{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-5601.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-5601.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-5601.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-5601.html"}],"law_id":84961,"edition_id":1,"section_id":84961,"structure_id":15020,"section_number":"38.2-5601","catch_line":"The Virginia Health Savings Account Plan","history":"1995, c. 650; 2002, c. 372; 2005, cc. 503, 572.","full_text":"A\n\nThe Department of Taxation and the Commission shall amend the Virginia Medical Savings Account Plan prepared pursuant to former § 38.2-5600 in order to address the provisions of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003, P.L. No. 108-173, permitting eligible individuals to establish health savings accounts pursuant to § 223 of the Internal Revenue Code of 1986, as amended, which amended Plan shall be designated as the Virginia Health Savings Account Plan. The Department of Taxation and the Commission shall present the Virginia Health Savings Account Plan to the Chairs of the House Committees on Appropriations; Finance; Health and Human Services; and Labor and Commerce and the Senate Committees on Finance and Appropriations; Education and Health; and Commerce and Labor by January 1, 2006. Thereafter the Department of Taxation and the Commission shall update the Plan annually and provide copies of such updates to the chairs of such committees.B\n\nThe Virginia Health Savings Account Plan shall, consistent with federal law authorizing the establishment and use of health savings accounts, identify measures by private and public entities that will increase the utilization and efficacy of health savings accounts by the Commonwealth’s residents, employers, and providers of health care coverage. The Plan shall include recommendations for legislation that would increase the attractiveness of health savings accounts, or eliminate barriers to their use, by providing:1\n\nDefinitions of eligible participants;2\n\nCriteria for accounts, including, but not limited to, such matters as trustees, maximum amounts, and the rollover of balances in medical savings accounts to health savings accounts;3\n\nMeasures that would encourage public and private employers to offer, as part of a cafeteria menu of insurance plans, high-deductible health plans that would qualify for a health savings account pursuant to § 223 of the Internal Revenue Code of 1986, as amended; and4\n\nAny other provisions appropriate to maximize the use of health savings accounts within the Commonwealth.C\n\nThe Plan shall include a report by the Commission on the availability of high deductible health plans, as defined in § 223 (c) (2) of the Internal Revenue Code of 1986, as amended, in the Commonwealth.D\n\nThe Plan shall include recommendations by the Department of Taxation for a system of income tax deductions or refundable credits, consistent with federal law and regulation, for (i) employers who voluntarily contribute to their employees’ health savings accounts, (ii) health care providers who participate in providing care to health savings account holders at a reduced cost or without compensation, and (iii) eligible individuals, as defined in § 223 (a) of the Internal Revenue Code of 1986, as amended, who qualify under applicable federal or state definitions as members of the working poor.","order_by":null,"text":{"0":{"id":304429,"text":"The Department of Taxation and the Commission shall amend the Virginia Medical Savings Account Plan prepared pursuant to former § 38.2-5600 in order to address the provisions of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003, P.L. No. 108-173, permitting eligible individuals to establish health savings accounts pursuant to § 223 of the Internal Revenue Code of 1986, as amended, which amended Plan shall be designated as the Virginia Health Savings Account Plan. The Department of Taxation and the Commission shall present the Virginia Health Savings Account Plan to the Chairs of the House Committees on Appropriations; Finance; Health and Human Services; and Labor and Commerce and the Senate Committees on Finance and Appropriations; Education and Health; and Commerce and Labor by January 1, 2006. Thereafter the Department of Taxation and the Commission shall update the Plan annually and provide copies of such updates to the chairs of such committees.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":304430,"text":"The Virginia Health Savings Account Plan shall, consistent with federal law authorizing the establishment and use of health savings accounts, identify measures by private and public entities that will increase the utilization and efficacy of health savings accounts by the Commonwealth’s residents, employers, and providers of health care coverage. The Plan shall include recommendations for legislation that would increase the attractiveness of health savings accounts, or eliminate barriers to their use, by providing:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"B1"},"2":{"id":304431,"text":"Definitions of eligible participants;","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"3":{"id":304432,"text":"Criteria for accounts, including, but not limited to, such matters as trustees, maximum amounts, and the rollover of balances in medical savings accounts to health savings accounts;","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1","next_prefix":"B3"},"4":{"id":304433,"text":"Measures that would encourage public and private employers to offer, as part of a cafeteria menu of insurance plans, high-deductible health plans that would qualify for a health savings account pursuant to § 223 of the Internal Revenue Code of 1986, as amended; and","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2","next_prefix":"B4"},"5":{"id":304434,"text":"Any other provisions appropriate to maximize the use of health savings accounts within the Commonwealth.","type":"section","prefixes":["B","4"],"prefix":"4","entire_prefix":"B4","prefix_anchor":"B4","level":2,"prior_prefix":"B3","next_prefix":"C"},"6":{"id":304435,"text":"The Plan shall include a report by the Commission on the availability of high deductible health plans, as defined in § 223 (c) (2) of the Internal Revenue Code of 1986, as amended, in the Commonwealth.