Illinois 2023-2024 Regular Session

Illinois House Bill HB4977 Latest Draft

Bill / Introduced Version Filed 02/07/2024

                            103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4977 Introduced , by Rep. Robyn Gabel SYNOPSIS AS INTRODUCED: 305 ILCS 5/5-30.1 Amends the Medical Assistance Article of the Illinois Public Aid Code. Makes changes to provisions requiring Medicaid managed care organizations (MCO) to make payments for emergency services. Requires an MCO to pay any provider of emergency services, including inpatient stabilization services provided during the inpatient stabilization period, that does not have in effect a contract with the MCO. Defines "inpatient stabilization period" to mean the initial 72 hours of inpatient stabilization services, beginning from the date and time of the order for inpatient admission to the hospital. Provides that when determining payment for all emergency services, including inpatient stabilization services provided during the inpatient stabilization period, the MCO shall: (i) not impose any service authorization requirements, including, but not limited to, prior authorization, prior approval, pre-certification, concurrent review, or certification of admission; (ii) have no obligation to cover emergency services provided on an emergency basis that are not covered services under the MCO's contract with the Department of Healthcare and Family Services; and (iii) not condition coverage for emergency services on the treating provider notifying the MCO of the enrollee's emergency medical screening examination and treatment within 10 days after presentation for emergency services. Provides that the determination of the attending emergency physician, or the practitioner responsible for the enrollee's care at the hospital, of whether an enrollee requires inpatient stabilization services, can be stabilized in the outpatient setting, or is sufficiently stabilized for discharge or transfer to another facility, shall be binding on the MCO. Provides that an MCO shall not reimburse inpatient stabilization services billed on an inpatient institutional claim under the outpatient reimbursement methodology and shall not reimburse providers for emergency services in cases of fraud. Requires the Department to impose sanctions on a MCO for noncompliance, including, but not limited to, financial penalties, suspension of enrollment of new enrollees, and termination of the MCO's contract with the Department. Effective immediately. LRB103 37679 KTG 67806 b   A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4977 Introduced , by Rep. Robyn Gabel SYNOPSIS AS INTRODUCED:  305 ILCS 5/5-30.1 305 ILCS 5/5-30.1  Amends the Medical Assistance Article of the Illinois Public Aid Code. Makes changes to provisions requiring Medicaid managed care organizations (MCO) to make payments for emergency services. Requires an MCO to pay any provider of emergency services, including inpatient stabilization services provided during the inpatient stabilization period, that does not have in effect a contract with the MCO. Defines "inpatient stabilization period" to mean the initial 72 hours of inpatient stabilization services, beginning from the date and time of the order for inpatient admission to the hospital. Provides that when determining payment for all emergency services, including inpatient stabilization services provided during the inpatient stabilization period, the MCO shall: (i) not impose any service authorization requirements, including, but not limited to, prior authorization, prior approval, pre-certification, concurrent review, or certification of admission; (ii) have no obligation to cover emergency services provided on an emergency basis that are not covered services under the MCO's contract with the Department of Healthcare and Family Services; and (iii) not condition coverage for emergency services on the treating provider notifying the MCO of the enrollee's emergency medical screening examination and treatment within 10 days after presentation for emergency services. Provides that the determination of the attending emergency physician, or the practitioner responsible for the enrollee's care at the hospital, of whether an enrollee requires inpatient stabilization services, can be stabilized in the outpatient setting, or is sufficiently stabilized for discharge or transfer to another facility, shall be binding on the MCO. Provides that an MCO shall not reimburse inpatient stabilization services billed on an inpatient institutional claim under the outpatient reimbursement methodology and shall not reimburse providers for emergency services in cases of fraud. Requires the Department to impose sanctions on a MCO for noncompliance, including, but not limited to, financial penalties, suspension of enrollment of new enrollees, and termination of the MCO's contract with the Department. Effective immediately.  LRB103 37679 KTG 67806 b     LRB103 37679 KTG 67806 b   A BILL FOR
103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4977 Introduced , by Rep. Robyn Gabel SYNOPSIS AS INTRODUCED:
305 ILCS 5/5-30.1 305 ILCS 5/5-30.1
305 ILCS 5/5-30.1
Amends the Medical Assistance Article of the Illinois Public Aid Code. Makes changes to provisions requiring Medicaid managed care organizations (MCO) to make payments for emergency services. Requires an MCO to pay any provider of emergency services, including inpatient stabilization services provided during the inpatient stabilization period, that does not have in effect a contract with the MCO. Defines "inpatient stabilization period" to mean the initial 72 hours of inpatient stabilization services, beginning from the date and time of the order for inpatient admission to the hospital. Provides that when determining payment for all emergency services, including inpatient stabilization services provided during the inpatient stabilization period, the MCO shall: (i) not impose any service authorization requirements, including, but not limited to, prior authorization, prior approval, pre-certification, concurrent review, or certification of admission; (ii) have no obligation to cover emergency services provided on an emergency basis that are not covered services under the MCO's contract with the Department of Healthcare and Family Services; and (iii) not condition coverage for emergency services on the treating provider notifying the MCO of the enrollee's emergency medical screening examination and treatment within 10 days after presentation for emergency services. Provides that the determination of the attending emergency physician, or the practitioner responsible for the enrollee's care at the hospital, of whether an enrollee requires inpatient stabilization services, can be stabilized in the outpatient setting, or is sufficiently stabilized for discharge or transfer to another facility, shall be binding on the MCO. Provides that an MCO shall not reimburse inpatient stabilization services billed on an inpatient institutional claim under the outpatient reimbursement methodology and shall not reimburse providers for emergency services in cases of fraud. Requires the Department to impose sanctions on a MCO for noncompliance, including, but not limited to, financial penalties, suspension of enrollment of new enrollees, and termination of the MCO's contract with the Department. Effective immediately.
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A BILL FOR
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1  AN ACT concerning public aid.
2  Be it enacted by the People of the State of Illinois,
3  represented in the General Assembly:
4  Section 5. The Illinois Public Aid Code is amended by
5  changing Section 5-30.1 as follows:
6  (305 ILCS 5/5-30.1)
7  Sec. 5-30.1. Managed care protections.
8  (a) As used in this Section:
9  "Managed care organization" or "MCO" means any entity
10  which contracts with the Department to provide services where
11  payment for medical services is made on a capitated basis.
12  "Emergency services" means health care items and services,
13  including inpatient and outpatient hospital services,
14  furnished or required to evaluate and stabilize an emergency
15  medical condition. "Emergency services" include inpatient
16  stabilization services furnished during the inpatient
17  stabilization period. "Emergency services" do not include
18  post-stabilization medical services. include:
19  (1) emergency services, as defined by Section 10 of
20  the Managed Care Reform and Patient Rights Act;
21  (2) emergency medical screening examinations, as
22  defined by Section 10 of the Managed Care Reform and
23  Patient Rights Act;

