Health Marketplace and Savings Accounts for All Act

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 3362 Introduced in Senate (IS)]

<DOC>

119th CONGRESS
  1st Session
                                S. 3362

To amend the Internal Revenue Code of 1986 to increase the limitations
  on contributions to health savings accounts, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                            December 4, 2025

   Mr. Paul introduced the following bill; which was read twice and
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL

To amend the Internal Revenue Code of 1986 to increase the limitations
  on contributions to health savings accounts, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Health Marketplace
and Savings Accounts for All Act''.
    (b) Table of Contents.--The table of contents for this Act is as
follows:

Sec. 1. Short title; table of contents.
                    TITLE I--HEALTH SAVINGS ACCOUNTS

Sec. 101. Short title.
Sec. 102. Increase in contribution limitations.
Sec. 103. Freedom from mandate.
Sec. 104. Amounts paid for health insurance or direct primary care
                            service arrangement.
Sec. 105. Special rule for certain medical expenses incurred before
                            establishment of account.
Sec. 106. Administrative error correction before due date of return.
Sec. 107. Allowing HSA rollover to child or parent of account holder.
Sec. 108. Coverage for amounts paid for vitamins, dietary supplements,
                            gym memberships, and wearable fitness
                            trackers.
Sec. 109. Equivalent bankruptcy protections for health savings accounts
                            as retirement funds.
                  TITLE II--HEALTH MARKETPLACE FOR ALL

Sec. 201. Short title.
Sec. 202. Health marketplace pools deemed an ``employer'' for purposes
                            of offering group health plans or group
                            health insurance coverage.
Sec. 203. Conforming amendments.

                    TITLE I--HEALTH SAVINGS ACCOUNTS

SEC. 101. SHORT TITLE.

    This title may be cited as the ``Health Savings Accounts For All
Act of 2025''.

SEC. 102. INCREASE IN CONTRIBUTION LIMITATIONS.

    (a) In General.--Subsection (b) of section 223 of the Internal
Revenue Code of 1986 is amended--
            (1) in paragraph (1), by striking ``the sum of'' and all
        that follows through the period and inserting ``an amount equal
        to the applicable dollar amount under paragraph (1)(B) of
        section 402(g) (as adjusted pursuant to paragraph (4) of such
        section) with respect to such taxable year.'',
            (2) by striking paragraphs (2), (3), (5), (7), and (8),
            (3) by inserting after paragraph (1) the following:
            ``(2) Additional contributions for individuals 50 or
        older.--In the case of an individual who has attained age 50
        before the close of the taxable year, the amount of the
        limitation under paragraph (1) shall be increased by an amount
        equal to the applicable dollar amount under subparagraph (B)(i)
        of section 414(v)(2) (as adjusted pursuant to subparagraph (C)
        of such section).'',
            (4) in paragraph (4), by striking the flush matter
        following subparagraph (C), and
            (5) by redesignating paragraphs (4) and (6) as paragraphs
        (3) and (4), respectively.
    (b) Conforming Amendments.--
            (1) Subparagraph (A) of section 223(d)(1) of the Internal
        Revenue Code of 1986 is amended by striking ``the sum of--''
        and all that follows through the period and inserting ``the
        amount determined under subsection (b)(1).''.
            (2) Subsection (g)(1) of section 223 of such Code is
        amended--
                    (A) by striking ``(b)(2), (c)(2)(A), and'' and
                inserting ``(c)(2)(A) and,'',
                    (B) by amending subparagraph (B) to read as
                follows:
                    ``(B) the cost-of-living adjustment determined
                under section 1(f)(3) for the calendar year in which
                such taxable year begins determined by substituting
                `calendar year 2003' for `calendar year 2016' in
                subparagraph (A)(ii) thereof.'', and
                    (C) by striking ``(b)(2), (c)(1)(E)(ii)(II),'' and
                inserting ``(c)(1)(E)(ii)(II)''.
            (3) Section 26(b)(2)(S) of such Code is amended by striking
        ``, 223(b)(8)(B)(i)(II),''.
            (4) Section 408(d)(9)(C)(i)(I) of such Code is amended by
        striking ``computed on the basis of the type of coverage under
        the high deductible health plan covering the individual''.
    (c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.

