Sec. 10. (a) A medical care savings account program established by an employer under this chapter must include all of the following:

(1) The purchase by the employer of a qualified higher deductible health plan for the benefit of one (1) or more employees and dependents of the employees.

(2) The contribution by the employer, and the deposit into the medical care savings account established on behalf of each employee, of all or part of the difference between:

(A) the cost to the employer of purchasing a qualified higher deductible health plan for the benefit of the employee; and

(B) the cost previously incurred by the employer to pay the eligible medical expenses of the employee through a health coverage policy, certificate, or contract.

(3) The designation of an account administrator to administer the medical care savings accounts of employees.

(b) Notwithstanding subsection (a)(2), if an employer, before establishing a medical care savings account program under this chapter, did not pay the eligible medical expenses of the employer's employees through a health coverage policy, certificate, or contract, the employer may contribute all or part of the deductible of the qualified higher deductible health plan purchased by the employer to establish the medical care savings account program.

(c) The contribution under subsection (b) must not exceed the following:

(1) For 1996, five thousand dollars ($5,000).

(2) For calendar years after 1996, the figure set forth in subdivision (1), adjusted under subsection (d).

(d) The adjustments referred to in subsection (c):

(1) may reflect increases in the general level of prices since 1995; and

(2) must be based on:

(A) the Consumer Price Index updated monthly by the Bureau of Labor Statistics of the United States Department of Labor; or

(B) other figures issued by the government of the United States to indicate increases in the general level of prices in the United States.

As added by P.L.92-1995, SEC.2 and P.L.93-1995, SEC.2. Amended by P.L.66-1996, SEC.1.