,i #aah? ,,congress #a/ ,session ,h4 ,r4 #fheg ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,decemb] #ai1 #bjbc,mr4 ,gallagh] introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,ways & ,means ,a ,,bill ,to am5d ! ,int]nal ,rev5ue ,code ( #aihf to mod]nize heal? sav+s acc\nts1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,simplify & ,exp& ,heal? ,sav+s ,acc\nts ,act4 #b4 ,mod]nization ( heal? sav+s acc\nts 7a7 ,9 g5]al ,section #bbc ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ to read z foll[s3 #bbc4 ,heal? sav+s acc\nts 7a7 ,d$uction all[$ ,9 ! case ( an individual :o is an eligible individual = any mon? dur+ ! taxable ye>1 !re %all be all[$ z a d$uction = ! taxable ye> an am\nt equal to ! aggregate am\nt paid 9 ca% dur+ su* taxable ye> by or on behalf ( su* individual to a heal? sav+s acc\nt ( su* individual4 7b7 ,limitations 7#a7 ,9 g5]al ,! am\nt all[able z a d$uction "u subsection 7a7 to an individual = ! taxable ye> %all n exce$ ! sum ( ! mon?ly limitations = mon?s dur+ su* taxable ye> t ! individual is an eligible individual4 7#b7 ,mon?ly limitation ,! mon?ly limitation = any mon? is #a_/ab (-- 7,a7 9 ! case ( an eligible individual :o has self-only cov]age "u a qualifi$ plan z ( ! fir/ day ( su* mon?1 ! annual limitation det]m9$ "u ! foll[+ table3 ,9 ! case ( a plan ) an actu>ial value (3,! annual limitation is3,less ?an #ee p]c5t#aj1jjj;,at lea/ #ee p]c5t & less ?an #fe p]c5t#h1fjj;,at lea/ #fe p]c5t#g1bjj 7,b7 9 ! case ( an eligible individual :o has family cov]age "u a qualifi$ plan z ( ! fir/ day ( su* mon?1 ! annual limitation det]m9$ "u ! foll[+ table3 ,9 ! case ( a plan ) an actu>ial value (3,! annual limitation is3,less ?an #ee p]c5t#bj1jjj;,at lea/ #ee p]c5t & less ?an #fe p]c5t#ag1bjj;,at lea/ #fe p]c5t#ad1djj4 7#c7 ,additional contributions = individuals #ee or old] ,9 ! case ( an individual :o has atta9$ age #ee be=e ! close ( ! taxable ye>1 ! applicable limitation "u subp>agraphs 7,a7 & 7,b7 ( p>agraph 7#b7 %all be increas$ by #a1jjj4 7#d7 ,coord9ation ) o!r contributions ,! limitation :i* w\ld 7b = ?is p>agraph7 apply "u ?is subsection to an individual = any taxable ye> %all be r$uc$ 7b n bel[ z]o7 by ! sum (-- 7,a7 ! aggregate am\nt contribut$ to heal? sav+s acc\nts ( su* individual :i* is excludable f ! taxpay]'s gross income = su* taxable ye> "u section #ajf7;d7 7& su* am\nt %all n be all[$ z a d$uction "u subsection 7a771 & 7,b7 ! aggregate am\nt contribut$ to heal? sav+s acc\nts ( su* individual = su* taxable ye> "u section #djh7;d77#i7 7& su* am\nt %all n be all[$ z a d$uction "u subsection 7a774 7#e7 ,special rule = m>ri$ individuals ,9 ! case ( individuals :o are m>ri$ to ea* o!r1 if ei!r sp\se has family cov]age-- 7,a7 bo? sp\ses %all be treat$ z hav+ only su* family cov]age 7& if su* sp\ses ea* h family cov]age "u diff]5t plans1 z be+ cov]$ "u ! plan ) ! highe/ actu>ial value71 & 7,b7 ! limitation "u p>agraph 7#a7 7aft] ! application ( subp>agraph 7,a7 & )\t reg>d to any additional contribution am\nt "u p>agraph 7#c77 %all be divid$ equally betwe5 !m unless !y agree on a diff]5t division4 7#f7 ,d5ial ( d$uction to dep5d5ts ,no d$uction %all be all[$ "u ?is section to any individual ) respect to :om a d$uction "u section #aea is all[able to ano!r taxpay] = a taxable ye> beg9n+ 9 ! cal5d> ye> 9 :i* su* individual's taxable ye> beg9s4 7#g7 ,increase 9 limit = individuals becom+ eligible individuals aft] ! beg9n+ ( ! ye> 7,a7 ,9 g5]al ,= purposes ( comput+ ! limitation "u p>agraph 7#a7 = any taxable ye>1 an individual :o is an eligible individual dur+ ! la/ mon? ( su* taxable ye> %all be treat$-- 7i7 z hav+ be5 an eligible individual dur+ ea* ( ! mon?s 9 su* taxable ye>1 & 7ii7 z hav+ be5 enroll$1 dur+ ea* ( ! mon?s su* individual is treat$ z an eligible individual solely by reason ( clause 7i71 9 ! same qualifi$ plan 9 :i* ! individual 0 enroll$ = ! la/ mon? ( su* taxable ye>4 7,b7 ,failure to ma9ta9 qualifi$ plan cov]age 7i7 ,9 g5]al ,if1 at