103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3920 Introduced 2/17/2023, by Rep. Debbie Meyers-Martin SYNOPSIS AS INTRODUCED: 215 ILCS 5/356z.61 new 215 ILCS 125/5-3 from Ch. 111 1/2, par. 1411.2 215 ILCS 130/4003 from Ch. 73, par. 1504-3 215 ILCS 165/10 from Ch. 32, par. 604 305 ILCS 5/5-16.8 Amends the Accident and Health Article of the Illinois Insurance Code. Provides that a group or individual policy of accident and health insurance or a managed care plan that is amended, delivered, issued, or renewed on or after the effective date of the amendatory Act shall provide coverage for cranial prostheses when prescribed as part of a course of rehabilitative treatment by a physician licensed to practice medicine in all of its branches. Makes conforming changes in the Health Maintenance Organization Act, the Limited Health Service Organization Act, the Voluntary Health Services Plans Act, and the Medical Assistance Article of the Illinois Public Aid Code. LRB103 26433 BMS 52796 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3920 Introduced 2/17/2023, by Rep. Debbie Meyers-Martin SYNOPSIS AS INTRODUCED: 215 ILCS 5/356z.61 new 215 ILCS 125/5-3 from Ch. 111 1/2, par. 1411.2 215 ILCS 130/4003 from Ch. 73, par. 1504-3 215 ILCS 165/10 from Ch. 32, par. 604 305 ILCS 5/5-16.8 215 ILCS 5/356z.61 new 215 ILCS 125/5-3 from Ch. 111 1/2, par. 1411.2 215 ILCS 130/4003 from Ch. 73, par. 1504-3 215 ILCS 165/10 from Ch. 32, par. 604 305 ILCS 5/5-16.8 Amends the Accident and Health Article of the Illinois Insurance Code. Provides that a group or individual policy of accident and health insurance or a managed care plan that is amended, delivered, issued, or renewed on or after the effective date of the amendatory Act shall provide coverage for cranial prostheses when prescribed as part of a course of rehabilitative treatment by a physician licensed to practice medicine in all of its branches. Makes conforming changes in the Health Maintenance Organization Act, the Limited Health Service Organization Act, the Voluntary Health Services Plans Act, and the Medical Assistance Article of the Illinois Public Aid Code. LRB103 26433 BMS 52796 b LRB103 26433 BMS 52796 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3920 Introduced 2/17/2023, by Rep. Debbie Meyers-Martin SYNOPSIS AS INTRODUCED: 215 ILCS 5/356z.61 new 215 ILCS 125/5-3 from Ch. 111 1/2, par. 1411.2 215 ILCS 130/4003 from Ch. 73, par. 1504-3 215 ILCS 165/10 from Ch. 32, par. 604 305 ILCS 5/5-16.8 215 ILCS 5/356z.61 new 215 ILCS 125/5-3 from Ch. 111 1/2, par. 1411.2 215 ILCS 130/4003 from Ch. 73, par. 1504-3 215 ILCS 165/10 from Ch. 32, par. 604 305 ILCS 5/5-16.8 215 ILCS 5/356z.61 new 215 ILCS 125/5-3 from Ch. 111 1/2, par. 1411.2 215 ILCS 130/4003 from Ch. 73, par. 1504-3 215 ILCS 165/10 from Ch. 32, par. 604 305 ILCS 5/5-16.8 Amends the Accident and Health Article of the Illinois Insurance Code. Provides that a group or individual policy of accident and health insurance or a managed care plan that is amended, delivered, issued, or renewed on or after the effective date of the amendatory Act shall provide coverage for cranial prostheses when prescribed as part of a course of rehabilitative treatment by a physician licensed to practice medicine in all of its branches. Makes conforming changes in the Health Maintenance Organization Act, the Limited Health Service Organization Act, the Voluntary Health Services Plans Act, and the Medical Assistance Article of the Illinois Public Aid Code. LRB103 26433 BMS 52796 b LRB103 26433 BMS 52796 b LRB103 26433 BMS 52796 b A BILL FOR HB3920LRB103 26433 BMS 52796 b HB3920 LRB103 26433 BMS 52796 b HB3920 LRB103 26433 BMS 52796 b 1 AN ACT concerning regulation. