imum essential coverage described in subsection 
(f)(1)(E) of such section. 
‘‘(b) PASS THROUGH OF FUNDING.— 
‘‘(1) IN GENERAL.—With respect to a pool ap-
plication under subsection (a)(1), under which indi-
viduals and small employers in the pool would not 
qualify for the premium tax credits, cost-sharing re-
ductions, or small business credits under sections 
36B or 45R of the Internal Revenue Code of 1986 
for which they would otherwise be eligible if they 
had entered an Exchange, the Secretary shall pro-
vide for an alternative means by which an aggregate 
amount determined under paragraph (2) shall be 
paid to the pool for purposes of implementing the 
application. 
‘‘(2) PAYMENT DETERMINATION.—The amount 
to be paid under paragraph (1) shall be deter-
mined— 
‘‘(A) based on the sum of premium tax 
credits, cost-sharing reductions, and small busi-
ness credits under sections 36B or 45R of the 
Internal Revenue Code of 1986 that would have 
been provided with respect to individuals in the 
pool had the health care benefits provided by 
the pool been a qualified health plan offered in 
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an Exchange, but taking into account the lower 
cost of providing health care benefits to individ-
uals through the pool; and 
‘‘(B) annually by the Secretary, taking into 
consideration the experience of individuals and 
small employers participating in Exchanges. 
‘‘(c) TIMELY DETERMINATION BY SECRETARY.—The 
Secretary shall make a determination under subsection 
(a)(1) with respect to the application of a pool not later 
than 180 days after the date of receipt of such application, 
and shall notify the pool involved of such determination. 
‘‘(d) DEFINITIONS.—In this section: 
‘‘(1) The term ‘public entity’ means a county, 
municipality, special district, school district, junior 
college district, housing authority, or other political 
subdivision or public entity defined under State law. 
‘‘(2) The term ‘State authorized public entity 
health benefits pool’ means a risk pool authorized or 
permitted by State statute or otherwise regulated by 
a State agency under which— 
‘‘(A) a public entity or group of public en-
tities, directly or through a pool, provide health 
care benefits primarily for public entity offi-
cials, employees, and retirees and their depend-
ents; and officials, employees, and retirees and 
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dependents of affiliated service contractors of 
such public entities; and 
‘‘(B) such pool may provide health care 
benefits from the assets of the pool or its mem-
ber public entities through any combination of 
self-funded arrangements or fully insured prod-
ucts. 
‘‘(3) The term ‘affiliated service contractor’ 
means an organization that provides governmental 
or quasi-governmental services on behalf of a public 
entity when such contractor is eligible to obtain 
health care benefits through a state authorized pub-
lic entity health benefits pool for its officials, em-
ployees, retirees and their dependents.’’. 
Æ 
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