Page:United States Statutes at Large Volume 120.djvu/150

 PUBLIC LAW 109–171—FEB. 8, 2006

120 STAT. 119

program, to have failed to meet quality standards or to have committed 1 or more acts of fraud or abuse; and ‘‘(II) items and services insofar as the State finds they are not medically appropriate or necessary. ‘‘(iv) ELECTRONIC WITHDRAWALS.—The State demonstration program shall provide for a method whereby withdrawals may be made from the account for such purposes using an electronic system and shall not permit withdrawals from the account in cash. ‘‘(B) MAINTENANCE OF HEALTH OPPORTUNITY ACCOUNT AFTER BECOMING INELIGIBLE FOR PUBLIC BENEFIT.— ‘‘(i) IN GENERAL.—Notwithstanding any other provision of law, if an account holder of a health opportunity account becomes ineligible for benefits under this title because of an increase in income or assets— ‘‘(I) no additional contribution shall be made into the account under paragraph (2)(A)(i); ‘‘(II) subject to clause (iii), the balance in the account shall be reduced by 25 percent; and ‘‘(III) subject to the succeeding provisions of this subparagraph, the account shall remain available to the account holder for 3 years after the date on which the individual becomes ineligible for such benefits for withdrawals under the same terms and conditions as if the account holder remained eligible for such benefits, and such withdrawals shall be treated as medical assistance in accordance with subsection (c)(6). ‘‘(ii) SPECIAL RULES.—Withdrawals under this subparagraph from an account— ‘‘(I) shall be available for the purchase of health insurance coverage; and ‘‘(II) may, subject to clause (iv), be made available (at the option of the State) for such additional expenditures (such as job training and tuition expenses) specified by the State (and approved by the Secretary) as the State may specify. ‘‘(iii) EXCEPTION FROM 25 PERCENT SAVINGS TO GOVERNMENT FOR PRIVATE CONTRIBUTIONS.—Clause (i)(II) shall not apply to the portion of the account that is attributable to contributions described in paragraph (2)(A)(ii). For purposes of accounting for such contributions, withdrawals from a health opportunity account shall first be attributed to contributions described in paragraph (2)(A)(i). ‘‘(iv) CONDITION FOR NON-HEALTH WITHDRAWALS.— No withdrawal may be made from an account under clause (ii)(II) unless the account holder has participated in the program under this section for at least 1 year. ‘‘(v) NO REQUIREMENT FOR CONTINUATION OF COVERAGE.—An account holder of a health opportunity account, after becoming ineligible for medical assistance under this title, is not required to purchase high-

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