Option to prepay annual premium; option to direct partial advance payment of premium tax credit into HSA

(a) Option To prepay annual premium Section 1412(c)(2) of the Patient Protection and Affordable Care Act (42 U.S.C. 18082(c)(2)) is amended— (1) in subparagraph (B)(i), by inserting, and, in the case of an individual who elects to make an advance premium payment under subparagraph (C), further reduce such premium by $5 before the semicolon; (2) by redesignating subparagraph (C), as added by section 3(d), as subparagraph (D); and (3) by inserting after subparagraph (B) the following new subparagraph: (C) Individual option to prepay annual premium Beginning with plan years beginning in 2026, in the case of an individual with respect to whom an advance determination has been made under section 1411 that such individual is eligible for a premium tax credit under section 36B of the Internal Revenue Code of 1986, if the premium assistance amount under subsection (b)(2) of such section is determined with respect to such individual in accordance with subsection (b)(3)(A)(iii)(II) of such section, such individual may elect to make an advance premium payment to the issuer of the qualified health plan in which such individual is enrolled in an amount equal to $5 multiplied by— (i) in the case that the advance determination of eligibility was made during the annual open enrollment period for such plan year, 12; or (ii) in the case that the advance determination of eligibility was made during an open enrollment period other than the annual open enrollment period for such plan year, the number of months remaining in such plan year.. (b) Option To direct partial advance payment of premium tax credit into HSA Section 1412 of the Patient Protection and Affordable Care Act (42 U.S.C. 18082) is amended— (1) in subsection (c)(2)— (A) in subparagraph (A), by striking The and inserting Subject to subsection (f), the; and (B) in subparagraph (B), by inserting (including such a payment made in accordance with subsection (f)) after an advance payment; and (2) by adding at the end the following new subsection: (f) Option To direct partial advance payment of premium tax credit to HSA (1) In general Beginning with plan years beginning in 2026, at the election of an eligible enrolled individual described in paragraph (2), the advance payment of the premium tax credit allowed under section 36B of the Internal Revenue Code of 1986 shall be made as follows: (A) The Secretary of the Treasury shall make advance payment of 50 percent of such premium tax credit to the issuer of a qualified health plan on a monthly basis (or such other periodic basis as the Secretary may provide). (B) The Secretary of the Treasury shall make advance payment of 50 percent of such premium tax credit into a health savings account (as defined in section 223(d) of the Internal Revenue Code of 1986) of such individual (as designated by such individual) on the same basis provided for under subparagraph (A), but only to the extent that the aggregate amount of such payments does not exceed the limitation under section 223(b) of such Code (determined without regard to this subsection) which is applicable to such individual for the taxable year in which such payments are made. (2) Eligible enrolled individual For purposes of this subsection, the term eligible enrolled individual means, with respect to a plan year (starting with 2026), an individual— (A) with respect to whom an advance determination has been made under section 1411 that such individual is eligible for a premium tax credit under section 36B of the Internal Revenue Code of 1986; (B) who is, for the first month of such plan year, a qualified Exchange enrollee (as defined in section 223(i) of the Internal Revenue Code of 1986); and (C) who does not elect to make an advance premium payment under subsection (c)(2)(C)..