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Illinois Insurance Code is amended by 5 adding Section 356z.61 as follows: 6 (215 ILCS 5/356z.61 new) 7 Sec. 356z.61. Coverage for cranial prostheses. A group or 8 individual policy of accident and health insurance or a 9 managed care plan that is amended, delivered, issued, or 10 renewed on or after the effective date of this amendatory Act 11 of the 103rd General Assembly shall provide coverage for 12 cranial prostheses when prescribed as part of a course of 13 rehabilitative treatment by a physician licensed to practice 14 medicine in all of its branches. 15 Section 10. The Health Maintenance Organization Act is 16 amended by changing Section 5-3 as follows: 17 (215 ILCS 125/5-3) (from Ch. 111 1/2, par. 1411.2) 18 Sec. 5-3. Insurance Code provisions. 19 (a) Health Maintenance Organizations shall be subject to 20 the provisions of Sections 133, 134, 136, 137, 139, 140, 21 141.1, 141.2, 141.3, 143, 143c, 147, 148, 149, 151, 152, 153, 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3920 Introduced 2/17/2023, by Rep. Debbie Meyers-Martin SYNOPSIS AS INTRODUCED: 215 ILCS 5/356z.61 new 215 ILCS 125/5-3 from Ch. 111 1/2, par. 1411.2 215 ILCS 130/4003 from Ch. 73, par. 1504-3 215 ILCS 165/10 from Ch. 32, par. 604 305 ILCS 5/5-16.8 215 ILCS 5/356z.61 new 215 ILCS 125/5-3 from Ch. 111 1/2, par. 1411.2 215 ILCS 130/4003 from Ch. 73, par. 1504-3 215 ILCS 165/10 from Ch. 32, par. 604 305 ILCS 5/5-16.8 215 ILCS 5/356z.61 new 215 ILCS 125/5-3 from Ch. 111 1/2, par. 1411.2 215 ILCS 130/4003 from Ch. 73, par. 1504-3 215 ILCS 165/10 from Ch. 32, par. 604 305 ILCS 5/5-16.8 Amends the Accident and Health Article of the Illinois Insurance Code. Provides that a group or individual policy of accident and health insurance or a managed care plan that is amended, delivered, issued, or renewed on or after the effective date of the amendatory Act shall provide coverage for cranial prostheses when prescribed as part of a course of rehabilitative treatment by a physician licensed to practice medicine in all of its branches. Makes conforming changes in the Health Maintenance Organization Act, the Limited Health Service Organization Act, the Voluntary Health Services Plans Act, and the Medical Assistance Article of the Illinois Public Aid Code. LRB103 26433 BMS 52796 b LRB103 26433 BMS 52796 b LRB103 26433 BMS 52796 b A BILL FOR 215 ILCS 5/356z.61 new 215 ILCS 125/5-3 from Ch. 111 1/2, par. 1411.2 215 ILCS 130/4003 from Ch. 73, par. 1504-3 215 ILCS 165/10 from Ch. 32, par. 604 305 ILCS 5/5-16.8 LRB103 26433 BMS 52796 b HB3920 LRB103 26433 BMS 52796 b HB3920- 2 -LRB103 26433 BMS 52796 b HB3920 - 2 - LRB103 26433 BMS 52796 b HB3920 - 2 - LRB103 26433 BMS 52796 b 1 154, 154.5, 154.6, 154.7, 154.8, 155.04, 155.22a, 355.2, 2 355.3, 355b, 355c, 356g.5-1, 356m, 356q, 356v, 356w, 356x, 3 356y, 356z.2, 356z.3a, 356z.4, 356z.4a, 356z.5, 356z.6, 4 356z.8, 356z.9, 356z.10, 356z.11, 356z.12, 356z.13, 356z.14, 5 356z.15, 356z.17, 356z.18, 356z.19, 356z.21, 356z.22, 356z.25, 6 356z.26, 356z.29, 356z.30, 356z.30a, 356z.32, 356z.33, 7 356z.35, 356z.36, 356z.40, 356z.41, 356z.46, 356z.47, 356z.48, 8 356z.50, 356z.51, 356z.53 256z.53, 356z.54, 356z.56, 356z.57, 9 356z.59, 356z.60, 356z.61, 364, 364.01, 364.3, 367.2, 367.2-5, 10 367i, 368a, 368b, 368c, 368d, 368e, 370c, 370c.1, 401, 401.1, 11 402, 403, 403A, 408, 