Page:United States Statutes at Large Volume 110 Part 3.djvu/311

 PUBLIC LAW 104-191—AUG. 21, 1996 110 STAT. 2041 "(ii) PREDECESSORS.—Any reference in this paragraph to an employer shall include a reference to any predecessor of such employer. "(5) FAMILY COVERAGE. —The term 'family coverage' means any coverage other than self-only coverage. "(d) MEDICAL SAVINGS ACCOUNT.—For purposes of this section— "(1) MEDICAL SAVINGS ACCOUNT.—The term 'medical savings account' means a trust created or organized in the United States exclusively for the purpose of paying the qualified medical expenses of the account holder, but only if the written governing instrument creating the trust meets the following requirements: "(A) Except in the case of a rollover contribution described in subsection (f)(5), no contribution will be accepted— "(i) unless it is in cash, or "(ii) to the extent such contribution, when added to previous contributions to the trust for the calendar year, exceeds 75 percent of the highest annual limit deductible permitted under subsection (c)(2)(A)(ii) for such calendar year. "(B) The trustee is a bank (as defined in section 408(n)), an insurance company (as defined in section 816), or another person who demonstrates to the satisfaction of the Secretary that the manner in which such person will administer the trust will be consistent with the requirements of this section. "(C) No part of the trust assets will be invested in life insurance contracts. "(D) The assets of the trust will not be commingled with other property except in a common trust fund or common investment fund. "(E) The interest of an individual in the balance in his account is nonforfeitable. "(2) QUALIFIED MEDICAL EXPENSES.— "(A) IN GENERAL.—The term 'qualified medical expenses' means, with respect to an accoiuit holder, amounts paid by such holder for medical care (as defined in section 213(d)) for such individual, the spouse of such individual, and any dependent (as defined in section 152) of such individual, but only to the extent such amounts are not compensated for by insurance or otherwise. " (B) HEALTH INSURANCE MAY NOT BE PURCHASED FROM ACCOUNT. — "(i) IN GENERAL. — Subparagraph (A) shall not apply to any payment for insurance. "(ii) EXCEPTIONS.— Clause (i) shall not apply to any expense for coverage under— "(I) a health plan during any period of continuation coverage required under any Federal law, "(II) a qualified long-term care insurance contract (as defined in section 7702B(b)), or "(III) a health plan during a period in which the individual is receiving unemployment compensation under any Federal or State law.

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