S. 761Senate115th Congress (2017-2019)In Committee

Health Care Options Act of 2017

Introduced March 29, 2017

AI-Generated Summary

Updated April 15, 2026 at 2:14 PM UTC

The Health Care Options Act of 2017 changes the tax code so that people who buy health insurance outside of an ACA Exchange can receive the same premium assistance credit that Exchange‑based plans get. It applies only in rating areas or counties where the HHS Secretary certifies that no qualified plans are offered through an Exchange. The bill affects individual taxpayers and their families who have off‑exchange coverage in those areas, as well as the plans themselves.

Key Provisions

  • Allows a premium assistance tax credit for off‑exchange health plans in certified areas, treating those plans as qualified health plans for credit calculations.
  • Bars advance payments and determinations under the ACA’s subsidy rules for individuals enrolled in such off‑exchange plans.
  • Requires taxpayers to report details of off‑exchange coverage (plan type, premiums paid, months covered, and benchmark plan premiums) on their tax returns for years beginning before 2020.
  • Waives the individual mandate penalty for residents of areas with no Exchange‑offered qualified plans for coverage months from 2018 through 2019.
  • All changes apply to taxable and plan years beginning after December 31, 2017.

Legislative Activity

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1 earlier action
SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance. (Sponsor introductory remarks on measure: CR S2100-2101)

March 29, 2017

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SenateIntro Referral

Introduced in Senate

March 29, 2017

SenateIntro Referral

Read twice and referred to the Committee on Finance. (Sponsor introductory remarks on measure: CR S2100-2101)

March 29, 2017

Floor Debate

23 members

What members said about S. 761 on the floor

11 Republicans12 Democrats
Jeff Merkley
Sen. Jeff MerkleyD-OR · Mar 29, 2017

Madam President, I ask unanimous consent that the order for the quorum call be rescinded. Madam President, here in America we hope that families will have the opportunity to build successful lives in…

Orrin G. Hatch
Sen. Orrin G. HatchR-UT · Mar 29, 2017

Mr. President, I have been very interested in the minority leader's comments here this morning. I have high regard for him. We have worked together on a wide variety of issues, but I have to say that…

Cory Gardner
Sen. Cory GardnerR-CO · Mar 29, 2017

Madam President, I rise to talk about the continuing challenge that our agricultural communities face across this country. Just a couple of weeks ago, I came to the floor and cited a Wall Street…

Patrick J. Toomey
Sen. Patrick J. ToomeyR-PA · Mar 29, 2017

Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, I rise today to speak in strong support of the nomination of Judge Neil Gorsuch as Associate…

Joe Manchin III
Sen. Joe Manchin IIID-WV · Mar 29, 2017

Mr. President, we have come to a crisis in our country. My State of West Virginia has the highest drug overdose death rate in the Nation. West Virginia reported 818 overdose deaths last year--four…

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Mike Crapo
Sen. Mike CrapoR-ID · Mar 29, 2017

Madam President, I ask unanimous consent that the order for the quorum call be rescinded. Madam President, I rise today to speak about the President's nomination of Judge Neil Gorsuch to serve as…

Robert P. Casey Jr.
Sen. Robert P. Casey Jr.D-PA · Mar 29, 2017

Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, I ask unanimous consent that I be permitted to speak as in morning business. Mr. President, I…

Mike Lee
Sen. Mike LeeR-UT · Mar 29, 2017

Mr. President, I rise in support of the nomination of Judge Neil Gorsuch for the Supreme Court of the United States. Last week the Judiciary Committee, on which I serve, held a week-long series of…

Richard Blumenthal
Sen. Richard BlumenthalD-CT · Mar 29, 2017

Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, I am here on behalf of 55 million working Americans who lack access to retirement savings plans…

Rob Portman
Sen. Rob PortmanR-OH · Mar 29, 2017

Madam President, I would like to thank my colleague for his good comments regarding Neil Gorsuch. I rise today to strongly support Neil Gorsuch for the U.S. Supreme Court. First, there is no question…

