First dollar coverage flexibility for high deductible health plans

(a)

In general

Section 223(c)(2) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:

(E)

First dollar coverage flexibility

(i)

In general

Such plan shall not fail to be treated as a high deductible health plan by reason of failing to have a deductible for not more than $250 of specified services (twice such amount in the case of family coverage) during a plan year. (ii)

Specified services

For purposes of this subparagraph, the term specified services means, with respect to a plan, services other than preventive care (within the meaning of subparagraph (C)) identified under the terms of the plan as being services to which clause (i) applies.

(b)

Inflation adjustment

Section 223(g)(1) of such Code is amended— (1)by striking and (c)(2)(A) and inserting , (c)(2)(A), and (c)(2)(E); and (2)in subparagraph (B), by striking clause (ii) and inserting clauses (ii) and (iii) in clause (i), by striking and at the end of clause (i), by striking the period at the end of clause (ii) and inserting , and, and by inserting after clause (ii) the following new clause:

(iii)in the case of the dollar amount in subsection (c)(2)(E), calendar year 2017.

(c)

Effective date

The amendments made by this subsection shall apply with respect to plan years beginning after December 31, 2018.