Rep. Frank J. Mautino

Filed: 10/26/2011

 

 


 

 


 
09700HB0355ham001LRB097 03238 JDS 59077 a

1
AMENDMENT TO HOUSE BILL 355

2    AMENDMENT NO. ______. Amend House Bill 355 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The State Employee Health Savings Account Law
5is amended by changing Sections 10-5 and 10-10 as follows:
 
6    (5 ILCS 377/10-5)
7    Sec. 10-5. Definitions. As used in this Law:
8    (a) "Deductible" means the total deductible of a high
9deductible health plan for an eligible individual and all the
10dependents of that eligible individual for a calendar year.
11    (b) "Dependent" means a dependent as defined in Section 3
12of the State Employee Group Insurance Act of 1971, provided
13that any dependent age 26 or above, as defined under that
14Section, is eligible to be claimed by the eligible individual
15as a tax dependent under Section 152(a) of the Internal Revenue
16Code of 1986 an eligible individual's spouse or child, as

 

 

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1defined in Section 152 of the Internal Revenue Code of 1986.
2"Dependent" also includes a party to or the child of a party to
3a civil union, as defined under Section 10 of the Illinois
4Religious Freedom Protection and Civil Union Act, provided that
5the party to, or the child of a party to, the civil union is
6eligible to be claimed by the eligible individual as a tax
7dependent under Section 152(a) of the Internal Revenue Code of
81986.
9    (c) "Eligible individual" means an employee, as defined in
10Section 3 of the State Employees Group Insurance Act of 1971,
11who contributes to health savings accounts on the employees'
12behalf, who:
13        (1) is covered by a high deductible health plan
14    individually or with dependents; and
15        (2) is not covered under any health plan that is not a
16    high deductible health plan, except for:
17            (i) coverage for accidents;
18            (ii) workers' compensation insurance;
19            (iii) insurance for a specified disease or
20        illness;
21            (iv) insurance paying a fixed amount per day per
22        hospitalization; and
23            (v) tort liabilities; and
24        (3) establishes a health savings account or on whose
25    behalf the health savings account is established; .
26        (4) is not entitled to Medicare; and

 

 

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1        (5) cannot be claimed as a dependent on another
2    person's tax return.
3    (d) "Employer" means a State agency, department, or other
4entity that employs an eligible individual.
5    (e) "Health savings account" or "account" means a trust or
6custodial account established under a State program
7exclusively to pay the qualified medical expenses of an
8eligible individual, or his or her dependents, that meets all
9of the following requirements:
10        (1) Except in the case of a rollover contribution, no
11    contribution may be accepted:
12            (A) unless it is in cash; or
13            (B) to the extent that the contribution, when added
14        to the previous contributions to the Account for the
15        calendar year, exceeds the lesser of (i) 100% of the
16        eligible individual's deductible or (ii) the
17        contribution level set for that year by the Internal
18        Revenue Service.
19        (2) The trustee or custodian is a bank, an insurance
20    company, or another person approved by the Director of
21    Insurance.
22        (3) No part of the trust assets shall be invested in
23    life insurance contracts.
24        (4) The assets of the account shall not be commingled
25    with other property except as allowed for under Individual
26    Retirement Accounts.

 

 

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1        (5) Eligible individual's interest in the account is
2    nonforfeitable.
3    (f) "Health savings account program" or "program" means a
4program that includes all of the following:
5        (1) Participation The purchase by an eligible
6    individual in an employer-sponsored or by an employer of a
7    high deductible health plan.
8        (2) The contribution into a health savings account by
9    an eligible individual or on behalf of an employee or by
10    his or her employer. The total annual contribution may not
11    exceed the amount of the deductible or the amounts listed
12    in sub-item (B) of item (1) of subsection (e) (f) of this
13    Section.
14    (g) "High deductible" means:
15        (1) In the case of self-only coverage, an annual
16    deductible that is not less than the level set by the
17    Internal Revenue Service and that, when added to the other
18    annual out-of-pocket expenses required to be paid under the
19    plan for covered benefits, does not exceed the maximum
20    level set by the Internal Revenue Service $5,000; and
21        (2) In the case of family coverage, an annual
22    deductible of not less than the level set by the Internal
23    Revenue Service and that, when added to the other annual
24    out-of-pocket expenses required to be paid under the plan
25    for covered benefits, does not exceed the maximum level set
26    by the Internal Revenue Service $10,000.

 

 

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1    A plan shall not fail to be treated as a high deductible
2plan by reason of a failure to have a deductible for preventive
3care or, in the case of network plans, for having out-of-pocket
4expenses that exceed these limits on an annual deductible for
5services that are provided outside the network.
6    (h) "High deductible health plan" means a health coverage
7policy, certificate, or contract that provides for payments for
8covered benefits that exceed the high deductible.
9    (i) "Qualified medical expense" means an expense paid by
10the eligible individual for medical care described in Section
11213(d) of the Internal Revenue Code of 1986.
12(Source: P.A. 97-142, eff. 7-14-11.)
 
13    (5 ILCS 377/10-10)
14    Sec. 10-10. Application; authorized contributions.
15    (a) Beginning in calendar taxable year 2012 2011, each
16employer shall make available to each eligible individual a
17health savings account program, if that individual chooses to
18enroll in the program except that, for an employer who provides
19coverage pursuant to any one or more of subsections (i) through
20(n) of Section 10 of the State Employee Group Insurance Act,
21that employer may make available a health savings account
22program. An employer who makes a health savings account program
23available shall annually deposit an amount equal to one-third
24of the annual deductible $2,750 annually into an eligible
25individual's health savings account. Unused funds in a health

 

 

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1savings account shall become the property of the account holder
2at the end of a taxable year.
3    (b) Beginning in calendar taxable year 2012 2011, an
4eligible individual may deposit contributions into a health
5savings account in accordance with the restrictions set forth
6in subsection (e) of Section 10-5. The amount of deposit may
7not exceed the amount of the deductible for the policy.
8(Source: P.A. 97-142, eff. 7-14-11.)
 
9    Section 99. Effective date. This Act takes effect upon
10becoming law.".