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PUBLIC LAW 104-191—AUG. 21, 1996
110 STAT. 2037
(2)(A) Clause (vi) of section 1882(d)(3)(A) of the Social Security
Act, as added by subsection (a), shall only apply to individuals
applying for—
(i) a health insurance policy described in section
1882(d)(3)(A)(iv) of such Act (as added by subsection (a)), after
the date of the enactment of this Act, or
(ii) another health insurance policy after the end of the
30-day period beginning on the date of the enactment of this
Act.
(B) A seller or issuer of a health insurance policy may substitute, for the disclosure statement described in clause (vii) of
such section, the statement specified under section 1882(d)(3)(D)
of the Social Security Act (as in effect before the date of the
enactment of this Act), without the revision specified in such clause.
TITLE III—TAX-RELATED HEALTH
PROVISIONS
SEC. 300. AMENDMENT OF 1986 CODE.
Except as otherwise expressly provided, whenever in this title
an amendment or repeal is expressed in terms of an amendment
to, or repeal of, a section or other provision, the reference shall
be considered to be made to a section or other provision of the
Internal Revenue Code of 1986.
Subtitle A—Medical Savings Accounts
SEC. 301. MEDICAL SAVINGS ACCOUNTS.
(a) IN GENERAL. — Part VII of subchapter B of chapter 1 (relating
to additional itemized deductions for individuals) is amended by
redesignating section 220 as section 221 and by inserting after
section 219 the following new section:
"SEC. 220. MEDICAL SAVINGS ACCOUNTS.
"(a) DEDUCTION ALLOWED.—In the case of an individual who
is an eligible individual for any month during the taxable year,
there shall be allowed as a deduction for the taxable year an
amount equal to the aggregate amount paid in cash during such
taxable year by such individual to a medical savings account of
such individual.
" (b) LIMITATIONS. —
"(1) IN GENERAL.— The amount allowable as a deduction
under subsection (a) to an individual for the taxable year shall
not exceed the sum of the monthly limitations for months
during such taxable year that the individual is an eligible
individual.
"(2) MONTHLY LIMITATION. — The monthly limitation for any
month is the amount equal to Vi2 of—
"(A) in the case of an individual who has self-only
coverage under the high deductible health plan as of the
first day of such month, 65 percent of the annual deductible
under such coverage, and
"(B) in the case of an individual who has family coverage under the high deductible health plan as of the
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