To enable States to opt out of certain provisions of the Patient Protection and Affordable Care Act.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``State Health Care Flexibility Act of 
2011''.

SEC. 2. SEVERABILITY.

    If any provision of this Act, or any application of such provision 
to any person or circumstance, is held to be unconstitutional, the 
remainder of the provisions of this Act and the application of the 
provision to any other person not similarly situated or to any other 
circumstance shall not be affected.

SEC. 3. PERMITTING STATES TO OPT OUT OF CERTAIN PROVISIONS OF PPACA.

    (a) In General.--A qualifying State may elect to opt out of the 
application of any or all of the provisions of the Patient Protection 
and Affordable Care Act (Public Law 111-148) described in subsection 
(b) with respect to health insurance coverage within such State.
    (b) Provisions Described.--For purposes of this Act:
            (1) In general.--A provision of the Patient Protection and 
        Affordable Care Act described in this subsection is any section 
        of such Act described in paragraph (2) or any grouping of 
        provisions of such Act described in a subparagraph of paragraph 
        (3).
            (2) Sections relating to phsa health insurance market 
        reforms and immediate reforms.--A section described in this 
        paragraph is any section of subtitles A through C of title I of 
        the Patient Protection and Affordable Care Act (and the 
        amendments made by such section), except for sections 1253 and 
        1254.
            (3) Groupings of other ppaca provisions.--A grouping of 
        provisions of the Patient Protection and Affordable Care Act is 
        any of the following:
                    (A) All of the sections of parts I, II, III, and V 
                of subtitle D of title I of such Act (and the 
                amendments made by such sections).
                    (B) All of the sections of part I of subtitle E of 
                title I of such Act (and the amendments made by such 
                sections).
                    (C) All of the sections of subtitle F of title I of 
                such Act (and the amendments made by such sections).
                    (D) Requirements imposed pursuant to section 
                3021(c)(2) of the Public Health Service Act (42 U.S.C. 
                300jj-51(c)(2)), as added by section 1561 of the 
                Patient Protection and Affordable Care Act.
                    (E) All of the sections of subtitle A of title II 
                of the Patient Protection and Affordable Care Act, 
                except for section 2007, and all of the sections of 
                subtitle C of such title (and the amendments made by 
                such sections).
    (c) Qualifying State.--
            (1) Enactment of state law.--For purposes of this section, 
        the term ``qualifying State'' means a State that--
                    (A) enacts a law after the date of enactment of 
                this Act that--
                            (i) expresses the intent of the State to 
                        opt out of any or all of the provisions of the 
                        Patient Protection and Affordable Care Act 
                        (Public Law 111-148) described in subsection 
                        (b);
                            (ii) contains a list of each such 
                        provision; and
                            (iii) expresses the intent of the State to 
                        continue to administer health coverage-related 
                        laws as in effect in the State on March 22, 
                        2010, or that provides for the implementation 
                        of related State laws enacted after such date; 
                        and
                    (B) provides to the Secretary of Health and Human 
                Services and the Secretary of the Treasury a 
                notification that such State law was enacted.
            (2) Repeal.--If a qualifying State repeals a law described 
        in paragraph (1), the provisions of the Patient Protection and 
        Affordable Care Act listed in such law shall apply with respect 
        to such State beginning on the date of such repeal.
    (d) Preserving Existing State Law Opt Outs.--Nothing in this Act 
shall be construed as affecting any State law enacted before the date 
of the enactment of this Act relating to the State opting out of the 
application of any provision of the Patient Protection and Affordable 
Care Act.
    (e) Regulations.--Not later than 90 days after the date of the 
enactment of this Act, the Secretary of Health and Human Services, in 
consultation with the Secretary of the Treasury, shall promulgate 
regulations to provide for the implementation of this Act.
    (f) Effective Date.--The provisions of this section shall be 
effective and shall apply to a State as of the date of the enactment of 
this Act, without regard to whether regulations described in subsection 
(e) have been promulgated.

Summary: State Health Care Flexibility Act of 2011 - Authorizes a state to opt out of the application of certain provisions of the Patient Protection and Affordable Care Act (PPACA) with respect to health insurance coverage within the state by: (1) enacting a law that expresses the intent of the state to opt out of any or all of such provisions, lists such provisions, and expresses the intent of the state to continue to administer health care coverage-related laws as in effect in the state on March 22, 2010, or provides for the implementation of related state laws enacted after such date. And (2) notifying the Secretary of Health and Human Services (HHS) and the Secretary of the Treasury that such a state law was enacted. Includes among PPACA provisions that may be made inapplicable within a state provisions related to health coverage, essential health benefits, health insurance exchanges, alternative health plans established by states, individual and employer health coverage requirements, interoperable protocols for enrollment in federal and state health and human service programs, and expansion of Medicaid coverage.