State Rep. Bob Morgan’s Health Savings Account Bill Becomes Law

HIGHWOOD, Ill. –State Rep. Bob Morgan, D-Highwood, sponsored a bill signed Friday that carves out an exception for health savings account-qualified high deductible health plans (HDHP) from the prohibition on copay accumulator programs under the Managed Care Reform and Patient Rights Act. Morgan’s bill exempts such plans, subject to IRS requirements, from another law that barred providers from applying the amount a beneficiary saved using manufacturer coupons and other discounts toward their deductibles or annual out-of-pocket limits.

“Eliminating red tape that inflates costs will make quality healthcare more affordable for people in Illinois,” said Rep. Morgan. “I’m pleased that this important legislation was passed and signed into law by Gov. Pritzker today.”

An HDHP has a higher deductible than other insurance plans; the monthly premium is usually lower, but consumers pay more health care costs before the carrier starts to pay its share. An HDHP can be combined with an HSA, allowing the consumer to pay for certain medical expenses with money free from federal taxes.

Supporters of Morgan’s bill, House Bill 4433, included the Illinois Life & Health Insurance Council, American Cancer Society, BlueCross BlueShield of Illinois, the Shriver Center on Poverty Law, Independent Insurance Agents of Illinois, the Illinois Chamber of Commerce, and the Pharmaceutical Care Management Association (PCMA).

“Every Illinoisan deserves healthcare choices that make sense for their situation and budget,” said Morgan. “This law helps with that by fixing a bureaucratic pitfall that made it needlessly more difficult for many people to access high-quality healthcare on their own terms.”

Once signed, the new law’s provisions will become effective immediately.

For more information, contact Rep. Bob Morgan’s office at (847) 780-8471 or email info@repbobmorgan.com.