Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart F - BASE INCOME OF INDIVIDUALS › Section 100.2580 - Medical Care Savings Accounts (IITA Sections 203(a)(2)(D-5), 203(a)(2)(S) and 203(a)(2)(T))

Current through Register Vol. 48, No. 28, July 12, 2024
a) For
				the purposes of this Section, "Act" means the Medical Care Savings Account Act
				[820 ILCS 152 ], repealed January 1, 2000, or the Medical Care Savings Account
				Act of 2000 [820 ILCS 153 ], which re-enacted the provisions of the repealed
				Act.
b) "Medical care savings
				account" or "account" means an account established in this State pursuant to a
				medical care savings account program to pay the eligible medical expenses of an
				employee and his or her dependents. (Section 5 of the Act) An employer, except
				as otherwise provided by statute, contract, or a collective bargaining
				agreement, may offer a medical care savings account program to the employer's
				employees.
c) A medical care
				savings account program must include the following:
1) The purchase by an employer of a qualified
				higher deductible health plan for the benefit of an employee and his or her
				dependents. (Section 5 of the Act)
2) The contribution on behalf of an employee
				into a medical care savings account by his or her employer of all or part of
				the premium differential realized by the employer based on the purchase of a
				qualified higher deductible health plan for the benefit of the employee. An
				employer that did not previously provide a health coverage policy, certificate,
				or contract for his or her employees may contribute all or part of the
				deductible of the plan purchased pursuant to subsection (c)(1). For 1994, a
				contribution under this Section may not exceed $6,000 for 2 taxpayers filing a
				joint return, if each taxpayer has a medical care savings account but neither
				is covered by the other's health coverage, or $3,000 in all other cases. These
				maximum amounts shall be adjusted annually by the Department of Revenue to
				reflect increases in the consumer price index for the United States as defined
				and officially reported by the United States Department of Labor. (Section 5 of
				the Act)
A) The Department will announce
				adjustments in the maximum amounts, as well as in the minimum higher
				deductible, by annual publication of a Notice of Public Information in the
				Illinois Register.
B) The Consumer
				Price Index (CPI) annual average for all urban consumers was
				144.5
				for calendar year 1993 and 148.2 for calendar year 1994. Therefore, the
				thresholds established under the Act were adjusted upward by 2% for 1995.
				Hence, for 1995, the minimum higher deductible is $1026, the maximum higher
				deductible is $3078, the maximum contribution for 2 taxpayers filing a joint
				return is $6156 and the maximum contribution for all others is $3078.
C) For the years 1994 through 2006, the
				thresholds are as follows:
Year
Minimum Higher Deductible
Maximum Higher Deductible
Maximum Contribution For Two
Maximum Contribution All Others
1994
$1,000
$3,000
$6,000
$3,000
1995
$1,026
$3,078
$6,156
$3,078
1996
$1,055
$3,164
$6,238
$3,164
1997
$1,086
$3,256
$6,512
$3,256
1998
$1,111
$3,331
$6,662
$3,331
1999
$1,129
$3,384
$6,768
$3,384
2000
$1,154
$3,458
$6,917
$3,458
2001
$1,193
$3,576
$7,152
$3,576
2002
$1,226
$3,676
$7,352
$3,676
2003
$1,246
$3,735
$7,470
$3,735
2004
$1,275
$3,821
$7,642
$3,821
2005
$1,309
$3,924
$7,848
$3,924
2006
$1,354
$4,057
$8,114
$4,057
3) An account administrator to administer the
				medical care savings account from which payment of claims is made. Not more
				than 30 days after an account administrator begins to administer an account,
				the administrator shall notify in writing each employee on whose behalf the
				administrator administers an account of the date of the last business day of
				the administrator's business year. (Section 5 of the Act)