Title VII, SEC. 7204. LIMITATION ON PREPAYMENT OF MEDICAL INSURANCE PREMIUMS. (a) General Rule. Subsection (d) of section 213 is amended by adding at the end thereof the following new paragraph: ``(10) Limitation on prepayments. If the taxpayer pays a premium or other amount which constitutes medical care under paragraph (1), to the extent such premium or other amount is properly allocable to insurance coverage or care to be provided during periods more than 12 months after the month in which such payment is made, such premium shall be treated as paid ratably over the period during which such insurance coverage or care is to be provided. The preceding sentence shall not apply to any premium to which paragraph (7) applies nor to any premium paid under a qualified long-term care insurance policy.'' (b) Effective Date. The amendment made by subsection (a) shall apply to amounts paid after December 31, 1996.