408.2, 409, 412, 444, and 444.1, 12 paragraph (c) of subsection (2) of Section 367, and Articles 13 IIA, VIII 1/2, XII, XII 1/2, XIII, XIII 1/2, XXV, XXVI, and 14 XXXIIB of the Illinois Insurance Code. 15 (b) For purposes of the Illinois Insurance Code, except 16 for Sections 444 and 444.1 and Articles XIII and XIII 1/2, 17 Health Maintenance Organizations in the following categories 18 are deemed to be "domestic companies": 19 (1) a corporation authorized under the Dental Service 20 Plan Act or the Voluntary Health Services Plans Act; 21 (2) a corporation organized under the laws of this 22 State; or 23 (3) a corporation organized under the laws of another 24 state, 30% or more of the enrollees of which are residents 25 of this State, except a corporation subject to 26 substantially the same requirements in its state of HB3920 - 2 - LRB103 26433 BMS 52796 b HB3920- 3 -LRB103 26433 BMS 52796 b HB3920 - 3 - LRB103 26433 BMS 52796 b HB3920 - 3 - LRB103 26433 BMS 52796 b 1 organization as is a "domestic company" under Article VIII 2 1/2 of the Illinois Insurance Code. 3 (c) In considering the merger, consolidation, or other 4 acquisition of control of a Health Maintenance Organization 5 pursuant to Article VIII 1/2 of the Illinois Insurance Code, 6 (1) the Director shall give primary consideration to 7 the continuation of benefits to enrollees and the 8 financial conditions of the acquired Health Maintenance 9 Organization after the merger, consolidation, or other 10 acquisition of control takes effect; 11 (2)(i) the criteria specified in subsection (1)(b) of 12 Section 131.8 of the Illinois Insurance Code shall not 13 apply and (ii) the Director, in making his determination 14 with respect to the merger, consolidation, or other 15 acquisition of control, need not take into account the 16 effect on competition of the merger, consolidation, or 17 other acquisition of control; 18 (3) the Director shall have the power to require the 19 following information: 20 (A) certification by an independent actuary of the 21 adequacy of the reserves of the Health Maintenance 22 Organization sought to be acquired; 23 (B) pro forma financial statements reflecting the 24 combined balance sheets of the acquiring company and 25 the Health Maintenance Organization sought to be 26 acquired as of the end of the preceding year and as of HB3920 - 3 - LRB103 26433 BMS 52796 b HB3920- 4 -LRB103 26433 BMS 52796 b HB3920 - 4 - LRB103 26433 BMS 52796 b HB3920 - 4 - LRB103 26433 BMS 52796 b 1 a date 90 days prior to the acquisition, as well as pro 2 forma financial statements reflecting projected 3 combined operation for a period of 2 years; 4 (C) a pro forma business plan detailing an 5 acquiring party's plans with respect to the operation 6 of the Health Maintenance Organization sought to be 7 acquired for a period of not less than 3 years; and 8 (D) such other information as the Director shall 9 require. 10 (d) The provisions of Article VIII 1/2 of the Illinois 11 Insurance Code and this Section 5-3 shall apply to the sale by 12 any health maintenance organization of greater than 10% of its 13 enrollee population (including without limitation the health 14 maintenance organization's right, title, and interest in and 15 to its health care certificates). 