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Public Act 097-0644 | ||||
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AN ACT concerning government.
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Be it enacted by the People of the State of Illinois, | ||||
represented in the General Assembly:
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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)
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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.
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"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:
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(1) Except in the case of a rollover contribution, no | ||
contribution may be accepted: |
(A) unless it is in cash; or
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(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.
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(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:
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(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
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(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 .
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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.
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(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.
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(Source: P.A. 97-142, eff. 7-14-11.) | ||
(5 ILCS 377/10-10)
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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.
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(Source: P.A. 97-142, eff. 7-14-11.)
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Section 99. Effective date. This Act takes effect upon | ||
becoming law.
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