Page:United States Statutes at Large Volume 124.djvu/243

 124 STAT. 217 PUBLIC LAW 111–148—MAR. 23, 2010 respect to the plan exceeds 9.8 percent of the applicable taxpayer’s household income. This clause shall also apply to an individual who is eligible to enroll in the plan by reason of a relationship the individual bears to the employee. ‘‘(ii) COVERAGE MUST PROVIDE MINIMUM VALUE.— Except as provided in clause (iii), an employee shall not be treated as eligible for minimum essential cov- erage if such coverage consists of an eligible employer- sponsored plan (as defined in section 5000A(f)(2)) and the plan’s share of the total allowed costs of benefits provided under the plan is less than 60 percent of such costs. ‘‘(iii) EMPLOYEE OR FAMILY MUST NOT BE COVERED UNDER EMPLOYER PLAN.—Clauses (i) and (ii) shall not apply if the employee (or any individual described in the last sentence of clause (i)) is covered under the eligible employer-sponsored plan or the grandfathered health plan. ‘‘(iv) INDEXING.—In the case of plan years begin- ning in any calendar year after 2014, the Secretary shall adjust the 9.8 percent under clause (i)(II) in the same manner as the percentages are adjusted under subsection (b)(3)(A)(ii). ‘‘(3) DEFINITIONS AND OTHER RULES.— ‘‘(A) QUALIFIED HEALTH PLAN.—The term ‘qualified health plan’ has the meaning given such term by section 1301(a) of the Patient Protection and Affordable Care Act, except that such term shall not include a qualified health plan which is a catastrophic plan described in section 1302(e) of such Act. ‘‘(B) GRANDFATHERED HEALTH PLAN.—The term ‘grand- fathered health plan’ has the meaning given such term by section 1251 of the Patient Protection and Affordable Care Act. ‘‘(d) TERMS RELATING TO INCOME AND FAMILIES.—For purposes of this section— ‘‘(1) FAMILY SIZE.—The family size involved with respect to any taxpayer shall be equal to the number of individuals for whom the taxpayer is allowed a deduction under section 151 (relating to allowance of deduction for personal exemptions) for the taxable year. ‘‘(2) HOUSEHOLD INCOME.— ‘‘(A) HOUSEHOLD INCOME.—The term ‘household income’ means, with respect to any taxpayer, an amount equal to the sum of— ‘‘(i) the modified gross income of the taxpayer, plus ‘‘(ii) the aggregate modified gross incomes of all other individuals who— ‘‘(I) were taken into account in determining the taxpayer’s family size under paragraph (1), and ‘‘(II) were required to file a return of tax imposed by section 1 for the taxable year. ‘‘(B) MODIFIED GROSS INCOME.—The term ‘modified gross income’ means gross income— Applicability.