; plus (ii) 10 percent of the administrative costs related to operating the plan. (B) Prohibiting discriminatory premiums In the case of a Medicaid buy-in plan, premiums may only vary to the extent permitted under section 2701(a)(1) of the Public Health Service Act. (3) Enrollment The enrollment period for a Medicaid buy-in plan offered under paragraph (1) shall, to the extent practicable, conform with the enrollment period for qualified health plans offered through an Exchange. (4) Federal payment for administrative expenses In the case of a Medicaid buy-in State that offers a Medicaid buy-in plan under paragraph (1), the Secretary of Health and Human Services shall pay to such State for each calendar quarter beginning on or after January 1, 2018, an amount equal to 90 percent of so much of the sums expended during such quarter as are attributable to administering the Medicaid buy-in plan in such State. (b) Premium tax credits (1) In general Section 36B of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: (h) Application to individuals purchasing Medicaid coverage In the case of any individual enrolled in a Medicaid buy-in plan subsection (a) shall be applied by substituting for premium assistance credit amount of the taxpayer for the taxable year the following: the lesser of— (1) the monthly premiums charged by a Medicaid buy-in State for a Medicaid buy-in plan that covers the taxpayer, the taxpayer’s spouse, or any dependent (as defined in section 152) of the taxpayer, or (2) the excess (if any) of— (A) such monthly premium, over (B) an amount equal to 1/12 of the product of the applicable percentage and the taxpayer’s household income for the taxable year. . . (2) Exception for minimum essential coverage Subparagraph (B) of section 36B(c)(2) of the Internal Revenue Code of 1986 is amended by inserting before the period at the end the following: or eligibility for coverage under a Medicaid buy-in plan (as defined in section 2(c) of the Health Care Choice and