PUBLIC LAW 107-210-AUG. 6, 2002 116 STAT. 959 "(3) MSA DISTRIBUTIONS.— Amounts distributed from an Archer MSA (as defined in section 220(d)) shall not be taken into account under subsection (a). "(4) DENIAL OF CREDIT TO DEPENDENTS.— N O credit shall be allowed under this section to any individual with respect to whom a deduction under section 151 is allowable to another taxpayer for a taxable year beginning in the calendar year in which such individual's taxable year begins. "(5) BOTH SPOUSES ELIGIBLE INDIVIDUALS.—The spouse of the taxpayer shall not be treated as a qualifying family member for purposes of subsection (a), if— "(A) the taxpayer is married at the close of the taxable year, "(B) the taxpayer and the taxpayer's spouse are both eligible individuals during the taxable year, and "(C) the taxpayer files a separate return for the taxable year. "(6) MARITAL STATUS; CERTAIN MARRIED INDIVIDUALS LIVING APART.—Rules similar to the rules of paragraphs (3) and (4) of section 21(e) shall apply for purposes of this section. " (7) INSURANCE WHICH COVERS OTHER INDIVIDUALS. —For purposes of this section, rules similar to the rules of section 213(d)(6) shall apply with respect to any contract for qualified health insurance under which amounts are payable for coverage of an individual other than the taxpayer and qualifying family members. "(8) TREATMENT OF PAYMENTS.— For purposes of this section— "(A) PAYMENTS BY SECRETARY.—Payments made by the Secretary on behalf of any individual under section 7527 (relating to advance pa5anent of credit for health insurance costs of eligible individuals) shall be treated as having been made by the taxpayer on the first day of the month for which such pa5anent was made. "(B) PAYMENTS BY TAXPAYER.—Payments made by the taxpayer for eligible coverage months shall be treated as having been made by the taxpayer on the first day of the month for which such payment was made. "(9) REGULATIONS.— The Secretary may prescribe such regulations and other guidance as may be necessary or appropriate to carry out this section, section 6050T, and section 7527. ". (b) PROMOTION OF STATE HIGH RISK POOLS. —Title XXVII of the Public Health Service Act is amended by inserting after section 2744 the following new section: "SEC. 2745. PROMOTION OF QUALIFIED HIGH RISK POOLS. 42 USC "(a) SEED GRANTS TO STATES. — The Secretary shall provide ^^" from the funds appropriated under subsection (c)(1) a grant of up to $1,000,000 to each State that has not created a qualified high risk pool as of the date of the enactment of this section for the State's costs of creation and initial operation of such a pool. "(b) MATCHING FUNDS FOR OPERATION OF POOLS.— "(1) IN GENERAL.—In the case of a State that has established a qualified high risk pool that—
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