Illinois 2023-2024 Regular Session

Illinois Senate Bill SB1708 Compare Versions

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11 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1708 Introduced 2/9/2023, by Sen. Mike Simmons SYNOPSIS AS INTRODUCED: 5 ILCS 375/6.11 55 ILCS 5/5-1069.3 65 ILCS 5/10-4-2.3 105 ILCS 5/10-22.3f 215 ILCS 5/356z.61 new 215 ILCS 125/5-3 from Ch. 111 1/2, par. 1411.2 215 ILCS 130/4003 from Ch. 73, par. 1504-3 215 ILCS 165/10 from Ch. 32, par. 604 Amends the Accident and Health Article of the Illinois Insurance Code. Provides that a group policy of accident and health insurance or a managed care plan amended, delivered, issued, or renewed on or after the effective date of the amendatory Act that an employer makes available to any employee shall also be made available to all individuals employed by the employer, regardless of the amount of hours per week an employee works. Makes conforming changes in the State Employees Group Insurance Act of 1971, the Counties Code, the Illinois Municipal Code, the School Code, the Health Maintenance Organization Act, the Limited Health Service Organization Act, and the Voluntary Health Services Plans Act. LRB103 29109 BMS 55495 b STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1708 Introduced 2/9/2023, by Sen. Mike Simmons SYNOPSIS AS INTRODUCED: 5 ILCS 375/6.11 55 ILCS 5/5-1069.3 65 ILCS 5/10-4-2.3 105 ILCS 5/10-22.3f 215 ILCS 5/356z.61 new 215 ILCS 125/5-3 from Ch. 111 1/2, par. 1411.2 215 ILCS 130/4003 from Ch. 73, par. 1504-3 215 ILCS 165/10 from Ch. 32, par. 604 5 ILCS 375/6.11 55 ILCS 5/5-1069.3 65 ILCS 5/10-4-2.3 105 ILCS 5/10-22.3f 215 ILCS 5/356z.61 new 215 ILCS 125/5-3 from Ch. 111 1/2, par. 1411.2 215 ILCS 130/4003 from Ch. 73, par. 1504-3 215 ILCS 165/10 from Ch. 32, par. 604 Amends the Accident and Health Article of the Illinois Insurance Code. Provides that a group policy of accident and health insurance or a managed care plan amended, delivered, issued, or renewed on or after the effective date of the amendatory Act that an employer makes available to any employee shall also be made available to all individuals employed by the employer, regardless of the amount of hours per week an employee works. Makes conforming changes in the State Employees Group Insurance Act of 1971, the Counties Code, the Illinois Municipal Code, the School Code, the Health Maintenance Organization Act, the Limited Health Service Organization Act, and the Voluntary Health Services Plans Act. LRB103 29109 BMS 55495 b LRB103 29109 BMS 55495 b STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY A BILL FOR
22 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1708 Introduced 2/9/2023, by Sen. Mike Simmons SYNOPSIS AS INTRODUCED:
33 5 ILCS 375/6.11 55 ILCS 5/5-1069.3 65 ILCS 5/10-4-2.3 105 ILCS 5/10-22.3f 215 ILCS 5/356z.61 new 215 ILCS 125/5-3 from Ch. 111 1/2, par. 1411.2 215 ILCS 130/4003 from Ch. 73, par. 1504-3 215 ILCS 165/10 from Ch. 32, par. 604 5 ILCS 375/6.11 55 ILCS 5/5-1069.3 65 ILCS 5/10-4-2.3 105 ILCS 5/10-22.3f 215 ILCS 5/356z.61 new 215 ILCS 125/5-3 from Ch. 111 1/2, par. 1411.2 215 ILCS 130/4003 from Ch. 73, par. 1504-3 215 ILCS 165/10 from Ch. 32, par. 604
44 5 ILCS 375/6.11
55 55 ILCS 5/5-1069.3
66 65 ILCS 5/10-4-2.3
77 105 ILCS 5/10-22.3f
88 215 ILCS 5/356z.61 new
99 215 ILCS 125/5-3 from Ch. 111 1/2, par. 1411.2
1010 215 ILCS 130/4003 from Ch. 73, par. 1504-3
1111 215 ILCS 165/10 from Ch. 32, par. 604
1212 Amends the Accident and Health Article of the Illinois Insurance Code. Provides that a group policy of accident and health insurance or a managed care plan amended, delivered, issued, or renewed on or after the effective date of the amendatory Act that an employer makes available to any employee shall also be made available to all individuals employed by the employer, regardless of the amount of hours per week an employee works. Makes conforming changes in the State Employees Group Insurance Act of 1971, the Counties Code, the Illinois Municipal Code, the School Code, the Health Maintenance Organization Act, the Limited Health Service Organization Act, and the Voluntary Health Services Plans Act.
