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42 U.S. Code § 18052. Waiver for State innovation
(a) Application
(1) In generalA State may apply to the Secretary for the waiver of all or any requirements described in paragraph (2) with respect to health insurance coverage within that State for plan years beginning on or after January 1, 2017. Such application shall—
(A)
be filed at such time and in such manner as the Secretary may require;
(B) contain such information as the Secretary may require, including—
(i)
a comprehensive description of the State legislation and program to implement a plan meeting the requirements for a waiver under this section; and
(ii)
a 10-year budget plan for such plan that is budget neutral for the Federal Government; and
(C)
provide an assurance that the State has enacted the law described in subsection (b)(2).
(2) RequirementsThe requirements described in this paragraph with respect to health insurance coverage within the State for plan years beginning on or after January 1, 2014, are as follows:
(A)
Part A of this subchapter.
(B)
Part B of this subchapter.
(C)
Section 18071 of this title.
(D)
Sections 36B, 4980H, and 5000A of title 26.
(3) Pass through of funding
With respect to a State waiver under paragraph (1), under which, due to the structure of the State plan, individuals and small employers in the State would not qualify for the premium tax credits, cost-sharing reductions, or small business credits under sections [1] 36B of title 26 or under part I of subtitle E for which they would otherwise be eligible, the Secretary shall provide for an alternative means by which the aggregate amount of such credits or reductions that would have been paid on behalf of participants in the Exchanges established under this title [2] had the State not received such waiver, shall be paid to the State for purposes of implementing the State plan under the waiver. Such amount shall be determined annually by the Secretary, taking into consideration the experience of other States with respect to participation in an Exchange and credits and reductions provided under such provisions to residents of the other States.