I 
113TH CONGRESS 
1ST SESSION H. R. 3639 
To eliminate sequestration for the security-related functions, to be offset 
through reductions in payments under Medicare, agricultural subsidies, 
federal retirement, and the application of chained CPI, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 3, 2013 
Mr. BRIDENSTINE introduced the following bill; which was referred to the 
Committee on the Budget, and in addition to the Committees on Ways 
and Means, Energy and Commerce, Agriculture, Oversight and Govern-
ment Reform, and House Administration, for a period to be subsequently 
determined by the Speaker, in each case for consideration of such provi-
sions as fall within the jurisdiction of the committee concerned 
A BILL 
To eliminate sequestration for the security-related functions, 
to be offset through reductions in payments under Medi-
care, agricultural subsidies, federal retirement, and the 
application of chained CPI, 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; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Provide for the Common Defense Act of 2013’’. 
VerDate Mar 15 2010 
02:50 Dec 04, 2013
Jkt 039200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H3639.IH
H3639
PWALKER on DSK7TPTVN1PROD with BILLS
(b) TABLE OF CONTENTS.—The table of contents of 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
TITLE I—ELIMINATION OF SEQUESTRATION FOR REVISED 
SECURITY CATEGORY 
Sec. 101. Elimination of 251A reductions for revised security category in fiscal 
years 2014 and 2015. 
TITLE II—OFFSETTING PAYMENT CHANGES 
Subtitle A—Medicare 
Sec. 201. Adjustments to calculation of Medicare part B and part D premiums 
for high-income beneficiaries. 
Sec. 202. Increase in part B deductible for new enrollees. 
Subtitle B—Agriculture 
Sec. 211. Cap on overall rate of return for crop insurance providers. 
Sec. 212. Cap on reimbursements for administrative and operating expenses of 
crop insurance providers. 
Sec. 213. Reduction in share of crop insurance premium paid by Federal Crop 
Insurance Corporation. 
Subtitle C—Federal Retirement 
Sec. 221. Retirement contributions. 
Sec. 222. Annuity supplement. 
Sec. 223. Use of Chained Consumer Price Index. 
Subtitle D—Chained CPI 
Sec. 231. Change in index used to calculate Social Security cost-of-living ad-
justments. 
TITLE I—ELIMINATION OF SE-
QUESTRATION FOR REVISED 
SECURITY CATEGORY 
SEC. 101. ELIMINATION OF 251A REDUCTIONS FOR REVISED 
SECURITY CATEGORY IN FISCAL YEARS 2014 
AND 2015. 
(a) ELIMINATION OF THE ADJUSTMENT UNDER SEC-
TION 251A FOR FISCAL YEARS 2014 AND 2015.—Section 
VerDate Mar 15 2010 
02:50 Dec 04, 2013
Jkt 039200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H3639.IH
H3639
PWALKER on DSK7TPTVN1PROD with BILLS
TITLE II—OFFSETTING 
PAYMENT CHANGES 
Subtitle A—Medicare 
SEC. 201. ADJUSTMENTS TO CALCULATION OF MEDICARE 
PART B AND PART D PREMIUMS FOR HIGH- 
INCOME BENEFICIARIES. 
(a) INCREASE IN APPLICABLE PERCENTAGE USED 
TO CALCULATE PREMIUMS.—Section 1839(i)(3)(C)(i) of 
the Social Security Act (42 U.S.C. 1395r(i)(3)(C)(i)) is 
amended— 
(1) by inserting after ‘‘IN GENERAL.—’’ the fol-
lowing: 
‘‘(I) YEARS
BEFORE
2017.—For 
calendar years prior to 2017:’’; and 
(2) by adding at the end the following new sub-
clause: 
‘‘(II) 
2017 
AND
SUBSEQUENT 
YEARS.—For calendar year 2017 and each 
subsequent calendar year: 
‘‘If the modified adjusted 
The applicable 
gross income is: 
percentage is: 
More than $85,000 but not more than $107,000 .............................
More than $107,000 but not more than $160,000 ...........................
More than $160,000 but not more than $214,000 ...........................
More than $214,000 ..........................................................................
90.’’. 
(b) TEMPORARY ADJUSTMENT TO INCOME THRESH-
OLDS USED TO CALCULATE PREMIUMS.— 
VerDate Mar 15 2010 
04:38 Dec 04, 2013
Jkt 039200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H3639.IH
H3639
PWALKER on DSK7TPTVN1PROD with BILLS
(1) IN
GENERAL.—Section 1839(i)(6) of the 
Social Security Act (42 U.S.C. 1395r(i)(6)) is 
amended in the matter preceding subparagraph (A) 
by striking ‘‘December 31, 2019’’ and inserting 
‘‘December 31 of the year after 2019 that is the 
first year after the year in which at least 25 percent 
of individuals enrolled under this part are subject to 
a reduction under this subsection to the monthly 
amount of the premium subsidy applicable to the 
premium under this section.’’. 
