Sec. 1. 24-A MRSA c. 33-A is enacted to read:

CHAPTER 33-A

INDIVIDUAL MEDICAL SAVINGS ACCOUNT ACT

§2761.__Short title

This chapter may be known and cited as "the Individual Medical Savings Account Act."

§2762.__Definitions

As used in this chapter, unless the context otherwise indicates, the following terms have the following meanings.

1.__Account administrator.__"Account administrator" means any of the following entities permitted as trustees of medical savings accounts pursuant to 26 United States Code, Section 220:

A.__A financial institution authorized to do business in this State as defined in Title 9-B, section 131, subsection 17-A;

B.__An insurance company, health maintenance organization or 3rd-party administrator authorized to do business in this State pursuant to this Title; or

C.__A nonprofit hospital and medical service organization authorized to do business in this State pursuant to Title 24.

2.__Account holder.__"Account holder" means an individual who has established an individual medical savings account.

3.__Eligible medical expenses.__"Eligible medical expenses" means expenses paid by an account holder for medical care that are described in 26 United States Code, Section 213(d).

4.__Individual medical savings account.__"Individual medical savings account" or "account" means a trust created or organized to pay eligible medical expenses.

§2763.__Establishment and procedures

Individual medical savings accounts may be established subject to the following procedures.