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. LRB103 37679 KTG 67806 b LRB103 37679 KTG 67806 b LRB103 37679 KTG 67806 b A BILL FOR HB4977LRB103 37679 KTG 67806 b HB4977 LRB103 37679 KTG 67806 b HB4977 LRB103 37679 KTG 67806 b 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. LRB103 37679 KTG 67806 b LRB103 37679 KTG 67806 b LRB103 37679 KTG 67806 b A BILL FOR 305 ILCS 5/5-30.1 LRB103 37679 KTG 67806 b HB4977 LRB103 37679 KTG 67806 b HB4977- 2 -LRB103 37679 KTG 67806 b HB4977 - 2 - LRB103 37679 KTG 67806 b HB4977 - 2 - LRB103 37679 KTG 67806 b 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 HB4977 - 2 - LRB103 37679 KTG 67806 b HB4977- 3 -LRB103 37679 KTG 67806 b HB4977 - 3 - LRB103 37679 KTG 67806 b HB4977 - 3 - LRB103 37679 KTG 67806 b 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. HB4977 - 3 - LRB103 37679 KTG 67806 b HB4977- 4 -LRB103 37679 KTG 67806 b HB4977 - 4 - LRB103 37679 KTG 67806 b HB4977 - 4 - LRB103 37679 KTG 67806 b 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 HB4977 - 4 - LRB103 37679 KTG 67806 b HB4977- 5 -LRB103 37679 KTG 67806 b HB4977 - 5 - LRB103 37679 KTG 67806 b HB4977 - 5 - LRB103 37679 KTG 67806 b 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 HB4977 - 5 - LRB103 37679 KTG 67806 b HB4977- 6 -LRB103 37679 KTG 67806 b HB4977 - 6 - LRB103 37679 KTG 67806 b HB4977 - 6 - LRB103 37679 KTG 67806 b 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 HB4977 - 6 - LRB103 37679 KTG 67806 b HB4977- 7 -LRB103 37679 KTG 67806 b HB4977 - 7 - LRB103 37679 KTG 67806 b HB4977 - 7 - LRB103 37679 KTG 67806 b 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 HB4977 - 7 - LRB103 37679 KTG 67806 b HB4977- 8 -LRB103 37679 KTG 67806 b HB4977 - 8 - LRB103 37679 KTG 67806 b HB4977 - 8 - LRB103 37679 KTG 67806 b 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 HB4977 - 8 - LRB103 37679 KTG 67806 b HB4977- 9 -LRB103 37679 KTG 67806 b HB4977 - 9 - LRB103 37679 KTG 67806 b HB4977 - 9 - LRB103 37679 KTG 67806 b 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 HB4977 - 9 - LRB103 37679 KTG 67806 b HB4977- 10 -LRB103 37679 KTG 67806 b HB4977 - 10 - LRB103 37679 KTG 67806 b HB4977 - 10 - LRB103 37679 KTG 67806 b 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 HB4977 - 10 - LRB103 37679 KTG 67806 b HB4977- 11 -LRB103 37679 KTG 67806 b HB4977 - 11 - LRB103 37679 KTG 67806 b HB4977 - 11 - LRB103 37679 KTG 67806 b 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 HB4977 - 11 - LRB103 37679 KTG 67806 b HB4977- 12 -LRB103 37679 KTG 67806 b HB4977 - 12 - LRB103 37679 KTG 67806 b HB4977 - 12 - LRB103 37679 KTG 67806 b 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: HB4977 - 12 - LRB103 37679 KTG 67806 b HB4977- 13 -LRB103 37679 KTG 67806 b HB4977 - 13 - LRB103 37679 KTG 67806 b HB4977 - 13 - LRB103 37679 KTG 67806 b 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. HB4977 - 13 - LRB103 37679 KTG 67806 b HB4977- 14 -LRB103 37679 KTG 67806 b HB4977 - 14 - LRB103 37679 KTG 67806 b HB4977 - 14 - LRB103 37679 KTG 67806 b 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 HB4977 - 14 - LRB103 37679 KTG 67806 b HB4977- 15 -LRB103 37679 KTG 67806 b HB4977 - 15 - LRB103 37679 KTG 67806 b HB4977 - 15 - LRB103 37679 KTG 67806 b 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 HB4977 - 15 - LRB103 37679 KTG 67806 b HB4977- 16 -LRB103 37679 KTG 67806 b HB4977 - 16 - LRB103 37679 KTG 67806 b HB4977 - 16 - LRB103 37679 KTG 67806 b 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. HB4977 - 16 - LRB103 37679 KTG 67806 b HB4977- 17 -LRB103 37679 KTG 67806 b HB4977 - 17 - LRB103 37679 KTG 67806 b HB4977 - 17 - LRB103 37679 KTG 67806 b 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. HB4977 - 17 - LRB103 37679 KTG 67806 b HB4977- 18 -LRB103 37679 KTG 67806 b HB4977 - 18 - LRB103 37679 KTG 67806 b HB4977 - 18 - LRB103 37679 KTG 67806 b 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 HB4977 - 18 - LRB103 37679 KTG 67806 b HB4977- 19 -LRB103 37679 KTG 67806 b HB4977 - 19 - LRB103 37679 KTG 67806 b HB4977 - 19 - LRB103 37679 KTG 67806 b 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 HB4977 - 19 - LRB103 37679 KTG 67806 b HB4977- 20 -LRB103 37679 KTG 67806 b HB4977 - 20 - LRB103 37679 KTG 67806 b HB4977 - 20 - LRB103 37679 KTG 67806 b 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, HB4977 - 20 - LRB103 37679 KTG 67806 b HB4977- 21 -LRB103 37679 KTG 67806 b HB4977 - 21 - LRB103 37679 KTG 67806 b HB4977 - 21 - LRB103 37679 KTG 67806 b 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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