HB3699 EngrossedLRB104 05041 BAB 15069 b HB3699 Engrossed LRB104 05041 BAB 15069 b HB3699 Engrossed LRB104 05041 BAB 15069 b 1 AN ACT concerning regulation. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The State Employees Group Insurance Act of 1971 5 is amended by changing Section 6.11 as follows: 6 (5 ILCS 375/6.11) 7 Sec. 6.11. Required health benefits; Illinois Insurance 8 Code requirements. The program of health benefits shall 9 provide the post-mastectomy care benefits required to be 10 covered by a policy of accident and health insurance under 11 Section 356t of the Illinois Insurance Code. The program of 12 health benefits shall provide the coverage required under 13 Sections 356g, 356g.5, 356g.5-1, 356m, 356q, 356u, 356u.10, 14 356w, 356x, 356z.2, 356z.4, 356z.4a, 356z.5, 356z.6, 356z.8, 15 356z.9, 356z.10, 356z.11, 356z.12, 356z.13, 356z.14, 356z.15, 16 356z.17, 356z.22, 356z.25, 356z.26, 356z.29, 356z.30, 356z.32, 17 356z.33, 356z.36, 356z.40, 356z.41, 356z.45, 356z.46, 356z.47, 18 356z.51, 356z.53, 356z.54, 356z.55, 356z.56, 356z.57, 356z.59, 19 356z.60, 356z.61, 356z.62, 356z.64, 356z.67, 356z.68, and 20 356z.70, and 356z.71, 356z.74, 356z.76, 356z.77, and 356z.80 21 of the Illinois Insurance Code. The program of health benefits 22 must comply with Sections 155.22a, 155.37, 355b, 356z.19, 23 370c, and 370c.1 and Article XXXIIB of the Illinois Insurance HB3699 Engrossed LRB104 05041 BAB 15069 b HB3699 Engrossed- 2 -LRB104 05041 BAB 15069 b HB3699 Engrossed - 2 - LRB104 05041 BAB 15069 b HB3699 Engrossed - 2 - LRB104 05041 BAB 15069 b 1 Code. The program of health benefits shall provide the 2 coverage required under Section 356m of the Illinois Insurance 3 Code and, for the employees of the State Employee Group 4 Insurance Program only, the coverage as also provided in 5 Section 6.11B of this Act. The Department of Insurance shall 6 enforce the requirements of this Section with respect to 7 Sections 370c and 370c.1 of the Illinois Insurance Code; all 8 other requirements of this Section shall be enforced by the 9 Department of Central Management Services. 10 Rulemaking authority to implement Public Act 95-1045, if 11 any, is conditioned on the rules being adopted in accordance 12 with all provisions of the Illinois Administrative Procedure 13 Act and all rules and procedures of the Joint Committee on 14 Administrative Rules; any purported rule not so adopted, for 15 whatever reason, is unauthorized. 16 (Source: P.A. 102-30, eff. 1-1-22; 102-103, eff. 1-1-22; 17 102-203, eff. 1-1-22; 102-306, eff. 1-1-22; 102-642, eff. 18 1-1-22; 102-665, eff. 10-8-21; 102-731, eff. 1-1-23; 102-768, 19 eff. 1-1-24; 102-804, eff. 1-1-23; 102-813, eff. 5-13-22; 20 102-816, eff. 1-1-23; 102-860, eff. 1-1-23; 102-1093, eff. 21 1-1-23; 102-1117, eff. 1-13-23; 103-8, eff. 1-1-24; 103-84, 22 eff. 1-1-24; 103-91, eff. 1-1-24; 103-420, eff. 1-1-24; 23 103-445, eff. 1-1-24; 103-535, eff. 8-11-23; 103-551, eff. 24 8-11-23; 103-605, eff. 7-1-24; 103-718, eff. 7-19-24; 103-751, 25 eff. 8-2-24; 103-870, eff. 1-1-25; 103-914, eff. 1-1-25; 26 103-918, eff. 1-1-25; 103-951, eff. 1-1-25; 103-1024, eff. HB3699 Engrossed - 2 - LRB104 05041 BAB 15069 b HB3699 Engrossed- 3 -LRB104 05041 BAB 15069 b HB3699 Engrossed - 3 - LRB104 05041 BAB 15069 b HB3699 Engrossed - 3 - LRB104 05041 BAB 15069 b 1 1-1-25; revised 11-26-24.) 2 Section 10. The Illinois Insurance Code is amended by 3 adding Section 356z.80 as follows: 4 (215 ILCS 5/356z.80 new) 5 Sec. 356z.80. Coverage for prescription vitamins. A group 6 or individual policy of accident and health insurance or a 7 managed care plan that is amended, delivered, issued, or 8 renewed on or after January 1, 2027, shall provide coverage 9 for medically necessary prescribed vitamins. This coverage 10 does not apply to vitamins purchased over the counter. 