1. Short title This Act may be referred to as the Eliminating Health Disparities Act of 2017 . 2. Health Disparities Elimination State Plan Option Title XIX of the Social Security Act ( 42 U.S.C. 1396 et seq.) is amended by adding at the end the following: 1947. Health Disparities Elimination Program State Plan Option (a) In general Notwithstanding section 1902(a)(1) (relating to statewideness), section 1902(a)(10)(B) (relating to comparability), and any other provision of this title that the Secretary determines is necessary to waive in order to implement this section, beginning fiscal year 2018, a State, at its option as a State plan amendment, may establish a Health Disparities Elimination Program for purposes of reducing health disparities among targeted populations in communities served by qualified community health systems under which the State provides incentive payments to qualified community health systems for initiatives approved under subsection (c), if the State meets the requirements specified in subsection (c). (b) State plan amendment Each State seeking a State plan amendment under this section shall submit such amendment to the Secretary for approval. The Secretary shall approve any such amendment that meets the requirements of subsection (c) and includes— (1) State goals for reducing health disparities through the Health Disparities Elimination Program to be established by the State; (2) any requirements for the development and approval of action plans described in subsection (c)(1); (3) eligibility criteria for any qualified community health system seeking to establish a health disparities elimination initiative (in this section referred to as an initiative ) pursuant to this section; (4) the methodology for determining the amount of incentive payments to be made to a qualified community health system through an initiative, based on the size of the target population to be served through the initiative and the potential of the initiative for reducing health disparities