Title VII, SEC. 7202. HEALTH BENEFITS MAY NOT BE PROVIDED UNDER CAFETERIA 
PLANS. 
      (a) General Rule. Subsection (f) of section 125 (defining qualified 
    benefits) is amended by adding at the end thereof the following new 
    sentence: ``Such term shall not include any benefits or coverage (other 
    than coverage described in section 106(b)(2)(A)) under an accident or 
    health plan.'' 

      (b) Conforming Amendment. Subsection (g) of section 125 is amended by 
    striking paragraph (2) and redesignating paragraphs (3) and (4) as 
    paragraphs (2) and (3), respectively. 

      (c) Effective Date. The amendments made by this section shall take effect 
    on January 1, 1997.