High Deductible Medical Savings Accounts

STATE OF CONNECTICUT INSURANCE DEPARTMENT Bulletin HC-52 HIGH DEDUCTIBLE MEDICAL SAVINGS ACCOUNTS March 19, 1997 TO: ALL INSURERS LICENSED FOR ACCIDENT AND HEALTH In accordance With the requirements of Connecticut General Statutes §§ 38a-493(f) and 38a­ 520(f), health insurance policies of the type specified must include coverage for home health care which may not be subject to an annual deductible in excess of $50 for each covered person . This statutory requirement may not be waived. The Insurance Department has been advised the maximum deductible of $50 may prevent policies from qualifying as medical savings accounts (MSA) high deductible health plans under provisions of the federal Internal Revenue Code included in the Health Insurance Portability and Accountability Act of 1996. Carriers that choose to offer policies including home health care coverage as MSA high deductible health plans are reminded of the requirements of Connecticut law regarding the marketing of health insurance products. Carriers should take particular care advertisements for such policies are sufficiently complete and clear to avoid deception or the capacity or tendency to mislead or deceive. Carriers are further reminded of the need to maintain a system of control over advertisements of their policies. To ensure disclosure, all policies issued as MSA high deductible health plans on or after the date of this bulletin must contain the following statement on the face of the policy: This product is intended to be federally tax qualified. Approval by the Insurance Department does not guarantee tax qualification. Please seek the counsel of a tax advisor. Phone: P. O .. Box 816 Hartford, CT 06142-0816 An Equal Opportu11ity Employer