Full Text of SB3021 102nd General Assembly
SB3021 102ND GENERAL ASSEMBLY |
| | 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 | |
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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.
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| | A BILL FOR |
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| 1 | | AN ACT concerning government.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The State Employee Health Savings Account Law | 5 | | is amended by changing Sections 10-5 and 10-15 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 | 9 | | deductible health plan for an eligible individual and all the | 10 | | dependents of that eligible individual for a calendar year. | 11 | | (b) "Dependent" means a dependent as defined in Section 3 | 12 | | of the State Employees Group Insurance Act of 1971, provided | 13 | | that the dependent meets the definition of "dependent" under | 14 | | Section 152 of the Internal Revenue Code of 1986, determined | 15 | | without regard to subdivisions (b)(1), (b)(2), and (d)(1)(B) | 16 | | of that Section. | 17 | | (c) "Eligible individual" means an employee, as defined in | 18 | | Section 3 of the State Employees Group Insurance Act of 1971, | 19 | | who contributes to health savings accounts on the employees' | 20 | | behalf, who: | 21 | | (1) is covered by a high deductible health plan | 22 | | individually or with dependents; | 23 | | (2) is not covered under any health plan that is not a |
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| 1 | | high deductible health plan, except for: | 2 | | (i) coverage for accidents; | 3 | | (ii) workers' compensation insurance; | 4 | | (iii) insurance for a specified disease or | 5 | | illness; | 6 | | (iv) insurance paying a fixed amount per day per | 7 | | hospitalization; and | 8 | | (v) tort liabilities; | 9 | | (3) establishes a health savings account or on whose | 10 | | behalf the health savings account is
established; | 11 | | (4) is not entitled to Medicare; and | 12 | | (5) cannot be claimed as a dependent on another | 13 | | person's tax return. | 14 | | (d) "Employer" means a State agency, department, or other | 15 | | entity that employs an eligible individual. | 16 | | (e) "Health savings account" or "account" means a trust or | 17 | | custodial account established under a State program | 18 | | exclusively to pay the qualified medical expenses of an | 19 | | eligible individual, or his or her dependents, that meets all | 20 | | of the following requirements:
| 21 | | (1) Except in the case of a rollover contribution, no | 22 | | contribution may be accepted: | 23 | | (A) unless it is in cash; or
| 24 | | (B) to the extent that the contribution, when | 25 | | added to the previous contributions to the Account for | 26 | | the calendar year, exceeds the contribution level set |
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| 1 | | for that year by the Internal Revenue Service. | 2 | | (2)
The trustee or custodian is a bank, an insurance | 3 | | company, or another person approved by the Director of | 4 | | Insurance.
| 5 | | (3) No part of the trust assets shall be invested in | 6 | | life insurance contracts. | 7 | | (4) The assets of the account shall not be commingled | 8 | | with other property except as allowed for under Individual | 9 | | Retirement Accounts. | 10 | | (5) Eligible individual's interest in the account is | 11 | | nonforfeitable. | 12 | | (f) "Health savings account program" or "program" means a | 13 | | program that includes all of the following:
| 14 | | (1) Participation by an eligible individual in an | 15 | | employer-sponsored high deductible health plan. | 16 | | (2) The contribution into a health savings account by | 17 | | an eligible individual or on behalf of an employee or by | 18 | | his or her employer. The total annual contribution may not | 19 | | exceed the amount listed in sub-item (B) of item (1) of | 20 | | subsection (e) of this Section. | 21 | | (g) "High deductible" means: | 22 | | (1) In the case of self-only coverage, an annual | 23 | | deductible that is not less than the level set by the | 24 | | Internal Revenue Service and that, when added to the other | 25 | | annual out-of-pocket expenses required to be paid under | 26 | | the plan for covered benefits, does not exceed the maximum |
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| 1 | | level set by the Internal Revenue Service; and
| 2 | | (2) In the case of family coverage, an annual | 3 | | deductible of not less than the level set by the Internal | 4 | | Revenue Service and that, when added to the other annual | 5 | | out-of-pocket expenses required to be paid under the plan | 6 | | for covered benefits, does not exceed the maximum level | 7 | | set by the Internal Revenue Service.
| 8 | | A plan shall not fail to be treated as a high deductible | 9 | | plan by reason of a failure to have a deductible for preventive | 10 | | care or, in the case of network plans, for having | 11 | | out-of-pocket expenses that exceed these limits on an annual | 12 | | deductible for services that are provided outside the network.
| 13 | | (h) "High deductible health plan" means health coverage | 14 | | that provides for payments for covered benefits that exceed | 15 | | the high deductible. | 16 | | (i) "Qualified medical expense" means an expense paid by | 17 | | the eligible individual for medical care described in Section | 18 | | 213(d) of the Internal Revenue Code of 1986 , and shall include | 19 | | any additional use of funds as provided under Section 10-15 .
| 20 | | (Source: P.A. 97-142, eff. 7-14-11; 97-644, eff. 12-30-11.) | 21 | | (5 ILCS 377/10-15)
| 22 | | Sec. 10-15. Use of funds. | 23 | | (a) The trustee or custodian must use the funds held in a | 24 | | health savings account solely (i) for the purpose of paying | 25 | | the qualified medical expenses of the eligible individual or |
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| 1 | | his or her dependents, (ii) to purchase a health coverage | 2 | | policy, certificate, or contract, or (iii) to pay for health | 3 | | insurance other than a Medicare supplemental policy for those | 4 | | who are Medicare eligible. | 5 | | (b) Funds held in a health savings account may not be used | 6 | | to cover expenses of the eligible individual or his or her | 7 | | dependents that are otherwise covered, including, but not | 8 | | limited to, medical expense covered under an automobile | 9 | | insurance policy, worker's compensation insurance policy or | 10 | | self-insured plan, or another employer-funded health coverage | 11 | | policy, certificate, or contract. | 12 | | (c) Funds held in a health savings account may be used to | 13 | | cover expenses of the eligible individual or his or her | 14 | | dependents to pay for diapers or diaper services.
| 15 | | (Source: P.A. 97-142, eff. 7-14-11.)
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