Page:United States Statutes at Large Volume 124.djvu/875

 124 STAT. 849 PUBLIC LAW 111–148—MAR. 23, 2010 calendar year preceding such year, increased by an amount equal to the product of— ‘‘(I) such amount as so in effect, multiplied by ‘‘(II) the cost-of-living adjustment determined under section 1(f)(3) for such year (determined by substituting the calendar year that is 2 years before such year for ‘1992’ in subparagraph (B) thereof), increased by 1 percentage point. If any amount determined under this clause is not a multiple of $50, such amount shall be rounded to the nearest multiple of $50. ‘‘(D) TRANSITION RULE FOR STATES WITH HIGHEST COV- ERAGE COSTS.— ‘‘(i) IN GENERAL.—If an employee is a resident of a high cost State on the first day of any month beginning in 2013, 2014, or 2015, the annual limitation under this paragraph for such month with respect to such employee shall be an amount equal to the applicable percentage of the annual limitation (deter- mined without regard to this subparagraph or subpara- graph (C)(ii)). ‘‘(ii) APPLICABLE PERCENTAGE.—The applicable percentage is 120 percent for 2013, 110 percent for 2014, and 105 percent for 2015. ‘‘(iii) HIGH COST STATE.—The term ‘high cost State’ means each of the 17 States which the Secretary of Health and Human Services, in consultation with the Secretary, estimates had the highest average cost during 2012 for employer-sponsored coverage under health plans. The Secretary’s estimate shall be made on the basis of aggregate premiums paid in the State for such health plans, determined using the most recent data available as of August 31, 2012. ‘‘(c) LIABILITY TO PAY TAX.— ‘‘(1) IN GENERAL.—Each coverage provider shall pay the tax imposed by subsection (a) on its applicable share of the excess benefit with respect to an employee for any taxable period. ‘‘(2) COVERAGE PROVIDER.—For purposes of this subsection, the term ‘coverage provider’ means each of the following: ‘‘(A) HEALTH INSURANCE COVERAGE.—If the applicable employer-sponsored coverage consists of coverage under a group health plan which provides health insurance cov- erage, the health insurance issuer. ‘‘(B) HSA AND MSA CONTRIBUTIONS.—If the applicable employer-sponsored coverage consists of coverage under an arrangement under which the employer makes contribu- tions described in subsection (b) or (d) of section 106, the employer. ‘‘(C) OTHER COVERAGE.—In the case of any other applicable employer-sponsored coverage, the person that administers the plan benefits. ‘‘(3) APPLICABLE SHARE.—For purposes of this subsection, a coverage provider’s applicable share of an excess benefit for any taxable period is the amount which bears the same ratio to the amount of such excess benefit as— Definitions. Definition.