 

103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4977 Introduced , by Rep. Robyn Gabel SYNOPSIS AS INTRODUCED:
305 ILCS 5/5-30.1 305 ILCS 5/5-30.1
305 ILCS 5/5-30.1
Amends the Medical Assistance Article of the Illinois Public Aid Code. Makes changes to provisions requiring Medicaid managed care organizations (MCO) to make payments for emergency services. Requires an MCO to pay any provider of emergency services, including inpatient stabilization services provided during the inpatient stabilization period, that does not have in effect a contract with the MCO. Defines "inpatient stabilization period" to mean the initial 72 hours of inpatient stabilization services, beginning from the date and time of the order for inpatient admission to the hospital. Provides that when determining payment for all emergency services, including inpatient stabilization services provided during the inpatient stabilization period, the MCO shall: (i) not impose any service authorization requirements, including, but not limited to, prior authorization, prior approval, pre-certification, concurrent review, or certification of admission; (ii) have no obligation to cover emergency services provided on an emergency basis that are not covered services under the MCO's contract with the Department of Healthcare and Family Services; and (iii) not condition coverage for emergency services on the treating provider notifying the MCO of the enrollee's emergency medical screening examination and treatment within 10 days after presentation for emergency services. Provides that the determination of the attending emergency physician, or the practitioner responsible for the enrollee's care at the hospital, of whether an enrollee requires inpatient stabilization services, can be stabilized in the outpatient setting, or is sufficiently stabilized for discharge or transfer to another facility, shall be binding on the MCO. Provides that an MCO shall not reimburse inpatient stabilization services billed on an inpatient institutional claim under the outpatient reimbursement methodology and shall not reimburse providers for emergency services in cases of fraud. Requires the Department to impose sanctions on a MCO for noncompliance, including, but not limited to, financial penalties, suspension of enrollment of new enrollees, and termination of the MCO's contract with the Department. Effective immediately.
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    LRB103 37679 KTG 67806 b
A BILL FOR

