Full Text of HB0355 97th General Assembly
HB0355ham001 97TH GENERAL ASSEMBLY | Rep. Frank J. Mautino Filed: 10/26/2011
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| 1 | | AMENDMENT TO HOUSE BILL 355
| 2 | | AMENDMENT NO. ______. Amend House Bill 355 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The State Employee Health Savings Account Law | 5 | | is 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 | 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 Employee Group Insurance Act of 1971, provided | 13 | | that any dependent age 26 or above, as defined under that | 14 | | Section, is eligible to be claimed by the eligible individual | 15 | | as a tax dependent under Section 152(a) of the Internal Revenue | 16 | | Code of 1986 an eligible individual's spouse or child, as |
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| 1 | | defined in Section 152 of the Internal Revenue Code of 1986 .
| 2 | | "Dependent" also includes a party to or the child of a party to | 3 | | a civil union, as defined under Section 10 of the Illinois | 4 | | Religious Freedom Protection and Civil Union Act , provided that | 5 | | the party to, or the child of a party to, the civil union is | 6 | | eligible to be claimed by the eligible individual as a tax | 7 | | dependent under Section 152(a) of the Internal Revenue Code of | 8 | | 1986 . | 9 | | (c) "Eligible individual" means an employee, as defined in | 10 | | Section 3 of the State Employees Group Insurance Act of 1971, | 11 | | who contributes to health savings accounts on the employees' | 12 | | behalf, 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 | 4 | | entity that employs an eligible individual. | 5 | | (e) "Health savings account" or "account" means a trust or | 6 | | custodial account established under a State program | 7 | | exclusively to pay the qualified medical expenses of an | 8 | | eligible individual, or his or her dependents, that meets all | 9 | | of 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 | 4 | | program 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 | 2 | | plan by reason of a failure to have a deductible for preventive | 3 | | care or, in the case of network plans, for having out-of-pocket | 4 | | expenses that exceed these limits on an annual deductible for | 5 | | services that are provided outside the network.
| 6 | | (h) "High deductible health plan" means a health coverage | 7 | | policy, certificate, or contract that provides for payments for | 8 | | covered benefits that exceed the high deductible. | 9 | | (i) "Qualified medical expense" means an expense paid by | 10 | | the eligible individual for medical care described in Section | 11 | | 213(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 | 16 | | employer shall make available to each eligible individual a | 17 | | health savings account program, if that individual chooses to | 18 | | enroll in the program except that, for an employer who provides | 19 | | coverage pursuant to any one or more of subsections (i) through | 20 | | (n) of Section 10 of the State Employee Group Insurance Act, | 21 | | that employer may make available a health savings account | 22 | | program . An employer who makes a health savings account program | 23 | | available shall annually deposit an amount equal to one-third | 24 | | of the annual deductible $2,750 annually into an eligible | 25 | | individual's health savings account. Unused funds in a health |
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| 1 | | savings account shall become the property of the account holder | 2 | | at the end of a taxable year. | 3 | | (b) Beginning in calendar taxable year 2012 2011 , an | 4 | | eligible individual may deposit contributions into a health | 5 | | savings account in accordance with the restrictions set forth | 6 | | in subsection (e) of Section 10-5 . The amount of deposit may | 7 | | not 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 | 10 | | becoming law.".
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