SEC. 103. FREEDOM FROM MANDATE.

    (a) In General.--Section 223 of the Internal Revenue Code of 1986,
as amended by section 102, is further amended by striking subsections
(c) and (g) and by redesignating subsections (d), (e), (f), and (h) as
subsections (c), (d), (e), and (f), respectively.
    (b) Conforming Amendments.--
            (1) Subsection (a) of section 223 of the Internal Revenue
        Code of 1986 is amended to read as follows:
    ``(a) Deduction Allowed.--In the case of an individual, there shall
be allowed as a deduction for the taxable year an amount equal to the
aggregate amount paid in cash during such taxable year by or on behalf
of such individual to a health savings account of such individual.''.
            (2) Subsection (c)(1)(A) of section 223 of such Code, as
        amended by section 102 and redesignated by subsection (a), is
        further amended by striking ``subsection (f)(4)'' and inserting
        ``subsection (e)(4)''.
            (3) Subparagraph (U) of section 26(b)(2) of such Code, as
        amended by section 102, is further amended by striking
        ``section 223(f)(3)'' and inserting ``section 223(e)(3)''.
            (4) Sections 35(g)(3), 220(f)(5)(A), 848(e)(1)(B)(v),
        4973(a)(5), and 6051(a)(12) of such Code are each amended by
        striking ``section 223(d)'' each place it appears and inserting
        ``section 223(c)''.
            (5) Section 106(d)(1) of such Code is amended--
                    (A) by striking ``who is an eligible individual (as
                defined in section 223(c)(1))'', and
                    (B) by striking ``section 223(d)'' and inserting
                ``section 223(c)''.
            (6) Section 106(e) of such Code is amended--
                    (A) by striking paragraphs (3) and (4) and by
                redesignating paragraph (5) as paragraph (4),
                    (B) by inserting after paragraph (2) the following
                new paragraph:
            ``(3) Treatment as rollover contribution.--A qualified HSA
        distribution shall be treated as a rollover contribution
        described in section 223(e)(4).'', and
                    (C) by striking ``to any eligible individual
                covered under a high deductible health plan of the
                employer'' in paragraph (4)(B)(ii) (as so redesignated)
                and inserting ``to any employee with respect to whom a
                health savings account has been established''.
            (7) Section 408(d)(9)(A) of such Code is amended by
        striking ``who is an eligible individual (as defined in section
        223(c)) and''.
            (8) Section 877A(g)(6) of such Code is amended by striking
        ``223(f)(4)'' and inserting ``223(e)(4)''.
            (9) Section 4973(g) of such Code is amended--
                    (A) by striking ``section 223(d)'' and inserting
                ``section 223(c)'',
                    (B) in paragraph (1), by striking ``or 223(f)(5)''
                and inserting ``or 223(e)(5)'',
                    (C) in paragraph (2)(A), by striking ``section
                223(f)(2)'' and inserting ``section 223(e)(2)'', and
                    (D) in the flush matter at the end, by striking
                ``section 223(f)(3)'' and inserting ``section
                223(e)(3)''.
            (10) Section 4975 of such Code is amended--
                    (A) in subsection (c)(6)--
                            (i) by striking ``section 223(d)'' and
                        inserting ``section 223(c)'', and
                            (ii) by striking ``section 223(e)(2)'' and
                        inserting ``section 223(d)(2)'', and
                    (B) in subsection (e)(1)(E), by striking ``section
                223(d)'' and inserting ``section 223(c)''.
            (11) Subsection (b) of section 4980G of such Code is
        amended to read as follows:
    ``(b) Rules and Requirements.--
            ``(1) In general.--An employer meets the requirements of
        this subsection for any calendar year if the employer makes
        available comparable contributions to the health savings
        accounts of all comparable participating employees for each
        coverage period during such calendar year.
            ``(2) Comparable contributions.--
                    ``(A) In general.--For purposes of paragraph (1),
                the term `comparable contributions' means
                contributions--
                            ``(i) which are the same amount, or
                            ``(ii) if the employees are covered by a
                        health plan, which are the same percentage of
                        the annual deductible limit under the plan
                        covering the employees.
                    ``(B) Part-year employees.--In the case of an
                employee who is employed by the employer for only a
                portion of the calendar year, a contribution to the
                health savings account of such employee shall be
                treated as comparable if it is an amount which bears
                the same ratio to the comparable amount (determined
                without regard to this subparagraph) as such portion
                bears to the entire calendar year.
            ``(3) Comparable participating employees.--For purposes of
        paragraph (1), the term `comparable participating employees'
        means all employees who are covered (if at all) under the same
        health plan of the employer and have the same category of
        coverage. For purposes of the preceding sentence, the
        categories of coverage are self-only and family coverage.
            ``(4) Part-time employees.--
                    ``(A) In general.--Paragraph (3) shall be applied
                separately with respect to part-time employees and
                other employees.
                    ``(B) Part-time employee.--For purposes of
                subparagraph (A), the term `part-time employee' means
                any employee who is customarily employed for fewer than
                30 hours per week.''.
            (12) Section 4980G(d) of such Code is amended by striking
        ``section 4980E'' and inserting ``this section''.
            (13) Section 6693(a)(2)(C) of such Code is amended by
        striking ``section 223(h)'' and inserting ``section 223(f)''.
    (c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.