 

 

305 ILCS 5/5-30.1



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1  (3) post-stabilization medical services, as defined by
2  Section 10 of the Managed Care Reform and Patient Rights
3  Act; and
4  (4) emergency medical conditions, as defined by
5  Section 10 of the Managed Care Reform and Patient Rights
6  Act.
7  "Emergency medical condition" means a medical condition
8  manifesting itself by acute symptoms of sufficient severity,
9  regardless of the final diagnosis given, such that a prudent
10  layperson, who possesses an average knowledge of health and
11  medicine, could reasonably expect the absence of immediate
12  medical attention to result in:
13  (1) placing the health of the individual (or, with
14  respect to a pregnant woman, the health of the woman or her
15  unborn child) in serious jeopardy;
16  (2) serious impairment to bodily functions;
17  (3) serious dysfunction of any bodily organ or part;
18  (4) inadequately controlled pain; or
19  (5) with respect to a pregnant woman who is having
20  contractions:
21  (A) inadequate time to complete a safe transfer to
22  another hospital before delivery; or
23  (B) a transfer to another hospital may pose a
24  threat to the health or safety of the woman or unborn
25  child.
26  "Emergency medical screening examination" means a medical

 

 

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1  screening examination and evaluation by a physician licensed
2  to practice medicine in all its branches or, to the extent
3  permitted by applicable laws, by other appropriately licensed
4  personnel under the supervision of or in collaboration with a
5  physician licensed to practice medicine in all its branches to
6  determine whether the need for emergency services exists.
7  "Inpatient stabilization period" means the initial 72
8  hours of inpatient stabilization services, beginning from the
9  date and time of the order for inpatient admission to the
10  hospital.
11  "Inpatient stabilization services" mean emergency services
12  furnished in the inpatient setting at a licensed hospital
13  pursuant to an order for inpatient admission by a physician or
14  other qualified practitioner who has admitting privileges at
15  the hospital, as permitted by State law, to stabilize an
16  emergency medical condition following an emergency medical
17  screening examination.
18  "Post-stabilization medical services" means health care
19  services provided to an enrollee that are furnished in a
20  licensed hospital by a provider that is qualified to furnish
21  such services and determined to be medically necessary and
22  directly related to the emergency medical condition following
23  stabilization.
24  (b) As provided by Section 5-16.12, managed care
25  organizations are subject to the provisions of the Managed
26  Care Reform and Patient Rights Act.

 

 

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1  (c) An MCO shall pay any provider of emergency services,
2  including inpatient stabilization services provided during the
3  inpatient stabilization period, that does not have in effect a
4  contract with the contracted Medicaid MCO. The default rate of
5  reimbursement shall be the rate paid under Illinois Medicaid
6  fee-for-service program methodology, including all policy
7  adjusters, including but not limited to Medicaid High Volume
8  Adjustments, Medicaid Percentage Adjustments, Outpatient High
9  Volume Adjustments, and all outlier add-on adjustments to the
10  extent such adjustments are incorporated in the development of
11  the applicable MCO capitated rates.
12  (d) An MCO shall pay for all post-stabilization services
13  as a covered service in any of the following situations:
14  (1) the MCO authorized such services;
15  (2) such services were administered to maintain the
16  enrollee's stabilized condition within one hour after a
17  request to the MCO for authorization of further
18  post-stabilization services;
19  (3) the MCO did not respond to a request to authorize
20  such services within one hour;
21  (4) the MCO could not be contacted; or
22  (5) the MCO and the treating provider, if the treating
23  provider is a non-affiliated provider, could not reach an
24  agreement concerning the enrollee's care and an affiliated
25  provider was unavailable for a consultation, in which case
26  the MCO must pay for such services rendered by the