any "t dur+ ! te/+ p]iod1 ! individual is n an eligible individual1 !n-- 7,i7 gross income ( ! individual = ! taxable ye> 9 :i* occurs ! fir/ mon? 9 ! te/+ p]iod = :i* su* individual is n an eligible individual is increas$ by ! aggregate am\nt ( all contributions to ! heal? sav+s acc\nt ( ! individual :i* c\ld n h be5 made b = subp>agraph 7,a71 & 7,,ii7 ! tax impos$ by ?is *apt] = any taxable ye> on ! individual %all be increas$ by #aj p]c5t ( ! am\nt ( su* increase4 7ii7 ,exception = disability or dea? ,subclauses 7,i7 & 7,,ii7 ( clause 7i7 %all n apply if ! individual ceas$ to be an eligible individual by reason ( ! dea? ( ! individual or ! individual becom+ disabl$ 7)9 ! mean+ ( section #gb7m77#g774 7iii7 ,te/+ p]iod ,! t]m te/+ p]iod means ! p]iod beg9n+ ) ! la/ mon? ( ! taxable ye> ref]r$ to 9 subp>agraph 7,a7 & end+ on ! la/ day ( ! #ab? mon? foll[+ su* mon?4 7c7 ,def9itions & special rules ,= purposes ( ?is section-- 7#a7 ,eligible individual ,! t]m eligible individual means1 ) respect to any mon?1 any individual if su* individual is cov]$ "u a qualifi$ plan z ( ! #a/ day ( su* mon?4 7#b7 ,qualifi$ plan 7,a7 ,9 g5]al ,! t]m qualifi$ heal? plan means any heal? plan1 includ+ employ] plans1 individual plans1 %ort t]m plans1 ,m$ic>e1 ,m$icaid1 ,,va heal? c>e1 ,,tric>e1 heal? c>e %>+ m9i/ries1 & association heal? plans4 7,b7 ,exclusion ( c]ta9 plans ,su* t]m does n include a heal? plan if sub/antially all ( its cov]age is-- 7i7 cov]age = any b5efit provid$ by p]mitt$ insurance1 or 7ii7 cov]age 7:e!r ?r\gh insurance or o!rwise7 = accid5ts1 disability1 d5tal c>e1 vision c>e1 or long-t]m c>e4 7#c7 ,p]mitt$ insurance ,! t]m p]mitt$ insurance means-- 7,a7 insurance if sub/antially all ( ! cov]age provid$ "u su* insurance relates to-- 7i7 liabilities incurr$ "u work]s' comp5sation laws1 7ii7 tort liabilities1 7iii7 liabilities relat+ to own]%ip or use ( prop]ty1 or 7iv7 su* o!r simil> liabilities z ! ,secret>y may specify by regulations1 7,b7 insurance = a specifi$ disease or illness1 & 7,c7 insurance pay+ a fix$ am\nt p] day 7or o!r p]iod7 ( hospitalization4 7#d7 ,family cov]age ,! t]m family cov]age means any cov]age o!r ?an self-only cov]age4 7d7 ,heal? sav+s acc\nt ,= purposes ( ?is section-- 7#a7 ,9 g5]al ,! t]m heal? sav+s acc\nt means a tru/ creat$ or organiz$ 9 ! ,unit$ ,/ates z a heal? sav+s acc\nt exclusively = ! purpose ( pay+ ! qualifi$ m$ical exp5ses ( ! acc\nt b5efici>y1 b only if ! writt5 gov]n+ in/rum5t creat+ ! tru/ meets ! foll[+ requirem5ts3 7,a7 ,except 9 ! case ( a rollov] contribution describ$ 9 subsection 7f77#e7 or section #bbj7;f77#e71 no contribution w be accept$-- 7i7 unless x is 9 ca%1 or 7ii7 to ! ext5t su* contribution1 :5 add$ to previ\s contributions to ! tru/ = ! cal5d> ye>1 exce$s ! sum ( ! doll> am\nts 9 effect "u p>agraphs 7#b7 & 7#c7 ( subsection 7b7 or are excludible f gross income "u section #ajf7;d74 7,b7 ,! tru/ee is a bank 7z def9$ 9 section #djh7n771 an insurance company 7z def9$ 9 section #haf71 or ano!r p]son :o demon/rates to ! satisfaction ( ! ,secret>y t ! mann] 9 :i* su* p]son w adm9i/] ! tru/ w be consi/5t ) ! requirem5ts ( ?is section4 7,c7 ,no "p ( ! tru/ assets w be inve/$ 9 life insurance contracts4 7,d7 ,! assets ( ! tru/ w n be comm+l$ ) o!r prop]ty except 9 a common tru/ fund or common inve/m5t fund4 7,e7 ,! int]e/ ( an individual 9 ! balance 9 8 acc\nt is non=feitable4 7#b7 ,qualifi$ m$ical exp5ses 7,a7 ,9 g5]al ,! t]m qualifi$ m$ical exp5ses means1 ) respect to an acc\nt b5efici>y1 am\nts paid by su* b5efici>y = m$ical c>e 7z def9$ 9 section #bac7;d77 = su* individual1 ! sp\se ( su* individual1 & any dep5d5t 7z def9$ 9 section #aeb1 det]m9$ )\t reg>d to subsections 7b77#a71 7b77#b71 & 7d77#a77;,b7 !re(7 ( su* individual1 b only to ! ext5t su* am\nts are n comp5sat$ = by insurance or o!rwise4 ,= purposes ( ?is subp>agraph1 am\nts paid = m5/rual c>e products %all be treat$ z paid = m$ical c>e4 7,b7 ,heal? insurance may n be pur*as$ f acc\nt 7i7 ,9 g5]al ,subp>agraph 7,a7 %all n apply to any paym5t = insurance4 7ii7 ,exceptions ,claue 7i7 %all n apply to any exp5se = cov]age "u-- 7,i7 a heal? plan dur+ any p]iod ( cont9uation cov]age requir$ "u any ,f$]al law1 7,,ii7 a qualifi$ long-t]m c>e insurance contract 7z def9$ 9 section #ggjb;,b7b771 7,,iii7 a heal? plan dur+ a p]iod 9 :i* ! individual is receiv+ unemploym5t comp5sation "u any ,f$]al or ,/ate law1 or 7,,iv7 9 ! case ( an acc\nt b5efici>y :o has atta9$ ! age specifi$ 9 section #ahaa ( ! ,social ,security ,act1 any heal? insurance o!r ?an a m$ic>e supplem5tal policy 7z def9$ 9 section #ahhb ( ! ,social ,security ,act74 7iii7 ,exception = integrat$ heal? plans ,clause 7i7 %all n apply to any exp5se = cov]age "u an integration eligible heal? plan :i* is integrat$ ) ! heal? sav+s acc\nt )9 ! mean+ ( section #ajf7;d74 7iv7 ,exception = direct prim>y c>e s]vice arrangem5ts 7,i7 ,9 g5]al ,a direct prim>y c>e s]vice arrangem5t %all n be treat$ z insurance = purposes ( clause 7i774 7,,ii7 ,direct prim>y c>e s]vice arrangem5t def9$ ,= purposes ( ?is clause1 ! t]m direct prim>y c>e s]vice arrangem5t means an arrangem5t "u :i* an individual is provid$ m$ical c>e 7z def9$ 9 section #bac7;d77#a71 det]m9$ )\t reg>d to subp>agraph 7,e7 !re(7 consi/+ solely ( prim>y c>e s]vices provid$ by prim>y c>e practition]s 7z def9$ 9 section #ahcc7x77#b77;,a7 ( ! ,social ,security ,act1 det]m9$ )\t reg>d to clause 7ii7 !re(71 if ! sole comp5sation = su* c>e is a fix$ p]iodic fee4 7,c7 ,m5/rual c>e product ,= purposes ( ?is p>agraph1 ! t]m m5/rual c>e product means a tampon1 pad1 l9]1 cup1 sponge1 or simil> product us$ by individuals ) respect to m5/ruation or o!r g5ital-tract secretions4 7#c7 ,acc\nt b5efici>y ,! t]m acc\nt b5efici>y means ! individual on ^: behalf ! heal? sav+s acc\nt 0 e/abli%$4 7#d7 ,c]ta9 rules to ,apply ,rules simil> to ! foll[+ rules %all apply = purposes ( ?is section3 7,a7 ,section #bai7;d77#b7 7relat+ to no d$uction = rollov]s74 7,b7 ,section #bai7;f77#c7 7relat+ to "t :5 contributions deem$ made74 7,c7 ,except z provid$ 9 section #ajf7;d71 section #bai7;f77#e7 7relat+ to employ] paym5ts74 7,d7 ,section #djh7;g7 7relat+ to community prop]ty laws74 7,e7 ,section #djh7;h7 7relat+ to cu/odial acc\nts74 7e7 ,tax treatm5t ( acc\nts 7#a7 ,9 g5]al ,a heal? sav+s acc\nt is exempt f taxation "u ?is subtitle unless su* acc\nt has ceas$ to be a heal? sav+s acc\nt4 ,not)/&+ ! prec$+ s5t5ce1 any su* acc\nt is subject to ! taxes impos$ by section #eaa 7relat+ to imposition ( tax on unrelat$ bus9ess income ( *>itable1 etc4 organizations74 7#b7 ,acc\nt t]m9ations ,rules simil> to ! rules ( p>agraphs 7#b7 & 7#d7 ( section #djh7;e7 %all apply to heal? sav+s acc\nts1 & any am\nt treat$ z di/ribut$ "u su* rules %all be treat$ z n us$ to pay qualifi$ m$ical exp5ses4 7f7 ,tax treatm5t ( di/ributions 7#a7 ,am\nts us$ = qualifi$ m$ical exp5ses ,any am\nt paid or di/ribut$ out ( a heal? sav+s acc\nt :i* is us$ exclusively to pay qualifi$ m$ical exp5ses ( any acc\nt b5efici>y %all n be includible 9 gross income4 7#b7 ,inclusion ( am\nts n us$ = qualifi$ m$ical exp5ses ,any am\nt paid or di/ribut$ out ( a heal? sav+s acc\nt :i* is n us$ exclusively to pay ! qualifi$ m$ical exp5ses ( ! acc\nt b5efici>y %all be includ$ 9 ! gross income ( su* b5efici>y4 7#c7 ,excess contributions return$ be=e due date ( return 7,a7 ,9 g5]al ,if any excess contribution is contribut$ = a taxable ye> to any heal? sav+s acc\nt ( an individual1 p>agraph 7#b7 %all n apply to di/ributions f ! heal? sav+s acc\nts ( su* individual 7to ! ext5t su* di/ributions d n exce$ ! aggregate excess contributions to all su* acc\nts ( su* individual = su* ye>7 if-- 7i7 su* di/ribution is receiv$ by ! individual on or be=e ! la/ day prescrib$ by law 7includ+ ext5sions ( "t7 = fil+ su* individual's return = su* taxable ye>1 & 7ii7 su* di/ribution is accompani$ by ! am\nt ( net income attributable to su* excess contribution4 ,any net income describ$ 9 clause 7ii7 %all be includ$ 9 ! gross income ( ! individual = ! taxable ye> 9 :i* x is receiv$4 7,b7 ,excess contribution ,= purposes ( subp>agraph 7,a71 ! t]m excess contribution means any contribution 7o!r ?an a rollov] contribution describ$ 9 p>agraph 7#e7 or section #bbj7;f77#e77 :i* is nei!r excludable f gross income "u section #ajf7;d7 nor d$uctible "u ?is section4 7#d7 ,additional tax on di/ributions n us$ = qualifi$ m$ical exp5ses 7,a7 ,9 g5]al ,! tax impos$ by ?is *apt] on ! acc\nt b5efici>y = any taxable ye> 9 :i* !re is a paym5t or di/ribution f a heal? sav+s acc\nt ( su* b5efici>y :i* is includible 9 gross income "u p>agraph 7#b7 %all be increas$ by #bj p]c5t ( ! am\nt :i* is s includible4 7,b7 ,exception = disability or dea? ,subp>agraph 7,a7 %all n apply if ! paym5t or di/ribution is made aft] ! acc\nt b5efici>y becomes disabl$ )9 ! mean+ ( section #gb7m77#g7 or dies4 7,c7 ,exception = di/ributions aft] m$ic>e eligibility ,subp>agraph 7,a7 %all n apply to any paym5t or di/ribution aft] ! date on :i* ! acc\nt b5efici>y atta9s ! age specifi$ 9 section #ahaa ( ! ,social ,security ,act4 7#e7 ,rollov] contribution ,an am\nt is describ$ 9 ?is p>agraph z a rollov] contribution if x meets ! requirem5ts ( subp>agraphs 7,a7 & 7,b74 7,a7 ,9 g5]al ,p>agraph 7#b7 %all n apply to any am\nt paid or di/ribut$ f a heal? sav+s acc\nt to ! acc\nt b5efici>y to ! ext5t ! am\nt receiv$ is paid into a heal? sav+s acc\nt = ! b5efit ( su* b5efici>y n lat] ?an ! #fj? day aft] ! day on :i* ! b5efici>y receives ! paym5t or di/ribution4 7,b7 ,limitation ,?is p>agraph %all n apply to any am\nt describ$ 9 subp>agraph 7,a7 receiv$ by an individual f a heal? sav+s acc\nt if1 at any "t dur+ ! #a-ye> p]iod end+ on ! day ( su* receipt1 su* individual receiv$ any o!r am\nt describ$ 9 subp>agraph 7,a7 f a heal? sav+s acc\nt :i* 0 n includible 9 ! individual's gross income because ( ! application ( ?is p>agraph4 7,c7 ,rollov] f ,,fsa1 ,ar*] ,,msa1 & ,,hra ,an am\nt is describ$ 9 ?is subp>agraph = a cal5d> ye> z a rollov] contribution if ! am\nt is ! rema9+ balance 9 a heal? flexible sp5d+ acc\nt1 ,ar*] ,,msa1 or heal? reimbursem5t arrangem5t t is contribut$ to ! heal? sav+s acc\nt = a taxable ye> end+ on or be=e "o ye> aft] ! date ( ! enactm5t ( ?is subp>agraph4 7#f7 ,coord9ation ) m$ical exp5se d$uction ,= purposes ( det]m9+ ! am\nt ( ! d$uction "u section #bac1 any paym5t or di/ribution out ( a heal? sav+s acc\nt = qualifi$ m$ical exp5ses %all n be treat$ z an exp5se paid = m$ical c>e4 7#g7 ,transf] ( acc\nt incid5t to divorce ,! transf] ( an individual's int]e/ 9 a heal? sav+s acc\nt to an individual's sp\se or =m] sp\se "u a divorce or sep>ation in/rum5t describ$ 9 clause 7i7 ( section #aba7;d77#c77;,c7 %all n be consid]$ a taxable transf] made by su* individual not)/&+ any o!r provision ( ?is subtitle1 & su* int]e/ %all1 aft] su* transf]1 be treat$ z a heal? sav+s acc\nt ) respect to :i* su* sp\se is ! acc\nt b5efici>y4 7#h7 ,treatm5t aft] dea? ( acc\nt b5efici>y 7,a7 ,treatm5t if designat$ b5efici>y is sp\se ,if ! acc\nt b5efici>y's surviv+ sp\se acquires su* b5efici>y's int]e/ 9 a heal? sav+s acc\nt by reason ( be+ ! designat$ b5efici>y ( su* acc\nt at ! dea? ( ! acc\nt b5efici>y1 su* heal? sav+s acc\nt %all be treat$ z if ! sp\se 7 ! acc\nt b5efici>y4 7,b7 ,o!r cases 7i7 ,9 g5]al ,if1 by reason ( ! dea? ( ! acc\nt b5efici>y1 any p]son acquires ! acc\nt b5efici>y's int]e/ 9 a heal? sav+s acc\nt 9 a case to :i* subp>agraph 7,a7 does n apply-- 7,i7 su* acc\nt %all cease to be a heal? sav+s acc\nt z ( ! date ( dea?1 & 7,,ii7 an am\nt equal to ! fair m>ket value ( ! assets 9 su* acc\nt on su* date %all be includible if su* p]son is n ! e/ate ( su* b5efici>y1 9 su* p]son's gross income = ! taxable ye> :i* includes su* date1 or if su* p]son is ! e/ate ( su* b5efici>y1 9 su* b5efici>y's gross income = ! la/ taxable ye> ( su* b5efici>y4 7ii7 ,special rules 7,i7 ,r$uction ( inclusion = pr$ea? exp5ses ,! am\nt includible 9 gross income "u clause 