11 Section 15. The Health Maintenance Organization Act is 12 amended by changing Section 5-3 as follows: 13 (215 ILCS 125/5-3) (from Ch. 111 1/2, par. 1411.2) 14 (Text of Section before amendment by P.A. 103-808) 15 Sec. 5-3. Insurance Code provisions. 16 (a) Health Maintenance Organizations shall be subject to 17 the provisions of Sections 133, 134, 136, 137, 139, 140, 18 141.1, 141.2, 141.3, 143, 143.31, 143c, 147, 148, 149, 151, 19 152, 153, 154, 154.5, 154.6, 154.7, 154.8, 155.04, 155.22a, 20 155.49, 352c, 355.2, 355.3, 355.6, 355b, 355c, 356f, 356g.5-1, 21 356m, 356q, 356u.10, 356v, 356w, 356x, 356z.2, 356z.3a, 22 356z.4, 356z.4a, 356z.5, 356z.6, 356z.8, 356z.9, 356z.10, HB3699 Engrossed - 3 - LRB104 05041 BAB 15069 b HB3699 Engrossed- 4 -LRB104 05041 BAB 15069 b HB3699 Engrossed - 4 - LRB104 05041 BAB 15069 b HB3699 Engrossed - 4 - LRB104 05041 BAB 15069 b 1 356z.11, 356z.12, 356z.13, 356z.14, 356z.15, 356z.17, 356z.18, 2 356z.19, 356z.20, 356z.21, 356z.22, 356z.23, 356z.24, 356z.25, 3 356z.26, 356z.28, 356z.29, 356z.30, 356z.31, 356z.32, 356z.33, 4 356z.34, 356z.35, 356z.36, 356z.37, 356z.38, 356z.39, 356z.40, 5 356z.40a, 356z.41, 356z.44, 356z.45, 356z.46, 356z.47, 6 356z.48, 356z.49, 356z.50, 356z.51, 356z.53, 356z.54, 356z.55, 7 356z.56, 356z.57, 356z.58, 356z.59, 356z.60, 356z.61, 356z.62, 8 356z.63, 356z.64, 356z.65, 356z.66, 356z.67, 356z.68, 356z.69, 9 356z.70, 356z.71, 356z.72, 356z.73, 356z.74, 356z.75, 356z.77, 10 356z.80, 364, 364.01, 364.3, 367.2, 367.2-5, 367i, 368a, 368b, 11 368c, 368d, 368e, 370c, 370c.1, 401, 401.1, 402, 403, 403A, 12 408, 408.2, 409, 412, 444, and 444.1, paragraph (c) of 13 subsection (2) of Section 367, and Articles IIA, VIII 1/2, 14 XII, XII 1/2, XIII, XIII 1/2, XXV, XXVI, and XXXIIB of the 15 Illinois Insurance Code. 16 (b) For purposes of the Illinois Insurance Code, except 17 for Sections 444 and 444.1 and Articles XIII and XIII 1/2, 18 Health Maintenance Organizations in the following categories 19 are deemed to be "domestic companies": 20 (1) a corporation authorized under the Dental Service 21 Plan Act or the Voluntary Health Services Plans Act; 22 (2) a corporation organized under the laws of this 23 State; or 24 (3) a corporation organized under the laws of another 25 state, 30% or more of the enrollees of which are residents 26 of this State, except a corporation subject to HB3699 Engrossed - 4 - LRB104 05041 BAB 15069 b HB3699 Engrossed- 5 -LRB104 05041 BAB 15069 b HB3699 Engrossed - 5 - LRB104 05041 BAB 15069 b HB3699 Engrossed - 5 - LRB104 05041 BAB 15069 b 1 substantially the same requirements in its state of 2 organization as is a "domestic company" under Article VIII 3 1/2 of the Illinois Insurance Code. 4 (c) In considering the merger, consolidation, or other 5 acquisition of control of a Health Maintenance Organization 6 pursuant to Article VIII 1/2 of the Illinois Insurance Code, 7 (1) the Director shall give primary consideration to 8 the continuation of benefits to enrollees and the 9 financial conditions of the acquired Health Maintenance 10 Organization after the merger, consolidation, or other 11 acquisition of control takes effect; 12 (2)(i) the criteria specified in subsection (1)(b) of 13 Section 131.8 of the Illinois Insurance Code shall not 14 apply and (ii) the Director, in making his determination 15 with respect to the merger, consolidation, or other 16 acquisition of control, need not take into account the 17 effect on competition of the merger, consolidation, or 18 other acquisition of control; 19 (3) the Director shall have the power to require the 20 following information: 21 (A) certification by an independent actuary of the 22 adequacy of the reserves of the Health Maintenance 23 Organization sought to be acquired; 24 (B) pro forma financial statements reflecting the 25 combined balance sheets of the acquiring company and 26 the Health Maintenance Organization sought to be HB3699 Engrossed - 5 - LRB104 05041 BAB 15069 b HB3699 Engrossed- 6 -LRB104 05041 BAB 15069 b HB3699 Engrossed - 6 - LRB104 05041 BAB 15069 b HB3699 Engrossed - 6 - LRB104 05041 BAB 15069 b 1 acquired as of the end of the preceding year and as of 2 a date 90 days prior to the acquisition, as well as pro 3 forma financial statements reflecting projected 4 combined operation for a period of 2 years; 5 (C) a pro forma business plan detailing an 6 acquiring party's plans with respect to the operation 7 of the Health Maintenance Organization sought to be 8 acquired for a period of not less than 3 years; and 9 (D) such other information as the Director shall 10 require. 