 

 

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1  treating non-affiliated provider until an affiliated
2  provider was reached and either concurred with the
3  treating non-affiliated provider's plan of care or assumed
4  responsibility for the enrollee's care. Such payment shall
5  be made at the default rate of reimbursement paid under
6  Illinois Medicaid fee-for-service program methodology,
7  including all policy adjusters, including but not limited
8  to Medicaid High Volume Adjustments, Medicaid Percentage
9  Adjustments, Outpatient High Volume Adjustments and all
10  outlier add-on adjustments to the extent that such
11  adjustments are incorporated in the development of the
12  applicable MCO capitated rates.
13  (d) Notwithstanding any other provision of law, the (e)
14  The following requirements apply to MCOs in determining
15  payment for all emergency services, including inpatient
16  stabilization services provided during the inpatient
17  stabilization period:
18  (1) The MCO MCOs shall not impose any service
19  authorization requirements for prior approval of emergency
20  services, including, but not limited to, prior
21  authorization, prior approval, pre-certification,
22  concurrent review, or certification of admission.
23  (2) The MCO shall cover emergency services provided to
24  enrollees who are temporarily away from their residence
25  and outside the contracting area to the extent that the
26  enrollees would be entitled to the emergency services if

 

 

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1  they still were within the contracting area.
2  (3) The MCO shall have no obligation to cover
3  emergency medical services provided on an emergency basis
4  that are not covered services under the contract.
5  (4) The MCO shall not condition coverage for emergency
6  services on the treating provider notifying the MCO of the
7  enrollee's emergency medical screening examination and
8  treatment within 10 days after presentation for emergency
9  services.
10  (5) The determination of the attending emergency
11  physician, or the practitioner responsible for the
12  enrollee's care at the hospital, the provider actually
13  treating the enrollee, of whether an enrollee requires
14  inpatient stabilization services, can be stabilized in the
15  outpatient setting, or is sufficiently stabilized for
16  discharge or transfer to another facility, shall be
17  binding on the MCO. The MCO shall cover and reimburse
18  providers for emergency services as billed by the provider
19  for all enrollees whether the emergency services are
20  provided by an affiliated or non-affiliated provider,
21  except in cases of fraud. The MCO shall not reimburse
22  inpatient stabilization services provided during the
23  inpatient stabilization period and billed on an inpatient
24  institutional claim under the outpatient reimbursement
25  methodology.
26  (6) The MCO's financial responsibility for

 

 

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1  post-stabilization medical care services it has not
2  pre-approved ends when:
3  (A) a plan physician with privileges at the
4  treating hospital assumes responsibility for the
5  enrollee's care;
6  (B) a plan physician assumes responsibility for
7  the enrollee's care through transfer;
8  (C) a contracting entity representative and the
9  treating physician reach an agreement concerning the
10  enrollee's care; or
11  (D) the enrollee is discharged.
12  (e) An MCO shall pay for all post-stabilization medical
13  services as a covered service in any of the following
14  situations:
15  (1) the MCO authorized such services;
16  (2) such services were administered to maintain the
17  enrollee's stabilized condition within one hour after a
18  request to the MCO for authorization of further
19  post-stabilization services;
20  (3) the MCO did not respond to a request to authorize
21  such services within one hour;
22  (4) the MCO could not be contacted; or
23  (5) the MCO and the treating provider, if the treating
24  provider is a non-affiliated provider, could not reach an
25  agreement concerning the enrollee's care and an affiliated
26  provider was unavailable for a consultation, in which case

 

 

