Illinois General Assembly - Full Text of SB3021
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Full Text of SB3021  102nd General Assembly




State of Illinois
2021 and 2022


Introduced 1/5/2022, by Sen. Adriane Johnson


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





SB3021LRB102 23037 RJF 32191 b

1    AN ACT concerning government.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The State Employee Health Savings Account Law
5is 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
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 Employees Group Insurance Act of 1971, provided
13that the dependent meets the definition of "dependent" under
14Section 152 of the Internal Revenue Code of 1986, determined
15without regard to subdivisions (b)(1), (b)(2), and (d)(1)(B)
16of that Section.
17    (c) "Eligible individual" means an employee, as defined in
18Section 3 of the State Employees Group Insurance Act of 1971,
19who contributes to health savings accounts on the employees'
20behalf, 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



SB3021- 2 -LRB102 23037 RJF 32191 b

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
15entity that employs an eligible individual.
16    (e) "Health savings account" or "account" means a trust or
17custodial account established under a State program
18exclusively to pay the qualified medical expenses of an
19eligible individual, or his or her dependents, that meets all
20of 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



SB3021- 3 -LRB102 23037 RJF 32191 b

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
13program 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



SB3021- 4 -LRB102 23037 RJF 32191 b

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
9plan by reason of a failure to have a deductible for preventive
10care or, in the case of network plans, for having
11out-of-pocket expenses that exceed these limits on an annual
12deductible for services that are provided outside the network.
13    (h) "High deductible health plan" means health coverage
14that provides for payments for covered benefits that exceed
15the high deductible.
16    (i) "Qualified medical expense" means an expense paid by
17the eligible individual for medical care described in Section
18213(d) of the Internal Revenue Code of 1986, and shall include
19any 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
24health savings account solely (i) for the purpose of paying
25the qualified medical expenses of the eligible individual or



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1his or her dependents, (ii) to purchase a health coverage
2policy, certificate, or contract, or (iii) to pay for health
3insurance other than a Medicare supplemental policy for those
4who are Medicare eligible.
5    (b) Funds held in a health savings account may not be used
6to cover expenses of the eligible individual or his or her
7dependents that are otherwise covered, including, but not
8limited to, medical expense covered under an automobile
9insurance policy, worker's compensation insurance policy or
10self-insured plan, or another employer-funded health coverage
11policy, certificate, or contract.
12    (c) Funds held in a health savings account may be used to
13cover expenses of the eligible individual or his or her
14dependents to pay for diapers or diaper services.
15(Source: P.A. 97-142, eff. 7-14-11.)