Title VI, SEC. 6126. APPLICATION TO SELF-EMPLOYED INDIVIDUALS. 
      (a) In General. A self-employed individual (as defined in section 
    1901(6)) shall be considered, for purposes of this subpart to be an 
    employer of himself or herself and to pay wages to himself or herself equal 
    to the amount of net earnings from self-employment (as defined in section 
    1901(c)(1)). 

      (b) Credit for Employer Premiums. 

        (1) In general. In the case of a self-employed individual, the amount 
      of any employer premium payable by virtue of subsection (a) in a year 
      shall be reduced (but not below zero) by the sum of the following: 

          (A) Subject to paragraph (2), the amount of any employer premiums 
        payable under this subpart (determined not taking into account any 
        adjustment in the premium amounts under section 6123 or 6124) with 
        respect to the employment of that individual in the year. 

          (B) The product of (i) the number of months in the year the 
        individual was employed on a full-time basis by a corporate alliance 
        employer, and (ii) the employer premium that would have been payable 
        for such months under this subpart (determined not taking into account 
        any adjustment in the premium amounts under section 6123 or 6124) for 
        the class of enrollment if such employer had been a regional alliance 
        employer. 

        (2) Special rule for certain closely-held businesses. 

          (A) In general. In the case of an individual who 

            (i) has wage-adjusted income (as defined in section 6113(d), 
          determined without regard to paragraphs (1)(B) and (2) thereof) that 
          exceeds 250 percent (or such higher percentage as the Board may 
          establish) of the applicable poverty level, and 

            (ii) is both a substantial owner and an employee of a closely held 
          business, 

            the amount of any reduction under paragraph (1)(A) that is 
          attributable to the individual's employment by that business shall be 
          appropriately reduced in accordance with rules prescribed by the 
          Board, in order to prevent individuals from avoiding payment of the 
          full amount owed through sham or secondary employment arrangements. 

          (B) Closely held business. For purposes of subparagraph (A), a 
        business is ``closely held'' if it is an employer that meets the 
        requirements of section 542(a)(2) of the Internal Revenue Code of 1986 
        or similar requirements as appropriate in the case of a partnership or 
        other entity.