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1  the MCO must pay for such services rendered by the
2  treating non-affiliated provider until an affiliated
3  provider was reached and either concurred with the
4  treating non-affiliated provider's plan of care or assumed
5  responsibility for the enrollee's care. Such payment shall
6  be made at the default rate of reimbursement paid under
7  the State's Medicaid fee-for-service program methodology,
8  including all policy adjusters, including, but not limited
9  to, Medicaid High Volume Adjustments, Medicaid Percentage
10  Adjustments, Outpatient High Volume Adjustments, and all
11  outlier add-on adjustments to the extent that such
12  adjustments are incorporated in the development of the
13  applicable MCO capitated rates.
14  (f) Network adequacy and transparency.
15  (1) The Department shall:
16  (A) ensure that an adequate provider network is in
17  place, taking into consideration health professional
18  shortage areas and medically underserved areas;
19  (B) publicly release an explanation of its process
20  for analyzing network adequacy;
21  (C) periodically ensure that an MCO continues to
22  have an adequate network in place;
23  (D) require MCOs, including Medicaid Managed Care
24  Entities as defined in Section 5-30.2, to meet
25  provider directory requirements under Section 5-30.3;
26  (E) require MCOs to ensure that any

 

 

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1  Medicaid-certified provider under contract with an MCO
2  and previously submitted on a roster on the date of
3  service is paid for any medically necessary,
4  Medicaid-covered, and authorized service rendered to
5  any of the MCO's enrollees, regardless of inclusion on
6  the MCO's published and publicly available directory
7  of available providers; and
8  (F) require MCOs, including Medicaid Managed Care
9  Entities as defined in Section 5-30.2, to meet each of
10  the requirements under subsection (d-5) of Section 10
11  of the Network Adequacy and Transparency Act; with
12  necessary exceptions to the MCO's network to ensure
13  that admission and treatment with a provider or at a
14  treatment facility in accordance with the network
15  adequacy standards in paragraph (3) of subsection
16  (d-5) of Section 10 of the Network Adequacy and
17  Transparency Act is limited to providers or facilities
18  that are Medicaid certified.
19  (2) Each MCO shall confirm its receipt of information
20  submitted specific to physician or dentist additions or
21  physician or dentist deletions from the MCO's provider
22  network within 3 days after receiving all required
23  information from contracted physicians or dentists, and
24  electronic physician and dental directories must be
25  updated consistent with current rules as published by the
26  Centers for Medicare and Medicaid Services or its

 

 

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1  successor agency.
2  (g) Timely payment of claims.
3  (1) The MCO shall pay a claim within 30 days of
4  receiving a claim that contains all the essential
5  information needed to adjudicate the claim.
6  (2) The MCO shall notify the billing party of its
7  inability to adjudicate a claim within 30 days of
8  receiving that claim.
9  (3) The MCO shall pay a penalty that is at least equal
10  to the timely payment interest penalty imposed under
11  Section 368a of the Illinois Insurance Code for any claims
12  not timely paid.
13  (A) When an MCO is required to pay a timely payment
14  interest penalty to a provider, the MCO must calculate
15  and pay the timely payment interest penalty that is
16  due to the provider within 30 days after the payment of
17  the claim. In no event shall a provider be required to
18  request or apply for payment of any owed timely
19  payment interest penalties.
20  (B) Such payments shall be reported separately
21  from the claim payment for services rendered to the
22  MCO's enrollee and clearly identified as interest
23  payments.
24  (4)(A) The Department shall require MCOs to expedite
25  payments to providers identified on the Department's
26  expedited provider list, determined in accordance with 89

 

 

