Public Act 097-0644
 
HB0355 EnrolledLRB097 03238 JDS 43275 b

    AN ACT concerning government.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The State Employee Health Savings Account Law is
amended by changing Sections 10-5 and 10-10 as follows:
 
    (5 ILCS 377/10-5)
    Sec. 10-5. Definitions. As used in this Law:
    (a) "Deductible" means the total deductible of a high
deductible health plan for an eligible individual and all the
dependents of that eligible individual for a calendar year.
    (b) "Dependent" means a dependent as defined in Section 3
of the State Employees Group Insurance Act of 1971, provided
that the dependent meets the definition of "dependent" under
Section 152 of the Internal Revenue Code of 1986, determined
without regard to subdivisions (b)(1), (b)(2), and (d)(1)(B) of
that Section an eligible individual's spouse or child, as
defined in Section 152 of the Internal Revenue Code of 1986.
"Dependent" includes a party to a civil union, as defined under
Section 10 of the Illinois Religious Freedom Protection and
Civil Union Act.
    (c) "Eligible individual" means an employee, as defined in
Section 3 of the State Employees Group Insurance Act of 1971,
who contributes to health savings accounts on the employees'
behalf, who:
        (1) is covered by a high deductible health plan
    individually or with dependents; and
        (2) is not covered under any health plan that is not a
    high deductible health plan, except for:
            (i) coverage for accidents;
            (ii) workers' compensation insurance;
            (iii) insurance for a specified disease or
        illness;
            (iv) insurance paying a fixed amount per day per
        hospitalization; and
            (v) tort liabilities; and
        (3) establishes a health savings account or on whose
    behalf the health savings account is established; .
        (4) is not entitled to Medicare; and
        (5) cannot be claimed as a dependent on another
    person's tax return.
    (d) "Employer" means a State agency, department, or other
entity that employs an eligible individual.
    (e) "Health savings account" or "account" means a trust or
custodial account established under a State program
exclusively to pay the qualified medical expenses of an
eligible individual, or his or her dependents, that meets all
of the following requirements:
        (1) Except in the case of a rollover contribution, no
    contribution may be accepted:
            (A) unless it is in cash; or
            (B) to the extent that the contribution, when added
        to the previous contributions to the Account for the
        calendar year, exceeds the lesser of (i) 100% of the
        eligible individual's deductible or (ii) the
        contribution level set for that year by the Internal
        Revenue Service.
        (2) The trustee or custodian is a bank, an insurance
    company, or another person approved by the Director of
    Insurance.
        (3) No part of the trust assets shall be invested in
    life insurance contracts.
        (4) The assets of the account shall not be commingled
    with other property except as allowed for under Individual
    Retirement Accounts.
        (5) Eligible individual's interest in the account is
    nonforfeitable.
    (f) "Health savings account program" or "program" means a
program that includes all of the following:
        (1) Participation The purchase by an eligible
    individual in an employer-sponsored or by an employer of a
    high deductible health plan.
        (2) The contribution into a health savings account by
    an eligible individual or on behalf of an employee or by
    his or her employer. The total annual contribution may not
    exceed the amount of the deductible or the amounts listed
    in sub-item (B) of item (1) of subsection (e) (f) of this
    Section.
    (g) "High deductible" means:
        (1) In the case of self-only coverage, an annual
    deductible that is not less than the level set by the
    Internal Revenue Service and that, when added to the other
    annual out-of-pocket expenses required to be paid under the
    plan for covered benefits, does not exceed the maximum
    level set by the Internal Revenue Service $5,000; and
        (2) In the case of family coverage, an annual
    deductible of not less than the level set by the Internal
    Revenue Service and that, when added to the other annual
    out-of-pocket expenses required to be paid under the plan
    for covered benefits, does not exceed the maximum level set
    by the Internal Revenue Service $10,000.
    A plan shall not fail to be treated as a high deductible
plan by reason of a failure to have a deductible for preventive
care or, in the case of network plans, for having out-of-pocket
expenses that exceed these limits on an annual deductible for
services that are provided outside the network.
    (h) "High deductible health plan" means a health coverage
policy, certificate, or contract that provides for payments for
covered benefits that exceed the high deductible.
    (i) "Qualified medical expense" means an expense paid by
the eligible individual for medical care described in Section
213(d) of the Internal Revenue Code of 1986.
(Source: P.A. 97-142, eff. 7-14-11.)
 
    (5 ILCS 377/10-10)
    Sec. 10-10. Application; authorized contributions.
    (a) Beginning in calendar taxable year 2012 2011, each
employer shall make available to each eligible individual a
health savings account program, if that individual chooses to
enroll in the program except that, for an employer who provides
coverage pursuant to any one or more of subsections (i) through
(n) of Section 10 of the State Employee Group Insurance Act,
that employer may make available a health savings account
program. An employer who makes a health savings account program
available shall annually deposit an amount equal to one-third
of the annual deductible $2,750 annually into an eligible
individual's health savings account. Unused funds in a health
savings account shall become the property of the account holder
at the end of a taxable year.
    (b) Beginning in calendar taxable year 2012 2011, an
eligible individual may deposit contributions into a health
savings account in accordance with the restrictions set forth
in subsection (e) of Section 10-5. The amount of deposit may
not exceed the amount of the deductible for the policy.
(Source: P.A. 97-142, eff. 7-14-11.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.