Illinois 2023-2024 Regular Session

Illinois House Bill HB5258 Compare Versions

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1-Public Act 103-0700
21 HB5258 EnrolledLRB103 38992 RPS 69129 b HB5258 Enrolled LRB103 38992 RPS 69129 b
32 HB5258 Enrolled LRB103 38992 RPS 69129 b
4-AN ACT concerning regulation.
5-Be it enacted by the People of the State of Illinois,
6-represented in the General Assembly:
7-Section 5. The Illinois Insurance Code is amended by
8-adding Section 356z.71 as follows:
9-(215 ILCS 5/356z.71 new)
10-Sec. 356z.71. Insurance coverage for dependent parents.
11-(a) A group or individual policy of accident and health
12-insurance issued, amended, delivered, or renewed after January
13-1, 2026 that provides dependent coverage shall make that
14-dependent coverage available to the parent or stepparent of
15-the insured if the parent or stepparent meets the definition
16-of a qualifying relative under 26 U.S.C. 152(d) and lives or
17-resides within the accident and health insurance policy's
18-service area.
19-(b) This Section does not apply to specialized health care
20-service plans, Medicare supplement insurance, hospital-only
21-policies, accident-only policies, or specified disease
22-insurance policies that reimburse for hospital, medical, or
23-surgical expenses.
24-Section 10. The Health Maintenance Organization Act is
25-amended by changing Section 5-3 as follows:
3+1 AN ACT concerning regulation.
4+2 Be it enacted by the People of the State of Illinois,
5+3 represented in the General Assembly:
6+4 Section 5. The Illinois Insurance Code is amended by
7+5 adding Section 356z.71 as follows:
8+6 (215 ILCS 5/356z.71 new)
9+7 Sec. 356z.71. Insurance coverage for dependent parents.
10+8 (a) A group or individual policy of accident and health
11+9 insurance issued, amended, delivered, or renewed after January
12+10 1, 2026 that provides dependent coverage shall make that
13+11 dependent coverage available to the parent or stepparent of
14+12 the insured if the parent or stepparent meets the definition
15+13 of a qualifying relative under 26 U.S.C. 152(d) and lives or
16+14 resides within the accident and health insurance policy's
17+15 service area.
18+16 (b) This Section does not apply to specialized health care
19+17 service plans, Medicare supplement insurance, hospital-only
20+18 policies, accident-only policies, or specified disease
21+19 insurance policies that reimburse for hospital, medical, or
22+20 surgical expenses.
23+21 Section 10. The Health Maintenance Organization Act is
24+22 amended by changing Section 5-3 as follows:
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2928 HB5258 Enrolled LRB103 38992 RPS 69129 b
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32-(215 ILCS 125/5-3) (from Ch. 111 1/2, par. 1411.2)
33-Sec. 5-3. Insurance Code provisions.
34-(a) Health Maintenance Organizations shall be subject to
35-the provisions of Sections 133, 134, 136, 137, 139, 140,
36-141.1, 141.2, 141.3, 143, 143c, 147, 148, 149, 151, 152, 153,
37-154, 154.5, 154.6, 154.7, 154.8, 155.04, 155.22a, 155.49,
38-355.2, 355.3, 355b, 355c, 356f, 356g.5-1, 356m, 356q, 356v,
39-356w, 356x, 356z.2, 356z.3a, 356z.4, 356z.4a, 356z.5, 356z.6,
40-356z.8, 356z.9, 356z.10, 356z.11, 356z.12, 356z.13, 356z.14,
41-356z.15, 356z.17, 356z.18, 356z.19, 356z.20, 356z.21, 356z.22,
42-356z.23, 356z.24, 356z.25, 356z.26, 356z.28, 356z.29, 356z.30,
43-356z.30a, 356z.31, 356z.32, 356z.33, 356z.34, 356z.35,
44-356z.36, 356z.37, 356z.38, 356z.39, 356z.40, 356z.41, 356z.44,
45-356z.45, 356z.46, 356z.47, 356z.48, 356z.49, 356z.50, 356z.51,
46-356z.53, 356z.54, 356z.55, 356z.56, 356z.57, 356z.58, 356z.59,
47-356z.60, 356z.61, 356z.62, 356z.64, 356z.65, 356z.67, 356z.68,
48-356z.71, 364, 364.01, 364.3, 367.2, 367.2-5, 367i, 368a, 368b,
49-368c, 368d, 368e, 370c, 370c.1, 401, 401.1, 402, 403, 403A,
50-408, 408.2, 409, 412, 444, and 444.1, paragraph (c) of
51-subsection (2) of Section 367, and Articles IIA, VIII 1/2,
52-XII, XII 1/2, XIII, XIII 1/2, XXV, XXVI, and XXXIIB of the
53-Illinois Insurance Code.