7i7 by any p]son 7o!r ?an ! e/ate7 %all be r$uc$ by ! am\nt ( qualifi$ m$ical exp5ses :i* 7 incurr$ by ! dec$5t be=e ! date ( ! dec$5t's dea? & paid by su* p]son )9 #a ye> aft] su* date4 7,,ii7 ,d$uction = e/ate taxes ,an appropriate d$uction %all be all[$ "u section #fia7;c7 to any p]son 7o!r ?an ! dec$5t or ! dec$5t's sp\se7 ) respect to am\nts includ$ 9 gross income "u clause 7i7 by su* p]son4 7g7 ,co/-(-,liv+ adju/m5t 7#a7 ,9 g5]al ,9 ! case ( any taxable ye> beg9n+ aft] ,decemb] #ca1 #bjbd1 ea* doll> am\nt 9 p>agraphs 7#b7 & 7#c7 ( subsection 7c7 %all be increas$ by an am\nt equal to-- 7,a7 su* doll> am\nt1 multipli$ by 7,b7 ! co/-(-liv+ adju/m5t det]m9$ "u section #a7;f77#c7 = ! cal5d> ye> 9 :i* su* taxable ye> beg9s det]m9$ by sub/itut+ #bjbc = #bjaf 9 subp>agraph 7,a77ii7 !re(4 7#b7 ,r\nd+ ,if any increase "u p>agraph 7#a7 is n a multiple ( #ej1 su* increase %all be r\nd$ to ! ne>e/ multiple ( #ej4 7h7 ,reports ,! ,secret>y may require-- 7#a7 ! tru/ee ( a heal? sav+s acc\nt to make su* reports reg>d+ su* acc\nt to ! ,secret>y & to ! acc\nt b5efici>y ) respect to contributions1 di/ributions1 ! return ( excess contributions1 & su* o!r matt]s z ! ,secret>y det]m9es appropriate1 & 7#b7 any p]son :o provides an individual ) a qualifi$ heal? plan to make su* reports to ! ,secret>y & to ! acc\nt b5efici>y ) respect to su* plan z ! ,secret>y det]m9es appropriate4 4 7b7 ,employ] contributions to heal? sav+s acc\nts 7#a7 ,9 g5]al ,section #ajf7;d7 is am5d$ to read z foll[s3 7d7 ,contributions to heal? sav+s acc\nts 7#a7 ,9 g5]al ,9 ! case ( an employee :o is an eligible individual1 am\nts contribut$ by su* employee's employ] to any heal? sav+s acc\nt ( su* employee %all be treat$ z employ]-provid$ cov]age = m$ical exp5ses "u an accid5t or heal? plan to ! ext5t-- 7,a7 su* am\nts d n exce$ twice ! limitation 9 effect "u section #bbc7;b77#b7 7det]m9$ )\t reg>d to ?is subsection7 :i* is applicable to su* employee = su* taxable ye>1 7,b7 su* am\nts are contribut$ to an acc\nt :i* is integrat$ ) an integration eligible heal? plan1 7,c7 su* employ] does n (f] su* employee cov]age "u any o!r accid5t or heal? plan1 7,d7 su* employ] (f]s su* am\nts only to memb]s ( a qualifi$ class ( employees & (f]s su* am\nts to all memb]s ( any su* qualifi$ class1 7,e7 su* employ] (f]s employees an opportunity to elect n to receive su* am\nts at lea/ once p] ye> & ^u t]m9ation f employm5t1 & 7,f7 su* employee is n cov]$ "u any heal? insurance (f]$ by an employ] ( su* employee's sp\se4 7#b7 ,integration eligible heal? plan ,= purposes ( ?is subsection1 ! t]m integration eligible heal? plan means-- 7,a7 any bronze1 silv]1 or gold plan (f]$ ?r\gh an ,ex*ange e/abli%$ "u ! ,pati5t ,protection & ,af=dable ,c>e ,act1 7,b7 entitlem5t to b5efits "u "p ,a ( title ,,xviii ( ! ,social ,security ,act & enrollm5t "u "p ,b ( su* title1 includ+ enrollm5t "u a ,m$ic>e ,advantage plan "u "p ,c ( su* title1 7,c7 9 ! case ( any individual :o has n atta9$ age #cj or is det]m9$ by ! ,secret>y 7aft] consultation ) ! ,secret>y ( ,heal? & ,human ,s]vices7 to h a h>d%ip1 cov]age "u a cata/rophic plan1 & 7,d7 9 ! case ( any /ud5t1 cov]age "u a heal? plan :i* is condition$ on ma9ta9+ /atus z be+ su* a /ud5t4 7#c7 ,integration ( plans & acc\nts ,= purposes ( ?is subsection1 an acc\nt %all be treat$ z integrat$ ) an integration eligible heal? plan 7& su* plan %all be treat$ z integrat$ ) su* acc\nt7 = any mon? if-- 7,a7 ! employee is ! acc\nt b5efici>y ( su* acc\nt & su* employee is cov]$ "u an integration eligible heal? plan = su* mon?1 7,b7 ! employ] v]ifies t ! employee is s cov]$ by requir+ ! submission ( docum5tation to su* employ]1 & 7,c7 ! employ] makes contributions to su* acc\nt = su* mon? :i* are n less ?an ! excess 7if any7 (-- 7i7 ! adju/$ mon?ly premiums = ! applicable second l[e/ co/ silv] plan ) respect to ! taxpay]1 ov] 7ii7 #a_/ab ( #i4e p]c5t ( ! taxpay]'s h\sehold income 7)9 ! mean+ ( section #cf;,b74 7#d7 ,qualifi$ class ,= purposes ( ?is subsection-- 7,a7 ,9 g5]al ,! t]m qualifi$ class means only ! foll[+3 ,all employees2 ,full-"t employees2 ,"p-"t employees2 ,seasonal employees2 ,employees cov]$ "u a collective b>ga9+ agreem5t2 ,employees 9 a wait+ p]iod2 ,=eign employees :o "w abroad2 ,employees work+ 9 ! same geographic location 7same insurance rat+ area1 ,/ate1 or multi-,/ate region72 ,sal>i$ work]s2 ,non-,sal>i$ work]s 7su* z h\rly work]s72 ,tempor>y employees ( /aff+ firms4 7,b7 ,rules relat$ to class size 7i7 ,m9imum class size ,a class %all n be treat$ z a qualifi$ class unless 9 consi/+ ( at lea/ ! foll[+ numb] ( employees3 7,i7 ,9 ! case ( an employ] ) few] ?an #ajj employees1 ! less] ( #aj employees or all employees ( ! employ]4 7,,ii7 ,9 ! case ( an employ] ) at lea/ #ajj & n m ?an #bjj employees1 #aj p]c5t ( ! numb] ( su* employees 7if n a :ole numb]1 r\nd$ d[n to ! next l[e/ :ole numb]74 7,,iii7 ,9 ! case ( an employ] ) m ?an #bjj employees1 #bj employees4 7ii7 ,comb9ation ( classes ,two or m qualifi$ classes describ$ 9 subp>agraph 7,a7 may be comb9$ if ea* su* class sep>ately w\ld n satisfy ! requirem5t ( clause 7i74 7,c7 ,p]mitt$ v>iation )9 qualifi$ classes ,an employ] %all n fail to meet ! requirem5ts ( p>agraph 7#a77;,d7 solely because ! am\nts (f]$ to memb]s ( a qualifi$ class v>y on ! basis (-- 7i7 numb] ( dep5d5ts1 7ii7 age1 if su* v>iation bas$ on age does n exce$ a ratio ( #c3a1 & 7iii7 *ronic heal? condition1 if su* v>iation bas$ on *ronic heal? condition does n exce$ a ratio ( #a4b3a4 7#e7 ,coord9ation ) ,,aca provisions ,9 ! case ( an integration eligible heal? plan :i* is integrat$ ) a heal? sav+s acc\nt-- 7,a7 su* plan %all be treat$ z an eligible employ]-sponsor$ plan describ$ 9 section #ejjj;,a7f77#a77;,b71 7,b7 if an individual receives contributions to su* acc\nt :i* are excludible f ! gross income ( su* individual "u ?is section dur+ any taxable ye>1 no cr$it %all be all[$ "u section #cf;,b ) respect to su* individual = su* taxable ye>1 & 7,c7 = purposes ( section #cf;,b7c77#b77;,c77i77,,ii71 ! employee's requir$ contribution ) respect to su* plan %all be treat$ z be+ equal to ! excess 7if any7 (-- 7i7 ! adju/$ mon?ly premiums = ! applicable second l[e/ co/ silv] plan ) respect to ! taxpay]1 ov] 7ii7 ! contributions made ! employ] to su* heal? sav+s acc\nt :i* are excludible f ! gross income ( ! employee "u ?is section4 7#f7 ,no con/ructive receipt ,no am\nt %all be includ$ 9 ! gross income ( any employee solely because ! employee may *oose betwe5 ! contributions ref]r$ to 9 p>agraph 7#a7 & employ] contributions to ano!r heal? plan ( ! employ]4 7#g7 ,special rule = d$uction ( employ] contributions ,any employ] contribution to a heal? sav+s acc\nt1 if o!rwise all[able z a d$uction "u ?is *apt]1 %all be all[$ only = ! taxable ye> 9 :i* paid4 7#h7 ,employ] heal? sav+s acc\nt contributions requir$ to be %[n on return ,e individual requir$ to file a return "u section #fjab = ! taxable ye> %all include on su* return ! aggregate am\nt contribut$ by employ]s to ! heal? sav+s acc\nts ( su* individual or su* individual's sp\se = su* taxable ye>4 7#i7 ,heal? sav+s acc\nt contributions n "p ( ,,cobra cov]age ,p>agraph 7#a7 %all n apply = purposes ( section #dihj;,b4 7#aj7 ,def9itions ,t]ms us$ 9 ?is subsection :i* are also us$ 9 section #bbc %all h ! same respective mean+s z :5 us$ 9 su* section4 7#aa7 ,regulations ,! ,secret>ies ( ,treasury1 ,labor1 & ,heal? & ,human ,s]vices %all ea* issue su* regulations or o!r guidance z may be necess>y or appropriate to c>ry out ! purposes ( ?is subsection1 includ+ regulations or o!r guidance to-- 7,a7 prev5t employ]s f (f]+ plans integrat$ ) heal? sav+s acc\nts selectively to sick] work]s1 & 7,b7 e/abli% a safe h>bor t helps employ]s det]m9e :e!r contributions to heal? sav+s acc\nts ) respect to :i* !re is an integrat$ heal? plan comply ) af=dability requirem5ts "u ! ,pati5t ,protection & ,af=dable ,c>e ,act & ! am5dm5ts made by su* ,act4 7#ab7 ,cross ref]5ce ,= p5alty