‘‘(C) REQUIREMENTS
ON
FUNDS.—Any 
amounts that are used under subparagraph 
(A)— 
‘‘(i) shall not be subject to any of the 
requirements of subsection (d), subsection 
(f), section 2204, or section 2205; and 
‘‘(ii) shall be subject to— 
‘‘(I) 
the 
audit 
requirements 
under section 2203; and 
‘‘(II) 
any 
requirements 
that 
apply to Federal funds provided di-
rectly for such State program. 
‘‘(f) MAINTENANCE
OF CURRENT LAW RESTRIC-
TIONS ON USE OF FEDERAL FUNDS.— 
‘‘(1) IN GENERAL.— 
‘‘(A) NO
FUNDING
FOR
ABORTIONS.— 
None of the funds appropriated in this title 
shall be expended for any abortion. 
‘‘(B) NO FUNDS FOR COVERAGE OF ABOR-
TION.—None of the funds appropriated in this 
title shall be expended for health benefits cov-
erage that includes coverage of abortion. 
‘‘(C) HEALTH
BENEFITS
COVERAGE
DE-
FINED.—For purposes of this subsection, the 
term ‘health benefits coverage’ means the pack-
VerDate Mar 15 2010 
03:15 Mar 08, 2012
Jkt 019200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H4160.IH
H4160
jbell on DSK7SPTVN1PROD with BILLS
age of services covered by a managed care pro-
vider or organization pursuant to a contract or 
other arrangement. 
‘‘(2) EXCEPTIONS.—The limitations established 
in paragraph (1) shall not apply to an abortion— 
‘‘(A) if the pregnancy is the result of an 
act of rape or incest; or 
‘‘(B) in the case where a woman suffers 
from a physical disorder, physical injury, or 
physical illness that would, as certified by a 
physician, place the woman in danger of death 
unless an abortion is performed, including a 
life-endangering physical condition caused by or 
arising from the pregnancy itself. 
‘‘(3) STATE
FUNDS
USED
IN
CONJUNCTION 
WITH FEDERAL FUNDS.—The limitations established 
in paragraph (1) shall apply to any State funds used 
in conjunction with Federal funds appropriated 
under this title to provide, or finance the provision 
of, health-care-related items and services to indigent 
individuals pursuant to section 2201 or subsections 
(d)(2), (e)(1), or (e)(2) of section 2202. 
‘‘(4) OPTION
TO
PURCHASE
SEPARATE
COV-
ERAGE OR PLAN.—Nothing in this subsection shall 
be construed as prohibiting a State from purchasing 
VerDate Mar 15 2010 
03:15 Mar 08, 2012
Jkt 019200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H4160.IH
H4160
jbell on DSK7SPTVN1PROD with BILLS
separate coverage for abortions for which funding is 
prohibited under this subsection, or a health plan 
that includes such abortions, so long as such cov-
erage or plan is paid for entirely using funds not 
provided by this title. 
‘‘(5) OPTION TO OFFER COVERAGE OR PLAN.— 
Nothing in this subsection shall restrict any health 
insurance issuer from offering separate coverage for 
abortions for which funding is prohibited under this 
subsection, or a health plan that includes such abor-
tions, so long as— 
‘‘(A) premiums for such separate coverage 
or plan are paid entirely with funds not pro-
vided by this title; and 
‘‘(B) administrative costs and all services 
offered through such separate coverage or plan 
are paid for using only premiums collected for 
such coverage or plan. 
‘‘(6) CONSCIENCE PROTECTIONS.— 
‘‘(A) None of the funds appropriated in 
this Act may be made available to a Federal 
agency or program, or to a State or local gov-
ernment, if such agency, program, or govern-
ment subjects any institutional or individual 
health care entity to discrimination on the basis 
VerDate Mar 15 2010 
03:15 Mar 08, 2012
Jkt 019200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H4160.IH
H4160
jbell on DSK7SPTVN1PROD with BILLS
that the health care entity does not provide, pay 
for, provide coverage of, or refer for abortions. 
