Oklahoma § 36-6060.15 - Definitions

§ 36-6060.15. Definitions

As used in this act:

1. "Deductible" means the total deductible for an eligible

individual and all the dependents of that eligible individual for a

calendar year;

Oklahoma Statutes - Title 36. Insurance

2. "Dependent" means the spouse or child of the eligible

individual as defined in Section 152 of the Internal Revenue Code;

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 dependent,

b.

may not be covered under any health plan that is not a

high deductible health plan, except for:

(1) coverage for accidents,

(2) workers’ compensation insurance,

(3) insurance for a specified disease or illness,

(4) insurance paying a fixed amount per day per

hospitalization, and

(5) tort liabilities, and

c.

establishes the health savings account, or on whose

behalf the health savings account is established;

4. "Health savings account" or "account" means a trust or

custodian established in this state pursuant to a health savings

account program exclusively to pay the qualified medical expenses of

an eligible individual or their 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 will be accepted:

(1) unless it is in cash, or

(2) to the extent the contribution, when added to the

previous contributions to the account for the

calendar year, exceeds the maximum contribution

amount pursuant to Section 223 of the Internal

Revenue Code,

b.

the trustee or custodian is a bank, a credit union, an

insurance company, or another person approved by the

United States Secretary of Health and Human Services,

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, and

e.

eligible individual's interest in the account is

nonforfeitable;

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 an

eligible individual or on behalf of an employee or by

Oklahoma Statutes - Title 36. Insurance

their employer. The total annual contribution may not

exceed the maximum contribution amount pursuant to

Section 223 of the Internal Revenue Code;

6. "High deductible health plan" means a health coverage

policy, certificate, or contract that provides for payments for

covered benefits that exceed the higher deductible;

7. "Qualified medical expense" means an expense paid by the

taxpayer for medical care described in paragraph d of Section 213 of

the Internal Revenue Code, but only to the extent such amounts are

not compensated for by insurance or otherwise; and

8. "High deductible" means:

a.

in the case of self-only coverage, an annual

deductible which is not less than One Thousand Dollars

($1,000.00) 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 Five Thousand Dollars ($5,000.00), or

b.

in the case of family coverage, an annual deductible

of not less than Two Thousand Dollars ($2,000.00) and

the sum of the annual deductible and other annual outof-pocket expenses required to be paid under the plan

for covered benefits does not exceed Ten Thousand

Dollars ($10,000.00).

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 which

exceed these limits on an annual deductible for services provided

outside the network.

Added by Laws 2005, c. 306, § 2, eff. Nov. 1, 2005. Amended by Laws

2007, c. 269, § 1, emerg. eff. June 4, 2007.