2023 Tennessee Code › Title 67 - TAXES AND LICENSES (§§ 67-1-101 — 67-10-107) › Chapter 10 - HEALTH SAVINGS ACCOUNT ACT (§§ 67-10-101 — 67-10-107) › Section 67-10-102 - Chapter definitions

As used in this chapter, unless the context otherwise requires:
(1)
"Deductible" means the total deductible for an eligible individual and all the dependents of that eligible individual for a calendar year;
(2)
"Dependent" means the spouse or child of the eligible individual as defined in § 152 of the Internal Revenue Code (
26 U.S.C. § 152
), subject to any additional modifications imposed by § 223(d)(2) of the Internal Revenue Code (
26 U.S.C. § 223(d)(2)
);
(3)
"Eligible individual" means the individual taxpayer, including employees of an employer who contributes to health savings accounts on the employees' behalf, who:
(A)
Must be covered by a high deductible health plan individually or with the individual's dependent;
(B)
May not be covered under any health plan that is not a high deductible health plan, except for:
(i)
Coverage for accidents, disability, dental care, vision care, and long-term care;
(ii)
Workers' compensation insurance;
(iii)
Insurance for a specified disease or illness;
(iv)
Insurance paying a fixed amount per day per hospitalization; and
(v)
Coverage for tort liabilities or liabilities relating to ownership or use of property; and
(C)
Establishes, or on whose behalf, the health savings account is established;
(4)
"Health savings account" or "account" means a trust or custodian established pursuant to a health savings account program exclusively to pay the qualified medical expenses of an eligible individual or the individual's dependents, but only if the written governing instrument creating the account meets the following requirements:
(A)
Except in the case of a rollover contribution, no contribution shall be accepted:
(i)
Unless it is in cash; or
(ii)
To the extent the 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 dollars ($2,600) for an individual, or five thousand one hundred fifty dollars ($5,150) per family, or such dollar amounts as established in accordance with §
67-10-106
, whichever is lower;
(B)
The trustee or custodian is a bank, an insurance company, or another person approved by the U.S. department of treasury;
(C)
No part of the trust assets will be invested in life insurance contracts;
(D)
The assets of the account will not be commingled with other property, except as allowed for under individual retirement accounts;
(E)
Eligible individual's interest in the account is nonforfeitable; and
(F)
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:
(i)
In 2005, six hundred dollars ($600);
(ii)
In 2006, seven hundred dollars ($700);
(iii)
In 2007, eight hundred dollars ($ 800);
(iv)
In 2008, nine hundred dollars ($ 900); and
(v)
In 2009 and thereafter, one thousand dollars ($1,000);
(5)
"Health savings account program" or "program" means a program that includes all of the following:
(A)
The purchase by an eligible individual or by an employer of a high deductible health plan; and
(B)
The contribution into a health savings account by or on behalf of an eligible individual or on behalf of an employee by the employee's employer. The total annual contribution may not exceed the amount of the plan's higher deductible or the amounts listed in subdivision (4)(A)(ii);
(6)
"High deductible health plan" means a health plan with:
(A)
In the case of self-only coverage, an annual deductible that is not less than one thousand dollars ($1,000), and the sum of the annual deductible and other out-of-pocket expenses required to be paid under the plan for covered benefits does not exceed five thousand one hundred dollars ($5,100), or such other amounts for an annual deductible and out-of-pocket expenses established in accordance with §
67-10-106
;
(B)
In the case of family coverage, an annual deductible of not less than two thousand dollars ($2,000), 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), or such other amounts for an annual deductible or out-of-pocket expenses established in accordance with §
67-10-106
; and
(C)
A plan shall not fail to be treated as a high deductible plan by reason of failing to have a deductible for preventive care or, in the case of network plans, for having out-of-pocket expenses or annual deductibles for services provided outside the network that exceed the limitations in this section; and
(7)
"Qualified medical expense" means an expense paid by the taxpayer for medical care described in § 213(d) of the Internal Revenue Code (
26 U.S.C. § 213(d)
).
Acts 2006, ch. 873, § 2.