‘‘(B) In this paragraph, the term ‘health 
care entity’ includes an individual physician or 
other health care professional, a hospital, a pro-
vider-sponsored organization, a health mainte-
nance organization, a health insurance plan, or 
any other kind of health care facility, organiza-
tion, or plan. 
‘‘(g) NO FUNDING FOR ILLEGAL ALIENS.—Except as 
provided under this section and section 2205, no funds 
appropriated in this title may be used to provide health- 
care-related items and services to an alien who is not law-
fully admitted for permanent residence or otherwise per-
manently residing in the United States under color of law. 
‘‘(h) NONENTITLEMENT.—Nothing in this title shall 
be construed as providing an individual with an entitle-
ment to health-care-related items and services under this 
title. 
‘‘SEC. 
2203. 
ADMINISTRATIVE 
AND 
FISCAL 
ACCOUNT-
ABILITY. 
‘‘(a) AUDITS.— 
‘‘(1) CONTRACT WITH APPROVED AUDITING EN-
TITY.—Not later than October 1, 2013, and annu-
ally thereafter, a State shall contract with an ap-
VerDate Mar 15 2010 
03:15 Mar 08, 2012
Jkt 019200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H4160.IH
H4160
jbell on DSK7SPTVN1PROD with BILLS
proved auditing entity (as defined under paragraph 
(3)(B)) for purposes of conducting an audit under 
paragraph (2) (with respect to the fiscal year ending 
September 30 of such year). 
‘‘(2) AUDIT REQUIREMENT.—Under a contract 
under paragraph (1), an approved auditing entity 
shall conduct an audit of the expenditures or trans-
fers made by a State from amounts received under 
a grant under this title, or from State funds de-
scribed in section 2202(f)(3), with respect to the fis-
cal year which such audit covers, to determine the 
extent to which such expenditures and transfers 
were expended in accordance with this title. 
‘‘(3) ENTITY CONDUCTING AUDIT.— 
‘‘(A) IN
GENERAL.—With respect to a 
State, the audit under paragraph (2) shall be 
conducted by an approved auditing entity in ac-
cordance with generally accepted auditing prin-
ciples. 
‘‘(B) APPROVED AUDITING ENTITY.—For 
purposes of this section, the term ‘approved au-
diting entity’ means, with respect to a State, an 
entity that is— 
‘‘(i) approved by the Secretary of the 
Treasury; 
VerDate Mar 15 2010 
03:15 Mar 08, 2012
Jkt 019200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H4160.IH
H4160
jbell on DSK7SPTVN1PROD with BILLS
‘‘(ii) approved by the chief executive 
officer of the State; and 
‘‘(iii) independent of any Federal, 
State, or local agency. 
‘‘(4) SUBMISSION OF AUDIT.—Not later than 
December 31, 2013, and annually thereafter, a State 
shall submit the results of the audit under para-
graph (2) (with respect to the fiscal year ending on 
September 30 of such year) to the State legislature 
and to the Secretary of the Treasury. 
‘‘(5) 
ADDITIONAL
ACCOUNTING
REQUIRE-
MENTS.—The provisions of chapter 75 of title 31, 
United States Code, shall apply to the audit require-
ments of this section. 
‘‘(b) REIMBURSEMENT AND PENALTY.— 
‘‘(1) IN GENERAL.—If, through an audit con-
ducted under subsection (a), an approved auditing 
entity finds that any amounts paid to a State under 
a grant under this title were not expended in accord-
ance with this title— 
‘‘(A) the State shall pay to the Treasury of 
the United States any such amount, plus 10 
percent of such amount as a penalty; or 
‘‘(B) the Secretary of the Treasury shall 
offset such amount plus the 10 percent penalty 
VerDate Mar 15 2010 
03:15 Mar 08, 2012
Jkt 019200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H4160.IH
H4160
jbell on DSK7SPTVN1PROD with BILLS
against any other amount in any other fiscal 
year that the State may be entitled to receive 
under a grant under this title. 