1313 LRB103 29109 BMS 55495 b LRB103 29109 BMS 55495 b
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1515 STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
1616 STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
1717 A BILL FOR
1818 SB1708LRB103 29109 BMS 55495 b SB1708 LRB103 29109 BMS 55495 b
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2020 1 AN ACT concerning regulation.
2121 2 Be it enacted by the People of the State of Illinois,
2222 3 represented in the General Assembly:
2323 4 Section 5. The State Employees Group Insurance Act of 1971
2424 5 is amended by changing Section 6.11 as follows:
2525 6 (5 ILCS 375/6.11)
2626 7 (Text of Section before amendment by P.A. 102-768)
2727 8 Sec. 6.11. Required health benefits; Illinois Insurance
2828 9 Code requirements. The program of health benefits shall
2929 10 provide the post-mastectomy care benefits required to be
3030 11 covered by a policy of accident and health insurance under
3131 12 Section 356t of the Illinois Insurance Code. The program of
3232 13 health benefits shall provide the coverage required under
3333 14 Sections 356g, 356g.5, 356g.5-1, 356m, 356q, 356u, 356w, 356x,
3434 15 356z.2, 356z.4, 356z.4a, 356z.6, 356z.8, 356z.9, 356z.10,
3535 16 356z.11, 356z.12, 356z.13, 356z.14, 356z.15, 356z.17, 356z.22,
3636 17 356z.25, 356z.26, 356z.29, 356z.30a, 356z.32, 356z.33,
3737 18 356z.36, 356z.40, 356z.41, 356z.45, 356z.46, 356z.47, 356z.51,
3838 19 356z.53, 356z.54, 356z.56, 356z.57, 356z.59, and 356z.60 of
3939 20 the Illinois Insurance Code. The program of health benefits
4040 21 must comply with Sections 155.22a, 155.37, 355b, 356z.19,
4141 22 370c, and 370c.1 and Article XXXIIB of the Illinois Insurance
4242 23 Code. The Department of Insurance shall enforce the
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4646 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1708 Introduced 2/9/2023, by Sen. Mike Simmons SYNOPSIS AS INTRODUCED:
4747 5 ILCS 375/6.11 55 ILCS 5/5-1069.3 65 ILCS 5/10-4-2.3 105 ILCS 5/10-22.3f 215 ILCS 5/356z.61 new 215 ILCS 125/5-3 from Ch. 111 1/2, par. 1411.2 215 ILCS 130/4003 from Ch. 73, par. 1504-3 215 ILCS 165/10 from Ch. 32, par. 604 5 ILCS 375/6.11 55 ILCS 5/5-1069.3 65 ILCS 5/10-4-2.3 105 ILCS 5/10-22.3f 215 ILCS 5/356z.61 new 215 ILCS 125/5-3 from Ch. 111 1/2, par. 1411.2 215 ILCS 130/4003 from Ch. 73, par. 1504-3 215 ILCS 165/10 from Ch. 32, par. 604
4848 5 ILCS 375/6.11
4949 55 ILCS 5/5-1069.3
5050 65 ILCS 5/10-4-2.3
5151 105 ILCS 5/10-22.3f
5252 215 ILCS 5/356z.61 new
5353 215 ILCS 125/5-3 from Ch. 111 1/2, par. 1411.2
5454 215 ILCS 130/4003 from Ch. 73, par. 1504-3
5555 215 ILCS 165/10 from Ch. 32, par. 604
5656 Amends the Accident and Health Article of the Illinois Insurance Code. Provides that a group policy of accident and health insurance or a managed care plan amended, delivered, issued, or renewed on or after the effective date of the amendatory Act that an employer makes available to any employee shall also be made available to all individuals employed by the employer, regardless of the amount of hours per week an employee works. Makes conforming changes in the State Employees Group Insurance Act of 1971, the Counties Code, the Illinois Municipal Code, the School Code, the Health Maintenance Organization Act, the Limited Health Service Organization Act, and the Voluntary Health Services Plans Act.
5757 LRB103 29109 BMS 55495 b LRB103 29109 BMS 55495 b
5858 LRB103 29109 BMS 55495 b
5959 STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
6060 STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
6161 A BILL FOR
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6767 5 ILCS 375/6.11
6868 55 ILCS 5/5-1069.3
6969 65 ILCS 5/10-4-2.3
7070 105 ILCS 5/10-22.3f
7171 215 ILCS 5/356z.61 new
7272 215 ILCS 125/5-3 from Ch. 111 1/2, par. 1411.2
7373 215 ILCS 130/4003 from Ch. 73, par. 1504-3
7474 215 ILCS 165/10 from Ch. 32, par. 604
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8080 STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
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9797 1 requirements of this Section with respect to Sections 370c and
9898 2 370c.1 of the Illinois Insurance Code; all other requirements
9999 3 of this Section shall be enforced by the Department of Central
100100 4 Management Services.
