provided in paragraph (2), subsections (a) and (c) shall not apply for any taxable year with respect to which a deduction under section 224 is allowable. (2) Exception for individuals covered by Medicare, Medicaid, SCHIP, or grandfathered employer plans Paragraph (1) shall not apply to an individual for any taxable year if such individual is not an eligible individual (as defined in section 224(d)(1)) for any month during such taxable year by reason of coverage described in section 224(d)(1)(B). . (2) Conforming amendments (A) Section 106(b)(1) is amended— (i) by inserting gross income does not include before amounts contributed , and (ii) by striking shall be treated as employer-provided coverage for medical expenses under an accident or health plan . (B) Section 106(d)(1) is amended— (i) by inserting gross income does not include before amounts contributed , and (ii) by striking shall be treated as employer-provided coverage for medical expenses under an accident or health plan . (b) Termination of deduction for health insurance costs of self-Employed individuals Subsection (l) of section 162 is amended by adding at the end the following new paragraph: (6) Termination This subsection shall not apply to taxable years with respect to which a deduction under section 224 is allowable. . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2017. 203. Exclusion of standard deduction for health insurance from employment taxes (a) In general Chapter 25 is amended by adding at the end the following new section: 3512. Exclusion of standard deduction from employment taxes (a) In general For purposes of chapters 21, 22, and 23, each of the following amounts for any period (determined without regard to this section) shall be reduced by the portion of the standard deduction for health insurance (as defined in section 224) allocable to the period: (1) The amount of wages determined under section 3121(a). (2) The amount of compensation determined under section