‘‘(2) MISUSE OF STATE FUNDS.—If, through an 
audit conducted under subsection (a), an approved 
auditing entity finds that a State violated the re-
quirements of section 2202(f)(3), the State shall pay 
to the Treasury of the United States 100 percent of 
the amount of State funds that were used in viola-
tion of section 2202(f)(3) as a penalty. Insofar as a 
State fails to pay any such penalty, the Secretary of 
the Treasury shall offset the amount not so paid 
against the amount of any grant otherwise payable 
to the State under this title. 
‘‘(c) ANNUAL REPORTING REQUIREMENTS.— 
‘‘(1) IN GENERAL.—Not later than January 31, 
2014, and annually thereafter, each State shall sub-
mit to the Secretary of the Treasury and the State 
legislature a report on the activities carried out by 
the State during the most recently completed fiscal 
year with funds received by the State under a grant 
under this title for such fiscal year. 
‘‘(2) CONTENT.—A report under paragraph (1) 
shall, with respect to a fiscal year— 
VerDate Mar 15 2010 
03:15 Mar 08, 2012
Jkt 019200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H4160.IH
H4160
jbell on DSK7SPTVN1PROD with BILLS
‘‘(A) contain the results of the audit con-
ducted by an approved auditing entity for a 
State for such fiscal year, in accordance with 
the requirements of subsection (a) of this sec-
tion; 
‘‘(B) specify the amount of the grant made 
to the State under this title that is used to 
carry out a program under section 2202(e)(3); 
and 
‘‘(C) be in such form and contain such 
other information as the State determines is 
necessary to provide— 
‘‘(i) an accurate description of the ac-
tivities conducted by the State for the pur-
pose described under section 2201 and any 
other use of funds permitted under sub-
sections (d) and (e) of section 2202; and 
‘‘(ii) a complete record of the pur-
poses for which amounts were expended in 
accordance with this title. 
‘‘(3) CONFORMITY
WITH
ACCOUNTING
PRIN-
CIPALS.—Any financial information in the report 
under paragraph (1) shall be prepared and reported 
in accordance with generally accepted accounting 
VerDate Mar 15 2010 
03:15 Mar 08, 2012
Jkt 019200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H4160.IH
H4160
jbell on DSK7SPTVN1PROD with BILLS
principles, including the provisions of chapter 75 of 
title 31, United States Code. 
‘‘(4) PUBLIC
AVAILABILITY.—A State shall 
make copies of the reports required under this sec-
tion available on a public Web site and shall make 
copies available in other formats upon request. 
‘‘(d) FAILURE TO COMPLY WITH REQUIREMENTS.— 
The Secretary of the Treasury shall not make any pay-
ment to a State under a grant authorized by section 
2202(a)— 
‘‘(1) if an audit for a State is not submitted as 
required under subsection (a), during the period be-
tween the date such audit is due and the date on 
which such audit is submitted; 
‘‘(2) if a State fails to submit a report as re-
quired under subsection (c), during the period be-
tween the date such report is due and the date on 
which such report is submitted; or 
‘‘(3) if a State violates a requirement of section 
2202(f), during the period beginning on the date the 
Secretary becomes aware of such violation and the 
date on which such violation is corrected by the 
State. 
