Health Care Options Act of 2017

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. Short title This Act may be cited as the Health Care Options Act of 2017 2. Premium assistance credit allowed for insurance outside an Exchange (a) In general Section 36B (g) Special rules relating to certain off-Exchange plans (1) In general In the case of a taxpayer described in paragraph (2) who is covered, or whose spouse or dependent is covered, by a plan described in paragraph (3) for a coverage month beginning after December 31, 2017, and before January 1, 2020, this section shall be applied with the following modifications: (A) Such plan shall be treated as a qualified health plan. (B) Subparagraph (A) of subsection (b)(2) shall be applied without regard to so much of such subparagraph as follows of the taxpayer , or (C) Clause (i) of subsection (b)(3)(B) shall be applied by substituting through an Exchange through the same Exchange through which the qualified health plans taken into account under paragraph (2)(A) were offered (D) Clause (i) of subsection (c)(2)(A) shall be applied without regard to so much of such clause as follows (b)(2)(A) , and (E) Subsection (d)(3)(B) shall be applied without regard to through an Exchange (2) Taxpayer described For purposes of this subsection, a taxpayer is described in this paragraph if the taxpayer resides in a rating area or county in which the Secretary of Health and Human Services certifies that no qualified health plans are offered through an Exchange established under Section 1311 of the Patient Protection and Affordable Care Act. (3) Plans described For purposes of this subsection, a plan is described in this paragraph if— (A) enrollment in the plan was not done through an Exchange, and (B) the plan is authorized by the State in which the taxpayer resides to be offered in the individual market in the State other than through an Exchange, or is a not-for-profit membership organization organized under State law and authorized under State law to accept member contributions to fund health care benefits for members and their families. . (b) Off-Exchange plans excluded from advance payments Section 1412 of the Patient Protection and Affordable Care Act ( 42 U.S.C. 18082 (f) Nonapplication to off-Exchange plans This section and section 1411 shall not apply, and no advance determination or advance payment shall be made, in the case of an individual enrolling in a plan described in section 36B(g)(3) . (c) Reporting Subsection (b) of section 6055 (3) Information relating to off-Exchange coverage If minimum essential coverage provided to an individual under subsection (a) consists of coverage described in section 36B(g)(3), a return described in this subsection for taxable years beginning before January 1, 2020, shall include— (A) a statement that such plan is coverage not enrolled in through an Exchange, (B) the premiums paid with respect to such coverage, (C) the months during which such coverage is provided to the individual, (D) the adjusted monthly premium for the applicable second lowest cost silver plan (as defined in section 36B(b)(3), determined without regard to whether such plan is offered through an Exchange if the Secretary of Health and Human Services has made the determination under section 36B(g)(2) with respect to the rating area) for each such month with respect to such individual, and (E) such other information as the Secretary may prescribe. . (d) Waiver of individual mandate in areas with no Exchange plans (1) In general Paragraph (1) of section 5000A(d) or (4) (4), or (5) (2) Individuals residing in exempted areas Subsection (d) of section 5000A of such Code is amended by adding at the end the following new paragraph: (5) Individuals residing in exempted areas For purposes of months beginning after December 31, 2017, and before January 1, 2020, such term shall not include an individual who resides in a rating area or county in which the Secretary of Health and Human Services certifies for purposes of section 36B(g)(2) that no qualified health plans are offered through an Exchange established under Section 1311 of the Patient Protection and Affordable Care Act. . (e) Effective date The amendments made by this section shall apply to taxable and plan years beginning after December 31, 2017.

Summary: Health Care Options Act of 2017 This bill amends the Internal Revenue Code to temporarily permit certain individuals to use the premium assistance tax credit to purchase health insurance outside of an exchange established under the Patient Protection and Affordable Care (PPACA). The bill applies to individuals who reside in a rating area or county that the Department of Health and Human Services has certified has no qualified health plans offered through an exchange established under PPACA. Individuals residing in the areas or counties may use the premium assistance tax credit through 2019 to enroll in a plan outside of an exchange if the plan is: (1) authorized by the state in which the taxpayer resides to be offered in the individual market, or (2) is a not-for-profit membership organization that is organized and authorized under state law to accept member contributions to fund health care benefits for members and their families. The bill prohibits advance payments of the credit from being made with respect to the off-exchange plans and specifies reporting requirements for the plans. Through 2019, the bill also exempts the individuals residing in the counties or areas from the requirement to maintain minimum essential health coverage (commonly referred to as the individual mandate).