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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