11 (d) The provisions of Article VIII 1/2 of the Illinois 12 Insurance Code and this Section 5-3 shall apply to the sale by 13 any health maintenance organization of greater than 10% of its 14 enrollee population (including, without limitation, the health 15 maintenance organization's right, title, and interest in and 16 to its health care certificates). 17 (e) In considering any management contract or service 18 agreement subject to Section 141.1 of the Illinois Insurance 19 Code, the Director (i) shall, in addition to the criteria 20 specified in Section 141.2 of the Illinois Insurance Code, 21 take into account the effect of the management contract or 22 service agreement on the continuation of benefits to enrollees 23 and the financial condition of the health maintenance 24 organization to be managed or serviced, and (ii) need not take 25 into account the effect of the management contract or service 26 agreement on competition. HB3699 Engrossed - 6 - LRB104 05041 BAB 15069 b HB3699 Engrossed- 7 -LRB104 05041 BAB 15069 b HB3699 Engrossed - 7 - LRB104 05041 BAB 15069 b HB3699 Engrossed - 7 - LRB104 05041 BAB 15069 b 1 (f) Except for small employer groups as defined in the 2 Small Employer Rating, Renewability and Portability Health 3 Insurance Act and except for medicare supplement policies as 4 defined in Section 363 of the Illinois Insurance Code, a 5 Health Maintenance Organization may by contract agree with a 6 group or other enrollment unit to effect refunds or charge 7 additional premiums under the following terms and conditions: 8 (i) the amount of, and other terms and conditions with 9 respect to, the refund or additional premium are set forth 10 in the group or enrollment unit contract agreed in advance 11 of the period for which a refund is to be paid or 12 additional premium is to be charged (which period shall 13 not be less than one year); and 14 (ii) the amount of the refund or additional premium 15 shall not exceed 20% of the Health Maintenance 16 Organization's profitable or unprofitable experience with 17 respect to the group or other enrollment unit for the 18 period (and, for purposes of a refund or additional 19 premium, the profitable or unprofitable experience shall 20 be calculated taking into account a pro rata share of the 21 Health Maintenance Organization's administrative and 22 marketing expenses, but shall not include any refund to be 23 made or additional premium to be paid pursuant to this 24 subsection (f)). The Health Maintenance Organization and 25 the group or enrollment unit may agree that the profitable 26 or unprofitable experience may be calculated taking into HB3699 Engrossed - 7 - LRB104 05041 BAB 15069 b HB3699 Engrossed- 8 -LRB104 05041 BAB 15069 b HB3699 Engrossed - 8 - LRB104 05041 BAB 15069 b HB3699 Engrossed - 8 - LRB104 05041 BAB 15069 b 1 account the refund period and the immediately preceding 2 2 plan years. 