101101 5 Rulemaking authority to implement Public Act 95-1045, if
102102 6 any, is conditioned on the rules being adopted in accordance
103103 7 with all provisions of the Illinois Administrative Procedure
104104 8 Act and all rules and procedures of the Joint Committee on
105105 9 Administrative Rules; any purported rule not so adopted, for
106106 10 whatever reason, is unauthorized.
107107 11 (Source: P.A. 101-13, eff. 6-12-19; 101-281, eff. 1-1-20;
108108 12 101-393, eff. 1-1-20; 101-452, eff. 1-1-20; 101-461, eff.
109109 13 1-1-20; 101-625, eff. 1-1-21; 102-30, eff. 1-1-22; 102-103,
110110 14 eff. 1-1-22; 102-203, eff. 1-1-22; 102-306, eff. 1-1-22;
111111 15 102-642, eff. 1-1-22; 102-665, eff. 10-8-21; 102-731, eff.
112112 16 1-1-23; 102-804, eff. 1-1-23; 102-813, eff. 5-13-22; 102-816,
113113 17 eff. 1-1-23; 102-860, eff. 1-1-23; 102-1093, eff. 1-1-23;
114114 18 revised 12-13-22.)
115115 19 (Text of Section after amendment by P.A. 102-768)
116116 20 Sec. 6.11. Required health benefits; Illinois Insurance
117117 21 Code requirements. The program of health benefits shall
118118 22 provide the post-mastectomy care benefits required to be
119119 23 covered by a policy of accident and health insurance under
120120 24 Section 356t of the Illinois Insurance Code. The program of
121121 25 health benefits shall provide the coverage required under
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132132 1 Sections 356g, 356g.5, 356g.5-1, 356m, 356q, 356u, 356w, 356x,
133133 2 356z.2, 356z.4, 356z.4a, 356z.6, 356z.8, 356z.9, 356z.10,
134134 3 356z.11, 356z.12, 356z.13, 356z.14, 356z.15, 356z.17, 356z.22,
135135 4 356z.25, 356z.26, 356z.29, 356z.30a, 356z.32, 356z.33,
136136 5 356z.36, 356z.40, 356z.41, 356z.45, 356z.46, 356z.47, 356z.51,
137137 6 356z.53, 356z.54, 356z.55, 356z.56, 356z.57, 356z.59, and
138138 7 356z.60, and 356z.61 of the Illinois Insurance Code. The
139139 8 program of health benefits must comply with Sections 155.22a,
140140 9 155.37, 355b, 356z.19, 370c, and 370c.1 and Article XXXIIB of
141141 10 the Illinois Insurance Code. The Department of Insurance shall
142142 11 enforce the requirements of this Section with respect to
143143 12 Sections 370c and 370c.1 of the Illinois Insurance Code; all
144144 13 other requirements of this Section shall be enforced by the
145145 14 Department of Central Management Services.
146146 15 Rulemaking authority to implement Public Act 95-1045, if
147147 16 any, is conditioned on the rules being adopted in accordance
148148 17 with all provisions of the Illinois Administrative Procedure
149149 18 Act and all rules and procedures of the Joint Committee on
150150 19 Administrative Rules; any purported rule not so adopted, for
151151 20 whatever reason, is unauthorized.
152152 21 (Source: P.A. 101-13, eff. 6-12-19; 101-281, eff. 1-1-20;
153153 22 101-393, eff. 1-1-20; 101-452, eff. 1-1-20; 101-461, eff.
154154 23 1-1-20; 101-625, eff. 1-1-21; 102-30, eff. 1-1-22; 102-103,
155155 24 eff. 1-1-22; 102-203, eff. 1-1-22; 102-306, eff. 1-1-22;
156156 25 102-642, eff. 1-1-22; 102-665, eff. 10-8-21; 102-731, eff.
157157 26 1-1-23; 102-768, eff. 1-1-24; 102-804, eff. 1-1-23; 102-813,
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168168 1 eff. 5-13-22; 102-816, eff. 1-1-23; 102-860, eff. 1-1-23;
169169 2 102-1093, eff. 1-1-23; 102-1117, eff. 1-13-23.)
