‘‘(ii) the aggregate amount paid to 
Archer MSAs of such spouses for the tax-
able year. 
‘‘(C) 
SPECIAL
RULE
WHERE
BOTH 
SPOUSES
HAVE
FAMILY
COVERAGE
UNDER 
SAME
PLAN.—For purposes of subparagraph 
(B)(i)(I), if either spouse has family coverage 
which covers both spouses, both spouses shall 
be treated as having only such coverage (and if 
both spouses each have such coverage under 
different plans, shall be treated as having only 
family coverage with the plan with respect to 
which the lowest amount is determined under 
paragraph (2)(A)(i)). 
‘‘(D) APPLICABLE SHARE.—For purposes 
of subparagraph (A), a spouse’s applicable 
share is one-half of the combined marital limit 
unless both spouses agree on a different divi-
sion. 
‘‘(E) COUPLES
NOT
MARRIED
ENTIRE 
YEAR.—The Secretary shall prescribe rules for 
the application of this paragraph in the case of 
any taxable year for which the individuals were 
not married to each other during all months in-
cluded in the taxable year, including rules 
VerDate Aug 31 2005 
22:50 Sep 18, 2006
Jkt 049200
PO 00000
Frm 00033
Fmt 6652
Sfmt 6201
E:\BILLS\H6065.IH
H6065
jlentini on PROD1PC65 with BILLS
which allow individuals in appropriate cases to 
take into account coverage prior to marriage in 
computing the combined marital limit for pur-
poses of this paragraph.’’. 
(c) SELF-ONLY COVERAGE.—Section 223(c)(4) of 
such Code (defining family coverage) is amended to read 
as follows: 
‘‘(4) COVERAGE.— 
‘‘(A) FAMILY COVERAGE.—The term ‘fam-
ily coverage’ means any coverage other than 
self-only coverage. 
‘‘(B) SELF-ONLY
COVERAGE.—If more 
than 1 individual is covered by a high deduct-
ible health plan but only 1 of the individuals is 
an eligible individual, the coverage shall be 
treated as self-only coverage.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2006. 
SEC. 7. HEALTH REIMBURSEMENT ARRANGEMENTS AND 
SPENDING ARRANGEMENTS IN COMBINATION 
WITH HEALTH SAVINGS ACCOUNTS. 
(a) IN GENERAL.—Subparagraph (B) of section 
223(c)(1) of the Internal Revenue Code of 1986 (relating 
to certain coverage disregarded) is amended by striking 
VerDate Aug 31 2005 
22:50 Sep 18, 2006
Jkt 049200
PO 00000
Frm 00034
Fmt 6652
Sfmt 6201
E:\BILLS\H6065.IH
H6065
jlentini on PROD1PC65 with BILLS
‘‘and’’ at the end of clause (i), by striking the period at 
the end of clause (ii) and inserting ‘‘, and’’, and by insert-
ing after clause (ii) the following new clause: 
‘‘(iii) coverage under a flexible spend-
ing arrangement or a health reimburse-
ment arrangement, or both, which meets 
the requirements of paragraph (6).’’. 
(b) COMBINATION HEALTH REIMBURSEMENT, SAV-
INGS, AND SPENDING ARRANGEMENTS.—Subsection (c) of 
section 223 of such Code (relating to definitions and spe-
cial rules) is amended by adding at the end the following 
new paragraph: 
‘‘(6) COMBINED LIMIT FOR CONTRIBUTIONS OR 
CREDITS TO HEALTH REIMBURSEMENT, ARRANGE-
MENTS AND SPENDING ARRANGEMENTS.— 
‘‘(A) IN GENERAL.—In the case of cov-
erage under a flexible spending arrangement or 
a health reimbursement arrangement, or both, 
such coverage meets the requirements of this 
paragraph if, with respect to an individual— 
‘‘(i) the sum of— 
‘‘(I) the amount allowable as a 
deduction under subsection (a), 
‘‘(II) 
the 
salary 
reduction 
amount elected by the individual and, 
VerDate Aug 31 2005 
22:50 Sep 18, 2006
Jkt 049200
PO 00000
Frm 00035
Fmt 6652
Sfmt 6201
E:\BILLS\H6065.IH
H6065
jlentini on PROD1PC65 with BILLS