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1  Ill. Adm. Code 140.71(b), on a schedule at least as
2  frequently as the providers are paid under the
3  Department's fee-for-service expedited provider schedule.
4  (B) Compliance with the expedited provider requirement
5  may be satisfied by an MCO through the use of a Periodic
6  Interim Payment (PIP) program that has been mutually
7  agreed to and documented between the MCO and the provider,
8  if the PIP program ensures that any expedited provider
9  receives regular and periodic payments based on prior
10  period payment experience from that MCO. Total payments
11  under the PIP program may be reconciled against future PIP
12  payments on a schedule mutually agreed to between the MCO
13  and the provider.
14  (C) The Department shall share at least monthly its
15  expedited provider list and the frequency with which it
16  pays providers on the expedited list.
17  (g-5) Recognizing that the rapid transformation of the
18  Illinois Medicaid program may have unintended operational
19  challenges for both payers and providers:
20  (1) in no instance shall a medically necessary covered
21  service rendered in good faith, based upon eligibility
22  information documented by the provider, be denied coverage
23  or diminished in payment amount if the eligibility or
24  coverage information available at the time the service was
25  rendered is later found to be inaccurate in the assignment
26  of coverage responsibility between MCOs or the

 

 

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1  fee-for-service system, except for instances when an
2  individual is deemed to have not been eligible for
3  coverage under the Illinois Medicaid program; and
4  (2) the Department shall, by December 31, 2016, adopt
5  rules establishing policies that shall be included in the
6  Medicaid managed care policy and procedures manual
7  addressing payment resolutions in situations in which a
8  provider renders services based upon information obtained
9  after verifying a patient's eligibility and coverage plan
10  through either the Department's current enrollment system
11  or a system operated by the coverage plan identified by
12  the patient presenting for services:
13  (A) such medically necessary covered services
14  shall be considered rendered in good faith;
15  (B) such policies and procedures shall be
16  developed in consultation with industry
17  representatives of the Medicaid managed care health
18  plans and representatives of provider associations
19  representing the majority of providers within the
20  identified provider industry; and
21  (C) such rules shall be published for a review and
22  comment period of no less than 30 days on the
23  Department's website with final rules remaining
24  available on the Department's website.
25  The rules on payment resolutions shall include, but
26  not be limited to:

 

 

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1  (A) the extension of the timely filing period;
2  (B) retroactive prior authorizations; and
3  (C) guaranteed minimum payment rate of no less
4  than the current, as of the date of service,
5  fee-for-service rate, plus all applicable add-ons,
6  when the resulting service relationship is out of
7  network.
8  The rules shall be applicable for both MCO coverage
9  and fee-for-service coverage.
10  If the fee-for-service system is ultimately determined to
11  have been responsible for coverage on the date of service, the
12  Department shall provide for an extended period for claims
13  submission outside the standard timely filing requirements.
14  (g-6) MCO Performance Metrics Report.
15  (1) The Department shall publish, on at least a
16  quarterly basis, each MCO's operational performance,
17  including, but not limited to, the following categories of
18  metrics:
19  (A) claims payment, including timeliness and
20  accuracy;
21  (B) prior authorizations;
22  (C) grievance and appeals;
23  (D) utilization statistics;
24  (E) provider disputes;
25  (F) provider credentialing; and
26  (G) member and provider customer service.

 

 

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1  (2) The Department shall ensure that the metrics
2  report is accessible to providers online by January 1,
3  2017.
4  (3) The metrics shall be developed in consultation
5  with industry representatives of the Medicaid managed care
6  health plans and representatives of associations
7  representing the majority of providers within the
8  identified industry.
9  (4) Metrics shall be defined and incorporated into the
10  applicable Managed Care Policy Manual issued by the
11  Department.
12  (g-7) MCO claims processing and performance analysis. In
13  order to monitor MCO payments to hospital providers, pursuant
14  to Public Act 100-580, the Department shall post an analysis
15  of MCO claims processing and payment performance on its
16  website every 6 months. Such analysis shall include a review
17  and evaluation of a representative sample of hospital claims
18  that are rejected and denied for clean and unclean claims and
19  the top 5 reasons for such actions and timeliness of claims
20  adjudication, which identifies the percentage of claims
21  adjudicated within 30, 60, 90, and over 90 days, and the dollar
22  amounts associated with those claims.
23  (g-8) Dispute resolution process. The Department shall
24  maintain a provider complaint portal through which a provider
25  can submit to the Department unresolved disputes with an MCO.
26  An unresolved dispute means an MCO's decision that denies in

 

 