54-(b) For purposes of the Illinois Insurance Code, except
55-for Sections 444 and 444.1 and Articles XIII and XIII 1/2,
56-Health Maintenance Organizations in the following categories
31+HB5258 Enrolled- 2 -LRB103 38992 RPS 69129 b HB5258 Enrolled - 2 - LRB103 38992 RPS 69129 b
32+ HB5258 Enrolled - 2 - LRB103 38992 RPS 69129 b
33+1 (215 ILCS 125/5-3) (from Ch. 111 1/2, par. 1411.2)
34+2 Sec. 5-3. Insurance Code provisions.
35+3 (a) Health Maintenance Organizations shall be subject to
36+4 the provisions of Sections 133, 134, 136, 137, 139, 140,
37+5 141.1, 141.2, 141.3, 143, 143c, 147, 148, 149, 151, 152, 153,
38+6 154, 154.5, 154.6, 154.7, 154.8, 155.04, 155.22a, 155.49,
39+7 355.2, 355.3, 355b, 355c, 356f, 356g.5-1, 356m, 356q, 356v,
40+8 356w, 356x, 356z.2, 356z.3a, 356z.4, 356z.4a, 356z.5, 356z.6,
41+9 356z.8, 356z.9, 356z.10, 356z.11, 356z.12, 356z.13, 356z.14,
42+10 356z.15, 356z.17, 356z.18, 356z.19, 356z.20, 356z.21, 356z.22,
43+11 356z.23, 356z.24, 356z.25, 356z.26, 356z.28, 356z.29, 356z.30,
44+12 356z.30a, 356z.31, 356z.32, 356z.33, 356z.34, 356z.35,
45+13 356z.36, 356z.37, 356z.38, 356z.39, 356z.40, 356z.41, 356z.44,
46+14 356z.45, 356z.46, 356z.47, 356z.48, 356z.49, 356z.50, 356z.51,
47+15 356z.53, 356z.54, 356z.55, 356z.56, 356z.57, 356z.58, 356z.59,
48+16 356z.60, 356z.61, 356z.62, 356z.64, 356z.65, 356z.67, 356z.68,
49+17 356z.71, 364, 364.01, 364.3, 367.2, 367.2-5, 367i, 368a, 368b,
50+18 368c, 368d, 368e, 370c, 370c.1, 401, 401.1, 402, 403, 403A,
51+19 408, 408.2, 409, 412, 444, and 444.1, paragraph (c) of
52+20 subsection (2) of Section 367, and Articles IIA, VIII 1/2,
53+21 XII, XII 1/2, XIII, XIII 1/2, XXV, XXVI, and XXXIIB of the
54+22 Illinois Insurance Code.
55+23 (b) For purposes of the Illinois Insurance Code, except
56+24 for Sections 444 and 444.1 and Articles XIII and XIII 1/2,
57+25 Health Maintenance Organizations in the following categories
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59-are deemed to be "domestic companies":
60-(1) a corporation authorized under the Dental Service
61-Plan Act or the Voluntary Health Services Plans Act;
62-(2) a corporation organized under the laws of this
63-State; or
64-(3) a corporation organized under the laws of another
65-state, 30% or more of the enrollees of which are residents
66-of this State, except a corporation subject to
67-substantially the same requirements in its state of
68-organization as is a "domestic company" under Article VIII
69-1/2 of the Illinois Insurance Code.
