(2) In the case of family coverage, an annual deductible
increased each year by a cost-of-living adjustment of not
less than $2,000 and the sum of the annual deductible and
other annual out-of-pocket expenses required to be paid under
a plan for covered benefits and that does not exceed $10,000.
(3) A plan shall not fail to be treated as a high
deductible plan by reason of its failure to include a
deductible for preventive care or, in the case of a network
plan, for having out-of-pocket expenses that exceed these
limits on an annual deductible for services provided outside
the network.
"High deductible health plan." A health coverage policy,
certificate or contract that provides for payments for covered
benefits that exceed the higher deductible.
"Qualified medical expense." An expense paid by a taxpayer
for medical care described in section 213(d) of the Internal
Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 213(d)).
Section 3. Applicability and scope.
(a) General rule.--The provisions of this act shall apply to
taxpayers who do not receive preferred Federal tax treatment for
a health savings account under section 223 of the Internal
Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 223).
(b) Annual limitation on deposits.--For taxable years
beginning after December 31, 2015, a resident of this
Commonwealth or an employer shall be allowed to deposit
contributions to a health savings account. The amount of deposit
shall not exceed the amount of the plan's high deductible, nor
$2,600 for an individual policy and $5,150 for a family policy.
(c) Tax exemption.--Except as provided in section 5,
principal contributed to and interest earned on a health savings
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