on failure by employ] to make comp>able contributions to ! heal? sav+s acc\nts ( comp>able employees1 see section #dihj;,g4 4 7#b7 ,nonapplication ( ,,erisa ,contributions by an employ] to a heal? sav+s acc\nt 7z def9$ 9 section #bbc ( ! ,int]nal ,rev5ue ,code ( #aihf71 & an integration eligible heal? plan :i* is integrat$ ) su* acc\nt 7)9 ! mean+ ( su* section71 %all n be treat$ z a plan = purposes ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd if-- 7,a7 receipt ( su* contributions by ! employee is volunt>y1 7,b7 ! employ] does n select or endorse ! integration eligible heal? plan :i* is integrat$ ) su* acc\nt1 7,c7 no premiums1 o!r ?an premiums = ! integration eligible heal? plan :i* is integrat$ ) su* acc\nt1 are paid f ! acc\nt1 7,d7 ! employ] receives no consid]ation 7money or o!r b5efit7 9 connection ) ! employee select+ or r5ew+ a plan1 & 7,e7 ea* p>ticipant is notifi$ annually t su* contributions & su* plan are n subject to ! requirem5ts ( su* ,act4 7c7 ,t]m9ation ( c]ta9 o!r heal? c>e relat$ tax b5efits 7#a7 ,exclusion limit$ to self-fund$ major m$ical plan ( employ]s ,section #aje7;b7 ( su* ,code is am5d$ by /rik+ paid1 & ins]t+ paid "u a self-fund$ major m$ical plan ( ! employ]4 7#b7 ,exclusion n applicable to heal? reimbursem5t arrangem5ts ,section #aje7;h7 ( su* ,code is am5d$ to read z foll[s3 7h7 ,exclusion n applicable to heal? reimbursem5t arrangem5ts ,subsection 7b7 %all n apply to heal? reimbursem5t arrangem5ts4 4 7#c7 ,repeal ( exclusions f income = ,ar*] ,m,s,as & ,f,s,as ,section #ajf ( su* ,code is am5d$ by /rik+ subsections 7b71 7e71 & 7g74 7#d7 ,t]m9ation ( d$uction = contributions to ,ar*] ,m,s,as ,section #bbj7;a7 ( su* ,code is am5d$ by add+ at ! end ! foll[+3 ,no am\nt %all be all[$ z a d$uction "u ! prec$+ s5t5ce = any taxable ye> beg9n+ aft] "o ye> aft] ! date ( ! enactm5t ( ?is s5t5ce44 7d7 ,bankruptcy protections ,section #ebb ( title #aa1 ,unit$ ,/ates ,code1 is am5d$ by add+ at ! end ! foll[+ new subsection3 7r7 ,= purposes ( ?is section1 any heal? sav+s acc\nt 7z describ$ 9 section #bbc ( ! ,int]nal ,rev5ue ,code ( #aihf7 %all be treat$ 9 ! same mann] z an individual retirem5t acc\nt describ$ 9 section #djh ( su* ,code4 4 7e7 ,rollov] ( ,,fsa1 ,ar*] ,,msa1 ,,hra to heal? sav+s acc\nt ,not)/&+ any o!r provision ( law1 if ! rema9+ balance 9 a heal? flexible sp5d+ arrangem5t1 ,ar*] ,,msa1 or heal? reimbursem5t arrangem5t is transf]r$ to a heal? sav+s acc\nt be=e ! end ( any taxable ye> end+ on or be=e "o ye> aft] ! date ( ! enactm5t ( ?is ,act1 su* transf] %all be treat$ z a rollov] to ! heal? sav+s acc\nt "u section #bbc7;f77#e7 ( ! ,int]nal ,rev5ue ,code ( #aihf & ! di/ribution f ! heal? flexible sp5d+ arrangem5t1 ,ar*] ,,msa1 or heal? reimbursem5t arrangem5t %all n be includible 9 gross income4 7f7 ,effective dates 7#a7 ,9 g5]al ,! am5dm5ts made by subsections 7a7 & 7b7 %all apply to taxable ye>s beg9n+ aft] ! date ( ! enactm5t ( ?is ,act4 7#b7 ,t]m9ation ( c]ta9 o!r heal? c>e relat$ tax b5efits ,! am5dm5ts made by subsection 7c7 %all apply to taxable ye>s beg9n+ aft] ! date :i* is #a ye> aft] ! date ( ! enactm5t ( ?is ,act4 7#c7 ,bankruptcy protections ,! am5dm5t made by subsection 7d7 %all apply to cases comm5c+ "u title #aa1 ,unit$ ,/ates ,code1 aft] ! date ( ! enactm5t ( ?is ,act4 #c4 ,unus$ premium tax cr$its may be deposit$ 9 heal? sav+s acc\nts 7a7 ,9 g5]al ,section #cf;,b is am5d$ by r$esignat+ subsection 7h7 z subsection 7i7 & by ins]t+ aft] subsection 7g7 ! foll[+ new subsection3 7h7 ,excess cr$it may be deposit$ into a heal? sav+s acc\nt 7#a7 ,9 g5]al ,if ! am\nt describ$ 9 subp>agraph 7,b7 ( subsection 7b77#b7 exce$s ! am\nt describ$ 9 subp>agraph 7,a7 ( su* subsection ) respect to any cov]age mon? & an election "u p>agraph 7#b7 is 9 effect ) respect to ! applicable taxpay]1 ! ,secret>y %all deposit su* excess into a heal? sav+s acc\nt ( su* taxpay]4 7#b7 ,election to deposit excess cr$it into a heal? sav+s acc\nt ,a taxpay] may elect 7at su* "t & 