‘‘(e) ADMINISTRATIVE
SUPERVISION
AND
OVER-
SIGHT.— 
VerDate Mar 15 2010 
03:15 Mar 08, 2012
Jkt 019200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H4160.IH
H4160
jbell on DSK7SPTVN1PROD with BILLS
‘‘(1) LIMITED ROLE FOR SECRETARY OF TREAS-
URY AND THE ATTORNEY GENERAL.— 
‘‘(A) TREASURY.—The authority of the 
Secretary of the Treasury under this title is 
limited to— 
‘‘(i) promulgating regulations, issuing 
rules, or publishing guidance documents to 
the extent necessary for purposes of imple-
menting subsection (a)(3)(B), subsection 
(b), and subsection (d); 
‘‘(ii) making quarterly payments to 
the States under grants under this title in 
accordance with section 2202(a); 
‘‘(iii) approving entities under sub-
section (a)(3)(B) for purposes of the audits 
required under subsection (a); 
‘‘(iv) withholding payment to a State 
of a grant under subsection (d) or offset-
ting a payment of such a grant to a State 
under subsection (b); and 
‘‘(v) exercising the authority relating 
to nondiscrimination that is specified in 
section 2204(b). 
‘‘(B) ATTORNEY GENERAL.—The authority 
of the Attorney General to supervise the 
VerDate Mar 15 2010 
03:15 Mar 08, 2012
Jkt 019200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H4160.IH
H4160
jbell on DSK7SPTVN1PROD with BILLS
amounts received by a State under this title is 
limited to the authority under section 2204(c). 
‘‘(2) FEDERAL SUPERVISION.— 
‘‘(A) IN
GENERAL.—Except as provided 
under paragraph (1), an administrative officer, 
employee, department, or agency of the United 
States (including the Secretary of Health and 
Human Services) may not— 
‘‘(i) supervise— 
‘‘(I) the amounts received by the 
States under this title; or 
‘‘(II) the use of such amounts by 
the States; or 
‘‘(ii) promulgate regulations or issue 
rules in accordance with this title. 
‘‘(B) LIMITATION
ON
SECRETARY
OF 
HEALTH
AND
HUMAN
SERVICES.—The Sec-
retary of Health and Human Services shall 
have no authority over any provision of this 
title. 
‘‘(f) RESERVATION OF STATE POWERS.—Nothing in 
this section shall be construed to limit the power of a 
State, including the power of a State to pursue civil and 
criminal penalties under State law against any individual 
VerDate Mar 15 2010 
03:15 Mar 08, 2012
Jkt 019200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
E:\BILLS\H4160.IH
H4160
jbell on DSK7SPTVN1PROD with BILLS
or entity that misuses, or engages in fraud or abuse re-
lated to, the funds provided to a State under this title. 
‘‘SEC. 2204. NONDISCRIMINATION PROVISIONS. 
‘‘(a) NO DISCRIMINATION AGAINST INDIVIDUALS.— 
No individual shall be excluded from participation in, de-
nied the benefits of, or subjected to discrimination under, 
any program or activity funded in whole or in part with 
amounts paid to a State under this title on the basis of 
such individual’s— 
‘‘(1) disability under section 504 of the Reha-
bilitation Act of 1973 (29 U.S.C. 794); 
‘‘(2) sex under title IX of the Education 
Amendments of 1972 (20 U.S.C. 1681 et seq.); or 
‘‘(3) race, color, or national origin under title 
VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d 
et seq.). 
‘‘(b) COMPLIANCE.— 
‘‘(1) If the Secretary of the Treasury deter-
mines that a State or an entity that has received 
funds from amounts paid to a State under a grant 
under this title has failed to comply with a provision 
of law referred to in subsection (a), the Secretary of 
the Treasury shall notify the chief executive officer 
of the State of such failure to comply and shall re-
VerDate Mar 15 2010 
03:15 Mar 08, 2012
Jkt 019200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6201
E:\BILLS\H4160.IH
H4160
jbell on DSK7SPTVN1PROD with BILLS
quest that such chief executive officer secure such 
compliance. 
