Advance payment of premium tax credit made directly to individuals or to Personal HSA

(a) In general Section 1412(a)(3) of the Patient Protection and Affordable Care Act is amended— (1) by striking credit or reductions to the issuers and inserting the following: credit or reductions— (A) on the election of the individual, to the issuer, (2) by striking the period at the end and inserting, and, and (3) by adding at the end the following new subparagraph: (B) in the case of an individual who is covered under a plan in the bronze level, or a catastrophic plan, and who so elects, to the personal HSA (as defined in section 223(h) of the Internal Revenue Code of 1986) of the individual, (C) in the absence of either such election, to individuals.. (b) Personal HSAs Section 223 of the Internal Revenue Code of 1986 is amended by redesignating subsection (h) as subsection (i) and by inserting after subsection (g) the following new subsection: (h) Personal HSAs (1) In general An individual may elect to designate a health savings account as, or establish in a health savings account a separate account to be treated as, a Personal HSA. (2) Personal HSA A personal HSA shall be treated for purposes of this section in the same manner as a health savings account, except that— (A) no contributions may be made to a personal HSA other than advance payments made by the Secretary under section 1412(a)(3)(B) of the Patient Protection and Affordable Care Act or amounts rolled over from another personal HSA of the account beneficiary, (B) such contributions shall not be taken into account under subsection (a), and (C) subsection (d) shall be applied without regard to paragraph (2)(B).. (c) Effective date (1) Subsection (a) The amendments made by subsection (a) shall apply to determinations made after December 31, 2025. (2) Subsection (b) The amendments made by subsection (b) shall apply to taxable years ending after December 31, 2025.