70-(c) In considering the merger, consolidation, or other
71-acquisition of control of a Health Maintenance Organization
72-pursuant to Article VIII 1/2 of the Illinois Insurance Code,
73-(1) the Director shall give primary consideration to
74-the continuation of benefits to enrollees and the
75-financial conditions of the acquired Health Maintenance
76-Organization after the merger, consolidation, or other
77-acquisition of control takes effect;
78-(2)(i) the criteria specified in subsection (1)(b) of
79-Section 131.8 of the Illinois Insurance Code shall not
80-apply and (ii) the Director, in making his determination
81-with respect to the merger, consolidation, or other
82-acquisition of control, need not take into account the
83-effect on competition of the merger, consolidation, or
84-other acquisition of control;
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87-(3) the Director shall have the power to require the
88-following information:
89-(A) certification by an independent actuary of the
90-adequacy of the reserves of the Health Maintenance
91-Organization sought to be acquired;
92-(B) pro forma financial statements reflecting the
93-combined balance sheets of the acquiring company and
94-the Health Maintenance Organization sought to be
95-acquired as of the end of the preceding year and as of
96-a date 90 days prior to the acquisition, as well as pro
97-forma financial statements reflecting projected
98-combined operation for a period of 2 years;
99-(C) a pro forma business plan detailing an
100-acquiring party's plans with respect to the operation
101-of the Health Maintenance Organization sought to be
102-acquired for a period of not less than 3 years; and
103-(D) such other information as the Director shall
104-require.
105-(d) The provisions of Article VIII 1/2 of the Illinois
106-Insurance Code and this Section 5-3 shall apply to the sale by
107-any health maintenance organization of greater than 10% of its
108-enrollee population (including, without limitation, the health
109-maintenance organization's right, title, and interest in and
110-to its health care certificates).
111-(e) In considering any management contract or service
112-agreement subject to Section 141.1 of the Illinois Insurance
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115-Code, the Director (i) shall, in addition to the criteria
116-specified in Section 141.2 of the Illinois Insurance Code,
117-take into account the effect of the management contract or
118-service agreement on the continuation of benefits to enrollees
119-and the financial condition of the health maintenance
120-organization to be managed or serviced, and (ii) need not take
121-into account the effect of the management contract or service
122-agreement on competition.
123-(f) Except for small employer groups as defined in the
124-Small Employer Rating, Renewability and Portability Health
125-Insurance Act and except for medicare supplement policies as
126-defined in Section 363 of the Illinois Insurance Code, a
127-Health Maintenance Organization may by contract agree with a
128-group or other enrollment unit to effect refunds or charge
129-additional premiums under the following terms and conditions:
130-(i) the amount of, and other terms and conditions with
131-respect to, the refund or additional premium are set forth
132-in the group or enrollment unit contract agreed in advance
133-of the period for which a refund is to be paid or
134-additional premium is to be charged (which period shall
135-not be less than one year); and
136-(ii) the amount of the refund or additional premium
137-shall not exceed 20% of the Health Maintenance
138-Organization's profitable or unprofitable experience with
139-respect to the group or other enrollment unit for the
140-period (and, for purposes of a refund or additional
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68+1 are deemed to be "domestic companies":
69+2 (1) a corporation authorized under the Dental Service
70+3 Plan Act or the Voluntary Health Services Plans Act;
71+4 (2) a corporation organized under the laws of this
72+5 State; or
73+6 (3) a corporation organized under the laws of another
74+7 state, 30% or more of the enrollees of which are residents
75+8 of this State, except a corporation subject to
76+9 substantially the same requirements in its state of
77+10 organization as is a "domestic company" under Article VIII
78+11 1/2 of the Illinois Insurance Code.