‘‘(2) If, not later than 60 days after receiving 
notification under paragraph (1), the chief executive 
officer of a State fails or refuses to secure compli-
ance with the provision of law referred to in such 
notification, the Secretary of the Treasury may— 
‘‘(A) refer the matter to the Attorney Gen-
eral with a recommendation that an appropriate 
civil action be instituted; or 
‘‘(B) exercise the powers and functions 
provided under section 505 of the Rehabilita-
tion Act of 1973 (29 U.S.C. 794a), title IX of 
the Education Amendments of 1972 (20 U.S.C. 
1681 et seq.), or title VI of the Civil Rights Act 
of 1964 (42 U.S.C. 2000d et seq.) (as applica-
ble). 
‘‘(c) CIVIL ACTIONS.—If a matter is referred to the 
Attorney General under subsection (b)(2)(A), or the At-
torney General has reason to believe that a State or entity 
has failed to comply with a provision of law referred to 
in subsection (a), the Attorney General may bring a civil 
action in an appropriate district court of the United States 
for such relief as may be appropriate, including injunctive 
relief. 
VerDate Mar 15 2010 
03:15 Mar 08, 2012
Jkt 019200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6201
E:\BILLS\H4160.IH
H4160
jbell on DSK7SPTVN1PROD with BILLS
‘‘SEC. 2205. EMERGENCY ASSISTANCE. 
‘‘(a) IN GENERAL.—A State that receives a grant 
under this title for a fiscal year shall provide payment for 
health-care-related items and services provided to a cit-
izen, legal resident, or an alien who is not lawfully admit-
ted for permanent residence or otherwise permanently re-
siding in the United States under color of law, consistent 
with the requirements of section 1867, if— 
‘‘(1) such health-care-related items and services 
are— 
‘‘(A) necessary for the treatment of an 
emergency medical condition; and 
‘‘(B) health-care-related items and services 
that such State would provide payment for 
under this title, if provided to an indigent indi-
vidual; 
‘‘(2) the individual meets all necessary eligi-
bility requirements for health-care-related items and 
services under the State program funded under this 
title, except for any requirement related to immigra-
tion status; and 
‘‘(3) such items and services are not related to 
an organ transplant procedure. 
‘‘(b) EMERGENCY MEDICAL CONDITION.—For pur-
poses of this section, the term ‘emergency medical condi-
tion’ means a medical condition (including emergency 
VerDate Mar 15 2010 
03:15 Mar 08, 2012
Jkt 019200
PO 00000
Frm 00019
Fmt 6652
Sfmt 6201
E:\BILLS\H4160.IH
H4160
jbell on DSK7SPTVN1PROD with BILLS
labor and delivery) manifesting itself by acute symptoms 
of sufficient severity (including severe pain) such that the 
absence of immediate medical attention could reasonably 
be expected to result in— 
‘‘(1) placing the patient’s health in serious jeop-
ardy; 
‘‘(2) serious impairment to bodily functions; or 
‘‘(3) serious dysfunction of any bodily organ or 
part. 
‘‘SEC. 2206. DEFINITIONS. 
‘‘For purposes of this title: 
‘‘(1) HEALTH-CARE-RELATED ITEMS AND SERV-
ICES.—The term ‘health-care-related items and serv-
ices’ shall be defined by a State with respect to use 
of such term for purposes of the application of this 
title to the State. 
‘‘(2) HIGH-RISK POPULATION.—The term ‘high- 
risk population’ means individuals who are described 
in one of the following subparagraphs: 
‘‘(A) Individuals who, by reason of the ex-
istence or history of a medical condition, are 
able to acquire health coverage only at rates 
which are at least 150 percent of the standard 
risk rates for such coverage. 
VerDate Mar 15 2010 
03:15 Mar 08, 2012
Jkt 019200
PO 00000
Frm 00020
Fmt 6652
Sfmt 6201
E:\BILLS\H4160.IH
H4160
jbell on DSK7SPTVN1PROD with BILLS
‘‘(B) Individuals who are provided health 
coverage by a qualified high risk pool. 