3 The Health Maintenance Organization shall include a 4 statement in the evidence of coverage issued to each enrollee 5 describing the possibility of a refund or additional premium, 6 and upon request of any group or enrollment unit, provide to 7 the group or enrollment unit a description of the method used 8 to calculate (1) the Health Maintenance Organization's 9 profitable experience with respect to the group or enrollment 10 unit and the resulting refund to the group or enrollment unit 11 or (2) the Health Maintenance Organization's unprofitable 12 experience with respect to the group or enrollment unit and 13 the resulting additional premium to be paid by the group or 14 enrollment unit. 15 In no event shall the Illinois Health Maintenance 16 Organization Guaranty Association be liable to pay any 17 contractual obligation of an insolvent organization to pay any 18 refund authorized under this Section. 19 (g) Rulemaking authority to implement Public Act 95-1045, 20 if any, is conditioned on the rules being adopted in 21 accordance with all provisions of the Illinois Administrative 22 Procedure Act and all rules and procedures of the Joint 23 Committee on Administrative Rules; any purported rule not so 24 adopted, for whatever reason, is unauthorized. 25 (Source: P.A. 102-30, eff. 1-1-22; 102-34, eff. 6-25-21; 26 102-203, eff. 1-1-22; 102-306, eff. 1-1-22; 102-443, eff. HB3699 Engrossed - 8 - LRB104 05041 BAB 15069 b HB3699 Engrossed- 9 -LRB104 05041 BAB 15069 b HB3699 Engrossed - 9 - LRB104 05041 BAB 15069 b HB3699 Engrossed - 9 - LRB104 05041 BAB 15069 b 1 1-1-22; 102-589, eff. 1-1-22; 102-642, eff. 1-1-22; 102-665, 2 eff. 10-8-21; 102-731, eff. 1-1-23; 102-775, eff. 5-13-22; 3 102-804, eff. 1-1-23; 102-813, eff. 5-13-22; 102-816, eff. 4 1-1-23; 102-860, eff. 1-1-23; 102-901, eff. 7-1-22; 102-1093, 5 eff. 1-1-23; 102-1117, eff. 1-13-23; 103-84, eff. 1-1-24; 6 103-91, eff. 1-1-24; 103-123, eff. 1-1-24; 103-154, eff. 7 6-30-23; 103-420, eff. 1-1-24; 103-426, eff. 8-4-23; 103-445, 8 eff. 1-1-24; 103-551, eff. 8-11-23; 103-605, eff. 7-1-24; 9 103-618, eff. 1-1-25; 103-649, eff. 1-1-25; 103-656, eff. 10 1-1-25; 103-700, eff. 1-1-25; 103-718, eff. 7-19-24; 103-751, 11 eff. 8-2-24; 103-753, eff. 8-2-24; 103-758, eff. 1-1-25; 12 103-777, eff. 8-2-24; 103-914, eff. 1-1-25; 103-918, eff. 13 1-1-25; 103-1024, eff. 1-1-25; revised 9-26-24.) 14 (Text of Section after amendment by P.A. 103-808) 15 Sec. 5-3. Insurance Code provisions. 16 (a) Health Maintenance Organizations shall be subject to 17 the provisions of Sections 133, 134, 136, 137, 139, 140, 18 141.1, 141.2, 141.3, 143, 143.31, 143c, 147, 148, 149, 151, 19 152, 153, 154, 154.5, 154.6, 154.7, 154.8, 155.04, 155.22a, 20 155.49, 352c, 355.2, 355.3, 355.6, 355b, 355c, 356f, 356g, 21 356g.5-1, 356m, 356q, 356u.10, 356v, 356w, 356x, 356z.2, 22 356z.3a, 356z.4, 356z.4a, 356z.5, 356z.6, 356z.8, 356z.9, 23 356z.10, 356z.11, 356z.12, 356z.13, 356z.14, 356z.15, 356z.17, 24 356z.18, 356z.19, 356z.20, 356z.21, 356z.22, 356z.23, 356z.24, 25 356z.25, 356z.26, 356z.28, 356z.29, 356z.30, 356z.31, 356z.32, HB3699 Engrossed - 9 - LRB104 05041 BAB 15069 b HB3699 Engrossed- 10 -LRB104 05041 BAB 15069 b HB3699 Engrossed - 10 - LRB104 05041 BAB 15069 b HB3699 Engrossed - 10 - LRB104 05041 BAB 15069 b 1 356z.33, 356z.34, 356z.35, 356z.36, 356z.37, 356z.38, 356z.39, 2 356z.40, 356z.40a, 356z.41, 356z.44, 356z.45, 356z.46, 3 356z.47, 356z.48, 356z.49, 356z.50, 356z.51, 356z.53, 356z.54, 4 356z.55, 356z.56, 356z.57, 356z.58, 356z.59, 356z.60, 356z.61, 5 356z.62, 356z.63, 356z.64, 356z.65, 356z.66, 356z.67, 356z.68, 6 356z.69, 356z.70, 356z.71, 356z.72, 356z.73, 356z.74, 356z.75, 7 356z.77, 356z.80, 364, 364.01, 364.3, 367.2, 367.2-5, 367i, 8 368a, 368b, 368c, 368d, 368e, 370c, 370c.1, 401, 401.1, 402, 9 403, 403A, 408, 408.2, 409, 412, 444, and 444.1, paragraph (c) 10 of subsection (2) of Section 367, and Articles IIA, VIII 1/2, 11 XII, XII 1/2, XIII, XIII 1/2, XXV, XXVI, and XXXIIB of the 12 Illinois Insurance Code. 13 (b) For purposes of the Illinois Insurance Code, except 14 for Sections 444 and 444.1 and Articles XIII and XIII 1/2, 15 Health Maintenance Organizations in the following categories 16 are deemed to be "domestic companies": 17 (1) a corporation authorized under the Dental Service 18 Plan Act or the Voluntary Health Services Plans Act; 19 (2) a corporation organized under