for purposes of applying section 715 of the Employee Retirement Income Security Act of 1976 ( 29 U.S.C. 1185d ) and section 9815 of the Internal Revenue Code of 1986. (g) Application of risk adjustment (1) In general Any issuer that offers health insurance coverage in the individual market in any of the 50 States or the District of Columbia shall participate in a risk adjustment mechanism under this subsection with respect to any health insurance coverage it so offers in such market, whether or not such coverage is offered through an Exchange. (2) Form and design of risk adjustment mechanism The Secretary shall, in consultation with the National Association of Insurance Commissioners and other interested parties, develop a mechanism to permit the adjustment of risk among health insurance coverage offered in the individual market throughout the 50 States and the District of Columbia. Such mechanism shall be designed to effect the same type of risk adjustment among such coverage that is applicable to risk adjustment of payments among Medicare Advantage organizations under part C of title XVIII of the Social Security Act ( 42 U.S.C. 1395w–21 et seq.). (3) Transition for new coverage The mechanism developed under paragraph (2) shall provide for transitional protection, over a 3-year period, in the case of health insurance coverage that has not been previously marketed. (4) Development of further risk adjustment mechanism The Secretary shall request the National Association of Insurance Commissioners to develop a permanent model for adjustment of risk among health insurance issuers with respect to health insurance coverage offered in the individual market, with the intention that such a model would substitute for the mechanism developed under paragraph (2). (5) Treatment as plan requirement under PHSA, ERISA, IRC The requirement of paragraph (1) shall apply as if it were a section under part A of title XXVII of the Public Health Service Act ( 42 U.S.C. 300gg et seq.), including for purposes of applying section 715 of