MISSISSIPPI LEGISLATURE

2004 Regular Session

To: Insurance

By: Representative Fleming

House Bill 58

AN ACT TO AMEND SECTION 71-9-5, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT FOR PURPOSES OF ESTABLISHING A MEDICAL SAVINGS ACCOUNT PROGRAM, AN EMPLOYER THAT PREVIOUSLY DID NOT PROVIDE HEALTH INSURANCE COVERAGE FOR HIS EMPLOYEES SHALL PAY ON BEHALF OF HIS EMPLOYEES AN AMOUNT DETERMINED BY CALCULATING A CERTAIN PERCENTAGE OF THE PREMIUM REDUCTION REALIZED BY THE PURCHASE OF SIMILAR HEALTH INSURANCE COVERAGE WITH A ONE THOUSAND DOLLAR DEDUCTIBLE; AND FOR RELATED PURPOSES.

     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

     SECTION 1.  Section 71-9-5, Mississippi Code of 1972, is amended as follows:

     71-9-5.  (1)  Each employer shall be permitted to offer voluntarily the following programs:

          (a)  Continued coverage under the employer's existing health coverage policy, certificate or contract; or

          (b)  Participation in a medical savings account program.

     (2)  An employer that previously did not provide an accident and health insurance policy, certificate or contract for his or her employees may establish a medical savings account program.  In this case, the premium reduction referred to in Section 71-9-3(h)(ii) shall be based on the cost of similar coverage with a One Thousand Dollar ($1,000.00) deductible.

     (3)  A resident individual may establish a medical savings account for the benefit of himself or herself and his or her dependents.  Contributions to a medical savings account established by a resident individual for a tax year shall not exceed the allowable deductible for a qualified higher deductible health plan.

     (4)  Except as otherwise provided by law, the principal contributed and the interest earned on a medical savings account shall be excluded from the taxable gross income of the account holder under Section 27-7-15.

     SECTION 2.  This act shall take effect and be in force from and after July 1, 2004.