§311. INCREASE IN DEDUCTION FOR HEALTH INSURANCE COSTS OF SELF-EMPLOYED INDIVIDUALS.

Health Insurance Portability and Accountability Act of 1996

TITLE III—TAX-RELATED HEALTH PROVISIONS

(a) In General.—Paragraph (1) of section 162(l) is amended to read as follows:

‘‘(1) Allowance of deduction.—

‘‘(A) In general.—In the case of an individual who is an employee within the meaning of section 401(c)(1), there shall be allowed as a deduction under this section an amount equal to the applicable percentage of the amount paid during the taxable year for insurance which constitutes medical care for the taxpayer, his spouse, and dependents.

‘‘(B) Applicable percentage.—For purposes of subparagraph (A), the applicable percentage shall be determined under the following table:

(l)(b) Exclusion for Amounts Received Under Certain Self-Insured Plans.—Paragraph (3) of section 104(a) is amended by inserting ‘‘(or through an arrangement having the effect of accident or health insurance)’’ after ‘‘health insurance’’.

(c) Effective Date. (26 usc 104)—The amendments made by this section 26 USC 104 note. shall apply to taxable years beginning after December 31, 1996.