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AL HB101
Bill
Status
1/12/2010
Primary Sponsor
Gregory Canfield
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AI Summary
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Establishes the "Medical Savings Account Act" to allow employers and resident individuals to create medical savings accounts for paying eligible medical expenses.
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Sets deductible limits for qualified higher deductible health plans at $1,500-$2,250 for individual coverage and $3,000-$4,500 for family coverage in tax year 2010, with annual $50 adjustments after 2014 based on medical cost inflation.
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Excludes principal contributions and interest earned in medical savings accounts from taxable gross income for account holders.
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Permits account holders to withdraw funds exceeding the higher deductible for non-medical purposes, with such withdrawals treated as gross income for tax purposes.
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Distributes account principal and accumulated interest to the account holder's designated beneficiary upon death, or to the estate if no beneficiary is named in writing.
Legislative Description
Medical savings accounts, established, limits on deductible amounts contributed, interest excluded from gross income, use of funds, withdrawals, distribution upon death of account holder, Medical Savings Account Act
Medical Savings Accounts
Last Action
Read for the first time and referred to the House of Representatives committee on Education Appropriations
1/12/2010