HB0682 Hohulin, Bubs

P R E F I L E D

HB 682 -- Medical Savings Accounts

This bill authorizes any individual to establish a medical savings account with any financial institution in this state. The individual may deposit up to $2,000 and an additional $500 for a spouse and a dependent per year for use only for certain health care costs as provided in the bill. Beginning January 1, 1996, monies deposited in the account and any interest accruing thereon, must be allowed as an individual income tax deduction on the state income tax return.

The bill also specifies penalties for withdrawing for uses other than for health care costs and criminal penalties for fraudulent use of the account.