(2) APPLICATION
OF
INFLATION
ADJUST-
MENT.—Section 1839(i)(5) of the Social Security 
Act (42 U.S.C. 1395r(i)(5)) is amended— 
(A) in subparagraph (A), by striking ‘‘In 
the case’’ and inserting ‘‘Subject to subpara-
graph (C), in the case’’; and 
(B) by adding at the end the following new 
subparagraph: 
‘‘(C) TREATMENT OF YEARS AFTER TEM-
PORARY
ADJUSTMENT
PERIOD.—In applying 
subparagraph (A) for the first year beginning 
after the period described in paragraph (6) and 
for each subsequent year, the 12-month period 
ending with August 2006 described in clause 
(ii) of such subparagraph shall be deemed to be 
VerDate Mar 15 2010 
02:50 Dec 04, 2013
Jkt 039200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H3639.IH
H3639
PWALKER on DSK7TPTVN1PROD with BILLS
the 12-month period ending with August of the 
last year of such period described in paragraph 
(6).’’. 
SEC. 202. INCREASE IN PART B DEDUCTIBLE FOR NEW EN-
ROLLEES. 
Section 1833 of the Social Security Act (42 U.S.C. 
1395l) is amended— 
(1) in the first sentence of subsection (b), by in-
serting ‘‘(subject to subsection (z))’’ after ‘‘for a 
subsequent year’’; and 
(2) by adding at the end the following: 
‘‘(z) HIGHER DEDUCTIBLE FOR NEW ENROLLEES.— 
In the case of an individual who is not enrolled under this 
part before January 1, 2017, the amount of the deductible 
under subsection (b)— 
‘‘(1) for 2017 shall be the amount otherwise de-
termined under such subsection for 2017 increased 
by $25; 
‘‘(2) for 2018 shall be the amount otherwise de-
termined under such subsection for 2018, taking 
into account the application of the previous para-
graph; 
‘‘(3) for 2019 shall be the amount otherwise de-
termined under such subsection for 2019, taking 
VerDate Mar 15 2010 
02:50 Dec 04, 2013
Jkt 039200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H3639.IH
H3639
PWALKER on DSK7TPTVN1PROD with BILLS
into the application of the previous paragraphs, , in-
creased by $25; 
‘‘(4) for 2020 shall be the amount otherwise de-
termined under such subsection for 2020, taking 
into account the application of the previous para-
graphs, increased by $25; 
‘‘(5) for 2021 shall be the amount otherwise de-
termined under such subsection for 2021, taking 
into account the application of the previous para-
graphs, increased by $25; and 
‘‘(6) for any subsequent year shall be the 
amount otherwise determined under such subsection 
for such year, taking into account the application of 
the previous paragraphs and this paragraph for pre-
vious years.’’. 
Subtitle B—Agriculture 
SEC. 211. CAP ON OVERALL RATE OF RETURN FOR CROP 
INSURANCE PROVIDERS. 
Section 508(k) of the Federal Crop Insurance Act (7 
U.S.C. 1508(k)) is amended— 
(1) by designating paragraph (3) as subpara-
graph (A) (and adjusting the margin two ems to the 
right); 
(2) by inserting before subparagraph (A) (as so 
designated) the following: 
VerDate Mar 15 2010 
02:50 Dec 04, 2013
Jkt 039200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H3639.IH
H3639
PWALKER on DSK7TPTVN1PROD with BILLS
‘‘(3) RISK.—’’; and 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(B) CAP
ON
OVERALL
RATE
OF
RE-
TURN.—The target rate of return for all the 
companies combined for the 2014 and subse-
quent reinsurance years shall be 12.8 percent of 
retained premium.’’. 
SEC. 212. CAP ON REIMBURSEMENTS FOR ADMINISTRATIVE 
AND OPERATING EXPENSES OF CROP INSUR-
ANCE PROVIDERS. 
Section 508(k)(4) of the Federal Crop Insurance Act 
(7 U.S.C. 1508(k)(4)) is amended by adding at the end 
the following new subparagraph: 
‘‘(G) ADDITIONAL
CAP
ON
REIMBURSE-
MENTS.—Notwithstanding subparagraphs (A) 
through (F), total reimbursements for adminis-
trative and operating costs for the 2014 insur-
ance year for all types of policies and plans of 
insurance shall not exceed $935,000,000. For 
each subsequent insurance year, the dollar 
amount in effect pursuant to the preceding sen-
tence shall be increased by the same inflation 
factor as established for the administrative and 
VerDate Mar 15 2010 
02:50 Dec 04, 2013
Jkt 039200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H3639.IH
H3639
PWALKER on DSK7TPTVN1PROD with BILLS
operating costs cap in the 2011 Standard Rein-
surance Agreement.’’. 