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1  whole or in part a claim for reimbursement to a provider for
2  health care services rendered by the provider to an enrollee
3  of the MCO with which the provider disagrees. Disputes shall
4  not be submitted to the portal until the provider has availed
5  itself of the MCO's internal dispute resolution process.
6  Disputes that are submitted to the MCO internal dispute
7  resolution process may be submitted to the Department of
8  Healthcare and Family Services' complaint portal no sooner
9  than 30 days after submitting to the MCO's internal process
10  and not later than 30 days after the unsatisfactory resolution
11  of the internal MCO process or 60 days after submitting the
12  dispute to the MCO internal process. Multiple claim disputes
13  involving the same MCO may be submitted in one complaint,
14  regardless of whether the claims are for different enrollees,
15  when the specific reason for non-payment of the claims
16  involves a common question of fact or policy. Within 10
17  business days of receipt of a complaint, the Department shall
18  present such disputes to the appropriate MCO, which shall then
19  have 30 days to issue its written proposal to resolve the
20  dispute. The Department may grant one 30-day extension of this
21  time frame to one of the parties to resolve the dispute. If the
22  dispute remains unresolved at the end of this time frame or the
23  provider is not satisfied with the MCO's written proposal to
24  resolve the dispute, the provider may, within 30 days, request
25  the Department to review the dispute and make a final
26  determination. Within 30 days of the request for Department

 

 

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1  review of the dispute, both the provider and the MCO shall
2  present all relevant information to the Department for
3  resolution and make individuals with knowledge of the issues
4  available to the Department for further inquiry if needed.
5  Within 30 days of receiving the relevant information on the
6  dispute, or the lapse of the period for submitting such
7  information, the Department shall issue a written decision on
8  the dispute based on contractual terms between the provider
9  and the MCO, contractual terms between the MCO and the
10  Department of Healthcare and Family Services and applicable
11  Medicaid policy. The decision of the Department shall be
12  final. By January 1, 2020, the Department shall establish by
13  rule further details of this dispute resolution process.
14  Disputes between MCOs and providers presented to the
15  Department for resolution are not contested cases, as defined
16  in Section 1-30 of the Illinois Administrative Procedure Act,
17  conferring any right to an administrative hearing.
18  (g-9)(1) The Department shall publish annually on its
19  website a report on the calculation of each managed care
20  organization's medical loss ratio showing the following:
21  (A) Premium revenue, with appropriate adjustments.
22  (B) Benefit expense, setting forth the aggregate
23  amount spent for the following:
24  (i) Direct paid claims.
25  (ii) Subcapitation payments.
26  (iii) Other claim payments.

 

 

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1  (iv) Direct reserves.
2  (v) Gross recoveries.
3  (vi) Expenses for activities that improve health
4  care quality as allowed by the Department.
5  (2) The medical loss ratio shall be calculated consistent
6  with federal law and regulation following a claims runout
7  period determined by the Department.
8  (g-10)(1) "Liability effective date" means the date on
9  which an MCO becomes responsible for payment for medically
10  necessary and covered services rendered by a provider to one
11  of its enrollees in accordance with the contract terms between
12  the MCO and the provider. The liability effective date shall
13  be the later of:
14  (A) The execution date of a network participation
15  contract agreement.
16  (B) The date the provider or its representative
17  submits to the MCO the complete and accurate standardized
18  roster form for the provider in the format approved by the
19  Department.
20  (C) The provider effective date contained within the
21  Department's provider enrollment subsystem within the
22  Illinois Medicaid Program Advanced Cloud Technology
23  (IMPACT) System.
24  (2) The standardized roster form may be submitted to the
25  MCO at the same time that the provider submits an enrollment
26  application to the Department through IMPACT.