John Cornyn
Sen. John CornynR-TX · Mar 29, 2017

Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, let me just say while the Senator is on the floor that I express my admiration once again for…

Sheldon Whitehouse
Sen. Sheldon WhitehouseD-RI · Mar 29, 2017

Mr. President, I ask unanimous consent that I be permitted to speak as in morning business for up to 17 minutes. Mr. President, with the Republican plan to defeat the Affordable Care Act itself…

Mitch McConnell
Sen. Mitch McConnellR-KY · Mar 29, 2017

Mr. President, over the last 8 years, American workers grappled with a sluggish economy and policies that often made it harder for families to get ahead. Even on its way out the door, the Obama…

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Charles E. Schumer
Sen. Charles E. SchumerD-NY · Mar 29, 2017

Mr. President, I rise this morning on a few topics, but I first want to mention that last night many of us spent some time at the White House where we were regaled by the wonderful Marine and Army…

Ron Wyden
Sen. Ron WydenD-OR · Mar 29, 2017

Mr. President, before he leaves the floor, let me thank my friend from Illinois for his very thoughtful and warm remarks about somebody who we all admired very much, Ed Greelegs. I remember so many…

Dean Heller
Sen. Dean HellerR-NV · Mar 29, 2017

Mr. President, I appreciate the comments my colleague from Colorado has made on energy. I have an energy speech here, also. We have the same goals, maybe coming from different perspectives, but both…

Christopher Murphy
Sen. Christopher MurphyD-CT · Mar 29, 2017

Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, I have a great deal of respect for my friend from Pennsylvania, as we have worked together on a…

Michael F. Bennet
Sen. Michael F. BennetD-CO · Mar 29, 2017

Mr. President, even with all the dysfunction in Congress, somehow the American people continue to expect that Washington will enact policies that bear at least some relationship to the challenges…

James Lankford
Sen. James LankfordR-OK · Mar 29, 2017

Mr. President, there has been a long conversation about a Supreme Court Justice. Quite frankly, there should be a long conversation. It is an incredibly important role of the Senate for advice and…

Chris Van Hollen
Sen. Chris Van HollenD-MD · Mar 29, 2017

Mr. President, I was just listening to my friend, the Senator from Tennessee, and I think there are things we can do to improve the healthcare system and the Affordable Care Act. I am glad that the…

Benjamin L. Cardin
Sen. Benjamin L. CardinD-MD · Mar 29, 2017

Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, I take to the floor to urge my colleagues to vote against two of the resolutions that are on the…

Lamar Alexander
Sen. Lamar AlexanderR-TN · Mar 29, 2017

Mr. President, the Health Care Options Act of 2017, introduced by Senator Corker and me, would address the emergency in the health insurance exchanges in Tennessee and in other States. This…

Lamar Alexander
Sen. Lamar AlexanderR-TN · Mar 29, 2017

Mr. President, the Health Care Options Act of 2017, introduced by Senator Corker and me, would address the emergency in the health insurance exchanges in Tennessee and in other States. This…

Patty Murray
Sen. Patty MurrayD-WA · Mar 29, 2017

Mr. President, I am deeply frustrated that Republicans, in one of their first actions following their and President Trump's disastrous attempts to repeal the Affordable Care Act, have decided to…

Bill Text

Latest available legislative text

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Introduced in SenateIssued March 29, 2017

II

115th CONGRESS

1st Session

S. 761

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.

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 of the Internal Revenue Code of 1986 is amended by redesignating subsection (g) as subsection (h) and by inserting after subsection (f) the following new subsection:

(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 and precedes , or.

(C)

Clause (i) of subsection (b)(3)(B) shall be applied by substituting through an Exchange for 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 precedes , 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) is amended by adding at the end the following new subsection:

(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) of the Internal Revenue Code of 1986.

.

(c)

Reporting

Subsection (b) of section 6055 of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

(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) of the Internal Revenue Code of 1986 is amended by striking or (4) and inserting (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.