Pennsylvania Act 2005-48 — HEALTH SAVINGS ACCOUNT ACT

Act text

HEALTH SAVINGS ACCOUNT ACT
                  Act of Jul. 14, 2005, P.L. 278, No. 48              Cl. 35
                                  AN ACT

     Authorizing the establishment and maintenance of health savings
        accounts; providing for special tax provisions; and imposing
        restrictions on health savings accounts.

        The General Assembly of the Commonwealth of Pennsylvania
     hereby enacts as follows:

     Section 1.  Short title.
        This act shall be known and may be cited as the Health
     Savings Account Act.
     Section 2.  Legislative intent.
        It is the intent of the General Assembly to extend special
     tax provisions to health savings accounts established in this
     Commonwealth pursuant to section 223 of the Internal Revenue
     Code of 1986 (Public Law 99-514, 26 U.S.C. § 223).
     Section 3.  Definitions.
        The following words and phrases when used in this act shall
     have the meanings given to them in this section unless the
     context clearly indicates otherwise:
        "Account beneficiary."  As defined in section 223(d)(3) of
     the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C.
     § 223(d)(3)).
        "Excess contribution distribution."  A distribution described
     in section 223(f)(3) of the Internal Revenue Code of 1986
     (Public Law 99-514, 26 U.S.C. § 223(f)(3)). The term shall not
     include amounts of income attributable to such distribution.
        "Health insurance policy."  An individual or group health,
     sickness or accident policy or subscriber contract or
     certificate issued by an entity subject to any one of the
     following:
            (1)  The act of May 17, 1921 (P.L.682, No.284), known as
        The Insurance Company Law of 1921.
            (2)  The act of December 29, 1972 (P.L.1701, No.364),
        known as the Health Maintenance Organization Act.
            (3)  The act of May 18, 1976 (P.L.123, No.54), known as
        the Individual Accident and Sickness Insurance Minimum
        Standards Act.
            (4)  40 Pa.C.S. Ch. 61 (relating to hospital plan
        corporations) or 63 (relating to professional health services
        plan corporations).
        "Health savings account."  As defined in section 223(d) of
     the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C.
     § 223(d)).
        "Qualified medical expenses."  As defined in section 223(d)
     of the Internal Revenue Code of 1986 (Public Law 99-514, 26
     U.S.C. § 223(d)).
     Section 4.  Special tax provisions.  (4 repealed July 6, 2006,
                    P.L.319, No.67)
     Section 5.  Mandated benefits.
        (a)  General rule.--Except as otherwise provided under
     subsection (b), a health insurance policy that would qualify as
     a high deductible health plan under section 223(c)(2) of the
     Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. §
     223(c)(2)) shall be subject to any provision of law mandating a
     minimum health insurance benefit or reimbursement.
        (b)  Exception.--A health insurance policy that would qualify
     as a high deductible health plan under section 223(c) of the
     Internal Revenue Code of 1986, when offered in conjunction with
     a health savings account, shall not be subject to any provision
     of law which restricts or limits deductibles for mandated
     minimum health insurance benefits or reimbursements except to
     the extent such provision mandates benefits for preventive care,
     as determined by the standards set forth by the Internal Revenue
     Service.
     Section 6.  Applicability.
        Section 4 shall apply to taxable years beginning after
     December 31, 2004.
     Section 7.  Effective date.
        This act shall take effect in 60 days.