Sec. 104. Computation of monthly Roth HSA deposit amount for deposit qualifying residents
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The Secretary shall develop a standardized methodology to determine consistent with this section a monthly Roth HSA deposit amount for deposit qualifying residents in each State for months in each year. Subject to paragraphs
(3)and (4), such amount shall be equal to 1/12 of the average per capita annual amount computed under subsection
(b)for the State for the year, as adjusted for the deposit qualifying resident involved— for age and geographic area under subsection (c); and for income under subsection (d). Such amount shall be the same for a deposit qualifying individual without regard to whether the contribution to the individual’s Roth HSA is made by a State under this section or by the Federal Government through the operation of section 36C of the Internal Revenue Code of 1986. A patient-grant electing State may elect to increase the amount of the deposit for all deposit qualifying individuals under this section to the amounts that the Secretary estimates would have been paid with respect to such individuals under section 36B of the Internal Revenue Code of 1986 and section 1402 of PPACA if those sections had remained in effect in the State with respect to such individuals. Such election shall be made for a year and shall continue from year to year until the State elects to terminate such election. The Secretary shall, in conjunction with the Actuary, ensure such changes to the amount of deposit for qualifying individuals shall remain budget neutral. In the case of an individual who is covered under a group health plan and with respect to such coverage there is a contribution by an employer which is excluded from the individual’s gross income under the Internal Revenue Code of 1986, insofar as the individual is a deposit qualifying resident, the amount of the deposit with respect to the individual shall be reduced, in a manner specified by the Secretary in consultation with the Secretary of the Treasury and taking into account the income of the individual’s household, by an amount that is approximately equivalent to the estimated amount of the reduction in the amount of income tax resulting from such exclusion (and any reduction in taxes imposed by chapter 21 or chapter 2 of such Code by reason of any exclusion of such contributions from wages and self employment income). In the case of a State that provides medical assistance under section 1902(a)(10)(A)(i)(VIII) of the Social Security Act ( 42 U.S.C. 1396b(a)(10)(A)(i)(VIII) ) during a year, subject to paragraphs
(3)and (4), the Secretary shall compute an average per capita annual amount for the State for the year equal to— the amount specified in subparagraph (B), divided by the average monthly number of deposit qualifying residents of the State in the year. The amount specified in this subparagraph for a State for a year is 95 percent of the Secretary’s estimate of the total payments that would have been made (assuming the existence of a State established Exchange in the State) under section 36B of the Internal Revenue Code of 1986 and under section 1402 of PPACA with respect to all qualified residents in the State in the year (or taxable year ending with such year, if applicable). The Secretary shall, in conjunction with the Actuary, ensure such changes to the amount of deposit for qualifying individuals shall remain budget neutral. In the case of a State not described in paragraph
(1)for a year, subject to paragraphs
(3)and (4), the Secretary shall compute an average per capita annual amount for the State for the year equal to— the amount specified in subparagraph
(B)for the State and year, divided by the average monthly number of deposit qualifying residents of the State in the year. The amount specified in this subparagraph for a State for a year is equal to the sum of— 95 percent of the Secretary’s estimate of the total payments that would have been made (assuming the existence of a State-established Exchange in the State) under section 36B of the Internal Revenue Code of 1986 and under section 1402 of PPACA with respect to all qualified residents in the year (or taxable year ending with such year, if applicable); and the Secretary’s estimate of the total payments that would have been made to the State under title XIX of the Social Security Act for individuals eligible to be covered under section 1902(a)(10)(A)(i)(VIII) of the Social Security Act assuming the election of a State to provide Medicaid coverage under such section and assuming the applicable Federal medical assistance percentage were 95 percent with respect to such individuals. If a State makes the election described in subsection (a)(3) with respect to providing higher deposit amounts for certain individuals described in such subsection, then the Secretary shall adjust the average per capita annual amount under paragraph
(1)or (2), as applicable to the State, by— reducing the amount described in paragraph (1)(B) (or, if applicable, paragraph (2)(B)(i)) by an amount equal to 95 percent of the aggregate increased deposit level attributable to subsection (a)(3); and not counting such an individual as a qualifying resident for purposes of paragraph (1)(A)(ii) (or, if applicable, paragraph (2)(A)(ii)). The Secretary shall, in conjunction with the Actuary, ensure changes, as outlined in this subsection, to the amount of deposit for qualifying individuals shall remain budget neutral. The Secretary shall adjust the average per capita annual amount under paragraph
(1)or (2), as applicable to the State, by— reducing the amount described in paragraph (1)(B) (or, if applicable, paragraph (2)(B)(i)) by an amount equal to 95 percent of the amount of payments under this section that are attributable to individuals described in subsection (a)(4); and not counting any individual described in subsection (a)(4) as a qualifying resident for purposes of paragraph (1)(A)(ii) (or, if applicable, paragraph (2)(A)(ii)). The Secretary shall apply such adjustments to the per capita amount computed under subsection
(b)as is designed to take into account, in a budget neutral manner and based on the costs estimated under paragraph (2), actuarial differences in health care costs attributable to individuals in different age categories and different geographic locations of primary residences in the State and the reductions based on income under subsection (d). No such adjustment shall be made based on sex. Not later than December 15 before the beginning of each year, the Agency for Healthcare Research and Quality shall estimate the average cost of health care for such year for individuals under 65 years of age and may estimate how such average varies for different populations of individuals under age 65. The adjustments under paragraph
(1)for age categories for a year shall be based on such estimates made. Not later than such date, the Secretary shall prescribe tables for purposes of making adjustments based on age under paragraph
(1)based on such determination which shall apply for taxable years beginning in the succeeding calendar year. The per capita amount as computed under subsection
(b)and adjusted and applied to a deposit qualifying individual under subsection
(c)shall be multiplied by a phase-out percentage equal to 100 percent reduced by 1 percentage point for each $1,000 (or fraction thereof) by which the taxpayer’s modified adjusted gross income for the taxable year exceeds $90,000 (or, in the case of a joint return, $150,000), multiplied, for a taxable year ending in a year beginning after December 31, 2015, by the cost-of-living adjustment for the year as described in section 1(f)(3) of the Internal Revenue Code of 1986, but substituting 2015 for 1992 in subparagraph
(B)of such section. The per capita amount under this section shall be zero in the case of a married couple filing separately.
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Sec. 104
Computation of monthly Roth HSA deposit amount for deposit qualifying residents
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