SEC. 213. REDUCTION IN SHARE OF CROP INSURANCE PRE-
MIUM PAID BY FEDERAL CROP INSURANCE 
CORPORATION. 
(a) CATASTROPHIC
RISK
PROTECTION.—Section 
508(d)(2)(A) of the Federal Crop Insurance Act (7 U.S.C. 
1508(d)(2)(A)) is amended by striking ‘‘sufficient to cover 
anticipated losses and a reasonable reserve’’ and inserting 
‘‘for all crops for which catastrophic risk protection cov-
erage is available shall be reduced by the percentage equal 
to the difference between the average loss ratio for such 
crop and 100 percent, plus a reasonable reserve’’. 
(b) ADDITIONAL COVERAGE.—Section 508(e)(2) of 
the Federal Crop Insurance Act (7 U.S.C. 1508(e)(2)) is 
amended— 
(1) in subparagraph (B)(i), by striking ‘‘67’’ 
and inserting ‘‘64’’; 
(2) in subparagraph (C)(i), by striking ‘‘64’’ 
and inserting ‘‘61’’; 
(3) in subparagraph (D)(i), by striking ‘‘59’’ 
and inserting ‘‘56’’; and 
(4) in subparagraph (E)(i), by striking ‘‘55’’ 
and inserting ‘‘52’’. 
VerDate Mar 15 2010 
02:50 Dec 04, 2013
Jkt 039200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H3639.IH
H3639
PWALKER on DSK7TPTVN1PROD with BILLS
(c) ENTERPRISE AND WHOLE FARM UNITS.—Sec-
tion 508(e)(5)(C) of the Federal Crop Insurance Act (7 
U.S.C. 1508(e)(5)(C)) is amended by striking ‘‘80’’ and 
inserting ‘‘77’’. 
(d) AREA REVENUE PLANS.—Section 508(e)(6) of 
the Federal Crop Insurance Act (7 U.S.C. 1508(e)(6)) is 
amended— 
(1) in subparagraph (A)(i), by striking ‘‘59’’ 
and inserting ‘‘56’’; and 
(2) in subparagraph (B)(i), by striking ‘‘55’’ 
and inserting ‘‘52’’. 
(e) AREA YIELD PLANS.—Section 508(e)(7) of the 
Federal Crop Insurance Act (7 U.S.C. 1508) is amend-
ed— 
(1) in subparagraph (A)(i), by striking ‘‘59’’ 
and inserting ‘‘56’’; 
(2) in subparagraph (B)(i), by striking ‘‘55’’ 
and inserting ‘‘52’’; and 
(3) in subparagraph (C)(i), by striking ‘‘51’’ 
and inserting ‘‘48’’. 
(f) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to the first contract 
change date for a contract under the Federal Crop Insur-
ance Act occurring after the date of the enactment of this 
Act. 
VerDate Mar 15 2010 
02:50 Dec 04, 2013
Jkt 039200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H3639.IH
H3639
PWALKER on DSK7TPTVN1PROD with BILLS
(2) GOVERNMENT
CONTRIBUTIONS.—Section 
8334(a)(1)(B) of title 5, United States Code, is 
amended— 
(A) in clause (i), by striking ‘‘Except as 
provided in clause (ii),’’ and inserting ‘‘Except 
as provided in clause (ii) or (iii),’’; and 
(B) by adding at the end the following: 
‘‘(iii) The amount to be contributed under clause (i) 
shall, with respect to a period in any year beginning after 
December 31, 2013, be equal to— 
‘‘(I) the amount which would otherwise apply 
under clause (i) with respect to such period, reduced 
by 
‘‘(II) the amount by which, with respect to such 
period, the withholding under subparagraph (A) ex-
ceeds the amount which would otherwise have been 
withheld from the basic pay of the employee or elect-
ed official involved under subparagraph (A) based on 
the percentage applicable under subsection (c) for 
calendar year 2013.’’. 