79+12 (c) In considering the merger, consolidation, or other
80+13 acquisition of control of a Health Maintenance Organization
81+14 pursuant to Article VIII 1/2 of the Illinois Insurance Code,
82+15 (1) the Director shall give primary consideration to
83+16 the continuation of benefits to enrollees and the
84+17 financial conditions of the acquired Health Maintenance
85+18 Organization after the merger, consolidation, or other
86+19 acquisition of control takes effect;
87+20 (2)(i) the criteria specified in subsection (1)(b) of
88+21 Section 131.8 of the Illinois Insurance Code shall not
89+22 apply and (ii) the Director, in making his determination
90+23 with respect to the merger, consolidation, or other
91+24 acquisition of control, need not take into account the
92+25 effect on competition of the merger, consolidation, or
93+26 other acquisition of control;
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143-premium, the profitable or unprofitable experience shall
144-be calculated taking into account a pro rata share of the
145-Health Maintenance Organization's administrative and
146-marketing expenses, but shall not include any refund to be
147-made or additional premium to be paid pursuant to this
148-subsection (f)). The Health Maintenance Organization and
149-the group or enrollment unit may agree that the profitable
150-or unprofitable experience may be calculated taking into
151-account the refund period and the immediately preceding 2
152-plan years.
153-The Health Maintenance Organization shall include a
154-statement in the evidence of coverage issued to each enrollee
155-describing the possibility of a refund or additional premium,
156-and upon request of any group or enrollment unit, provide to
157-the group or enrollment unit a description of the method used
158-to calculate (1) the Health Maintenance Organization's
159-profitable experience with respect to the group or enrollment
160-unit and the resulting refund to the group or enrollment unit
161-or (2) the Health Maintenance Organization's unprofitable
162-experience with respect to the group or enrollment unit and
163-the resulting additional premium to be paid by the group or
164-enrollment unit.
165-In no event shall the Illinois Health Maintenance
166-Organization Guaranty Association be liable to pay any
167-contractual obligation of an insolvent organization to pay any
168-refund authorized under this Section.
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171-(g) Rulemaking authority to implement Public Act 95-1045,
172-if any, is conditioned on the rules being adopted in
173-accordance with all provisions of the Illinois Administrative
174-Procedure Act and all rules and procedures of the Joint
175-Committee on Administrative Rules; any purported rule not so
176-adopted, for whatever reason, is unauthorized.
177-(Source: P.A. 102-30, eff. 1-1-22; 102-34, eff. 6-25-21;
178-102-203, eff. 1-1-22; 102-306, eff. 1-1-22; 102-443, eff.
179-1-1-22; 102-589, eff. 1-1-22; 102-642, eff. 1-1-22; 102-665,
180-eff. 10-8-21; 102-731, eff. 1-1-23; 102-775, eff. 5-13-22;
181-102-804, eff. 1-1-23; 102-813, eff. 5-13-22; 102-816, eff.
182-1-1-23; 102-860, eff. 1-1-23; 102-901, eff. 7-1-22; 102-1093,
183-eff. 1-1-23; 102-1117, eff. 1-13-23; 103-84, eff. 1-1-24;
184-103-91, eff. 1-1-24; 103-123, eff. 1-1-24; 103-154, eff.
185-6-30-23; 103-420, eff. 1-1-24; 103-426, eff. 8-4-23; 103-445,
186-eff. 1-1-24; 103-551, eff. 8-11-23; revised 8-29-23.)
187-Section 15. The Limited Health Service Organization Act is
188-amended by changing Section 4003 as follows:
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104+1 (3) the Director shall have the power to require the
105+2 following information:
106+3 (A) certification by an independent actuary of the
107+4 adequacy of the reserves of the Health Maintenance
108+5 Organization sought to be acquired;
109+6 (B) pro forma financial statements reflecting the
110+7 combined balance sheets of the acquiring company and
111+8 the Health Maintenance Organization sought to be
112+9 acquired as of the end of the preceding year and as of
113+10 a date 90 days prior to the acquisition, as well as pro
114+11 forma financial statements reflecting projected
115+12 combined operation for a period of 2 years;
116+13 (C) a pro forma business plan detailing an
117+14 acquiring party's plans with respect to the operation
118+15 of the Health Maintenance Organization sought to be
119+16 acquired for a period of not less than 3 years; and
120+17 (D) such other information as the Director shall
121+18 require.