170170 3 Section 10. The Counties Code is amended by changing
171171 4 Section 5-1069.3 as follows:
172172 5 (55 ILCS 5/5-1069.3)
173173 6 Sec. 5-1069.3. Required health benefits. If a county,
174174 7 including a home rule county, is a self-insurer for purposes
175175 8 of providing health insurance coverage for its employees, the
176176 9 coverage shall include coverage for the post-mastectomy care
177177 10 benefits required to be covered by a policy of accident and
178178 11 health insurance under Section 356t and the coverage required
179179 12 under Sections 356g, 356g.5, 356g.5-1, 356q, 356u, 356w, 356x,
180180 13 356z.4, 356z.4a, 356z.6, 356z.8, 356z.9, 356z.10, 356z.11,
181181 14 356z.12, 356z.13, 356z.14, 356z.15, 356z.22, 356z.25, 356z.26,
182182 15 356z.29, 356z.30a, 356z.32, 356z.33, 356z.36, 356z.40,
183183 16 356z.41, 356z.45, 356z.46, 356z.47, 356z.48, 356z.51, 356z.53,
184184 17 356z.54, 356z.56, 356z.57, 356z.59, and 356z.60, and 356z.61
185185 18 of the Illinois Insurance Code. The coverage shall comply with
186186 19 Sections 155.22a, 355b, 356z.19, and 370c of the Illinois
187187 20 Insurance Code. The Department of Insurance shall enforce the
188188 21 requirements of this Section. The requirement that health
189189 22 benefits be covered as provided in this Section is an
190190 23 exclusive power and function of the State and is a denial and
191191 24 limitation under Article VII, Section 6, subsection (h) of the
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202202 1 Illinois Constitution. A home rule county to which this
203203 2 Section applies must comply with every provision of this
204204 3 Section.
205205 4 Rulemaking authority to implement Public Act 95-1045, if
206206 5 any, is conditioned on the rules being adopted in accordance
207207 6 with all provisions of the Illinois Administrative Procedure
208208 7 Act and all rules and procedures of the Joint Committee on
209209 8 Administrative Rules; any purported rule not so adopted, for
210210 9 whatever reason, is unauthorized.
211211 10 (Source: P.A. 101-81, eff. 7-12-19; 101-281, eff. 1-1-20;
212212 11 101-393, eff. 1-1-20; 101-461, eff. 1-1-20; 101-625, eff.
213213 12 1-1-21; 102-30, eff. 1-1-22; 102-103, eff. 1-1-22; 102-203,
214214 13 eff. 1-1-22; 102-306, eff. 1-1-22; 102-443, eff. 1-1-22;
215215 14 102-642, eff. 1-1-22; 102-665, eff. 10-8-21; 102-731, eff.
216216 15 1-1-23; 102-804, eff. 1-1-23; 102-813, eff. 5-13-22; 102-816,
217217 16 eff. 1-1-23; 102-860, eff. 1-1-23; 102-1093, eff. 1-1-23;
218218 17 102-1117, eff. 1-13-23.)
219219 18 Section 15. The Illinois Municipal Code is amended by
220220 19 changing Section 10-4-2.3 as follows:
221221 20 (65 ILCS 5/10-4-2.3)
222222 21 Sec. 10-4-2.3. Required health benefits. If a
223223 22 municipality, including a home rule municipality, is a
224224 23 self-insurer for purposes of providing health insurance
225225 24 coverage for its employees, the coverage shall include
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236236 1 coverage for the post-mastectomy care benefits required to be
237237 2 covered by a policy of accident and health insurance under
238238 3 Section 356t and the coverage required under Sections 356g,
239239 4 356g.5, 356g.5-1, 356q, 356u, 356w, 356x, 356z.4, 356z.4a,
240240 5 356z.6, 356z.8, 356z.9, 356z.10, 356z.11, 356z.12, 356z.13,
241241 6 356z.14, 356z.15, 356z.22, 356z.25, 356z.26, 356z.29,
242242 7 356z.30a, 356z.32, 356z.33, 356z.36, 356z.40, 356z.41,
243243 8 356z.45, 356z.46, 356z.47, 356z.48, 356z.51, 356z.53, 356z.54,
244244 9 356z.56, 356z.57, 356z.59, and 356z.60, and 356z.61 of the
245245 10 Illinois Insurance Code. The coverage shall comply with
246246 11 Sections 155.22a, 355b, 356z.19, and 370c of the Illinois
247247 12 Insurance Code. The Department of Insurance shall enforce the
248248 13 requirements of this Section. The requirement that health
249249 14 benefits be covered as provided in this is an exclusive power
250250 15 and function of the State and is a denial and limitation under
251251 16 Article VII, Section 6, subsection (h) of the Illinois
252252 17 Constitution. A home rule municipality to which this Section
253253 18 applies must comply with every provision of this Section.
254254 19 Rulemaking authority to implement Public Act 95-1045, if
255255 20 any, is conditioned on the rules being adopted in accordance
256256 21 with all provisions of the Illinois Administrative Procedure
257257 22 Act and all rules and procedures of the Joint Committee on
258258 23 Administrative Rules; any purported rule not so adopted, for
259259 24 whatever reason, is unauthorized.
260260 25 (Source: P.A. 101-81, eff. 7-12-19; 101-281, eff. 1-1-20;
261261 26 101-393, eff. 1-1-20; 101-461, eff. 1-1-20; 101-625, eff.
