household, by an amount that is approximately equivalent to the estimated amount of the reduction in the amount of income tax resulting from such exclusion (and any reduction in taxes imposed by chapter 21 or chapter 2 of such Code by reason of any exclusion of such contributions from wages and self employment income). (b) Computation of unadjusted average per capita annual amount (1) For States that continue PPACA Medicaid coverage (A) In general In the case of a State that provides medical assistance under section 1902(a)(10)(A)(i)(VIII) of the Social Security Act ( 42 U.S.C. 1396b(a)(10)(A)(i)(VIII) ) during a year, subject to paragraphs (3) and (4), the Secretary shall compute an average per capita annual amount for the State for the year equal to— (i) the amount specified in subparagraph (B), divided by (ii) the average monthly number of deposit qualifying residents of the State in the year. (B) Amount based on PPACA projected Federal expenditures The amount specified in this subparagraph for a State for a year is 95 percent of the Secretary’s estimate of the total payments that would have been made (assuming the existence of a State established Exchange in the State) under section 36B of the Internal Revenue Code of 1986 and under section 1402 of PPACA with respect to all qualified residents in the State in the year (or taxable year ending with such year, if applicable). The Secretary shall, in conjunction with the Actuary, ensure such changes to the amount of deposit for qualifying individuals shall remain budget neutral. (2) For States that do not provide PPACA Medicaid coverage (A) In general In the case of a State not described in paragraph (1) for a year, subject to paragraphs (3) and (4), the Secretary shall compute an average per capita annual amount for the State for the year equal to— (i) the amount specified in subparagraph (B) for the State and year, divided by (ii) the average monthly number of deposit qualifying residents of the State in the year. (B) Amount based on PPACA and Medicaid