the laws of this 20 State; or 21 (3) a corporation organized under the laws of another 22 state, 30% or more of the enrollees of which are residents 23 of this State, except a corporation subject to 24 substantially the same requirements in its state of 25 organization as is a "domestic company" under Article VIII 26 1/2 of the Illinois Insurance Code. HB3699 Engrossed - 10 - LRB104 05041 BAB 15069 b HB3699 Engrossed- 11 -LRB104 05041 BAB 15069 b HB3699 Engrossed - 11 - LRB104 05041 BAB 15069 b HB3699 Engrossed - 11 - LRB104 05041 BAB 15069 b 1 (c) In considering the merger, consolidation, or other 2 acquisition of control of a Health Maintenance Organization 3 pursuant to Article VIII 1/2 of the Illinois Insurance Code, 4 (1) the Director shall give primary consideration to 5 the continuation of benefits to enrollees and the 6 financial conditions of the acquired Health Maintenance 7 Organization after the merger, consolidation, or other 8 acquisition of control takes effect; 9 (2)(i) the criteria specified in subsection (1)(b) of 10 Section 131.8 of the Illinois Insurance Code shall not 11 apply and (ii) the Director, in making his determination 12 with respect to the merger, consolidation, or other 13 acquisition of control, need not take into account the 14 effect on competition of the merger, consolidation, or 15 other acquisition of control; 16 (3) the Director shall have the power to require the 17 following information: 18 (A) certification by an independent actuary of the 19 adequacy of the reserves of the Health Maintenance 20 Organization sought to be acquired; 21 (B) pro forma financial statements reflecting the 22 combined balance sheets of the acquiring company and 23 the Health Maintenance Organization sought to be 24 acquired as of the end of the preceding year and as of 25 a date 90 days prior to the acquisition, as well as pro 26 forma financial statements reflecting projected HB3699 Engrossed - 11 - LRB104 05041 BAB 15069 b HB3699 Engrossed- 12 -LRB104 05041 BAB 15069 b HB3699 Engrossed - 12 - LRB104 05041 BAB 15069 b HB3699 Engrossed - 12 - LRB104 05041 BAB 15069 b 1 combined operation for a period of 2 years; 2 (C) a pro forma business plan detailing an 3 acquiring party's plans with respect to the operation 4 of the Health Maintenance Organization sought to be 5 acquired for a period of not less than 3 years; and 6 (D) such other information as the Director shall 7 require. 8 (d) The provisions of Article VIII 1/2 of the Illinois 9 Insurance Code and this Section 5-3 shall apply to the sale by 10 any health maintenance organization of greater than 10% of its 11 enrollee population (including, without limitation, the health 12 maintenance organization's right, title, and interest in and 13 to its health care certificates). 14 (e) In considering any management contract or service 15 agreement subject to Section 141.1 of the Illinois Insurance 16 Code, the Director (i) shall, in addition to the criteria 17 specified in Section 141.2 of the Illinois Insurance Code, 18 take into account the effect of the management contract or 19 service agreement on the continuation of benefits to enrollees 20 and the financial condition of the health maintenance 21 organization to be managed or serviced, and (ii) need not take 22 into account the effect of the management contract or service 23 agreement on competition. 