1. Short title This Act may be cited as the Health Savings Modernization Act of 2018 . 2. High deductible plan safe harbor for absence of deductible for certain coverage (a) In general Section 223(c)(2) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph: (E) Safe harbor for absence of deductible for certain other care A plan shall not fail to be treated as a high deductible health plan by reason of failing to have a deductible for— (i) a defined number of visits for outpatient primary care, mental health care, behavioral health care, or urgent care, or (ii) a generic or preferred prescription drug formulary. . (b) Effective date The amendment made by this section shall apply to plan years beginning after the date of the enactment of this Act. 3. Medical expenses of young adult children (a) In general The first sentence of section 223(d)(2)(A) of the Internal Revenue Code of 1986 is amended by striking and any dependent and all that follows through thereof) of such individual and inserting and any child (as defined in section 152(f)(1)) of such individual who as of the end of the taxable year has not attained age 27 . (b) Effective date The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act. 4. Excess health insurance coverage credit payable to health savings account (a) In general Chapter 77 of the Internal Revenue Code of 1986 is amended by adding at the end the following: 7529. Excess health insurance coverage credit payable to health savings account (a) In general At the request of an eligible taxpayer, the Secretary shall make a payment to the trustee of the designated health savings account with respect to such taxpayer in an amount equal to the sum of the excesses (if any) described in subsection (c)(2) with respect to months in the taxable year. (b) Designated Health Savings Account The term designated health savings account means a health savings account of an individual described in