Provide for the Common Defense Act of 2013 - Amends the Balanced Budget and Emergency Deficit Control Act of 1985 (Gramm-Rudman-Hollings Act) to nullify the presidential sequestration order issued for the revised security category (discretionary appropriations in budget function 050) for FY2014-FY2015 to enforce a specified budget goal.
Establishes the discretionary spending limit for the revised security category for each such fiscal year.
Amends part B (Supplemental Medical Insurance) of title XVIII (Medicare) of the Social Security Act (SSA) with respect to adjustments to the calculation of Medicare parts B and D (Voluntary Prescription Drug Benefit Program) premiums for high income beneficiaries for 2017 and subsequent years.
Reduces the monthly amount of the Medicare parts B and D premium subsidies (with a corresponding increase in the monthly premium amount) for individuals whose modified adjusted gross income exceeds the threshold amount by specified applicable percentages for modified adjusted gross incomes in certain ranges starting at $85,000 (40%) and finally exceeding $214,000 (90%).
Revises the temporary adjustment to income thresholds used to calculate premiums between January 1, 2011, and December 31, 2019, to extend it through December 31 of the first year after 2019 after the year in which at least 25% of individuals enrolled in the Medicare parts B and D are subject to a reduction to the monthly amount of the applicable premium subsidy.
Increases by $25 per year the part B deductible for new enrollees after January 1, 2017, and subsequent years.
Amends the Federal Crop Insurance Act to establish caps beginning with FY2014 for: (1) combined crop insurance provider rates of return, and (2) reimbursements for crop insurance provider administrative and operating expenses.
Reduces according to a specified formula the crop insurance premium for catastrophic risk protection coverage.
Reduces the portion of premium paid by the Federal Crop Insurance Corporation (premium subsidies) for the following coverages: (1) additional insurance, (2) enterprise and whole farm units, (3) area revenue plans, and (4) area yield plans.
Requires an additional .4% increase per year, beginning in calendar 2014, in the percentage of basic pay that federal employees or Members of Congress must contribute to their pension plans under the Civil Service Retirement System (CSRS) or the Federal Employees Retirement System (FERS). Reduces government contributions to CSRS and FERS by the amount of such increased employee contributions.
Eliminates annuity supplements for federal employees hired after 2013.
Revises the definition of “price index,” for purposes of cost-of-living adjustments to federal employee benefits, to mean the Chained Consumer Price Index for All Urban Consumers (Chained CPI) instead of the Consumer Price Index.
Amends SSA title II (Old Age, Surivors, and Disability Insurance) (OASDI) to require the use of the Chained CPI for calculation of Social Security cost-of-living adjustments.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3639 Introduced in House (IH)]
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 Government
Reform, and House Administration, for a period to be subsequently
determined by the Speaker, in each case for consideration of such
provisions 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 Medicare, agricultural
subsidies, federal retirement, and the application of chained CPI, and
for other purposes.
Be it enacted by the Senate and House of Representatives 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''.
(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 adjustments.
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.
(a) Elimination of the Adjustment Under Section 251A for Fiscal
Years 2014 and 2015.--Section 251A of the Balanced Budget and Emergency
Deficit Control Act of 1985 (2 U.S.C. 901a) is amended--
(1) in paragraphs (7)(B) and (8), by striking ``On the
date'' in each instance and inserting ``Subject to paragraph
(12), on the date''; and
(2) by adding at the end the following new paragraph:
``(12) No reductions for revised security category in
fiscal years 2014 and 2015.--Paragraphs (7)(B) and (8) shall
have no force or effect for fiscal years 2014 and 2015 with
respect to the revised security category.''.
(b) Discretionary Spending Limits for the Revised Security Category
in Fiscal Years 2014 and 2015.--For purposes of section 251(c) of the
Balanced Budget and Emergency Deficit Control Act of 1985 (as modified
by section 251A(2) of such Act), for fiscal years 2014 and 2015, the
discretionary spending limit for the revised security category in each
such fiscal year shall be $552,000,000,000 and $566,000,000,000,
respectively.
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 following:
``(I) Years before 2017.--For
calendar years prior to 2017:''; and
(2) by adding at the end the following new subclause:
``(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........... 40
More than $107,000 but not more than $160,000.......... 55
More than $160,000 but not more than $214,000.......... 70
More than $214,000..................................... 90.''.
(b) Temporary Adjustment to Income Thresholds Used To Calculate
Premiums.--
(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 adjustment.--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 subparagraph (C), in
the case''; and
(B) by adding at the end the following new
subparagraph:
``(C) Treatment of years after temporary 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 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 ENROLLEES.
Section 1833 of the Social Security Act (42 U.S.C. 1395l) is
amended--
(1) in the first sentence of subsection (b), by inserting
``(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 determined
under such subsection for 2017 increased by $25;
``(2) for 2018 shall be the amount otherwise determined
under such subsection for 2018, taking into account the
application of the previous paragraph;
``(3) for 2019 shall be the amount otherwise determined
under such subsection for 2019, taking into the application of
the previous paragraphs, , increased by $25;
``(4) for 2020 shall be the amount otherwise determined
under such subsection for 2020, taking into account the
application of the previous paragraphs, increased by $25;
``(5) for 2021 shall be the amount otherwise determined
under such subsection for 2021, taking into account the
application of the previous paragraphs, 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 previous 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 subparagraph (A) (and
adjusting the margin two ems to the right);
(2) by inserting before subparagraph (A) (as so designated)
the following:
``(3) Risk.--''; and
(3) by adding at the end the following new subparagraph:
``(B) Cap on overall rate of return.--The target
rate of return for all the companies combined for the
2014 and subsequent reinsurance years shall be 12.8
percent of retained premium.''.