122+19 (d) The provisions of Article VIII 1/2 of the Illinois
123+20 Insurance Code and this Section 5-3 shall apply to the sale by
124+21 any health maintenance organization of greater than 10% of its
125+22 enrollee population (including, without limitation, the health
126+23 maintenance organization's right, title, and interest in and
127+24 to its health care certificates).
128+25 (e) In considering any management contract or service
129+26 agreement subject to Section 141.1 of the Illinois Insurance
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139+ HB5258 Enrolled - 5 - LRB103 38992 RPS 69129 b
140+1 Code, the Director (i) shall, in addition to the criteria
141+2 specified in Section 141.2 of the Illinois Insurance Code,
142+3 take into account the effect of the management contract or
143+4 service agreement on the continuation of benefits to enrollees
144+5 and the financial condition of the health maintenance
145+6 organization to be managed or serviced, and (ii) need not take
146+7 into account the effect of the management contract or service
147+8 agreement on competition.
148+9 (f) Except for small employer groups as defined in the
149+10 Small Employer Rating, Renewability and Portability Health
150+11 Insurance Act and except for medicare supplement policies as
151+12 defined in Section 363 of the Illinois Insurance Code, a
152+13 Health Maintenance Organization may by contract agree with a
153+14 group or other enrollment unit to effect refunds or charge
154+15 additional premiums under the following terms and conditions:
155+16 (i) the amount of, and other terms and conditions with
156+17 respect to, the refund or additional premium are set forth
157+18 in the group or enrollment unit contract agreed in advance
158+19 of the period for which a refund is to be paid or
159+20 additional premium is to be charged (which period shall
160+21 not be less than one year); and
161+22 (ii) the amount of the refund or additional premium
162+23 shall not exceed 20% of the Health Maintenance
163+24 Organization's profitable or unprofitable experience with
164+25 respect to the group or other enrollment unit for the
165+26 period (and, for purposes of a refund or additional
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176+1 premium, the profitable or unprofitable experience shall
177+2 be calculated taking into account a pro rata share of the
178+3 Health Maintenance Organization's administrative and
179+4 marketing expenses, but shall not include any refund to be
180+5 made or additional premium to be paid pursuant to this
181+6 subsection (f)). The Health Maintenance Organization and
182+7 the group or enrollment unit may agree that the profitable
183+8 or unprofitable experience may be calculated taking into
184+9 account the refund period and the immediately preceding 2
185+10 plan years.
186+11 The Health Maintenance Organization shall include a
187+12 statement in the evidence of coverage issued to each enrollee
188+13 describing the possibility of a refund or additional premium,
189+14 and upon request of any group or enrollment unit, provide to
190+15 the group or enrollment unit a description of the method used
191+16 to calculate (1) the Health Maintenance Organization's
192+17 profitable experience with respect to the group or enrollment
193+18 unit and the resulting refund to the group or enrollment unit
194+19 or (2) the Health Maintenance Organization's unprofitable
195+20 experience with respect to the group or enrollment unit and
196+21 the resulting additional premium to be paid by the group or
197+22 enrollment unit.
198+23 In no event shall the Illinois Health Maintenance
199+24 Organization Guaranty Association be liable to pay any
200+25 contractual obligation of an insolvent organization to pay any
201+26 refund authorized under this Section.
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211+ HB5258 Enrolled - 7 - LRB103 38992 RPS 69129 b
212+1 (g) Rulemaking authority to implement Public Act 95-1045,
213+2 if any, is conditioned on the rules being adopted in
214+3 accordance with all provisions of the Illinois Administrative
215+4 Procedure Act and all rules and procedures of the Joint
216+5 Committee on Administrative Rules; any purported rule not so
217+6 adopted, for whatever reason, is unauthorized.
