HB5820 Summary

• Removes the prohibition on total annual health savings account contributions exceeding IRS-set limits, allowing contributions up to the maximum IRS contribution level.

• Changes employer annual deposit requirements: for years before January 1, 2015, employers must deposit one-third of the annual deductible; for years on or after January 1, 2015, employers must deposit the lesser of the eligible individual's deductible or 90% of the maximum IRS contribution level.

• Requires health savings account programs to be structured so the average per-person employer cost (including both account contributions and high-deductible plan) does not exceed the average per-person employer cost of the State's self-insured health benefits program for the same fiscal year.

• Simplifies the definition of "high deductible" to mean an annual deductible meeting or exceeding IRS Publication 969 standards, removing detailed specifications about out-of-pocket maximums.

• Takes effect immediately upon becoming law.