Qualified Exchange enrollees eligible to establish health savings accounts

(a) In general Section 223 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: (i) Qualified Exchange enrollees eligible To establish health savings accounts (1) In general For purposes of this section, an individual who is a qualified Exchange enrollee for any month during a taxable year shall be treated as an eligible individual for each of the months in such taxable year and each taxable year thereafter. Notwithstanding the previous sentence, any individual who elects to make an advance premium payment under section 1412(c)(2)(C) of the Patient Protection and Affordable Care Act with respect to any month during a taxable year shall not be treated as an eligible individual for such month or any other month during such taxable year. (2) Qualified Exchange enrollee For purposes of this subsection, the term qualified Exchange enrollee means, with respect to any month during a taxable year, any individual if, as of the 1st day of such month, such individual is enrolled in a qualified health plan in the individual market through an Exchange established under the Patient Protection and Affordable Care Act that is— (A) the lowest cost bronze plan available to such individual through such Exchange, or (B) in the case that, for any month during the preceding taxable year, such individual was enrolled in a qualified health plan in the individual market through such an Exchange (referred to in this paragraph as the previous plan), such a qualified health plan for which the monthly premium is lower than the monthly premium that was in effect for the previous plan. (3) Application of monthly limitations for contributions In the case of an individual who is treated as an eligible individual under paragraph (1), subsection (b)(2) shall be applied as if each reference to high deductible health plan were a reference to a qualified health plan in the individual market that was enrolled in through an Exchange established under the Patient Protection and Affordable Care Act. (4) Coordination with contributions of partial advance premium tax credit The limitation which would (but for this paragraph) apply under subsection (b) for any taxable year to an individual who is treated as an eligible individual under paragraph (1) shall be reduced (but not below zero) by the aggregate amount contributed to health savings accounts of such individual for such taxable year under section 1412(f) of the Patient Protection and Affordable Care Act (and such amount shall not be allowed as a deduction under subsection (a)). (5) Allowing health insurance to be purchased from account In the case of an individual who is treated as an eligible individual under paragraph (1), subsection (d)(2) shall be applied without regard to subparagraphs (B) and (C) thereof.. (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2025.