. 
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 ‘‘Federal Repeal of Ex-
pensive Exchanges Act’’ or the ‘‘FREE Act’’. 
SEC. 2. FINDINGS. 
The Congress finds the following: 
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(1) The Patient Protection and Affordable Care 
Act makes health care more expensive and less ac-
cessible, 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 in-
surance exchanges directly assaults the States’ tradi-
tional authority to regulate health insurance. 
(4) Such Federal mandate imposes unknown in-
surance costs on consumers and administrative costs 
on States. 
(5) Such Federal mandate imposes a ‘‘one-size- 
fits-all’’ approach that ignores State differences. 
(6) Such Federal mandate undermines choice 
and competition and guarantees further consolida-
tion of the health insurance markets. 
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SEC. 3. REPEAL OF THE PATIENT PROTECTION AND AF-
FORDABLE CARE ACT PREMIUM TAX CRED-
ITS 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 REDUC-
TIONS.—The Patient Protection and Affordable Care Act 
is amended by striking section 1412. 
(c) COST-SHARING.—The Patient Protection and Af-
fordable 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 estab-
lished under section 1311 of the Patient 
Protection and Affordable Care Act, and’’; 
and 
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(C) Section 6103(l)(21) of such Code is 
amended— 
(i) by striking ‘‘any premium tax 
credit under section 36B or any cost-shar-
ing reduction under section 1402 of the 
Patient Protection and Affordable Care 
Act or’’ in the matter preceding subpara-
graph (i), 
(ii) by striking ‘‘(as defined in section 
36B)’’ in subparagraph (A)(iv), and 
(iii) by adding at the end the fol-
lowing: 
‘‘(D) MODIFIED
ADJUSTED
GROSS
IN-
COME.—For purposes of this paragraph, the 
term ‘modified adjusted gross income’ means 
adjusted gross income increased by— 
‘‘(i) any amount excluded from gross 
income under section 911, 
‘‘(ii) any amount of interest received 
or accrued by the taxpayer during the tax-
able 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 
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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)) is 
amended— 
(i) by inserting ‘‘and’’ at the end of 
paragraph (1), and 
(ii) by striking paragraph (2) and re-
designating paragraph (3) as paragraph 
(2). 
(B) Section 18C(a) of the Fair Labor 
Standards Act of 1938 (29 U.S.C. 218c(a)) is 
amended by striking paragraph (1) and by re-
designating paragraphs (2) through (5) as 
paragraphs (1) through (4), respectively. 
(3) PUBLIC
HEALTH
SERVICE
ACT.—Title 
XXVII of the Public Health Service Act (42 U.S.C. 
300gg et seq.) is amended— 
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(ii) in subsection (a), by striking para-
graph (2); 
(iii) in subsection (b), by striking 
paragraphs (3) and (4); 
(iv) in subsection (e)— 
(I) in paragraph (2), by amend-
ing subparagraph (A) to read as fol-
lows: 
‘‘(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 indi-
vidual’s eligibility to enroll through the Ex-
change shall be satisfied.’’; and 
(II) in paragraph (4)(B), by 
striking clauses (ii) and (iii) and re-
designating 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’’, 
and 
(II) by striking ‘‘, determine eli-
gibility, and determine the amount of 
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the credit or reduction’’ and inserting 
‘‘and determine eligibility’’; and 
(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)), by striking ‘‘, including the pre-
mium tax credits under section 36B of the In-
ternal Revenue Code of 1986 and cost-sharing 
reductions under section 1402’’; 
(M) by striking section 1415 (42 U.S.C. 
18084); and 
(N) in section 2901 (25 U.S.C. 1623), by 
striking subsection (a). 
(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, pre-
mium assistance’’ and all that follows 
through ‘‘section 1412 of the Patient Pro-
tection and Affordable Care Act),’’; and 
(ii) by striking ‘‘reduced cost-sharing 
for eligible individuals under section 1402 
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of the Patient Protection and Affordable 
Care Act, and any other’’ and inserting 
‘‘any’’; 
(B) in paragraph (1)(D), by striking ‘‘, 
child health assistance, or premium assistance,’’ 
and inserting ‘‘or child health assistance,’’; 
(C) by striking paragraph (2); and 
(D) in paragraph (4), by striking ‘‘and 
who is eligible to receive premium credit assist-
ance for the purchase of a qualified health plan 
under section 36B of the Internal Revenue 
Code of 1986’’. 
SEC. 4. REPEAL OF EMPLOYER AND INDIVIDUAL MAN-
DATES. 
(a) EMPLOYER MANDATE.— 
(1) IN GENERAL.—Chapter 43 of the Internal 
Revenue Code of 1986 is amended by striking sec-
tion 4980H, and the table of sections for such chap-
ter is amended by striking the item relating to sec-
tion 4980H. 
(2) INFORMATION RETURN.— 
(A) Chapter 61 of such Code is amended 
by striking section 6056, and the table of sec-
tions for such chapter is amended by striking 
the item relating to section 6056. 
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(B) Section 6724(d) of such Code is 
amended— 
(i) in paragraph (1)(B) by inserting 
‘‘or’’ at the end of clause (xxiii), by strik-
ing ‘‘or’’ at the end of clause (xxiv) and in-
serting ‘‘and’’, and by striking clause 
(xxv), and 
(ii) in paragraph (2) by inserting ‘‘or’’ 
at the end of subparagraph (FF), by strik-
ing ‘‘or’’ at the end of subparagraph (GG) 
and inserting ‘‘and’’, and by striking sub-
paragraph (HH). 
(3) PATIENT
PROTECTION
AND
AFFORDABLE 
CARE ACT CONFORMING AMENDMENTS.— 
(A) Section 1332(a)(2)(D) of the Patient 
Protection and Affordable Care Act (as amend-
ed by section 3(d)(4)(H) of this Act) is amend-
ed by striking ‘‘Sections 4980H’’ and inserting 
‘‘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.— 
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(1) IN GENERAL.—Section 5000A of the Inter-
nal Revenue Code of 1986 is amended by adding at 
the end the following new subsection: 
‘‘(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)) is amended by 
striking subparagraph (H). 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply as if included in the respective sec-
tions the Patient Protection and Affordable Care Act to 
which such amendments relate. 
Æ 
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