Report Title:
Medical Savings Accounts; Deduction for Uninsured by Employer
Description:
Extends the definition of "eligible employee" for purposes of the Medical Services Account tax deduction to include persons not covered by medical insurance under the Prepaid Health Care Act and lowers their high deductible health plan deductible requirements.
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THE SENATE |
S.B. NO. |
972 |
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TWENTY-FIRST LEGISLATURE, 2001 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to medical savings accounts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 235-2.4, Hawaii Revised Statutes, is amended by amending subsection (e) to read as follows:
"(e) Section 220 (with respect to medical savings accounts) of the Internal Revenue Code shall be operative for the purpose of this chapter, but only with respect to medical services accounts that have been approved by the Secretary of the Treasury of the United States[.]; provided that:
(1) Individuals who are not regular employees as defined in section 393-3 are eligible individuals and allowed a deduction;
(2) For individuals identified in paragraph (1), the term "high deductible health plan" means a health plan that:
(A) In the case of self-only coverage, has an annual deductible of $1,000;
(B) In the case of family coverage, has an annual deductible of $3,000; and
(C) The annual out-of-pocket expenses required to be paid under the plan (other than for premiums) for covered benefits does not exceed:
(i) $2,000 for self-only coverage; and
(ii) $5,500 for family coverage; and
(3) Medical services accounts established by individuals identified in paragraph (1) shall not require approval by the Secretary of Treasury of the United States."
SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 3. This Act shall take effect upon its approval and apply to taxable years beginning after December 31, 2000.
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INTRODUCED BY: |
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