; and (II) if the parent is not so eligible, based on the cost of individual coverage for the parent and each child. (C) Child defined In this paragraph, the term child has the meaning given such term in section 1902(e)(13)(G). (3) Nonelderly, nondisabled adults The individuals described in this paragraph are individuals who are under 65 years of age, not pregnant, not entitled to, or enrolled for, benefits under part A of title XVIII, or enrolled for benefits under part B of title XVIII, are not described in subclauses (I) through (VII) of section 1902(a)(10)(A)(i), and otherwise entitled to medical assistance under this title. . (b) Premium assistance subsidy option Section 1906A of the Social Security Act ( 42 U.S.C. 1396e–1 ) is amended by adding at the end the following new subsection: (f) State option for nonelderly, nondisabled adults (1) In general Beginning on January 1, 2018, in the case of a State electing to provide a premium assistance subsidy as described in subsection (a), the Secretary may, upon the approval of a State plan amendment submitted by the State, waive the requirement of subsection (e) to the extent such requirement provides for payment of premiums and deductibles and other cost-sharing obligations with respect to the items and services described in such subsection furnished to individuals described in paragraph (3). (2) Cost-effectiveness (A) In general The Secretary may approve a State plan amendment under this subsection if the Secretary determines that the payment of premiums and deductibles and other cost-sharing obligations under the qualified employer-sponsored coverage involved is cost-effective relative to the amount of expenditures under the State plan, including administrative expenditures, and excluding payments for copayments or coinsurance, that the State would have made to provide comparable coverage of the individuals described in paragraph (3)(B) involved. (B) Determination For purposes of subparagraph (A), cost-effectiveness shall be determined— (i) on an annual basis