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272272 1 1-1-21; 102-30, eff. 1-1-22; 102-103, eff. 1-1-22; 102-203,
273273 2 eff. 1-1-22; 102-306, eff. 1-1-22; 102-443, eff. 1-1-22;
274274 3 102-642, eff. 1-1-22; 102-665, eff. 10-8-21; 102-731, eff.
275275 4 1-1-23; 102-804, eff. 1-1-23; 102-813, eff. 5-13-22; 102-816,
276276 5 eff. 1-1-23; 102-860, eff. 1-1-23; 102-1093, eff. 1-1-23;
277277 6 102-1117, eff. 1-13-23.)
278278 7 Section 20. The School Code is amended by changing Section
279279 8 10-22.3f as follows:
280280 9 (105 ILCS 5/10-22.3f)
281281 10 Sec. 10-22.3f. Required health benefits. Insurance
282282 11 protection and benefits for employees shall provide the
283283 12 post-mastectomy care benefits required to be covered by a
284284 13 policy of accident and health insurance under Section 356t and
285285 14 the coverage required under Sections 356g, 356g.5, 356g.5-1,
286286 15 356q, 356u, 356w, 356x, 356z.4, 356z.4a, 356z.6, 356z.8,
287287 16 356z.9, 356z.11, 356z.12, 356z.13, 356z.14, 356z.15, 356z.22,
288288 17 356z.25, 356z.26, 356z.29, 356z.30a, 356z.32, 356z.33,
289289 18 356z.36, 356z.40, 356z.41, 356z.45, 356z.46, 356z.47, 356z.51,
290290 19 356z.53, 356z.54, 356z.56, 356z.57, 356z.59, and 356z.60, and
291291 20 356z.61 of the Illinois Insurance Code. Insurance policies
292292 21 shall comply with Section 356z.19 of the Illinois Insurance
293293 22 Code. The coverage shall comply with Sections 155.22a, 355b,
294294 23 and 370c of the Illinois Insurance Code. The Department of
295295 24 Insurance shall enforce the requirements of this Section.
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306306 1 Rulemaking authority to implement Public Act 95-1045, if
307307 2 any, is conditioned on the rules being adopted in accordance
308308 3 with all provisions of the Illinois Administrative Procedure
309309 4 Act and all rules and procedures of the Joint Committee on
310310 5 Administrative Rules; any purported rule not so adopted, for
311311 6 whatever reason, is unauthorized.
312312 7 (Source: P.A. 101-81, eff. 7-12-19; 101-281, eff. 1-1-20;
313313 8 101-393, eff. 1-1-20; 101-461, eff. 1-1-20; 101-625, eff.
314314 9 1-1-21; 102-30, eff. 1-1-22; 102-103, eff. 1-1-22; 102-203,
315315 10 eff. 1-1-22; 102-306, eff. 1-1-22; 102-642, eff. 1-1-22;
316316 11 102-665, eff. 10-8-21; 102-731, eff. 1-1-23; 102-804, eff.
317317 12 1-1-23; 102-813, eff. 5-13-22; 102-816, eff. 1-1-23; 102-860,
318318 13 eff. 1-1-23; 102-1093, eff. 1-1-23; 102-1117, eff. 1-13-23.)
319319 14 Section 25. The Illinois Insurance Code is amended by
320320 15 adding Section 356z.61 as follows:
321321 16 (215 ILCS 5/356z.61 new)
322322 17 Sec. 356z.61. Employee health benefits parity. A group
323323 18 policy of accident and health insurance or a managed care plan
324324 19 amended, delivered, issued, or renewed on or after the
325325 20 effective date of this amendatory Act of the 103rd General
326326 21 Assembly that an employer makes available to any employee
327327 22 shall also be made available to all individuals employed by
328328 23 the employer, regardless of the amount of hours per week an
329329 24 employee works.
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340340 1 Section 30. The Health Maintenance Organization Act is
341341 2 amended by changing Section 5-3 as follows:
342342 3 (215 ILCS 125/5-3) (from Ch. 111 1/2, par. 1411.2)
343343 4 Sec. 5-3. Insurance Code provisions.