SEC. 104. AMOUNTS PAID FOR HEALTH INSURANCE OR DIRECT PRIMARY CARE
              SERVICE ARRANGEMENT.

    (a) In General.--Paragraph (2) of section 223(c) of the Internal
Revenue Code of 1986, as redesignated by section 3, is amended--
            (1) in subparagraph (A), by inserting ``or pursuant to an
        arrangement under which an individual is provided coverage
        restricted to primary care services in exchange for a fixed
        periodic fee or payment for primary care services'' after
        ``menstrual care products'',
            (2) by striking subparagraphs (B) and (C), and
            (3) by redesignating subparagraph (D) as subparagraph (B).
    (b) Conforming Amendment.--Paragraph (2) of section 223(c) of the
Internal Revenue Code of 1986, as amended by the preceding sections of
this Act, is further amended by striking ``and any dependent (as
defined in section 152, determined without regard to subsections
(b)(1), (b)(2), and (d)(1)(B) thereof) of such individual'' and
inserting ``any dependent (as defined in section 152, determined
without regard to subsections (b)(1), (b)(2), and (d)(1)(B) thereof) of
such individual, and any child (as defined in section 152(f)(1)) of
such individual who has not attained the age of 27 before the end of
such individual's taxable year''.
    (c) Technical Amendments.--
            (1) Section 220(d)(2)(A) of the Internal Revenue Code of
        1986 is amended by striking ``section 223(d)(2)(D)'' and
        inserting ``section 223(c)(2)(B)''.
            (2) Subsection (f) of section 106 of the Internal Revenue
        Code of 1986 is amended by striking ``section 223(d)(2)(D)''
        and inserting ``section 223(c)(2)(B)''.
    (d) Effective Dates.--
            (1) In general.--The amendments made by subsections (a) and
        (b) shall apply with respect to amounts paid after the date of
        the enactment of this Act in taxable years beginning after such
        date.
            (2) Technical amendments.--The amendments made by
        subsection (c) shall apply with respect to taxable years
        beginning after the date of enactment of this Act.

SEC. 105. SPECIAL RULE FOR CERTAIN MEDICAL EXPENSES INCURRED BEFORE
              ESTABLISHMENT OF ACCOUNT.

    (a) In General.--Paragraph (2) of section 223(c) of the Internal
Revenue Code of 1986, as amended and redesignated by the preceding
sections of this Act, is further amended by adding at the end the
following new subparagraph:
                    ``(C) Certain medical expenses incurred before
                establishment of account treated as qualified.--An
                expense shall not fail to be treated as a qualified
                medical expense solely because such expense was
                incurred before the establishment of the health savings
                account if such expense was incurred--
                            ``(i) during either--
                                    ``(I) the taxable year in which the
                                health savings account was established,
                                or
                                    ``(II) the preceding taxable year,
                                in the case of a health savings account
                                established after the taxable year in
                                which such expense was incurred but
                                before the time prescribed by law for
                                filing the return for such taxable year
                                (not including extensions thereof), and
                            ``(ii) for medical care which (but for the
                        fact that it was incurred before the
                        establishment of the account) otherwise meets
                        the requirements of the preceding
                        subparagraphs.''.
    (b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after the date of the enactment of this Act.