16 (e) In considering any management contract or service 17 agreement subject to Section 141.1 of the Illinois Insurance 18 Code, the Director (i) shall, in addition to the criteria 19 specified in Section 141.2 of the Illinois Insurance Code, 20 take into account the effect of the management contract or 21 service agreement on the continuation of benefits to enrollees 22 and the financial condition of the health maintenance 23 organization to be managed or serviced, and (ii) need not take 24 into account the effect of the management contract or service 25 agreement on competition. 26 (f) Except for small employer groups as defined in the HB3920 - 4 - LRB103 26433 BMS 52796 b HB3920- 5 -LRB103 26433 BMS 52796 b HB3920 - 5 - LRB103 26433 BMS 52796 b HB3920 - 5 - LRB103 26433 BMS 52796 b 1 Small Employer Rating, Renewability and Portability Health 2 Insurance Act and except for medicare supplement policies as 3 defined in Section 363 of the Illinois Insurance Code, a 4 Health Maintenance Organization may by contract agree with a 5 group or other enrollment unit to effect refunds or charge 6 additional premiums under the following terms and conditions: 7 (i) the amount of, and other terms and conditions with 8 respect to, the refund or additional premium are set forth 9 in the group or enrollment unit contract agreed in advance 10 of the period for which a refund is to be paid or 11 additional premium is to be charged (which period shall 12 not be less than one year); and 13 (ii) the amount of the refund or additional premium 14 shall not exceed 20% of the Health Maintenance 15 Organization's profitable or unprofitable experience with 16 respect to the group or other enrollment unit for the 17 period (and, for purposes of a refund or additional 18 premium, the profitable or unprofitable experience shall 19 be calculated taking into account a pro rata share of the 20 Health Maintenance Organization's administrative and 21 marketing expenses, but shall not include any refund to be 22 made or additional premium to be paid pursuant to this 23 subsection (f)). The Health Maintenance Organization and 24 the group or enrollment unit may agree that the profitable 25 or unprofitable experience may be calculated taking into 26 account the refund period and the immediately preceding 2 HB3920 - 5 - LRB103 26433 BMS 52796 b HB3920- 6 -LRB103 26433 BMS 52796 b HB3920 - 6 - LRB103 26433 BMS 52796 b HB3920 - 6 - LRB103 26433 BMS 52796 b 1 plan years. 2 The Health Maintenance Organization shall include a 3 statement in the evidence of coverage issued to each enrollee 4 describing the possibility of a refund or additional premium, 5 and upon request of any group or enrollment unit, provide to 6 the group or enrollment unit a description of the method used 7 to calculate (1) the Health Maintenance Organization's 8 profitable experience with respect to the group or enrollment 9 unit and the resulting refund to the group or enrollment unit 10 or (2) the Health Maintenance Organization's unprofitable 11 experience with respect to the group or enrollment unit and 12 the resulting additional premium to be paid by the group or 13 enrollment unit. 14 In no event shall the Illinois Health Maintenance 15 Organization Guaranty Association be liable to pay any 16 contractual obligation of an insolvent organization to pay any 17 refund authorized under this Section. 18 (g) Rulemaking authority to implement Public Act 95-1045, 19 if any, is conditioned on the rules being adopted in 20 accordance with all provisions of the Illinois Administrative 21 Procedure Act and all rules and procedures of the Joint 22 Committee on Administrative Rules; any purported rule not so 23 adopted, for whatever reason, is unauthorized. 