24 (f) Except for small employer groups as defined in the 25 Small Employer Rating, Renewability and Portability Health 26 Insurance Act and except for medicare supplement policies as HB3699 Engrossed - 12 - LRB104 05041 BAB 15069 b HB3699 Engrossed- 13 -LRB104 05041 BAB 15069 b HB3699 Engrossed - 13 - LRB104 05041 BAB 15069 b HB3699 Engrossed - 13 - LRB104 05041 BAB 15069 b 1 defined in Section 363 of the Illinois Insurance Code, a 2 Health Maintenance Organization may by contract agree with a 3 group or other enrollment unit to effect refunds or charge 4 additional premiums under the following terms and conditions: 5 (i) the amount of, and other terms and conditions with 6 respect to, the refund or additional premium are set forth 7 in the group or enrollment unit contract agreed in advance 8 of the period for which a refund is to be paid or 9 additional premium is to be charged (which period shall 10 not be less than one year); and 11 (ii) the amount of the refund or additional premium 12 shall not exceed 20% of the Health Maintenance 13 Organization's profitable or unprofitable experience with 14 respect to the group or other enrollment unit for the 15 period (and, for purposes of a refund or additional 16 premium, the profitable or unprofitable experience shall 17 be calculated taking into account a pro rata share of the 18 Health Maintenance Organization's administrative and 19 marketing expenses, but shall not include any refund to be 20 made or additional premium to be paid pursuant to this 21 subsection (f)). The Health Maintenance Organization and 22 the group or enrollment unit may agree that the profitable 23 or unprofitable experience may be calculated taking into 24 account the refund period and the immediately preceding 2 25 plan years. 26 The Health Maintenance Organization shall include a HB3699 Engrossed - 13 - LRB104 05041 BAB 15069 b HB3699 Engrossed- 14 -LRB104 05041 BAB 15069 b HB3699 Engrossed - 14 - LRB104 05041 BAB 15069 b HB3699 Engrossed - 14 - LRB104 05041 BAB 15069 b 1 statement in the evidence of coverage issued to each enrollee 2 describing the possibility of a refund or additional premium, 3 and upon request of any group or enrollment unit, provide to 4 the group or enrollment unit a description of the method used 5 to calculate (1) the Health Maintenance Organization's 6 profitable experience with respect to the group or enrollment 7 unit and the resulting refund to the group or enrollment unit 8 or (2) the Health Maintenance Organization's unprofitable 9 experience with respect to the group or enrollment unit and 10 the resulting additional premium to be paid by the group or 11 enrollment unit. 12 In no event shall the Illinois Health Maintenance 13 Organization Guaranty Association be liable to pay any 14 contractual obligation of an insolvent organization to pay any 15 refund authorized under this Section. 16 (g) Rulemaking authority to implement Public Act 95-1045, 17 if any, is conditioned on the rules being adopted in 18 accordance with all provisions of the Illinois Administrative 19 Procedure Act and all rules and procedures of the Joint 20 Committee on Administrative Rules; any purported rule not so 21 adopted, for whatever reason, is unauthorized. 22 (Source: P.A. 102-30, eff. 1-1-22; 102-34, eff. 6-25-21; 23 102-203, eff. 1-1-22; 102-306, eff. 1-1-22; 102-443, eff. 24 1-1-22; 102-589, eff. 1-1-22; 102-642, eff. 1-1-22; 102-665, 25 eff. 10-8-21; 102-731, eff. 1-1-23; 102-775, eff. 5-13-22; 26 102-804, eff. 1-1-23; 102-813, eff. 5-13-22; 102-816, eff. HB3699 Engrossed - 14 - LRB104 05041 BAB 15069 b HB3699 Engrossed- 15 -LRB104 05041 BAB 15069 b HB3699 Engrossed - 15 - LRB104 05041 BAB 15069 b HB3699 Engrossed - 15 - LRB104 05041 BAB 15069 b 1 1-1-23; 102-860, eff. 1-1-23; 102-901, eff. 7-1-22; 102-1093, 2 eff. 1-1-23; 102-1117, eff. 1-13-23; 103-84, eff. 1-1-24; 3 103-91, eff. 1-1-24; 103-123, eff. 1-1-24; 103-154, eff. 4 6-30-23; 103-420, eff. 1-1-24; 103-426, eff. 8-4-23; 103-445, 5 eff. 1-1-24; 103-551, eff. 8-11-23; 103-605, eff. 7-1-24; 6 103-618, eff. 1-1-25; 103-649, eff. 1-1-25; 103-656, eff. 7 1-1-25; 103-700, eff. 1-1-25; 103-718, eff. 7-19-24; 103-751, 8 eff. 8-2-24; 103-753, eff. 8-2-24; 103-758, eff. 1-1-25; 9 103-777, eff. 8-2-24; 103-808, eff. 1-1-26; 103-914, eff. 10 1-1-25; 103-918, eff. 1-1-25; 103-1024, eff. 1-1-25; revised 11 11-26-24.) 