eligible individual
(1) Eligible individual (A) In general The term “eligible individual” means, with respect to any month, any individual if— (i) such individual is covered under a high deductible health plan as of the 1st day of such month, (ii) such individual is not, while covered under a high deductible health plan, covered under any health plan— (I) which is not a high deductible health plan, and (II) which provides coverage for any benefit which is covered under the high deductible health plan, and (iii) (I) the high deductible health plan covering such individual is established and maintained by the employer of such individual or of the spouse of such individual and such employer is a small employer, or (II) such individual is an employee (within the meaning of section 401(c)(1) ) or the spouse of such an employee and the high deductible health plan covering such individual is not established or maintained by any employer of such individual or spouse. (B) Certain coverage disregarded Subparagraph (A)(ii) shall be applied without regard to— (i) coverage for any benefit provided by permitted insurance, and (ii) coverage (whether through insurance or otherwise) for accidents, disability, dental care, vision care, or long-term care. (C) Continued eligibility of employee and spouse establishing Archer MSAs If, while an employer is a small employer— (i) any amount is contributed to an Archer MSA of an individual who is an employee of such employer or the spouse of such an employee, and (ii) such amount is excludable from gross income under section 106(b) or allowable as a deduction under this section, such individual shall not cease to meet the requirement of subparagraph (A)(iii)(I) by reason of such employer ceasing to be a small employer so long as such employee continues to be an employee of such employer. (D) Limitations on eligibility For limitations on number of taxpayers who are eligible to have Archer MSAs, see subsection (i).