SEC. 212. CAP ON REIMBURSEMENTS FOR ADMINISTRATIVE AND OPERATING
EXPENSES OF CROP INSURANCE 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 reimbursements.--
Notwithstanding subparagraphs (A) through (F), total
reimbursements for administrative and operating costs
for the 2014 insurance 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 sentence shall be
increased by the same inflation factor as established
for the administrative and operating costs cap in the
2011 Standard Reinsurance Agreement.''.
SEC. 213. REDUCTION IN SHARE OF CROP INSURANCE PREMIUM 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 coverage 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''.
(c) Enterprise and Whole Farm Units.--Section 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 amended--
(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 Insurance Act occurring after the date of the
enactment of this Act.
Subtitle C--Federal Retirement
SEC. 221. RETIREMENT CONTRIBUTIONS.
(a) Civil Service Retirement System.--
(1) Individual contributions.--Section 8334(c) of title 5,
United States Code, is amended--
(A) by striking ``(c) Each'' and inserting ``(c)(1)
Each''; and
(B) by adding at the end the following:
``(2) Notwithstanding any other provision of this subsection, the
applicable percentage of basic pay under this subsection for civilian
service by an employee or Member shall, for purposes of computing an
amount--
``(A) for a period in calendar year 2014, be equal to the
applicable percentage under this subsection for calendar year
2013 plus an additional 0.4 percentage point;
``(B) for a period in calendar year 2015, be equal to the
applicable percentage under this subsection for calendar year
2014 (as determined under subparagraph (A)) plus an additional
0.4 percentage point;
``(C) for a period in calendar year 2016, be equal to the
applicable percentage under this subsection for calendar year
2015 (as determined under subparagraph (B)) plus an additional
0.4 percentage point; and
``(D) for a period in any calendar year after 2016, be
equal to the applicable percentage under this subsection for
calendar year 2015 (as determined under subparagraph (C)).
``(3)(A) Notwithstanding subsection (a)(2), any excess
contributions under subsection (a)(1)(A) (including the portion of any
deposit under this subsection allocable to excess contributions) shall,
if made by an employee of the United States Postal Service or the
Postal Regulatory Commission, be deposited to the credit of the Postal
Service Fund under section 2003 of title 39, rather than the Civil
Service Retirement and Disability Fund.
``(B) For purposes of this paragraph, the term `excess
contributions', as used with respect to contributions made under
subsection (a)(1)(A) by an employee of the United States Postal Service
or the Postal Regulatory Commission, means the amount by which--
``(i) deductions from basic pay of such employee which are
made under subsection (a)(1)(A), exceed
``(ii) deductions from basic pay of such employee which
would have been so made if paragraph (2) had not been
enacted.''.
(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) exceeds the amount which
would otherwise have been withheld from the basic pay of the
employee or elected official involved under subparagraph (A)
based on the percentage applicable under subsection (c) for
calendar year 2013.''.
(b) Individual Contributions Under the Federal Employees'
Retirement System.--Section 8422(a)(3) of title 5, United States Code,
is amended--
(1) by redesignating subparagraph (B) as subparagraph (C);
and
(2) by inserting after subparagraph (A) the following:
``(B) Notwithstanding any other provision of this paragraph, the
applicable percentage under this paragraph 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 paragraph 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 paragraph 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 paragraph 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 determined under clause (iii)).''.
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 follows:
``(15) the term `price index' means the Chained Consumer
Price Index (all items-all urban consumers) 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.
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 Security 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 subparagraph:
``(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 Department of Labor).''.
(b) Application to Pre-1979 Law.--
(1) In general.--Section 215(i)(1) of the Social 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:
``(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 Department 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 effective with or after December
2014.
<all>
Introduced in House
Introduced in House
Referred to the Committee on the Budget, and in addition to the Committees on Ways and Means, Energy and Commerce, Agriculture, Oversight and Government Reform, and House Administration, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on the Budget, and in addition to the Committees on Ways and Means, Energy and Commerce, Agriculture, Oversight and Government Reform, and House Administration, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on the Budget, and in addition to the Committees on Ways and Means, Energy and Commerce, Agriculture, Oversight and Government Reform, and House Administration, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on the Budget, and in addition to the Committees on Ways and Means, Energy and Commerce, Agriculture, Oversight and Government Reform, and House Administration, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on the Budget, and in addition to the Committees on Ways and Means, Energy and Commerce, Agriculture, Oversight and Government Reform, and House Administration, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
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Referred to the Committee on the Budget, and in addition to the Committees on Ways and Means, Energy and Commerce, Agriculture, Oversight and Government Reform, and House Administration, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Subcommittee on Health.