24 (Source: P.A. 101-13, eff. 6-12-19; 101-81, eff. 7-12-19; 25 101-281, eff. 1-1-20; 101-371, eff. 1-1-20; 101-393, eff. 26 1-1-20; 101-452, eff. 1-1-20; 101-461, eff. 1-1-20; 101-625, HB3920 - 6 - LRB103 26433 BMS 52796 b HB3920- 7 -LRB103 26433 BMS 52796 b HB3920 - 7 - LRB103 26433 BMS 52796 b HB3920 - 7 - LRB103 26433 BMS 52796 b 1 eff. 1-1-21; 102-30, eff. 1-1-22; 102-34, eff. 6-25-21; 2 102-203, eff. 1-1-22; 102-306, eff. 1-1-22; 102-443, eff. 3 1-1-22; 102-589, eff. 1-1-22; 102-642, eff. 1-1-22; 102-665, 4 eff. 10-8-21; 102-731, eff. 1-1-23; 102-775, eff. 5-13-22; 5 102-804, eff. 1-1-23; 102-813, eff. 5-13-22; 102-816, eff. 6 1-1-23; 102-860, eff. 1-1-23; 102-901, eff. 7-1-22; 102-1093, 7 eff. 1-1-23; 102-1117, eff. 1-13-23; revised 1-22-23.) 8 Section 15. The Limited Health Service Organization Act is 9 amended by changing Section 4003 as follows: 10 (215 ILCS 130/4003) (from Ch. 73, par. 1504-3) 11 Sec. 4003. Illinois Insurance Code provisions. Limited 12 health service organizations shall be subject to the 13 provisions of Sections 133, 134, 136, 137, 139, 140, 141.1, 14 141.2, 141.3, 143, 143c, 147, 148, 149, 151, 152, 153, 154, 15 154.5, 154.6, 154.7, 154.8, 155.04, 155.37, 355.2, 355.3, 16 355b, 356q, 356v, 356z.4, 356z.4a, 356z.10, 356z.21, 356z.22, 17 356z.25, 356z.26, 356z.29, 356z.30a, 356z.32, 356z.33, 18 356z.41, 356z.46, 356z.47, 356z.51, 356z.53, 356z.54, 356z.57, 19 356z.59, 356z.61, 364.3, 368a, 401, 401.1, 402, 403, 403A, 20 408, 408.2, 409, 412, 444, and 444.1 and Articles IIA, VIII 21 1/2, XII, XII 1/2, XIII, XIII 1/2, XXV, and XXVI of the 22 Illinois Insurance Code. Nothing in this Section shall require 23 a limited health care plan to cover any service that is not a 24 limited health service. For purposes of the Illinois Insurance HB3920 - 7 - LRB103 26433 BMS 52796 b HB3920- 8 -LRB103 26433 BMS 52796 b HB3920 - 8 - LRB103 26433 BMS 52796 b HB3920 - 8 - LRB103 26433 BMS 52796 b 1 Code, except for Sections 444 and 444.1 and Articles XIII and 2 XIII 1/2, limited health service organizations in the 3 following categories are deemed to be domestic companies: 4 (1) a corporation under the laws of this State; or 5 (2) a corporation organized under the laws of another 6 state, 30% or more of the enrollees of which are residents 7 of this State, except a corporation subject to 8 substantially the same requirements in its state of 9 organization as is a domestic company under Article VIII 10 1/2 of the Illinois Insurance Code. 11 (Source: P.A. 101-81, eff. 7-12-19; 101-281, eff. 1-1-20; 12 101-393, eff. 1-1-20; 101-625, eff. 1-1-21; 102-30, eff. 13 1-1-22; 102-203, eff. 1-1-22; 102-306, eff. 1-1-22; 102-642, 14 eff. 1-1-22; 102-731, eff. 1-1-23; 102-775, eff. 5-13-22; 15 102-813, eff. 5-13-22; 102-816, eff. 1-1-23; 102-860, eff. 16 1-1-23; 102-1093, eff. 1-1-23; 102-1117, eff. 1-13-23.) 17 Section 20. The Voluntary Health Services Plans Act is 18 amended by changing Section 10 as follows: 19 (215 ILCS 165/10) (from Ch. 32, par. 604) 20 Sec. 10. Application of Insurance Code provisions. Health 21 services plan corporations and all persons interested therein 22 or dealing therewith shall be subject to the provisions of 23 Articles IIA and XII 1/2 and Sections 3.1, 133, 136, 139, 140, 24 143, 143c, 149, 155.22a, 155.37, 354, 355.2, 355.3, 355b, HB3920 - 8 - LRB103 26433 BMS 52796 b HB3920- 9 -LRB103 26433 BMS 52796 b HB3920 - 9 - LRB103 26433 BMS 52796 b HB3920 - 9 - LRB103 26433 BMS 52796 b 1 356g, 356g.5, 356g.5-1, 356q, 356r, 356t, 356u, 356v, 356w, 2 356x, 356y, 356z.1, 356z.2, 356z.3a, 356z.4, 356z.4a, 356z.5, 3 356z.6, 356z.8, 