FREE Act

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Federal Repeal of Expensive 
Exchanges Act'' or the ``FREE Act''.

SEC. 2. FINDINGS.

    The Congress finds the following:
            (1) The Patient Protection and Affordable Care Act makes 
        health care more expensive and less accessible, 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 insurance 
        exchanges directly assaults the States' traditional authority 
        to regulate health insurance.
            (4) Such Federal mandate imposes unknown insurance 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 consolidation of the health insurance 
        markets.

SEC. 3. REPEAL OF THE PATIENT PROTECTION AND AFFORDABLE CARE ACT 
              PREMIUM TAX CREDITS 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 Reductions.--The Patient Protection and Affordable Care 
Act is amended by striking section 1412.
    (c) Cost-Sharing.--The Patient Protection and Affordable 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 established under section 
                        1311 of the Patient Protection and Affordable 
                        Care Act, and''; and
                    (C) Section 6103(l)(21) of such Code is amended--
                            (i) by striking ``any premium tax credit 
                        under section 36B or any cost-sharing reduction 
                        under section 1402 of the Patient Protection 
                        and Affordable Care Act or'' in the matter 
                        preceding subparagraph (i),
                            (ii) by striking ``(as defined in section 
                        36B)'' in subparagraph (A)(iv), and
                            (iii) by adding at the end the following:
                    ``(D) Modified adjusted gross income.--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 taxable 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 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 
                        redesignating 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 redesignating 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--
                    (A) in section 2705(l)(3)(A) (42 U.S.C. 300gg-
                4(l)(3)(A))--
                            (i) by striking the em dash before clause 
                        (i) and inserting ``will not result in any 
                        decrease in coverage.''; and
                            (ii) by striking clauses (i) and (ii); and
                    (B) in section 2793(c) (300gg-93(c))--
                            (i) by inserting ``and'' at the end of 
                        paragraph (3);
                            (ii) by striking ``; and'' at the end of 
                        paragraph (4); and
                            (iii) by striking paragraph (5).
            (4) Patient protection and affordable care act.--The 
        Patient Protection and Affordable Care Act (Public Law 111-148, 
        as amended) is amended--
                    (A) in section 1303(b) by striking paragraph (2);
                    (B) in section 1311(c)(5)(B) (42 U.S.C. 
                18031(c)(5)(B)), by striking ``or eligible for a 
                premium tax credit or cost-sharing reduction'';
                    (C) in section 1311(d)(4) (42 U.S.C. 18031(d)(4))--
                            (i) in subparagraph (G), by striking 
                        ``after the application of any premium tax 
                        credit'' and all that follows through ``section 
                        1402''; and
                            (ii) in subparagraph (I), by striking 
                        clause (ii);
                    (D) in section 1311(i)(3)(B) (42 U.S.C. 
                18031(i)(3)(B)), by striking ``, and the availability 
                of premium tax credits'' and all that follows through 
                ``section 1402'';
                    (E) in section 1312(e) (42 U.S.C. 18032(e))--
                            (i) in paragraph (1), by striking ``; and'' 
                        and inserting a period;
                            (ii) by striking paragraph (2); and
                            (iii) by striking ``brokers--'' and all 
                        that follows through ``to enroll'' and 
                        inserting ``brokers to enroll'';
                    (F) in section 1313(a)(6)(A) (42 U.S.C. 
                18033(a)(6)(A)), by striking ``, including payments of 
                premium tax credits and cost-sharing reductions through 
                the Exchange'';
                    (G) in section 1331(d)(3)(A)(i) (42 U.S.C. 18051) 
                is amended by inserting ``and the Federal Repeal of 
                Expensive Exchanges Act had not been enacted'' before 
                the period at the end;
                    (H) in section 1332(a) (42 U.S.C. 18052(a))--
                            (i) in paragraph (2)--
                                    (I) by striking subparagraph (C); 
                                and
                                    (II) in subparagraph (D) by 
                                striking ``36B, 4980H,'' and inserting 
                                ``4980H''; and
                            (ii) in paragraph (3), by striking 
                        ``premium tax credits, cost-sharing 
                        reductions'';
                    (I) in section 1334(c) (42 U.S.C. 18054(c)) by 
                striking paragraph (3);
                    (J) in section 1401(c)(1)(A), by striking clause 
                (i);
                    (K) in section 1411 (42 U.S.C. 18081)--
                            (i) in subsection (a)(1)--
                                    (I) by striking ``or who is 
                                claiming a premium tax credit or 
                                reduced cost-sharing,''; and
                                    (II) by striking ``sections 
                                1312(f)(3), 1402(e), and 1412(d)'' and 
                                inserting ``section 1312(f)(3)'';
                            (ii) in subsection (a), by striking 
                        paragraph (2);
                            (iii) in subsection (b), by striking 
                        paragraphs (3) and (4);
                            (iv) in subsection (e)--
                                    (I) in paragraph (2), by amending 
                                subparagraph (A) to read as follows:
                    ``(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 individual's eligibility to enroll through the 
                Exchange shall be satisfied.''; and
                                    (II) in paragraph (4)(B), by 
                                striking clauses (ii) and (iii) and 
                                redesignating 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 
                                eligibility, and determine the amount 
                                of 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 premium tax credits under 
                section 36B of the Internal 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, 
                        premium assistance'' and all that follows 
                        through ``section 1412 of the Patient 
                        Protection and Affordable Care Act),''; and
                            (ii) by striking ``reduced cost-sharing for 
                        eligible individuals under section 1402 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 assistance 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 MANDATES.

    (a) Employer Mandate.--
            (1) In general.--Chapter 43 of the Internal Revenue Code of 
        1986 is amended by striking section 4980H, and the table of 
        sections for such chapter is amended by striking the item 
        relating to section 4980H.
            (2) Information return.--
                    (A) Chapter 61 of such Code is amended by striking 
                section 6056, and the table of sections for such 
                chapter is amended by striking the item relating to 
                section 6056.
                    (B) Section 6724(d) of such Code is amended--
                            (i) in paragraph (1)(B) by inserting ``or'' 
                        at the end of clause (xxiii), by striking 
                        ``or'' at the end of clause (xxiv) and 
                        inserting ``and'', and by striking clause 
                        (xxv), and
                            (ii) in paragraph (2) by inserting ``or'' 
                        at the end of subparagraph (FF), by striking 
                        ``or'' at the end of subparagraph (GG) and 
                        inserting ``and'', and by striking subparagraph 
                        (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 amended by section 
                3(d)(4)(H) of this Act) is amended 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.--
            (1) In general.--Section 5000A of the Internal 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 sections the Patient Protection 
and Affordable Care Act to which such amendments relate.

Summary: Federal Repeal of Expensive Exchanges Act or the FREE Act - Repeals provisions of the Internal Revenue Code and the Patient Protection and Affordable Care Act (PPACA) providing for: (1) a health insurance premium assistance tax credit and advance payments for credit amounts, (2) reductions in out-of-pocket health care expenses for certain low income taxpayers (cost-sharing) and advance payments of cost-sharing amounts, (3) the individual mandate to purchase health care coverage under PPACA, and (4) the employer mandate to provide health care coverage to employees under PPACA and the reporting requirements with respect to such mandate.