 

 

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1  (3) By October 1, 2019, the Department shall require all
2  MCOs to update their provider directory with information for
3  new practitioners of existing contracted providers within 30
4  days of receipt of a complete and accurate standardized roster
5  template in the format approved by the Department provided
6  that the provider is effective in the Department's provider
7  enrollment subsystem within the IMPACT system. Such provider
8  directory shall be readily accessible for purposes of
9  selecting an approved health care provider and comply with all
10  other federal and State requirements.
11  (g-11) The Department shall work with relevant
12  stakeholders on the development of operational guidelines to
13  enhance and improve operational performance of Illinois'
14  Medicaid managed care program, including, but not limited to,
15  improving provider billing practices, reducing claim
16  rejections and inappropriate payment denials, and
17  standardizing processes, procedures, definitions, and response
18  timelines, with the goal of reducing provider and MCO
19  administrative burdens and conflict. The Department shall
20  include a report on the progress of these program improvements
21  and other topics in its Fiscal Year 2020 annual report to the
22  General Assembly.
23  (g-12) Notwithstanding any other provision of law, if the
24  Department or an MCO requires submission of a claim for
25  payment in a non-electronic format, a provider shall always be
26  afforded a period of no less than 90 business days, as a

 

 

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1  correction period, following any notification of rejection by
2  either the Department or the MCO to correct errors or
3  omissions in the original submission.
4  Under no circumstances, either by an MCO or under the
5  State's fee-for-service system, shall a provider be denied
6  payment for failure to comply with any timely submission
7  requirements under this Code or under any existing contract,
8  unless the non-electronic format claim submission occurs after
9  the initial 180 days following the latest date of service on
10  the claim, or after the 90 business days correction period
11  following notification to the provider of rejection or denial
12  of payment.
13  (h) The Department shall not expand mandatory MCO
14  enrollment into new counties beyond those counties already
15  designated by the Department as of June 1, 2014 for the
16  individuals whose eligibility for medical assistance is not
17  the seniors or people with disabilities population until the
18  Department provides an opportunity for accountable care
19  entities and MCOs to participate in such newly designated
20  counties.
21  (h-5) Leading indicator data sharing. By January 1, 2024,
22  the Department shall obtain input from the Department of Human
23  Services, the Department of Juvenile Justice, the Department
24  of Children and Family Services, the State Board of Education,
25  managed care organizations, providers, and clinical experts to
26  identify and analyze key indicators from assessments and data

 

 

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1  sets available to the Department that can be shared with
2  managed care organizations and similar care coordination
3  entities contracted with the Department as leading indicators
4  for elevated behavioral health crisis risk for children. To
5  the extent permitted by State and federal law, the identified
6  leading indicators shall be shared with managed care
7  organizations and similar care coordination entities
8  contracted with the Department within 6 months of
9  identification for the purpose of improving care coordination
10  with the early detection of elevated risk. Leading indicators
11  shall be reassessed annually with stakeholder input.
12  (i) The requirements of this Section apply to contracts
13  with accountable care entities and MCOs entered into, amended,
14  or renewed after June 16, 2014 (the effective date of Public
15  Act 98-651).
16  (j) Health care information released to managed care
17  organizations. A health care provider shall release to a
18  Medicaid managed care organization, upon request, and subject
19  to the Health Insurance Portability and Accountability Act of
20  1996 and any other law applicable to the release of health
21  information, the health care information of the MCO's
22  enrollee, if the enrollee has completed and signed a general
23  release form that grants to the health care provider
24  permission to release the recipient's health care information
25  to the recipient's insurance carrier.
26  (k) The Department of Healthcare and Family Services,

 

 

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1  managed care organizations, a statewide organization
2  representing hospitals, and a statewide organization
3  representing safety-net hospitals shall explore ways to
4  support billing departments in safety-net hospitals.
5  (l) The requirements of this Section added by Public Act
6  102-4 shall apply to services provided on or after the first
7  day of the month that begins 60 days after April 27, 2021 (the
8  effective date of Public Act 102-4).
9  (m) The Department shall impose sanctions on a managed
10  care organization for violating any provision under this
11  Section, including, but not limited to, financial penalties,
12  suspension of enrollment of new enrollees, and termination of
13  the MCO's contract with the Department.
14  (Source: P.A. 102-4, eff. 4-27-21; 102-43, eff. 7-6-21;
15  102-144, eff. 1-1-22; 102-454, eff. 8-20-21; 102-813, eff.
16  5-13-22; 103-546, eff. 8-11-23.)

 

 

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