For a taxable year beginning on or after January 1, 1995:
Terms Used In Utah Code 31A-32a-103
account: means a trust account established at a depository institution in this state pursuant to a medical care savings account program to pay the eligible medical expenses of:
an insurance company authorized to do business in this state under this title;
(d)
a third party administrator licensed under Section 31A-25-203; and
(e)
an employer if the employer has a self-insured health plan under ERISA. See Utah Code 31A-32a-102
Account holder: means the resident individual who establishes a medical care savings account or for whose benefit a medical care savings account is established. See Utah Code 31A-32a-102
Administrator: means the same as that term is defined in Subsection (182). See Utah Code 31A-1-301
Contract: A legal written agreement that becomes binding when signed.
Deductible: means the total deductible for an employee and all the dependents of that employee for a calendar year. See Utah Code 31A-32a-102
Employee: means the individual for whose benefit or for the benefit of whose dependents a medical care savings account is established. See Utah Code 31A-32a-102
a risk distributing arrangement providing for compensation or replacement for damages or loss through the provision of a service or a benefit in kind;
(ii)
a contract of guaranty or suretyship entered into by the guarantor or surety as a business and not as merely incidental to a business transaction; and
(iii)
a plan in which the risk does not rest upon the person who makes an arrangement, but with a class of persons who have agreed to share the risk. See Utah Code 31A-1-301
program: means one of the following programs:
(a)
a program established by an employer in which the employer:
(i)
purchases a qualified higher deductible health plan for the benefit of an employee and the employee's dependents; and
(ii)
contributes on behalf of an employee into a medical care savings account; or
(b)
a program established by an account holder in which the account holder:
(i)
purchases a qualified higher deductible health plan for the benefit of the account holder and the account holder's dependents; and
(ii)
contributes an amount to the medical care savings account. See Utah Code 31A-32a-102
an employer, except as otherwise provided by contract or a collective bargaining agreement, may offer a medical care savings accountprogram to the employer’s employees; or
(b)
a resident individual may establish a medical care savings account program for the individual or for the individual’s dependents.
(2)
(a)
A contribution into an account made by an employer on behalf of an employee, or made by an individual account holder may not exceed the greater of:
(i)
$2,000 in any taxable year; or
(ii)
an amount of money equal to the sum of all eligible medical expenses paid by the employee or account holder for that taxable year on behalf of the employee, account holder, or the employee’s or account holder’s spouse or dependents.
(b)
For purposes of Subsection (2)(a)(ii), eligible medical expenses are limited to expenses in the taxable year that an insurance carrier has applied to the employee’s or account holder’s deductible.
(3)
An employer that offers a medical care savings account program shall, before making any contributions:
(a)
inform all employees in writing of the fact that these contributions may not be deductible under the federal tax laws; and
(b)
obtain from the employee a written election to participate in the medical care savings account program.
(4)
Except as provided in Sections 31A-32a-105 and 59-10-114, principal contributed to and interest earned on a medical care savings account and money reimbursed to an employee or account holder for eligible medical expenses are exempt from taxation.
(5)
(a)
An employer may select a single account administrator for all of the employer’s employee’s medical care savings accounts.
(b)
If a single account administrator is not selected, an employer may contribute directly to the account holder’s individual medical care savings account.