SEC. 106. ADMINISTRATIVE ERROR CORRECTION BEFORE DUE DATE OF RETURN.

    (a) In General.--Paragraph (4) of section 223(e) of the Internal
Revenue Code of 1986, as amended and redesignated by the preceding
sections of this Act, is amended by adding at the end the following new
subparagraph:
                    ``(D) Exception for administrative errors corrected
                before due date of return.--Subparagraph (A) shall not
                apply if any payment or distribution is made to correct
                an administrative, clerical, or payroll contribution
                error and if--
                            ``(i) such distribution is received by the
                        individual on or before the last day prescribed
                        by law (including extensions of time) for
                        filing such individual's return for such
                        taxable year, and
                            ``(ii) such distribution is accompanied by
                        the amount of net income attributable to such
                        contribution.
                Any net income described in clause (ii) shall be
                included in the gross income of the individual for the
                taxable year in which it is received.''.
    (b) Effective Date.--The amendment made by this section shall take
effect on the date of the enactment of this Act.

SEC. 107. ALLOWING HSA ROLLOVER TO CHILD OR PARENT OF ACCOUNT HOLDER.

    (a) In General.--Paragraph (8)(A) of section 223(e) of the Internal
Revenue Code of 1986, as redesignated by the preceding sections of this
Act, is amended--
            (1) by inserting ``, child, parent, or grandparent'' after
        ``surviving spouse'',
            (2) by inserting ``, child, parent, or grandparent, as the
        case may be,'' after ``the spouse'',
            (3) by inserting ``, child, parent, or grandparent'' after
        ``spouse'' in the heading thereof, and
            (4) by adding at the end the following: ``In the case of a
        child who acquires such beneficiary's interest and with respect
        to whom a deduction under section 151 is allowable to another
        taxpayer for a taxable year beginning in the calendar year in
        which such individual's taxable year begins, such health
        savings account shall be treated as a health savings account of
        such child.''.
    (b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.

SEC. 108. COVERAGE FOR AMOUNTS PAID FOR VITAMINS, DIETARY SUPPLEMENTS,
              GYM MEMBERSHIPS, AND WEARABLE FITNESS TRACKERS.

    (a) In General.--Paragraph (2) of section 223(c) of the Internal
Revenue Code of 1986, as amended by the preceding provisions of this
Act, is amended--
            (1) in subparagraph (A), by inserting ``, qualified
        wellness expenses,'' after ``menstrual care products'', and
            (2) by adding at the end the following:
                    ``(C) Qualified wellness expenses.--For purposes of
                this paragraph, the term `qualified wellness expenses'
                means amounts paid for--
                            ``(i) vitamins,
                            ``(ii) dietary supplements (as defined in
                        section 201(ff) of the Federal Food, Drug, and
                        Cosmetic Act (21 U.S.C. 321(ff))),
                            ``(iii) membership at a gym or fitness
                        facility, or
                            ``(iv) wearable fitness trackers.''.
    (b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.

SEC. 109. EQUIVALENT BANKRUPTCY PROTECTIONS FOR HEALTH SAVINGS ACCOUNTS
              AS RETIREMENT FUNDS.

    (a) In General.--Section 522 of title 11, United States Code, is
amended by adding at the end the following new subsection:
    ``(r) Treatment of Health Savings Accounts.--For purposes of this
section, any health savings account (as described in section 223 of the
Internal Revenue Code of 1986) shall be treated in the same manner as
an individual retirement account described in section 408 of such
Code.''.
    (b) Effective Date.--The amendment made by this section shall apply
to cases commencing under title 11, United States Code, after the date
of the enactment of this Act.

                  TITLE II--HEALTH MARKETPLACE FOR ALL

SEC. 201. SHORT TITLE.

    This title may be cited as the ``Health Marketplace for All Act of
2025''.

SEC. 202. HEALTH MARKETPLACE POOLS DEEMED AN ``EMPLOYER'' FOR PURPOSES
              OF OFFERING GROUP HEALTH PLANS OR GROUP HEALTH INSURANCE
              COVERAGE.

