Sec. 203. Purchase of health insurance from HSA account
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Section 223(c)(2) of the Internal Revenue Code of 1986, as redesignated by section 201(c)(3), is amended— in subparagraph (C)— by striking or at the end of clause (iii), by striking the period at the end of clause
(iv)and inserting , and , and by adding at the end the following new clause: in the case of health insurance that meets the requirements of subparagraph (D). ; and by adding at the end the following new subparagraphs: The requirements of this subparagraph are as follows: The health insurance coverage or group health plan must permit, during uniform initial and annual open enrollment periods and for special enrollment periods (such as the loss of coverage through the loss of employment) specified in carrying out section 105(b) of the Patient Freedom Act of 2015 , any individual who has period of continuous coverage of not less than 18 months who is otherwise eligible to enroll under such coverage or plan to be so enrolled without the imposition of any preexisting condition exclusion (as defined for purposes of title XXVII of the Public Health Service Act). The premium for such coverage or plan shall be established based on class-average status and may vary by age and geographic area, but may not vary based upon the health status of the individual, except that in the case of an individual without continuous coverage for a period of 42 months, such premium may be increased above the class-average in the manner and for the time period specified in section 105(d)(1)(A)(ii) of the Patient Freedom Act of 2015 . In carrying out subclause (I), the Secretary shall enter into a contract with a qualified organization, such as the Academy of Actuaries, for the development of actuarial tables to calculate class-average rates based on age and geography. For purposes of this paragraph, an individual shall be considered to have continuous coverage as of a time if the individual has no continuous period in which the individual is uninsured (as defined in section 100 of the Patient Freedom Act of 2015 ) for longer than 63 days beginning after the date of the enactment of such Act. . The amendments made by this section shall apply to taxable years beginning after December 31, 2015.