356z.9, 356z.10, 356z.11, 356z.12, 356z.13, 4 356z.14, 356z.15, 356z.18, 356z.19, 356z.21, 356z.22, 356z.25, 5 356z.26, 356z.29, 356z.30, 356z.30a, 356z.32, 356z.33, 6 356z.40, 356z.41, 356z.46, 356z.47, 356z.51, 356z.53, 356z.54, 7 356z.56, 356z.57, 356z.59, 356z.60, 356z.61, 364.01, 364.3, 8 367.2, 368a, 401, 401.1, 402, 403, 403A, 408, 408.2, and 412, 9 and paragraphs (7) and (15) of Section 367 of the Illinois 10 Insurance Code. 11 Rulemaking authority to implement Public Act 95-1045, if 12 any, is conditioned on the rules being adopted in accordance 13 with all provisions of the Illinois Administrative Procedure 14 Act and all rules and procedures of the Joint Committee on 15 Administrative Rules; any purported rule not so adopted, for 16 whatever reason, is unauthorized. 17 (Source: P.A. 101-13, eff. 6-12-19; 101-81, eff. 7-12-19; 18 101-281, eff. 1-1-20; 101-393, eff. 1-1-20; 101-625, eff. 19 1-1-21; 102-30, eff. 1-1-22; 102-203, eff. 1-1-22; 102-306, 20 eff. 1-1-22; 102-642, eff. 1-1-22; 102-665, eff. 10-8-21; 21 102-731, eff. 1-1-23; 102-775, eff. 5-13-22; 102-804, eff. 22 1-1-23; 102-813, eff. 5-13-22; 102-816, eff. 1-1-23; 102-860, 23 eff. 1-1-23; 102-901, eff. 7-1-22; 102-1093, eff. 1-1-23; 24 102-1117, eff. 1-13-23.) 25 Section 25. The Illinois Public Aid Code is amended by HB3920 - 9 - LRB103 26433 BMS 52796 b HB3920- 10 -LRB103 26433 BMS 52796 b HB3920 - 10 - LRB103 26433 BMS 52796 b HB3920 - 10 - LRB103 26433 BMS 52796 b 1 changing Section 5-16.8 as follows: 2 (305 ILCS 5/5-16.8) 3 Sec. 5-16.8. Required health benefits. The medical 4 assistance program shall (i) provide the post-mastectomy care 5 benefits required to be covered by a policy of accident and 6 health insurance under Section 356t and the coverage required 7 under Sections 356g.5, 356q, 356u, 356w, 356x, 356z.6, 8 356z.26, 356z.29, 356z.32, 356z.33, 356z.34, 356z.35, 356z.46, 9 356z.47, 356z.51, 356z.53, 356z.56, 356z.59, and 356z.60, and 10 356z.61 of the Illinois Insurance Code, (ii) be subject to the 11 provisions of Sections 356z.19, 356z.44, 356z.49, 364.01, 12 370c, and 370c.1 of the Illinois Insurance Code, and (iii) be 13 subject to the provisions of subsection (d-5) of Section 10 of 14 the Network Adequacy and Transparency Act. 15 The Department, by rule, shall adopt a model similar to 16 the requirements of Section 356z.39 of the Illinois Insurance 17 Code. 18 On and after July 1, 2012, the Department shall reduce any 19 rate of reimbursement for services or other payments or alter 20 any methodologies authorized by this Code to reduce any rate 21 of reimbursement for services or other payments in accordance 22 with Section 5-5e. 23 To ensure full access to the benefits set forth in this 24 Section, on and after January 1, 2016, the Department shall 25 ensure that provider and hospital reimbursement for HB3920 - 10 - LRB103 26433 BMS 52796 b HB3920- 11 -LRB103 26433 BMS 52796 b HB3920 - 11 - LRB103 26433 BMS 52796 b HB3920 - 11 - LRB103 26433 BMS 52796 b 1 post-mastectomy care benefits required under this Section are 2 no lower than the Medicare reimbursement rate. 3 (Source: P.A. 101-81, eff. 7-12-19; 101-218, eff. 1-1-20; 4 101-281, eff. 1-1-20; 101-371, eff. 1-1-20; 101-574, eff. 5 1-1-20; 101-649, eff. 7-7-20; 102-30, eff. 1-1-22; 102-144, 6 eff. 1-1-22; 102-203, eff. 1-1-22; 102-306, eff. 1-1-22; 7 102-530, eff. 1-1-22; 102-642, eff. 1-1-22; 102-804, eff. 8 1-1-23; 102-813, eff. 5-13-22; 102-816, eff. 1-1-23; 102-1093, 9 eff. 1-1-23; 102-1117, eff. 1-13-23.) HB3920 - 11 - LRB103 26433 BMS 52796 b