Illinois House Bill HB2779

Illinois 2023-2024 Regular Session

• Introduced: 2/16/23
• Refer: 2/16/23

Caption

INS-ELECTRONIC COMMUNICATIONS

Impact

The implications of HB2779 are significant for future interactions between insurers and policyholders in Illinois. By enabling electronic delivery and communications, the bill aims to streamline processes and improve efficiency. It recognizes the trend towards digital solutions in managing insurance policies and documentation, which could potentially lead to a reduction in paper waste and costs involved in traditional mailings. However, it is essential for insurers to give covered individuals the opportunity to opt-out of this method of communication, ensuring that the transition to electronic means does not compromise their rights to receive information in a manner they find comfortable.

Summary

House Bill 2779, introduced by Rep. Robert 'Bob' Rita, seeks to amend the Illinois Insurance Code by allowing plan sponsors of health benefit plans to consent to electronic communications on behalf of covered individuals. This means that plan sponsors can agree to receive all related communications and health insurance identification cards electronically. The bill defines 'health benefit plan' and 'plan sponsor' and outlines the conditions under which electronic communications can take place, requiring confirmations about the recipients' capacity to use such communications routinely.

Contention

Points of contention surrounding this bill may involve concerns over privacy and the ability of individuals to effectively access electronic communications. Critics could argue that the reliance on electronic means might inadvertently exclude those who are not tech-savvy or do not have consistent access to electronic devices. Moreover, the requirement for plan sponsors to confirm the electronic capability of a covered individual places an additional responsibility on sponsors that may be viewed as burdensome. Ensuring compliance with the Uniform Electronic Transactions Act is also crucial, as it determines the legality of documents delivered electronically, emphasizing the need for safeguards against potential misuse of this provision.