‘‘(3) INDIGENT INDIVIDUAL.—The term ‘indi-
gent individual’ shall be defined by a State with re-
spect to use of such term for purposes of the appli-
cation of this title to the State. 
‘‘(4) QUALIFIED HIGH RISK POOL.—The term 
‘qualified high risk pool’ has the meaning given such 
term in section 2745(g)(1)(A) of the Public Health 
Service Act. 
‘‘(5) 
RISK-ADJUSTMENT
MECHANISM
DE-
FINED.—For purposes of this section, the term 
‘risk-adjustment mechanism’ means any risk-spread-
ing mechanism to subsidize the purchase of private 
health insurance for the high-risk population, includ-
ing a qualified high risk pool.’’. 
(b) REPORT ON REDUCTION OF FEDERAL ADMINIS-
TRATIVE EXPENDITURES.—Beginning not later than Oc-
tober 31, 2013, and annually thereafter until October 31, 
2022, the Secretary of Health and Human Services, in 
consultation with the Secretary of the Treasury, shall sub-
mit a report to the Committee on Energy and Commerce 
in the House of Representatives and the Finance Com-
mittee in the Senate containing a description of the total 
reduction in Federal expenditures required to administer 
VerDate Mar 15 2010 
03:15 Mar 08, 2012
Jkt 019200
PO 00000
Frm 00021
Fmt 6652
Sfmt 6201
E:\BILLS\H4160.IH
H4160
jbell on DSK7SPTVN1PROD with BILLS
and provide oversight for the programs to provide health- 
care-related items and services to indigent individuals 
under this Act, compared to the expenditures required to 
administer and provide oversight for the programs under 
titles XIX and XXI of the Social Security Act, as in effect 
on September 30, 2012. 
(c) STATE DEFINED.—Section 1101(a)(1) of the So-
cial Security Act (42 U.S.C. 1301(a)(1)) is amended— 
(1) in the first sentence, by striking ‘‘and XXI’’ 
and inserting ‘‘XXI, and XXII’’; and 
(2) in the fourth sentence, by striking ‘‘and 
XXI’’ and inserting ‘‘, XXI, and XXII’’. 
SEC. 3. REPEAL OF PPACA, HCERA, AND THE FEDERAL RE-
QUIREMENTS OF MEDICAID AND CHIP. 
(a) PPACA.—The Patient Protection and Affordable 
Care Act (Public Law 111–148) is repealed, and the provi-
sions of law amended or repealed by such Act are restored 
or revived as if such Act had not been enacted. 
(b) HCERA.—Title I and subtitle B of title II of the 
Health Care and Education Reconciliation Act of 2010 
(Public Law 111–152) are repealed, and the provisions of 
law amended or repealed by such title or subtitle, respec-
tively, are restored or revived as if such title and subtitle 
had not been enacted. 
VerDate Mar 15 2010 
03:15 Mar 08, 2012
Jkt 019200
PO 00000
Frm 00022
Fmt 6652
Sfmt 6201
E:\BILLS\H4160.IH
H4160
jbell on DSK7SPTVN1PROD with BILLS
(c) MEDICAID AND CHIP.—Titles XIX and XXI of 
the Social Security Act are repealed. 
SEC. 4. SEVERABILITY. 
If any provision of this Act, or the application of such 
provision to any person or circumstance, is found to be 
unconstitutional, the remainder of this Act, or the applica-
tion of that provision to other persons or circumstances, 
shall not be affected. 
SEC. 5. EFFECTIVE DATE. 
This Act and the amendments made by this Act shall 
take effect with respect to items and services furnished 
on or after October 1, 2012. 
Æ 
VerDate Mar 15 2010 
03:15 Mar 08, 2012
Jkt 019200
PO 00000
Frm 00023
Fmt 6652
Sfmt 6301
E:\BILLS\H4160.IH
H4160
jbell on DSK7SPTVN1PROD with BILLS