(b) INDIVIDUAL CONTRIBUTIONS UNDER THE FED-
ERAL
EMPLOYEES’ 
RETIREMENT
SYSTEM.—Section 
8422(a)(3) of title 5, United States Code, is amended— 
(1) by redesignating subparagraph (B) as sub-
paragraph (C); and 
VerDate Mar 15 2010 
02:50 Dec 04, 2013
Jkt 039200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H3639.IH
H3639
PWALKER on DSK7TPTVN1PROD with BILLS
(2) by inserting after subparagraph (A) the fol-
lowing: 
‘‘(B) Notwithstanding any other provision of this 
paragraph, the applicable percentage under this para-
graph for civilian service by employees or Members other 
than revised annuity employees shall— 
‘‘(i) for a period in calendar year 2014, be 
equal to the applicable percentage under this para-
graph for calendar year 2013 plus an additional 0.4 
percentage point; 
‘‘(ii) for a period in calendar year 2015, be 
equal to the applicable percentage under this para-
graph for calendar year 2014 (as determined under 
clause (i)) plus an additional 0.4 percentage point; 
‘‘(iii) for a period in calendar year 2016, be 
equal to the applicable percentage under this para-
graph for calendar year 2015 (as determined under 
clause (ii)) plus an additional 0.4 percentage point; 
and 
‘‘(iv) for a period in any calendar year after 
2016, be equal to the applicable percentage under 
this paragraph for calendar year 2016 (as deter-
mined under clause (iii)).’’. 
VerDate Mar 15 2010 
02:50 Dec 04, 2013
Jkt 039200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H3639.IH
H3639
PWALKER on DSK7TPTVN1PROD with BILLS
SEC. 222. ANNUITY SUPPLEMENT. 
Section 8421(a) of title 5, United States Code, is 
amended— 
(1) in paragraph (1), by striking ‘‘paragraph 
(3)’’ and inserting ‘‘paragraphs (3) and (4)’’; 
(2) in paragraph (2), by striking ‘‘paragraph 
(3)’’ and inserting ‘‘paragraphs (3) and (4)’’; and 
(3) by adding at the end the following: 
‘‘(4) No annuity supplement under this section shall 
be payable in the case of an individual who first becomes 
subject to this chapter after December 31, 2013.’’. 
SEC. 223. USE OF CHAINED CONSUMER PRICE INDEX. 
(a) IN GENERAL.—Paragraph (15) of section 8331 
of title 5, United States Code, is amended to read as fol-
lows: 
‘‘(15) the term ‘price index’ means the Chained 
Consumer Price Index (all items-all urban con-
sumers) published monthly by the Bureau of Labor 
Statistics;’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall take effect on January 1, 2015, and 
shall apply with respect to any cost-of-living adjustment 
taking effect under section 8340 or 8462 of title 5, United 
States Code, on or after that date. 
VerDate Mar 15 2010 
02:50 Dec 04, 2013
Jkt 039200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H3639.IH
H3639
PWALKER on DSK7TPTVN1PROD with BILLS
Subtitle D—Chained CPI 
SEC. 231. CHANGE IN INDEX USED TO CALCULATE SOCIAL 
SECURITY COST-OF-LIVING ADJUSTMENTS. 
(a) IN GENERAL.—Section 215(i)(1) of the Social Se-
curity Act (42 U.S.C. 415(i)(1)) is amended— 
(1) in subparagraph (G), by striking the period 
at the end and inserting ‘‘; and’’; and 
(2) by adding at the end the following new sub-
paragraph: 
‘‘(H) the term ‘Consumer Price Index’ means 
the Chained Consumer Price Index for All Urban 
Consumers (C–CPI–U, as published in its initial 
version by the Bureau of Labor Statistics of the De-
partment of Labor).’’. 
(b) APPLICATION TO PRE-1979 LAW.— 
(1) IN GENERAL.—Section 215(i)(1) of the So-
cial Security Act as in effect in December 1978, and 
as applied in certain cases under the provisions of 
such Act as in effect after December 1978, is 
amended— 
(A) in subparagraph (C), by striking the 
period at the end and inserting ‘‘; and’’; and 
(B) by adding at the end the following new 
subparagraph: 
VerDate Mar 15 2010 
02:50 Dec 04, 2013
Jkt 039200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
E:\BILLS\H3639.IH
H3639
PWALKER on DSK7TPTVN1PROD with BILLS
‘‘(D) the term ‘Consumer Price Index’ means 
the Chained Consumer Price Index for All Urban 
Consumers (C–CPI–U, as published in its initial 
version by the Bureau of Labor Statistics of the De-
partment of Labor).’’. 
(2) CONFORMING CHANGE.—Section 215(i)(4) 
of the Social Security Act (42 U.S.C. 415(i)(4)) is 
amended by inserting ‘‘and by section 231 of the 
Provide for the Common Defense Act of 2013’’ after 
‘‘1986’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to adjustments effec-
tive with or after December 2014. 
Æ 
VerDate Mar 15 2010 
02:50 Dec 04, 2013
Jkt 039200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6301
E:\BILLS\H3639.IH
H3639
PWALKER on DSK7TPTVN1PROD with BILLS