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| Public Act 097-0644
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| HB0355 Enrolled | LRB097 03238 JDS 43275 b |
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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:
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(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' |
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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: |
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(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 |
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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.)
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(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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