; and (B) by adding at the end the following new paragraph: (2) Exclusion of health plans including coverage for gender transition procedures (A) In general The term qualified health plan does not include any health plan that includes coverage for gender transition procedures (other than any procedure described in section 306 of title 1, United States Code). (B) Separate coverage or plan for gender transition procedures allowed (i) Option to purchase separate coverage or plan Nothing in subparagraph (A) shall be construed as prohibiting any employer from purchasing for its employees separate coverage for gender transition procedures described in such subparagraph, or a health plan that includes such gender transition procedures, so long as no credit is allowed under this section with respect to the employer contributions for such coverage or plan. (ii) Option to offer coverage or plan Nothing in subparagraph (A) shall restrict any non-Federal health insurance issuer offering a health plan from offering separate coverage for gender transition procedures described in such subparagraph, or a plan that includes such gender transition procedures, so long as such separate coverage or plan is not paid for with any employer contribution eligible for the credit allowed under this section. . (b) Application to multi-State plans Section 1334(a) of Public Law 111–148 ( 42 U.S.C. 18054(a) ) is amended by adding at the end the following new paragraph: (7) Coverage consistent with Federal policy regarding gender transition procedures In entering into contracts under this subsection, the Director shall ensure that no multi-State qualified health plan offered in an Exchange provides health benefits coverage for which the expenditure of Federal funds is prohibited under chapter 4 of title 1, United States Code. . (c) Effective date The amendments made by subsection (a) shall apply to taxable years ending after the date that is 1 year after the date of enactment of this Act, but only with respect to plan years beginning after such