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Illinois Compiled Statutes

Information maintained by the Legislative Reference Bureau
Updating the database of the Illinois Compiled Statutes (ILCS) is an ongoing process. Recent laws may not yet be included in the ILCS database, but they are found on this site as Public Acts soon after they become law. For information concerning the relationship between statutes and Public Acts, refer to the Guide.

Because the statute database is maintained primarily for legislative drafting purposes, statutory changes are sometimes included in the statute database before they take effect. If the source note at the end of a Section of the statutes includes a Public Act that has not yet taken effect, the version of the law that is currently in effect may have already been removed from the database and you should refer to that Public Act to see the changes made to the current law.

GENERAL PROVISIONS
(5 ILCS 377/) State Employee Health Savings Account Law.

5 ILCS 377/Art. 5

 
    (5 ILCS 377/Art. 5 heading)
ARTICLE 5.
ILLINOIS HEALTH BENEFITS EXCHANGE
(The Illinois Health Benefits Exchange Law
is compiled at 215 ILCS 122/)
(Source: P.A. 97-142, eff. 7-14-11.)

5 ILCS 377/Art. 10

 
    (5 ILCS 377/Art. 10 heading)
ARTICLE 10.
HEALTH SAVINGS ACCOUNT
(Source: P.A. 97-142, eff. 7-14-11.)

5 ILCS 377/10-1

    (5 ILCS 377/10-1)
    Sec. 10-1. Short title. This Article may be cited as the State Employee Health Savings Account Law.
(Source: P.A. 97-142, eff. 7-14-11.)

5 ILCS 377/10-5

    (5 ILCS 377/10-5)
    Sec. 10-5. Definitions. 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
        
illness;
            (iv) insurance paying a fixed amount per day per
        
hospitalization; and
            (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
    
person's tax return.
    (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
    
nonforfeitable.
    (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.)

5 ILCS 377/10-10

    (5 ILCS 377/10-10)
    Sec. 10-10. Application; authorized contributions.
    (a) Beginning in calendar year 2012, each employer shall make available to each eligible individual a health savings account program, if that individual chooses to enroll in the program except that, for an employer who provides coverage pursuant to any one or more of subsections (i) through (n) of Section 10 of the State Employee Group Insurance Act, that employer may make available a health savings account program. An employer who makes a health savings account program available shall annually deposit an amount equal to one-third of the annual deductible into an eligible individual's health savings account. Unused funds in a health savings account shall become the property of the account holder at the end of a taxable year.
    (b) Beginning in calendar year 2012, an eligible individual may deposit contributions into a health savings account in accordance with the restrictions set forth in subsection (e) of Section 10-5.
(Source: P.A. 97-142, eff. 7-14-11; 97-644, eff. 12-30-11.)

5 ILCS 377/10-15

    (5 ILCS 377/10-15)
    Sec. 10-15. Use of funds.
    (a) The trustee or custodian must use the funds held in a health savings account solely (i) for the purpose of paying the qualified medical expenses of the eligible individual or his or her dependents, (ii) to purchase a health coverage policy, certificate, or contract, or (iii) to pay for health insurance other than a Medicare supplemental policy for those who are Medicare eligible.
    (b) Funds held in a health savings account may not be used to cover expenses of the eligible individual or his or her dependents that are otherwise covered, including, but not limited to, medical expense covered under an automobile insurance policy, worker's compensation insurance policy or self-insured plan, or another employer-funded health coverage policy, certificate, or contract.
(Source: P.A. 97-142, eff. 7-14-11.)

5 ILCS 377/Art. 90

 
    (5 ILCS 377/Art. 90 heading)
ARTICLE 90.
AMENDATORY PROVISIONS
(Amendatory provisions; text omitted)
(Source: P.A. 97-142, eff. 7-14-11; text omitted.)

5 ILCS 377/Art. 99

 
    (5 ILCS 377/Art. 99 heading)
ARTICLE 99.
EFFECTIVE DATE
(Source: P.A. 97-142, eff. 7-14-11.)

5 ILCS 377/99

    (5 ILCS 377/99)
    Section 99. Effective date. This Act takes effect upon becoming law.
(Source: P.A. 97-142, eff. 7-14-11.)