To prevent the application of the provisions of the individual mandate to individuals residing in rating areas with no qualified health plans offered on the Exchange.

Individuals residing in exempted areas— For purposes of section 5000A of the Internal Revenue Code of 1986, an individual who resides in a rating area in which no qualified health plans are offered in the individual market through an Exchange established under section 1311 or 1321 of the Patient Protection and Affordable Care Act is deemed to have been determined by the Secretary of Health and Human Services under section 1311(d)(4)(H) of such Act to have suffered a hardship with respect to the capability to obtain coverage under a qualified health plan.

Effective date— The amendments made by this section shall apply to taxable and plan years beginning after December 31, 2017.