12 Section 20. The Limited Health Service Organization Act is 13 amended by changing Section 4003 as follows: 14 (215 ILCS 130/4003) (from Ch. 73, par. 1504-3) 15 Sec. 4003. Illinois Insurance Code provisions. Limited 16 health service organizations shall be subject to the 17 provisions of Sections 133, 134, 136, 137, 139, 140, 141.1, 18 141.2, 141.3, 143, 143.31, 143c, 147, 148, 149, 151, 152, 153, 19 154, 154.5, 154.6, 154.7, 154.8, 155.04, 155.37, 155.49, 352c, 20 355.2, 355.3, 355b, 355d, 356m, 356q, 356v, 356z.4, 356z.4a, 21 356z.10, 356z.21, 356z.22, 356z.25, 356z.26, 356z.29, 356z.32, 22 356z.33, 356z.41, 356z.46, 356z.47, 356z.51, 356z.53, 356z.54, 23 356z.57, 356z.59, 356z.61, 356z.64, 356z.67, 356z.68, 356z.71, 24 356z.73, 356z.74, 356z.75, 356z.80, 364.3, 368a, 401, 401.1, HB3699 Engrossed - 15 - LRB104 05041 BAB 15069 b HB3699 Engrossed- 16 -LRB104 05041 BAB 15069 b HB3699 Engrossed - 16 - LRB104 05041 BAB 15069 b HB3699 Engrossed - 16 - LRB104 05041 BAB 15069 b 1 402, 403, 403A, 408, 408.2, 409, 412, 444, and 444.1 and 2 Articles IIA, VIII 1/2, XII, XII 1/2, XIII, XIII 1/2, XXV, and 3 XXVI of the Illinois Insurance Code. Nothing in this Section 4 shall require a limited health care plan to cover any service 5 that is not a limited health service. For purposes of the 6 Illinois Insurance Code, except for Sections 444 and 444.1 and 7 Articles XIII and XIII 1/2, limited health service 8 organizations in the following categories are deemed to be 9 domestic companies: 10 (1) a corporation under the laws of this State; or 11 (2) a corporation organized under the laws of another 12 state, 30% or more of the enrollees of which are residents 13 of this State, except a corporation subject to 14 substantially the same requirements in its state of 15 organization as is a domestic company under Article VIII 16 1/2 of the Illinois Insurance Code. 17 (Source: P.A. 102-30, eff. 1-1-22; 102-203, eff. 1-1-22; 18 102-306, eff. 1-1-22; 102-642, eff. 1-1-22; 102-731, eff. 19 1-1-23; 102-775, eff. 5-13-22; 102-813, eff. 5-13-22; 102-816, 20 eff. 1-1-23; 102-860, eff. 1-1-23; 102-1093, eff. 1-1-23; 21 102-1117, eff. 1-13-23; 103-84, eff. 1-1-24; 103-91, eff. 22 1-1-24; 103-420, eff. 1-1-24; 103-426, eff. 8-4-23; 103-445, 23 eff. 1-1-24; 103-605, eff. 7-1-24; 103-649, eff. 1-1-25; 24 103-656, eff. 1-1-25; 103-700, eff. 1-1-25; 103-718, eff. 25 7-19-24; 103-751, eff. 8-2-24; 103-758, eff. 1-1-25; 103-832, 26 eff. 1-1-25; 103-1024, eff. 1-1-25; revised 11-26-24.) HB3699 Engrossed - 16 - LRB104 05041 BAB 15069 b HB3699 Engrossed- 17 -LRB104 05041 BAB 15069 b HB3699 Engrossed - 17 - LRB104 05041 BAB 15069 b HB3699 Engrossed - 17 - LRB104 05041 BAB 15069 b 1 Section 25. The Voluntary Health Services Plans Act is 2 amended by changing Section 10 as follows: 3 (215 ILCS 165/10) (from Ch. 32, par. 604) 4 Sec. 10. Application of Insurance Code provisions. Health 5 services plan corporations and all persons interested therein 6 or dealing therewith shall be subject to the provisions of 7 Articles IIA and XII 1/2 and Sections 3.1, 133, 136, 139, 140, 8 143, 143.31, 143c, 149, 155.22a, 155.37, 354, 355.2, 355.3, 9 355b, 355d, 356g, 356g.5, 356g.5-1, 356m, 356q, 356r, 356t, 10 356u, 356u.10, 356v, 356w, 356x, 356y, 356z.1, 356z.2, 11 356z.3a, 356z.4, 356z.4a, 356z.5, 356z.6, 356z.8, 356z.9, 12 356z.10, 356z.11, 356z.12, 356z.13, 356z.14, 356z.15, 356z.18, 13 356z.19, 356z.21, 356z.22, 356z.25, 356z.26, 356z.29, 356z.30, 14 356z.32, 356z.32a, 356z.33, 356z.40, 356z.41, 356z.46, 15 356z.47, 356z.51, 356z.53, 356z.54, 356z.56, 356z.57, 356z.59, 16 356z.60, 356z.61, 356z.62, 356z.64, 356z.67, 356z.68, 356z.71, 17 356z.72, 356z.74, 356z.75, 356z.77, 356z.80, 364.01, 364.3, 18 367.2, 368a, 401, 401.1, 402, 403, 403A, 408, 408.2, and 412, 19 and paragraphs (7) and (15) of Section 367 of the Illinois 20 Insurance Code. 21 Rulemaking authority to implement Public Act 95-1045, if 22 any, is conditioned on the rules being adopted in accordance 23 with all provisions of the Illinois Administrative Procedure 24 Act and all rules and procedures of the Joint Committee on HB3699 Engrossed - 17 - LRB104 05041 BAB 15069 b HB3699 Engrossed- 18 -LRB104 05041 BAB 15069 b HB3699 Engrossed - 18 - LRB104 05041 BAB 15069 b HB3699 Engrossed - 18 - LRB104 05041 BAB 15069 b 1 Administrative Rules; any purported rule not so adopted, for 2 whatever reason, is unauthorized. 