    (a) Definition of Employer.--Section 3(5) of the Employee
Retirement Income Security Act of 1974 (29 U.S.C. 1002(5)) is amended
by adding at the end the following: ``Such term shall be deemed to
include, for purposes of offering a group health plan (as defined in
section 733(a)(1)) or group health insurance coverage (as defined in
section 733(b)(4)) (which, notwithstanding any other provision of law,
may include such a plan or coverage covering prescription or
nonprescription drugs as the only benefit offered by the plan or
coverage in accordance with section 736(b)(5)(B)), any entity that
meets the requirements under section 736(b).''.
    (b) Group Health Plans and Group Health Insurance Coverage.--Part 7
of subtitle B of title I of the Employee Retirement Income Security Act
of 1974 (29 U.S.C. 1181 et seq.) is amended by adding at the end the
following:

``SEC. 736. HEALTH MARKETPLACE POOLS DEEMED AN `EMPLOYER' FOR PURPOSES
              OF OFFERING GROUP HEALTH PLANS OR GROUP HEALTH INSURANCE
              COVERAGE.

    ``(a) In General.--An entity (referred to in this section as a
`health marketplace pool') that meets the requirements under subsection
(b) shall be deemed an employer under section 3(5) for purposes of
offering a group health plan or group health insurance coverage (which,
notwithstanding any other provision of law, may include such a plan or
coverage covering prescription or nonprescription drugs as the only
benefit offered by the plan or coverage in accordance with subsection
(b)(5)(B)).
    ``(b) Requirements for Health Marketplace Pools.--The requirements
under this subsection are each of the following:
            ``(1) Organization.--The health marketplace pool shall--
                    ``(A) be formed and maintained in good faith for a
                purpose that includes the formation of a risk pool in
                order to offer group health insurance coverage or a
                group health plan to its members; and
                    ``(B) not condition membership in the health
                marketplace pool on any health status-related factor
                relating to an individual (including an employee of an
                employer or a dependent of an employee).
            ``(2) Offering group health plans and group health
        insurance coverage.--
                    ``(A) Different groups.--
                            ``(i) In general.--The health marketplace
                        pool, which may be in conjunction with a health
                        insurance issuer that offers group health
                        insurance coverage through the health
                        marketplace pool, shall make available a group
                        health plan or group health insurance coverage
                        to all members of the health marketplace pool
                        (and, in the case of members that are
                        employers, employees of the employers) at rates
                        that--
                                    ``(I) are established by the health
                                marketplace pool, or a health insurance
                                issuer contracting with such health
                                marketplace pool, on a policy or
                                product specific basis; and
                                    ``(II) subject to sections 701 and
                                702, may vary for individuals covered
                                through the health marketplace pool.
                            ``(ii) Permissible coverage for
                        dependents.--Such group health plan or group
                        health insurance coverage may be made available
                        under clause (i) to any dependents of members
                        of the health marketplace pool or dependents of
                        employees of employers that are such members.
                    ``(B) Nondiscrimination in coverage offered.--
                            ``(i) In general.--Subject to clause (ii),
                        the health marketplace pool may not offer
                        coverage under a group health plan or group
                        health insurance coverage to a member of the
                        health marketplace pool unless the same
                        coverage is offered to all such members of the
                        health marketplace pool.
                            ``(ii) Construction.--Nothing in this
                        subsection shall be construed as requiring a
                        health insurance issuer or group health plan to
                        provide coverage outside the service area of
                        the issuer or plan, or preventing a health
                        insurance issuer or group health plan from
                        underwriting or from excluding or limiting the
                        coverage on any individual, subject to the
                        requirements under sections 701 and 702.
                    ``(C) Assumption of risk.--The health marketplace
                pool may provide--
                            ``(i) group health insurance coverage
                        through a contract with a health insurance
                        issuer; or
                            ``(ii) a group health plan through self-
                        insurance.
            ``(3) Geographic areas.--Nothing in this subsection shall
        be construed as preventing the establishment and operation of
        more than 1 health marketplace pool in a geographic area or as
        limiting the number of health marketplace pools that may
        operate in any area.
            ``(4) Provision of administrative services to purchasers.--
        The health marketplace pool may provide administrative services
        for members. Such services may include accounting, billing, and
        enrollment information.
            ``(5) Drug coverage.--The group health plan or group health
        insurance coverage offered by the health marketplace pool may
        offer--
                    ``(A) drug coverage, including coverage of over-
                the-counter drugs, in combination with other benefits
                covered by the group health plan or group health
                insurance coverage; or
                    ``(B) notwithstanding any other provision of law,
                drug coverage, including coverage of over-the-counter
                drugs, as the only benefit covered by the group health
                plan or group health insurance coverage.
            ``(6) Members.--
                    ``(A) In general.--With respect to an individual
                who is a member of the health marketplace pool--
                            ``(i) the individual may enroll for
                        coverage under the group health plan or group
                        health insurance coverage offered by the health
                        marketplace pool (including, if applicable,
                        enrollment for coverage for a dependent of such
                        individual); or
                            ``(ii) the employer of the individual may
                        enroll the individual for coverage under the
                        group health plan or group health insurance
                        coverage offered by the health marketplace pool
                        (including, if applicable, enrollment for
                        coverage for a dependent of such individual).
                    ``(B) Eligibility.--An individual shall be eligible
                to be a member of the health marketplace pool if such
                individual is--
                            ``(i) a member of an entity that
                        establishes or joins the health marketplace
                        pool (or a dependent of such a member, as
                        applicable);
                            ``(ii) an employee of a member of an entity
                        described in clause (i) (or a dependent of such
                        an employee, as applicable); or
                            ``(iii) an employee of an entity (or a
                        dependant of such an employee, as applicable)
                        controlled by a member of an entity described
                        in clause (i).
                    ``(C) Rules for enrollment.--Nothing in this
                paragraph shall preclude the health marketplace pool
                from establishing rules of enrollment and reenrollment
                of members. Such rules shall be applied consistently to
                all members within the health marketplace pool and
                shall not be based in any manner on health status-
                related factors in accordance with sections 701 and
                702.
    ``(c) Determination of Employer and Joint Employer Status.--
Participating in or facilitating a group health plan or group health
insurance coverage under this section shall not be construed as
establishing under any Federal or State law--
            ``(1) an employer relationship for any purpose other than
        offering the group health plan or group health insurance
        coverage; or
            ``(2) a joint employer relationship for any purpose.
    ``(d) Definition.--In this section, the term `dependent', as
applied to a group health plan or group health insurance coverage
offered in a State, shall have the meaning applied to such term with
respect to such plan or coverage under the State law applying to such
plan or coverage. Such term may include the spouse and children of the
individual involved in accordance with such State law.''.