344344 5 (a) Health Maintenance Organizations shall be subject to
345345 6 the provisions of Sections 133, 134, 136, 137, 139, 140,
346346 7 141.1, 141.2, 141.3, 143, 143c, 147, 148, 149, 151, 152, 153,
347347 8 154, 154.5, 154.6, 154.7, 154.8, 155.04, 155.22a, 355.2,
348348 9 355.3, 355b, 355c, 356g.5-1, 356m, 356q, 356v, 356w, 356x,
349349 10 356y, 356z.2, 356z.3a, 356z.4, 356z.4a, 356z.5, 356z.6,
350350 11 356z.8, 356z.9, 356z.10, 356z.11, 356z.12, 356z.13, 356z.14,
351351 12 356z.15, 356z.17, 356z.18, 356z.19, 356z.21, 356z.22, 356z.25,
352352 13 356z.26, 356z.29, 356z.30, 356z.30a, 356z.32, 356z.33,
353353 14 356z.35, 356z.36, 356z.40, 356z.41, 356z.46, 356z.47, 356z.48,
354354 15 356z.50, 356z.51, 356z.53 256z.53, 356z.54, 356z.56, 356z.57,
355355 16 356z.59, 356z.60, 356z.61, 364, 364.01, 364.3, 367.2, 367.2-5,
356356 17 367i, 368a, 368b, 368c, 368d, 368e, 370c, 370c.1, 401, 401.1,
357357 18 402, 403, 403A, 408, 408.2, 409, 412, 444, and 444.1,
358358 19 paragraph (c) of subsection (2) of Section 367, and Articles
359359 20 IIA, VIII 1/2, XII, XII 1/2, XIII, XIII 1/2, XXV, XXVI, and
360360 21 XXXIIB of the Illinois Insurance Code.
361361 22 (b) For purposes of the Illinois Insurance Code, except
362362 23 for Sections 444 and 444.1 and Articles XIII and XIII 1/2,
363363 24 Health Maintenance Organizations in the following categories
364364
365365
366366
367367
368368
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370370
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373373 SB1708 - 10 - LRB103 29109 BMS 55495 b
374374 1 are deemed to be "domestic companies":
375375 2 (1) a corporation authorized under the Dental Service
376376 3 Plan Act or the Voluntary Health Services Plans Act;
377377 4 (2) a corporation organized under the laws of this
378378 5 State; or
379379 6 (3) a corporation organized under the laws of another
380380 7 state, 30% or more of the enrollees of which are residents
381381 8 of this State, except a corporation subject to
382382 9 substantially the same requirements in its state of
383383 10 organization as is a "domestic company" under Article VIII
384384 11 1/2 of the Illinois Insurance Code.
385385 12 (c) In considering the merger, consolidation, or other
386386 13 acquisition of control of a Health Maintenance Organization
387387 14 pursuant to Article VIII 1/2 of the Illinois Insurance Code,
388388 15 (1) the Director shall give primary consideration to
389389 16 the continuation of benefits to enrollees and the
390390 17 financial conditions of the acquired Health Maintenance
391391 18 Organization after the merger, consolidation, or other
392392 19 acquisition of control takes effect;
393393 20 (2)(i) the criteria specified in subsection (1)(b) of
394394 21 Section 131.8 of the Illinois Insurance Code shall not
395395 22 apply and (ii) the Director, in making his determination
396396 23 with respect to the merger, consolidation, or other
397397 24 acquisition of control, need not take into account the
398398 25 effect on competition of the merger, consolidation, or
399399 26 other acquisition of control;
400400
401401
402402
403403
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409409 SB1708 - 11 - LRB103 29109 BMS 55495 b
410410 1 (3) the Director shall have the power to require the
411411 2 following information:
412412 3 (A) certification by an independent actuary of the
413413 4 adequacy of the reserves of the Health Maintenance
414414 5 Organization sought to be acquired;
415415 6 (B) pro forma financial statements reflecting the
416416 7 combined balance sheets of the acquiring company and
417417 8 the Health Maintenance Organization sought to be
418418 9 acquired as of the end of the preceding year and as of
419419 10 a date 90 days prior to the acquisition, as well as pro
420420 11 forma financial statements reflecting projected
421421 12 combined operation for a period of 2 years;
422422 13 (C) a pro forma business plan detailing an
423423 14 acquiring party's plans with respect to the operation
424424 15 of the Health Maintenance Organization sought to be
425425 16 acquired for a period of not less than 3 years; and
426426 17 (D) such other information as the Director shall
427427 18 require.
428428 19 (d) The provisions of Article VIII 1/2 of the Illinois
429429 20 Insurance Code and this Section 5-3 shall apply to the sale by
430430 21 any health maintenance organization of greater than 10% of its
431431 22 enrollee population (including without limitation the health
432432 23 maintenance organization's right, title, and interest in and
433433 24 to its health care certificates).
434434 25 (e) In considering any management contract or service
435435 26 agreement subject to Section 141.1 of the Illinois Insurance
436436
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438438
439439
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446446 1 Code, the Director (i) shall, in addition to the criteria
447447 2 specified in Section 141.2 of the Illinois Insurance Code,
448448 3 take into account the effect of the management contract or
449449 4 service agreement on the continuation of benefits to enrollees
450450 5 and the financial condition of the health maintenance
451451 6 organization to be managed or serviced, and (ii) need not take
452452 7 into account the effect of the management contract or service
453453 8 agreement on competition.
