PUBLIC LAW 104-191—AUG. 21, 1996 110 STAT. 2053 science to conduct a comprehensive study regarding the effects of medical savings accounts in the small group market on— (1) selection, including adverse selection, (2) health costs, including any impact on premiums of individuals with comprehensive coverage, (3) use of preventive care, (4) consumer choice, (5) the scope of coverage of high deductible plans purchased in conjunction with such accounts, and (6) other relevant items. A report on the results of the study conducted under this subsection Reports. shall be submitted to the Congress no later than January 1, 1999. Subtitle B—Inc|rease in Deduction for Health Insurance Costs of Self-Employed Individuals SEC. 311. INCREASE IN DEDUCTION FOR HEALTH INSURANCE COSTS OF SELF-EMPLOYED INDIVIDUALS. (a) IN GENERAL. — Paragraph (1) of section 162(1) is amended to read as follows: "(1) ALLOWANCE OF DEDUCTION. — "(A) IN GENERAL. —In the case of an individual who is an employee within the meeining of section 401(c)(1), there shall be allowed as a deduction under this section an amount equal to the applicable percentage of the amount paid during the taxable year for insurance which constitutes medical care for the taxpayer, his spouse, and dependents. "(B) APPLICABLE PERCENTAGE.— For purposes of subparagraph (A), the applicable percentage shall be determined under the following table: 'Tor taxable years beginning The applicable percentage is— in calendar year— 1997 40 percent 1998 through 2002 45 percent 2003 50 percent 2004 60 percent 2005 70 percent 2006 or thereafter 80 percent.". (b) EXCLUSION FOR AMOUNTS RECEIVED UNDER CERTAIN SELF- INSURED PLANS. —Paragraph (3) of section 104(a) is amended by inserting "(or through an arrangement having the effect of accident or health insurance)" after "health insurance". (c) EFFECTIVE DATE.—The amendments made by this section 26 USC 104 note. shall apply to taxable years beginning after December 31, 1996.