SEC. 203. CONFORMING AMENDMENTS.

    Section 3 of the Employee Retirement Income Security Act of 1974
(29 U.S.C. 1002) is amended--
            (1) in paragraph (6), by inserting before the period ``,
        except (with respect to an entity meeting the requirements
        under section 736(b)) such term includes any member of such
        entity'';
            (2) in paragraph (21)--
                    (A) in subparagraph (A), by striking ``subparagraph
                (B)'' and inserting ``subparagraphs (B) and (C)''; and
                    (B) by adding at the end the following:
    ``(C) With respect to a person that is a member of an entity
(referred to in section 736 and this subparagraph as a `health
marketplace pool') that meets the requirements of section 736(b) and
offers a group health plan (as defined in section 733(a)(1)) or group
health insurance coverage (as defined in section 733(b)(4)) (which,
notwithstanding any other provision of law, may include such a plan or
coverage covering prescription or nonprescription drugs as the only
benefit offered by the plan or coverage), membership in the health
marketplace pool shall not by itself cause the person to be a fiduciary
with respect to the group health plan or group health insurance
coverage.''; and
            (3) in paragraph (40)(A)--
                    (A) in clause (ii), by striking ``, or'' and
                inserting ``,'';
                    (B) in clause (iii), by striking the period and
                inserting ``, or''; and
                    (C) by adding at the end the following:
            ``(iv) as a group health plan (as defined in section
        733(a)(1)), or group health insurance coverage (as defined in
        section 733(b)(4)), offered by an entity meeting the
        requirements under section 736(b) (which, notwithstanding any
        other provision of law, may include such an entity offering
        such a plan or coverage covering prescription or
        nonprescription drugs as the only benefit offered by the plan
        or coverage).''.
                                 <all>