454454 9 (f) Except for small employer groups as defined in the
455455 10 Small Employer Rating, Renewability and Portability Health
456456 11 Insurance Act and except for medicare supplement policies as
457457 12 defined in Section 363 of the Illinois Insurance Code, a
458458 13 Health Maintenance Organization may by contract agree with a
459459 14 group or other enrollment unit to effect refunds or charge
460460 15 additional premiums under the following terms and conditions:
461461 16 (i) the amount of, and other terms and conditions with
462462 17 respect to, the refund or additional premium are set forth
463463 18 in the group or enrollment unit contract agreed in advance
464464 19 of the period for which a refund is to be paid or
465465 20 additional premium is to be charged (which period shall
466466 21 not be less than one year); and
467467 22 (ii) the amount of the refund or additional premium
468468 23 shall not exceed 20% of the Health Maintenance
469469 24 Organization's profitable or unprofitable experience with
470470 25 respect to the group or other enrollment unit for the
471471 26 period (and, for purposes of a refund or additional
472472
473473
474474
475475
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478478
479479
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481481 SB1708 - 13 - LRB103 29109 BMS 55495 b
482482 1 premium, the profitable or unprofitable experience shall
483483 2 be calculated taking into account a pro rata share of the
484484 3 Health Maintenance Organization's administrative and
485485 4 marketing expenses, but shall not include any refund to be
486486 5 made or additional premium to be paid pursuant to this
487487 6 subsection (f)). The Health Maintenance Organization and
488488 7 the group or enrollment unit may agree that the profitable
489489 8 or unprofitable experience may be calculated taking into
490490 9 account the refund period and the immediately preceding 2
491491 10 plan years.
492492 11 The Health Maintenance Organization shall include a
493493 12 statement in the evidence of coverage issued to each enrollee
494494 13 describing the possibility of a refund or additional premium,
495495 14 and upon request of any group or enrollment unit, provide to
496496 15 the group or enrollment unit a description of the method used
497497 16 to calculate (1) the Health Maintenance Organization's
498498 17 profitable experience with respect to the group or enrollment
499499 18 unit and the resulting refund to the group or enrollment unit
500500 19 or (2) the Health Maintenance Organization's unprofitable
501501 20 experience with respect to the group or enrollment unit and
502502 21 the resulting additional premium to be paid by the group or
503503 22 enrollment unit.
504504 23 In no event shall the Illinois Health Maintenance
505505 24 Organization Guaranty Association be liable to pay any
506506 25 contractual obligation of an insolvent organization to pay any
507507 26 refund authorized under this Section.
508508
509509
510510
511511
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515515
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518518 1 (g) Rulemaking authority to implement Public Act 95-1045,
519519 2 if any, is conditioned on the rules being adopted in
520520 3 accordance with all provisions of the Illinois Administrative
521521 4 Procedure Act and all rules and procedures of the Joint
522522 5 Committee on Administrative Rules; any purported rule not so
523523 6 adopted, for whatever reason, is unauthorized.
524524 7 (Source: P.A. 101-13, eff. 6-12-19; 101-81, eff. 7-12-19;
525525 8 101-281, eff. 1-1-20; 101-371, eff. 1-1-20; 101-393, eff.
526526 9 1-1-20; 101-452, eff. 1-1-20; 101-461, eff. 1-1-20; 101-625,
527527 10 eff. 1-1-21; 102-30, eff. 1-1-22; 102-34, eff. 6-25-21;
528528 11 102-203, eff. 1-1-22; 102-306, eff. 1-1-22; 102-443, eff.
529529 12 1-1-22; 102-589, eff. 1-1-22; 102-642, eff. 1-1-22; 102-665,
530530 13 eff. 10-8-21; 102-731, eff. 1-1-23; 102-775, eff. 5-13-22;
531531 14 102-804, eff. 1-1-23; 102-813, eff. 5-13-22; 102-816, eff.
532532 15 1-1-23; 102-860, eff. 1-1-23; 102-901, eff. 7-1-22; 102-1093,
533533 16 eff. 1-1-23; 102-1117, eff. 1-13-23; revised 1-22-23.)
