PUBLIC LAW 104-191—AUG. 21, 1996
110 STAT. 2039
"(I) which is not a high deductible health plan,
and
"(11) which provides coverage for any benefit
which is covered under the high deductible health
plan, and
" (iii)(I) the high deductible health plan covering
such individual is established and maintained by
the employer of such individual or of the spouse of
such individual and such employer is a small employer,
or
"(II) such individual is an employee (within the
meaning of section 401(c)(1)) or the spouse of such
an employee and the high deductible health plan covering such individual is not established or maintained
by any employer of such individual or spouse.
"(B) CERTAIN COVERAGE DISREGARDED.— Subparagraph
(A)(ii) shall be applied without regard to—
"(i) coverage for any benefit provided by permitted
insurance, and
"(ii) coverage (whether through insurance or otherwise) for accidents, disability, dental care, vision care,
or long-term care.
"(C) CONTINUED ELIGIBILITY OF EMPLOYEE AND SPOUSE
ESTABLISHING MEDICAL SAVINGS ACCOUNTS. —I f, while an
employer is a small employer—
"(i) any amount is contributed to a medical savings
account of an individual who is an employee of such
employer or the spouse of such an employee, and
"(ii) such amount is excludable from gross income
under section 106(b) or allowable as a deduction under
this section,
such individual shall not cease to meet the requirement
of subparagraph (A)(iii)(I) by reason of such employer ceasing to be a small employer so long as such employee continues to be an employee of such employer.
"(D) LIMITATIONS ON ELIGIBILITY. —
Tor limitations on number of taxpayers who are eligible to have
medical savings accounts, see subsection (i).
"(2) HIGH DEDUCTIBLE HEALTH PLAN.—
" (A) IN GENERAL.— The term high deductible health
plan' means a health plan—
"(i) in the case of self-only coverage, which has
an annual deductible which is not less than $1,500
and not more than $2,250,
"(ii) in the case of family coverage, which has
an annual deductible which is not less than $3,000
and not more than $4,500, and
"(iii) the annual out-of-pocket expenses required
to be paid under the plan (other than for premiums)
for covered benefits does not exceed—
"(I) $3,000 for self-only coverage, and
"(II) $5,500 for family coverage.
"(B) SPECL\L RULES. —
"(i) EXCLUSION OF CERTAIN PLANS.—Such term does \
not include a health plan if substantially all of its
coverage is coverage described in paragraph (1)(B).
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