Illinois Compiled Statutes
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GENERAL PROVISIONS5 ILCS 377/Art. 5
(5 ILCS 377/) State Employee Health Savings Account Law.
(5 ILCS 377/10-5)
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 high deductible health plan, except for:
(i) coverage for accidents;
(ii) workers' compensation insurance;
(iii) insurance for a specified disease or
(iv) insurance paying a fixed amount per day per
(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
(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 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
(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 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.
(Source: P.A. 97-142, eff. 7-14-11; 97-644, eff. 12-30-11.)