4.__Household.__"Household" means the taxpayer, the taxpayer's spouse and any member of the taxpayer's household for whom the taxpayer is entitled to claim an exemption as a dependent under Part 8.

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

§6603.__Establishment and procedures

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

1.__Health insurance coverage.__Before establishing an individual medical savings account, the prospective account holder must obtain or have health insurance coverage.

2. Account establishment.__A resident may establish an individual medical savings account for taxable years beginning after December 31, 1999.__The account must be established as a trust under the laws of this State and must be placed with an account administrator.__At the time of establishment, the account administrator shall notify the account holder of potential federal income tax liability that may be associated with the account.

3.__Payment of eligible medical expenses.__The account administrator may use the funds in an account solely to pay eligible medical expenses of the account holder and members of the account holder's household who are not otherwise covered under the account holder's existing medical coverage. Funds held in an account may not be used to cover medical expenses of the account holder or members of the account holder's household who are otherwise covered by, including, but not limited to, medical expenses covered pursuant to an automobile insurance policy, workers' compensation insurance policy or self-insured plan.__ If the account holder submits appropriate documentation to the account administrator, the account administrator may reimburse the account holder from account funds for eligible medical expenses paid directly by the account holder during the taxable year.