3 (Source: P.A. 102-30, eff. 1-1-22; 102-203, eff. 1-1-22; 4 102-306, eff. 1-1-22; 102-642, eff. 1-1-22; 102-665, eff. 5 10-8-21; 102-731, eff. 1-1-23; 102-775, eff. 5-13-22; 102-804, 6 eff. 1-1-23; 102-813, eff. 5-13-22; 102-816, eff. 1-1-23; 7 102-860, eff. 1-1-23; 102-901, eff. 7-1-22; 102-1093, eff. 8 1-1-23; 102-1117, eff. 1-13-23; 103-84, eff. 1-1-24; 103-91, 9 eff. 1-1-24; 103-420, eff. 1-1-24; 103-445, eff. 1-1-24; 10 103-551, eff. 8-11-23; 103-605, eff. 7-1-24; 103-656, eff. 11 1-1-25; 103-718, eff. 7-19-24; 103-751, eff. 8-2-24; 103-753, 12 eff. 8-2-24; 103-758, eff. 1-1-25; 103-832, eff. 1-1-25; 13 103-914, eff. 1-1-25; 103-918, eff. 1-1-25; 103-1024, eff. 14 1-1-25; revised 11-26-24.) 15 Section 30. The Illinois Public Aid Code is amended by 16 changing Section 5-16.8 as follows: 17 (305 ILCS 5/5-16.8) 18 Sec. 5-16.8. Required health benefits. The medical 19 assistance program shall (i) provide the post-mastectomy care 20 benefits required to be covered by a policy of accident and 21 health insurance under Section 356t and the coverage required 22 under Sections 356g.5, 356q, 356u, 356w, 356x, 356z.6, 23 356z.26, 356z.29, 356z.32, 356z.33, 356z.34, 356z.35, 356z.46, 24 356z.47, 356z.51, 356z.53, 356z.59, 356z.60, 356z.61, 356z.64, HB3699 Engrossed - 18 - LRB104 05041 BAB 15069 b HB3699 Engrossed- 19 -LRB104 05041 BAB 15069 b HB3699 Engrossed - 19 - LRB104 05041 BAB 15069 b HB3699 Engrossed - 19 - LRB104 05041 BAB 15069 b 1 and 356z.67, and 356z.71, 356z.75, and 356z.80 of the Illinois 2 Insurance Code, (ii) be subject to the provisions of Sections 3 356z.19, 356z.44, 356z.49, 364.01, 370c, and 370c.1 of the 4 Illinois Insurance Code, and (iii) be subject to the 5 provisions of subsection (d-5) of Section 10 of the Network 6 Adequacy and Transparency Act. 7 The Department, by rule, shall adopt a model similar to 8 the requirements of Section 356z.39 of the Illinois Insurance 9 Code. 10 On and after July 1, 2012, the Department shall reduce any 11 rate of reimbursement for services or other payments or alter 12 any methodologies authorized by this Code to reduce any rate 13 of reimbursement for services or other payments in accordance 14 with Section 5-5e. 15 To ensure full access to the benefits set forth in this 16 Section, on and after January 1, 2016, the Department shall 17 ensure that provider and hospital reimbursement for 18 post-mastectomy care benefits required under this Section are 19 no lower than the Medicare reimbursement rate. 20 (Source: P.A. 102-30, eff. 1-1-22; 102-144, eff. 1-1-22; 21 102-203, eff. 1-1-22; 102-306, eff. 1-1-22; 102-530, eff. 22 1-1-22; 102-642, eff. 1-1-22; 102-804, eff. 1-1-23; 102-813, 23 eff. 5-13-22; 102-816, eff. 1-1-23; 102-1093, eff. 1-1-23; 24 102-1117, eff. 1-13-23; 103-84, eff. 1-1-24; 103-91, eff. 25 1-1-24; 103-420, eff. 1-1-24; 103-605, eff. 7-1-24; 103-703, 26 eff. 1-1-25; 103-758, eff. 1-1-25; 103-1024, eff. 1-1-25; HB3699 Engrossed - 19 - LRB104 05041 BAB 15069 b HB3699 Engrossed- 20 -LRB104 05041 BAB 15069 b HB3699 Engrossed - 20 - LRB104 05041 BAB 15069 b HB3699 Engrossed - 20 - LRB104 05041 BAB 15069 b 1 revised 11-26-24.) 2 Section 95. No acceleration or delay. Where this Act makes 3 changes in a statute that is represented in this Act by text 4 that is not yet or no longer in effect (for example, a Section 5 represented by multiple versions), the use of that text does 6 not accelerate or delay the taking effect of (i) the changes 7 made by this Act or (ii) provisions derived from any other 8 Public Act. HB3699 Engrossed - 20 - LRB104 05041 BAB 15069 b