On December 8, 2021, the Department of Insurance issued Company Bulletin 2021-13, providing supplemental guidance on statute 215 IL ILCS 134/30(d) and its applicability to high deductible health plans (HDHPs).

Under federal law, counting the amount of any discount, voucher, coupon or the like for prescription drugs toward a participant's deductible generally makes that participant ineligible to contribute to an HSA unless such payments are for preventive care as recognized by the IRS. In contrast, Illinois law - 215 IL ILCS 134/30(d) - requires health plans to count discounts, vouchers, coupons or the like towards all cost-sharing requirements.

The department recognized that this conflict prevents any state-regulated coverage from being a qualified HDHP (and therefore prevents any participant with such coverage from being HSA-eligible), so it stated that it would not enforce 215 IL ILCS 134/30(d) when it would require HDHPs to apply any discount, voucher, coupon or the like for prescription drugs towards a participant's deductible or other cost-sharing prior to the deductible being satisfied. However, once the statutory minimum deductible is met, the provisions of 215 IL ILCS 134/30(d) will be enforced (even if the plan deductible is higher than the statutory deductible and has not been met). For reference, the IRS statutory minimum deductible for calendar year 2022 is $1,400 and $2,800 for self-only and family coverage, respectively.

While this guidance is directed at insurers, employers should be aware of these developments.

Bulletin 2021-13 »
Bulletin 2021-11 »