Amends the Patient Protection and Affordable Care Act (PPACA) to allow a state-authorized public entity benefits pool to apply to the Secretary of Health and Human Services (HHS) for pass-through funding with respect to health care benefits provided through the pool for coverage years beginning on or after January 1, 2014. Requires the Secretary to approve such a pool if the pool will: (1) provide at least the essential health benefits; (2) provide coverage and cost-sharing protections against excessive out-of-pocket spending that are at least as affordable as the health insurance requirements of PPACA would provide; and (3) result in cost savings to the federal government because the cost of coverage through the pool is less than the cost of coverage through an exchange.
Treats an individual covered under such a plan as having minimum essential coverage for purposes of the Internal Revenue Code.
Requires the Secretary to provide for an alternative means by which an aggregate amount shall be paid to the pool annually based on the premium tax credits, cost-sharing reductions, and small business credits that would have been provided to an exchange plan.
Gives the Secretary 180 days to make a determination on an application under this Act.