9 su* mann] z ! ,secret>y may provide7 to h ! ,secret>y deposit ! excess describ$ 9 p>agraph 7#a7 into a heal? sav+s acc\nt ( ! taxpay]4 ,any su* election %all only be treat$ z be+ 9 effect if ! taxpay] provides ! ,secret>y ) su* in=mation z ! ,secret>y may require to all[ ! ,secret>y to make su* deposit4 7#c7 ,coord9ation ) heal? sav+s acc\nt rules ,any am\nt deposit$ 9 a heal? sav+s acc\nt by ! ,secret>y "u ?is subsection %all-- 7,a7 be includible 9 ! gross income ( ! applicable taxpay]1 & 7,b7 be tak5 into acc\nt z an am\nt paid to su* acc\nt = purposes ( ?is section4 7#d7 ,treatm5t ( deposits ,= purposes ( section #acbd ( title #ca1 ,unit$ ,/ates ,code1 any deposit made "u ?is subsection %all be treat$ z a cr$it all[$ "u ?is section4 4 7b7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ! date ( ! enactm5t ( ?is ,act4 #d4 ,"o-"t application ( sav]'s cr$it to contributions to heal? sav+s acc\nts 7a7 ,9 g5]al ,9 ! case ( an applicable taxable ye>1 contributions to any heal? sav+s acc\nt ( ! taxpay] dur+ su* taxable ye> %all be treat$ z a qualifi$ retirem5t sav+s contribution = purposes ( section #be;,b ( ! ,int]nal ,rev5ue ,code ( #aihf4 7b7 ,applicable taxable ye> ,= purposes ( ?is section1 ! t]m applicable taxable ye> means any taxable ye> elect$ by ! taxpay] 7at su* "t & 9 su* mann] z ! ,secret>y ( ! ,treasury may provide7 :i* beg9s dur+ ! #c-ye> p]iod beg9n+ #a ye> aft] ! date ( ! enactm5t ( ?is ,act4 ,a taxpay] may n elect n m ?an #a applicable taxable ye> "u ?is subsection4 #e4 ,grants = heal? sav+s acc\nt assi/ance & outrea* 7a7 ,9 g5]al ,! ,adm9i/rator %all e/abli% a grant program to provide assi/ance to eligible entities to c>ry out ! activities describ$ 9 subsection 7c74 7b7 ,application ,an eligible entity %all submit an application to ! ,adm9i/rator 9 su* "t & 9 su* mann] z ! ,adm9i/rator may require1 provid+ t su* application requires a demon/ration ( ! exi/5ce ( a relation%ip )1 or ! ability to e/abli% a relation%ip )1 an employ]1 employee1 self-employ$ individual1 or consum] eligible to enroll 9 a heal? sav+s acc\nt4 7c7 ,use ( funds ,an eligible entity receiv+ a grant "u ?is section %all use su* funds to-- 7#a7 di/ribute fair & imp>tial in=mation to consum]s ab\t heal? sav+s acc\nts1 includ+ ! availability ( su* acc\nts & h[ su* acc\nts may be utiliz$2 7#b7 conduct activities to raise public aw>5ess ( heal? sav+s acc\nts2 7#c7 facilitate enrollm5t 9 heal? sav+s acc\nts2 & 7#d7 ref] individuals enroll$ 9 a heal? sav+s acc\nt to ! appropriate (ficial1 organization1 or ,/ate ag5cy = ! purpose ( address+ a compla9t1 grievance1 or o!r "q ) respect to su* heal? sav+s acc\nt4 7d7 ,am\nt ,! ,adm9i/rator may di/ribute up to #e1jjj1jjj annually to be divid$ among grant recipi5ts "u ?is section4 7e7 ,report ,n lat] ?an "o ye> aft] ! date on :i* ! la/ ( ! grant p]iods aw>d$ "u ?is section ends1 ! ,adm9i/rator %all submit a report to ! ,congress on ! effectiv5ess ( ! grants provid$ "u ?is section4 7f7 ,def9itions ,9 ?is section3 7#a7 ,adm9i/rator ,! t]m ,adm9i/rator means ! ,adm9i/rator ( ! ,c5t]s = ,m$ic>e ,m$icaid ,s]vices4 7#b7 ,consum] ,! t]m consum] means an individual enroll$ 91 or seek+ to enroll 91 a heal? sav+s acc\nt4 7#c7 ,eligible entity ,! t]m eligible entity includes ! foll[+3 7,a7 ,a ,/ate4 7,b7 ,trade4 7,c7 ,indu/ry4 7,d7 ,pr(essional associations4 7,e7 ,comm]cial fi%+ indu/ry organizations4 7,f7 ,ran*+ & f>m+ organizations4 7,g7 ,community & consum]-focus$ nonpr(it gr\ps4 7,h7 ,*amb]s ( comm]ce4 7,i7 ,unions4 7,j7 ,small bus9ess developm5t c5t]s 7z def9$ 9 section #ba ( ! ,small ,bus9ess ,act 7#ae ,u4,s4,c4 #fdh774 7,k7 ,o!r entities capable ( c>ry+ out ! activities describ$ "u subsection 7b74 7#d7 ,heal? sav+s acc\nt ,! t]m heal? sav+s acc\nt has ! mean+ giv5 su* t]m 9 section #bbc ( ! ,int]nal ,rev5ue ,code ( #aihf4 7#e7 ,/ate ,! t]m ,/ate means ea* ( ! sev]al ,/ates1 ! ,di/rict ( ,columbia1 ea* t]ritory & possession ( ! ,unit$ ,/ates1 & ea* f$]ally recogniz$ ,indian ,tribe4