Bill Text: IL SB3021 | 2021-2022 | 102nd General Assembly | Introduced

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Bill Title: Amends the State Employee Health Savings Account Law. Provides that funds held in a health savings account may be used to cover expenses of the eligible individual or his or her dependents to pay for diapers or diaper services. Makes conforming changes.

Sponsorship: Partisan Bill (Democrat 3)

Status: (Introduced - Dead) 2022-02-10 - Rule 3-9(a) / Re-referred to Assignments [SB3021 Detail]

Download: Illinois-2021-SB3021-Introduced.html

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102ND GENERAL ASSEMBLY State of Illinois 2021 and 2022 SB3021 Introduced 1/5/2022, by Sen. Adriane Johnson SYNOPSIS AS INTRODUCED:
5 ILCS 377/10-5
5 ILCS 377/10-15
Amends the State Employee Health Savings Account Law. Provides that funds held in a health savings account may be used to cover expenses of the eligible individual or his or her dependents to pay for diapers or diaper services. Makes conforming changes.
LRB102 23037 RJF 32191 b
A BILL FOR
SB3021 LRB102 23037 RJF 32191 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 10-15 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.
(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;
(2) is not covered under any health plan that is not a

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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;
(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 contribution level set

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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 by an eligible individual in an
employer-sponsored 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 listed in sub-item (B) of item (1) of
subsection (e) 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

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level set by the Internal Revenue Service; 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.
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 health coverage
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, and shall include
any additional use of funds as provided under Section 10-15.
(Source: P.A. 97-142, eff. 7-14-11; 97-644, eff. 12-30-11.)
(5 ILCS 377/10-15)
Sec. 10-15. Use of funds.
(a) The trustee or custodian must use the funds held in a
health savings account solely (i) for the purpose of paying
the qualified medical expenses of the eligible individual or

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his or her dependents, (ii) to purchase a health coverage
policy, certificate, or contract, or (iii) to pay for health
insurance other than a Medicare supplemental policy for those
who are Medicare eligible.
(b) Funds held in a health savings account may not be used
to cover expenses of the eligible individual or his or her
dependents that are otherwise covered, including, but not
limited to, medical expense covered under an automobile
insurance policy, worker's compensation insurance policy or
self-insured plan, or another employer-funded health coverage
policy, certificate, or contract.
(c) Funds held in a health savings account may be used to
cover expenses of the eligible individual or his or her
dependents to pay for diapers or diaper services.
(Source: P.A. 97-142, eff. 7-14-11.)