II 

115TH CONGRESS 

1ST SESSION S. 761 

To amend the Internal Revenue Code of 1986 to allow individuals to receive 

a premium assistance credit for insurance not purchased on an Exchange, 

and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MARCH 29, 2017 

Mr. ALEXANDER (for himself and Mr. CORKER) introduced the following bill; 

which was read twice and referred to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to allow individuals to receive a premium assistance credit for insurance not purchased on an Exchange, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Health Care Options 

5 Act of 2017’’. 


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1 SEC. 2. PREMIUM ASSISTANCE CREDIT ALLOWED FOR IN2 SURANCE OUTSIDE AN EXCHANGE. 

3 (a) IN GENERAL.—Section 36B of the Internal Rev4 enue Code of 1986 is amended by redesignating subsection 

5 (g) as subsection (h) and by inserting after subsection (f) 

6 the following new subsection: 

7 ‘‘(g) SPECIAL RULES RELATING TO CERTAIN OFF8 EXCHANGE PLANS.— 

9 ‘‘(1) IN GENERAL.—In the case of a taxpayer 

10 described in paragraph (2) who is covered, or whose 

11 spouse or dependent is covered, by a plan described 

12 in paragraph (3) for a coverage month beginning 

13 after December 31, 2017, and before January 1, 

14 2020, this section shall be applied with the following 

15 modifications: 

16 ‘‘(A) Such plan shall be treated as a quali17 fied health plan. 

18 ‘‘(B) Subparagraph (A) of subsection 

19 (b)(2) shall be applied without regard to so 

20 much of such subparagraph as follows ‘of the 

21 taxpayer’ and precedes ‘, or’. 

22 ‘‘(C) Clause (i) of subsection (b)(3)(B) 

23 shall be applied by substituting ‘through an Ex24 change’ for ‘through the same Exchange 

25 through which the qualified health plans taken 


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1 into account under paragraph (2)(A) were of2 fered’. 

3 ‘‘(D) Clause (i) of subsection (c)(2)(A) 

4 shall be applied without regard to so much of 

5 such clause as follows ‘(b)(2)(A)’ and precedes 

6 ‘, and’. 

7 ‘‘(E) Subsection (d)(3)(B) shall be applied 

8 without regard to ‘through an Exchange’. 

9 ‘‘(2) TAXPAYER DESCRIBED.—For purposes of 

10 this subsection, a taxpayer is described in this para11 graph if the taxpayer resides in a rating area or 

12 county in which the Secretary of Health and Human 

13 Services certifies that no qualified health plans are 

14 offered through an Exchange established under Sec15 tion 1311 of the Patient Protection and Affordable 

16 Care Act. 

17 ‘‘(3) PLANS DESCRIBED.—For purposes of this 

18 subsection, a plan is described in this paragraph if— 

19 ‘‘(A) enrollment in the plan was not done 

20 through an Exchange, and 

21 ‘‘(B) the plan is authorized by the State in 

22 which the taxpayer resides to be offered in the 

23 individual market in the State other than 

24 through an Exchange, or is a not-for-profit 

25 membership organization organized under State 


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1 law and authorized under State law to accept 

2 member contributions to fund health care bene3 fits for members and their families.’’. 

4 (b) OFF-EXCHANGE PLANS EXCLUDED FROM AD5 VANCE PAYMENTS.—Section 1412 of the Patient Protec6 tion and Affordable Care Act (42 U.S.C. 18082) is amend7 ed by adding at the end the following new subsection: 

8 ‘‘(f) NONAPPLICATION TO OFF-EXCHANGE PLANS.— 

9 This section and section 1411 shall not apply, and no ad10 vance determination or advance payment shall be made, 

11 in the case of an individual enrolling in a plan described 

12 in section 36B(g)(3) of the Internal Revenue Code of 

13 1986.’’. 

14 (c) REPORTING.—Subsection (b) of section 6055 of 

15 the Internal Revenue Code of 1986 is amended by adding 

16 at the end the following new paragraph: 

17 ‘‘(3) INFORMATION RELATING TO OFF-EX18 CHANGE COVERAGE.—If minimum essential coverage 

19 provided to an individual under subsection (a) con20 sists of coverage described in section 36B(g)(3), a 

21 return described in this subsection for taxable years 

22 beginning before January 1, 2020, shall include— 

23 ‘‘(A) a statement that such plan is cov24 erage not enrolled in through an Exchange, 


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1 ‘‘(B) the premiums paid with respect to 

2 such coverage, 

3 ‘‘(C) the months during which such cov4 erage is provided to the individual, 

5 ‘‘(D) the adjusted monthly premium for 

6 the applicable second lowest cost silver plan (as 

7 defined in section 36B(b)(3), determined with8 out regard to whether such plan is offered 

9 through an Exchange if the Secretary of Health 

10 and Human Services has made the determina11 tion under section 36B(g)(2) with respect to the 

12 rating area) for each such month with respect 

13 to such individual, and 

14 ‘‘(E) such other information as the Sec15 retary may prescribe.’’. 

16 (d) WAIVER OF INDIVIDUAL MANDATE IN AREAS

17 WITH NO EXCHANGE PLANS.— 

18 (1) IN GENERAL.—Paragraph (1) of section 

19 5000A(d) of the Internal Revenue Code of 1986 is 

20 amended by striking ‘‘or (4)’’ and inserting ‘‘(4), or 

21 (5)’’. 

22 (2) INDIVIDUALS RESIDING IN EXEMPTED

23 AREAS.—Subsection (d) of section 5000A of such 

24 Code is amended by adding at the end the following 

25 new paragraph: 


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1 ‘‘(5) INDIVIDUALS RESIDING IN EXEMPTED

2 AREAS.—For purposes of months beginning after 

3 December 31, 2017, and before January 1, 2020, 

4 such term shall not include an individual who resides 

5 in a rating area or county in which the Secretary of 

6 Health and Human Services certifies for purposes of 

7 section 36B(g)(2) that no qualified health plans are 

8 offered through an Exchange established under Sec9 tion 1311 of the Patient Protection and Affordable 

10 Care Act.’’. 

11 (e) EFFECTIVE DATE.—The amendments made by 

12 this section shall apply to taxable and plan years begin13 ning after December 31, 2017. 

Æ 


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