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B4","next_prefix":"D"},"7":{"id":304436,"text":"The Plan shall include recommendations by the Department of Taxation for a system of income tax deductions or refundable credits, consistent with federal law and regulation, for (i) employers who voluntarily contribute to their employees’ health savings accounts, (ii) health care providers who participate in providing care to health savings account holders at a reduced cost or without compensation, and (iii) eligible individuals, as defined in § 223 (a) of the Internal Revenue Code of 1986, as amended, who qualify under applicable federal or state definitions as members of the working poor.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C"}},"ancestry":[{"id":15020,"edition_id":1,"name":"The Virginia Health Savings Account Plan","identifier":"56","label":"chapter","depth":2,"order_by":1,"parent_id":12698,"metadata":{},"date_created":"2026-06-26 03:51:33","date_modified":"2026-06-26 03:51:33","permalink":{"id":217913,"object_type":"structure","relational_id":15020,"identifier":"56","token":"38.2\/56","url":"\/38.2\/56\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12698,"edition_id":1,"name":"Insurance","identifier":"38.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":210661,"object_type":"structure","relational_id":12698,"identifier":"38.2","token":"38.2","url":"\/38.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":62959,"structure_id":15020,"section_number":"38.2-5600","catch_line":"Repealed","url":"\/38.2-5600\/","token":"38.2\/56\/38.2-5600","metadata":false},{"id":84961,"structure_id":15020,"section_number":"38.2-5601","catch_line":"The Virginia Health Savings Account Plan","url":"\/38.2-5601\/","token":"38.2\/56\/38.2-5601","metadata":false},{"id":66655,"structure_id":15020,"section_number":"38.2-5602","catch_line":"Operation of medical savings accounts","url":"\/38.2-5602\/","token":"38.2\/56\/38.2-5602","metadata":false},{"id":57276,"structure_id":15020,"section_number":"38.2-5602.1","catch_line":"Operation of health savings accounts; high deductible health plans","url":"\/38.2-5602.1\/","token":"38.2\/56\/38.2-5602.1","metadata":false},{"id":86990,"structure_id":15020,"section_number":"38.2-5603","catch_line":"Repealed","url":"\/38.2-5603\/","token":"38.2\/56\/38.2-5603","metadata":false},{"id":76518,"structure_id":15020,"section_number":"38.2-5604","catch_line":"Health savings accounts exempt from claims","url":"\/38.2-5604\/","token":"38.2\/56\/38.2-5604","metadata":false}],"previous_section":{"id":62959,"structure_id":15020,"section_number":"38.2-5600","catch_line":"Repealed","url":"\/38.2-5600\/","token":"38.2\/56\/38.2-5600","metadata":false},"next_section":{"id":66655,"structure_id":15020,"section_number":"38.2-5602","catch_line":"Operation of medical savings accounts","url":"\/38.2-5602\/","token":"38.2\/56\/38.2-5602","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-5601\/","history_text":"

This law was first created in 1995. The record of its establishment is cataloged in chapter 650<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 2 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 2002, chapter 372<\/a>; in 2005, chapters 503<\/a> and 572<\/a>.<\/p>","references":false,"refers_to":[{"id":62959,"section_number":"38.2-5600","catch_line":"Repealed","order_by":null,"url":"\/38.2-5600\/"}],"permalink":{"id":217919,"object_type":"law","relational_id":84961,"identifier":"38.2-5601","token":"38.2\/56\/38.2-5601","url":"\/38.2-5601\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-5601\/","token":"38.2\/56\/38.2-5601","dublin_core":{"Title":"The Virginia Health Savings Account Plan","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-5601","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> The Department of Taxation and the Commission<\/span> shall amend<\/span> the Virginia Medical Savings Account Plan prepared pursuant to former § 38.2-5600<\/a> in order<\/span> to address the provisions of the Medicare<\/span> Prescription Drug, Improvement, and Modernization Act of 2003, P.L. No. 108-173, permitting eligible individuals to establish health savings accounts pursuant to § 223 of the Internal Revenue Code of 1986, as amended, which amended Plan shall be designated as the Virginia Health Savings Account Plan. The Department of Taxation and the Commission<\/span> shall present the Virginia Health Savings Account Plan to the Chairs of the House Committees on Appropriations; Finance; Health and Human Services; and Labor and Commerce and the Senate Committees on Finance and Appropriations; Education and Health; and Commerce and Labor by January 1, 2006. Thereafter the Department of Taxation and the Commission<\/span> shall update the Plan annually and provide copies of such updates to the chairs of such committees. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> The Virginia Health Savings Account Plan shall, consistent with federal law<\/span> authorizing the establishment and use of health savings accounts, identify measures by private and public entities that will increase the utilization and efficacy of health savings accounts by the Commonwealth’s residents, employers, and providers of health care coverage. The Plan shall include recommendations for legislation that would increase the attractiveness of health savings accounts, or eliminate barriers to their use, by providing: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Definitions of eligible participants; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Criteria for accounts, including, but not limited to, such matters as trustees, maximum amounts, and the rollover of balances in medical savings accounts to health savings accounts; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Measures that would encourage public and private employers to offer, as part of a cafeteria menu of insurance<\/span> plans, high-deductible health plans that would qualify for a health savings account pursuant to § 223 of the Internal Revenue Code of 1986, as amended; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Any other provisions appropriate to maximize the use of health savings accounts within the Commonwealth. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> The Plan shall include a report by the Commission<\/span> on the availability of high deductible health plans, as defined in § 223 (c) (2) of the Internal Revenue Code of 1986, as amended, in the Commonwealth. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> The Plan shall include recommendations by the Department of Taxation for a system of income tax deductions or refundable credits, consistent with federal law<\/span> and regulation, for (i) employers who voluntarily contribute to their employees’ health savings accounts, (ii) health care providers who participate in providing care to health savings account holders at a reduced cost or without compensation, and (iii) eligible individuals, as defined in § 223 (a) of the Internal Revenue Code of 1986, as amended, who qualify under applicable federal or state<\/span> definitions as members of the working poor. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nTHE VIRGINIA HEALTH SAVINGS ACCOUNT PLAN (\u00a7 38.2-5601)\n\nA. The Department of Taxation and the Commission shall amend the Virginia\nMedical Savings Account Plan prepared pursuant to former § 38.2-5600 in\norder to address the provisions of the Medicare Prescription Drug, Improvement,\nand Modernization Act of 2003, P.L. No. 108-173, permitting eligible individuals\nto establish health savings accounts pursuant to § 223 of the Internal\nRevenue Code of 1986, as amended, which amended Plan shall be designated as the\nVirginia Health Savings Account Plan. The Department of Taxation and the\nCommission shall present the Virginia Health Savings Account Plan to the Chairs\nof the House Committees on Appropriations; Finance; Health and Human Services;\nand Labor and Commerce and the Senate Committees on Finance and Appropriations;\nEducation and Health; and Commerce and Labor by January 1, 2006. Thereafter the\nDepartment of Taxation and the Commission shall update the Plan annually and\nprovide copies of such updates to the chairs of such committees.\n\nB. The Virginia Health Savings Account Plan shall, consistent with federal law\nauthorizing the establishment and use of health savings accounts, identify\nmeasures by private and public entities that will increase the utilization and\nefficacy of health savings accounts by the Commonwealth’s residents,\nemployers, and providers of health care coverage. The Plan shall include\nrecommendations for legislation that would increase the attractiveness of health\nsavings accounts, or eliminate barriers to their use, by providing:\n\n 1. Definitions of eligible participants;\n\n 2. Criteria for accounts, including, but not limited to, such matters as\n trustees, maximum amounts, and the rollover of balances in medical savings\n accounts to health savings accounts;\n\n 3. Measures that would encourage public and private employers to offer, as\n part of a cafeteria menu of insurance plans, high-deductible health plans that\n would qualify for a health savings account pursuant to § 223 of the\n Internal Revenue Code of 1986, as amended; and\n\n 4. Any other provisions appropriate to maximize the use of health savings\n accounts within the Commonwealth.\n\nC. The Plan shall include a report by the Commission on the availability of high\ndeductible health plans, as defined in § 223 (c) (2) of the Internal\nRevenue Code of 1986, as amended, in the Commonwealth.\n\nD. The Plan shall include recommendations by the Department of Taxation for a\nsystem of income tax deductions or refundable credits, consistent with federal\nlaw and regulation, for (i) employers who voluntarily contribute to their\nemployees’ health savings accounts, (ii) health care providers who\nparticipate in providing care to health savings account holders at a reduced\ncost or without compensation, and (iii) eligible individuals, as defined in\n§ 223 (a) of the Internal Revenue Code of 1986, as amended, who qualify\nunder applicable federal or state definitions as members of the working poor.\n\nHISTORY: 1995, c. 650; 2002, c. 372; 2005, cc. 503, 572.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}