218+7 (Source: P.A. 102-30, eff. 1-1-22; 102-34, eff. 6-25-21;
219+8 102-203, eff. 1-1-22; 102-306, eff. 1-1-22; 102-443, eff.
220+9 1-1-22; 102-589, eff. 1-1-22; 102-642, eff. 1-1-22; 102-665,
221+10 eff. 10-8-21; 102-731, eff. 1-1-23; 102-775, eff. 5-13-22;
222+11 102-804, eff. 1-1-23; 102-813, eff. 5-13-22; 102-816, eff.
223+12 1-1-23; 102-860, eff. 1-1-23; 102-901, eff. 7-1-22; 102-1093,
224+13 eff. 1-1-23; 102-1117, eff. 1-13-23; 103-84, eff. 1-1-24;
225+14 103-91, eff. 1-1-24; 103-123, eff. 1-1-24; 103-154, eff.
226+15 6-30-23; 103-420, eff. 1-1-24; 103-426, eff. 8-4-23; 103-445,
227+16 eff. 1-1-24; 103-551, eff. 8-11-23; revised 8-29-23.)
228+17 Section 15. The Limited Health Service Organization Act is
229+18 amended by changing Section 4003 as follows:
230+19 (215 ILCS 130/4003) (from Ch. 73, par. 1504-3)
231+20 Sec. 4003. Illinois Insurance Code provisions. Limited
232+21 health service organizations shall be subject to the
233+22 provisions of Sections 133, 134, 136, 137, 139, 140, 141.1,
234+23 141.2, 141.3, 143, 143c, 147, 148, 149, 151, 152, 153, 154,
235+24 154.5, 154.6, 154.7, 154.8, 155.04, 155.37, 155.49, 355.2,
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246+1 355.3, 355b, 356q, 356v, 356z.4, 356z.4a, 356z.10, 356z.21,
247+2 356z.22, 356z.25, 356z.26, 356z.29, 356z.30a, 356z.32,
248+3 356z.33, 356z.41, 356z.46, 356z.47, 356z.51, 356z.53, 356z.54,
249+4 356z.57, 356z.59, 356z.61, 356z.64, 356z.67, 356z.68, 356z.71,
250+5 364.3, 368a, 401, 401.1, 402, 403, 403A, 408, 408.2, 409, 412,
251+6 444, and 444.1 and Articles IIA, VIII 1/2, XII, XII 1/2, XIII,
252+7 XIII 1/2, XXV, and XXVI of the Illinois Insurance Code.
253+8 Nothing in this Section shall require a limited health care
254+9 plan to cover any service that is not a limited health service.
255+10 For purposes of the Illinois Insurance Code, except for
256+11 Sections 444 and 444.1 and Articles XIII and XIII 1/2, limited
257+12 health service organizations in the following categories are
258+13 deemed to be domestic companies:
259+14 (1) a corporation under the laws of this State; or
260+15 (2) a corporation organized under the laws of another
261+16 state, 30% or more of the enrollees of which are residents
262+17 of this State, except a corporation subject to
263+18 substantially the same requirements in its state of
264+19 organization as is a domestic company under Article VIII
265+20 1/2 of the Illinois Insurance Code.
266+21 (Source: P.A. 102-30, eff. 1-1-22; 102-203, eff. 1-1-22;
267+22 102-306, eff. 1-1-22; 102-642, eff. 1-1-22; 102-731, eff.
268+23 1-1-23; 102-775, eff. 5-13-22; 102-813, eff. 5-13-22; 102-816,
269+24 eff. 1-1-23; 102-860, eff. 1-1-23; 102-1093, eff. 1-1-23;
270+25 102-1117, eff. 1-13-23; 103-84, eff. 1-1-24; 103-91, eff.
271+26 1-1-24; 103-420, eff. 1-1-24; 103-426, eff. 8-4-23; 103-445,
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