534534 17 Section 35. The Limited Health Service Organization Act is
535535 18 amended by changing Section 4003 as follows:
536536 19 (215 ILCS 130/4003) (from Ch. 73, par. 1504-3)
537537 20 Sec. 4003. Illinois Insurance Code provisions. Limited
538538 21 health service organizations shall be subject to the
539539 22 provisions of Sections 133, 134, 136, 137, 139, 140, 141.1,
540540 23 141.2, 141.3, 143, 143c, 147, 148, 149, 151, 152, 153, 154,
541541 24 154.5, 154.6, 154.7, 154.8, 155.04, 155.37, 355.2, 355.3,
542542
543543
544544
545545
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551551 SB1708 - 15 - LRB103 29109 BMS 55495 b
552552 1 355b, 356q, 356v, 356z.4, 356z.4a, 356z.10, 356z.21, 356z.22,
553553 2 356z.25, 356z.26, 356z.29, 356z.30a, 356z.32, 356z.33,
554554 3 356z.41, 356z.46, 356z.47, 356z.51, 356z.53, 356z.54, 356z.57,
555555 4 356z.59, 356z.61, 364.3, 368a, 401, 401.1, 402, 403, 403A,
556556 5 408, 408.2, 409, 412, 444, and 444.1 and Articles IIA, VIII
557557 6 1/2, XII, XII 1/2, XIII, XIII 1/2, XXV, and XXVI of the
558558 7 Illinois Insurance Code. Nothing in this Section shall require
559559 8 a limited health care plan to cover any service that is not a
560560 9 limited health service. For purposes of the Illinois Insurance
561561 10 Code, except for Sections 444 and 444.1 and Articles XIII and
562562 11 XIII 1/2, limited health service organizations in the
563563 12 following categories are deemed to be domestic companies:
564564 13 (1) a corporation under the laws of this State; or
565565 14 (2) a corporation organized under the laws of another
566566 15 state, 30% or more of the enrollees of which are residents
567567 16 of this State, except a corporation subject to
568568 17 substantially the same requirements in its state of
569569 18 organization as is a domestic company under Article VIII
570570 19 1/2 of the Illinois Insurance Code.
571571 20 (Source: P.A. 101-81, eff. 7-12-19; 101-281, eff. 1-1-20;
572572 21 101-393, eff. 1-1-20; 101-625, eff. 1-1-21; 102-30, eff.
573573 22 1-1-22; 102-203, eff. 1-1-22; 102-306, eff. 1-1-22; 102-642,
574574 23 eff. 1-1-22; 102-731, eff. 1-1-23; 102-775, eff. 5-13-22;
575575 24 102-813, eff. 5-13-22; 102-816, eff. 1-1-23; 102-860, eff.
576576 25 1-1-23; 102-1093, eff. 1-1-23; 102-1117, eff. 1-13-23.)
577577
578578
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587587 1 Section 40. The Voluntary Health Services Plans Act is
588588 2 amended by changing Section 10 as follows:
589589 3 (215 ILCS 165/10) (from Ch. 32, par. 604)
590590 4 Sec. 10. Application of Insurance Code provisions. Health
591591 5 services plan corporations and all persons interested therein
592592 6 or dealing therewith shall be subject to the provisions of
593593 7 Articles IIA and XII 1/2 and Sections 3.1, 133, 136, 139, 140,
594594 8 143, 143c, 149, 155.22a, 155.37, 354, 355.2, 355.3, 355b,
595595 9 356g, 356g.5, 356g.5-1, 356q, 356r, 356t, 356u, 356v, 356w,
596596 10 356x, 356y, 356z.1, 356z.2, 356z.3a, 356z.4, 356z.4a, 356z.5,
597597 11 356z.6, 356z.8, 356z.9, 356z.10, 356z.11, 356z.12, 356z.13,
598598 12 356z.14, 356z.15, 356z.18, 356z.19, 356z.21, 356z.22, 356z.25,
599599 13 356z.26, 356z.29, 356z.30, 356z.30a, 356z.32, 356z.33,
600600 14 356z.40, 356z.41, 356z.46, 356z.47, 356z.51, 356z.53, 356z.54,
601601 15 356z.56, 356z.57, 356z.59, 356z.60, 356z.61, 364.01, 364.3,
602602 16 367.2, 368a, 401, 401.1, 402, 403, 403A, 408, 408.2, and 412,
603603 17 and paragraphs (7) and (15) of Section 367 of the Illinois
604604 18 Insurance Code.
605605 19 Rulemaking authority to implement Public Act 95-1045, if
606606 20 any, is conditioned on the rules being adopted in accordance
607607 21 with all provisions of the Illinois Administrative Procedure
608608 22 Act and all rules and procedures of the Joint Committee on
609609 23 Administrative Rules; any purported rule not so adopted, for
610610 24 whatever reason, is unauthorized.
611611 25 (Source: P.A. 101-13, eff. 6-12-19; 101-81, eff. 7-12-19;
612612
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614614
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621621 SB1708 - 17 - LRB103 29109 BMS 55495 b
622622 1 101-281, eff. 1-1-20; 101-393, eff. 1-1-20; 101-625, eff.
623623 2 1-1-21; 102-30, eff. 1-1-22; 102-203, eff. 1-1-22; 102-306,
624624 3 eff. 1-1-22; 102-642, eff. 1-1-22; 102-665, eff. 10-8-21;
625625 4 102-731, eff. 1-1-23; 102-775, eff. 5-13-22; 102-804, eff.
626626 5 1-1-23; 102-813, eff. 5-13-22; 102-816, eff. 1-1-23; 102-860,
627627 6 eff. 1-1-23; 102-901, eff. 7-1-22; 102-1093, eff. 1-1-23;
628628 7 102-1117, eff. 1-13-23.)
629629
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