Section 83-62-3 - DefinitionsAs used in this chapter:
(a) "Eligible individual" means the individual taxpayer, including employees of an employer who contributes to health savings accounts on the employees' behalf, who: (i) Is covered by a high deductible health plan individually or with his or her dependents as defined in this chapter;(ii) Is not covered under any health plan that is not a high deductible health plan, except for coverage for accidents, disability, dental care, vision care, long-term care, workers' compensation insurance, insurance for a specified disease or illness, insurance paying a fixed amount per day per hospitalization and coverage for tort liabilities or liabilities relating to ownership or use of property; and(iii) Establishes, or on whose behalf is established, a health savings account.(b) "Deductible" means the total deductible for an eligible individual and all the dependents of that eligible individual for a calendar year.(c) "Dependent" means the spouse or child of the eligible individual as defined in Section 152 of the Internal Revenue Code subject to any additional modifications imposed by Section 223(d) (2) of the Internal Revenue Code.(d) "Qualified medical expense" means an expense paid by the taxpayer for medical care described in Section 213(d) of the Internal Revenue Code.(e) "High deductible health plan" means a health plan with:
(i) In the case of self-only coverage, an annual deductible which is not less than One Thousand Dollars ($1,000.00) and the sum of the annual deductible and other annual out-of-pocket expenses required to be paid under the plan for covered benefits does not exceed Five Thousand One Hundred Dollars ($5,100.00).(ii) In the case of family coverage, an annual deductible of not less than Two Thousand Dollars ($2,000.00) and the sum of the annual deductible and other annual out-of-pocket expenses required to be paid under the plan for covered benefits does not exceed Ten Thousand Two Hundred Dollars ($10,200.00).(iii) The minimum annual deductible amounts and maximum annual out-of-pocket expense limits may be adjusted each year according to a cost-of-living adjustment as determined under Section 223(g) of the Internal Revenue Code.(iv) A plan shall not fail to be treated as a high deductible health plan by reason of failing to have a deductible for preventive care, or in the case of network plans, for having limits for out-of-pocket expenses or annual deductibles for services provided outside the network that exceed the limitations in this section.(f) "Health savings account" or "account" means a trust or custodian established in this state pursuant to a health savings account program exclusively to pay the qualified medical expenses of an eligible individual or his or her dependents, but only if the written governing instrument creating the account meets the following requirements: (i) Except in the case of a rollover contribution, no contribution will be accepted unless it is in cash; or, to the extent such contribution, when added to the previous contributions to the account for the calendar year, exceeds one hundred percent (100%) of the eligible individual's deductible or Two Thousand Six Hundred Fifty Dollars ($2,650.00) for an individual or Five Thousand Two Hundred Fifty Dollars ($5,250.00) per family, whichever is lower;(ii) The trustee or custodian is a bank, an insurance company or another person approved by the United States Department of Treasury and the Commissioner of Insurance;(iii) No part of the trust assets will be invested in life insurance contracts;(iv) The assets of the account will not be commingled with other property except as allowed for under Individual Retirement Accounts; and(v) The eligible individual's interest in the account is nonforfeitable. The maximum dollar amounts in this paragraph may be adjusted each year according to a cost-of-living adjustment as determined under Section 223(g) of the Internal Revenue Code.
Eligible individuals who have attained age fifty-five (55) before the end of the year may make additional catch-up contributions into the account in the amount determined in accordance with the following table:
2005 . ................... $ 600.00
2006 . ................... $ 700.00
2007 . ................... $ 800.00
2008 . ................... $ 900.00
2009 and thereafter .................... $1,000.00
(g) "Health savings account program" or "program" means a program that includes all of the following: (i) The purchase by an eligible individual or by an employer of a high deductible health plan; and(ii) The contribution into a health savings account by or on behalf of an eligible individual or on behalf of an employee by his or her employer. The total annual contribution may not exceed the amount of the plan's higher deductible or the amounts listed herein. Laws, 2005, ch. 484, § 2, eff. 1/1/2005.Brought forward by Laws, 2024, ch. 380, SB 2125,§ 2, eff. 7/1/2024.