SB1392 EngrossedLRB104 06099 BAB 16132 b SB1392 Engrossed LRB104 06099 BAB 16132 b SB1392 Engrossed LRB104 06099 BAB 16132 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 Illinois Insurance Code is amended by 5 changing Section 370a as follows: 6 (215 ILCS 5/370a) (from Ch. 73, par. 982a) 7 Sec. 370a. Assignability of Accident and Health Insurance, 8 including dental insurance. No provision of the Illinois 9 Insurance Code, or any other law, prohibits an insured under 10 any policy of dental insurance or accident and health 11 insurance or any other person who may be the owner of any 12 rights under any such policy from making an assignment of all 13 or any part of his rights and privileges under the policy 14 including but not limited to the right to designate a 15 beneficiary and to have an individual policy issued in 16 accordance with its terms. Subject to the terms of the policy 17 or any contract relating thereto, an assignment by an insured 18 or by any other owner of rights under the policy, made before 19 or after the effective date of this amendatory Act of 1969 is 20 valid for the purpose of vesting in the assignee, in 21 accordance with any provisions included therein as to the time 22 at which it is effective, all rights and privileges so 23 assigned. However, such assignment is without prejudice to the SB1392 Engrossed LRB104 06099 BAB 16132 b SB1392 Engrossed- 2 -LRB104 06099 BAB 16132 b SB1392 Engrossed - 2 - LRB104 06099 BAB 16132 b SB1392 Engrossed - 2 - LRB104 06099 BAB 16132 b 1 company on account of any payment it makes or individual 2 policy it issues before receipt of notice of the assignment. 3 This amendatory Act of 1969 acknowledges, declares and 4 codifies the existing right of assignment of interests under 5 accident and health insurance policies. If an enrollee or 6 insured of an insurer, health maintenance organization, 7 managed care plan, health care plan, preferred provider 8 organization, dental service plan corporation, dental insurer, 9 or third party administrator assigns a claim to a health care 10 professional, or health care facility, dental care provider, 11 or dental care facility, then payment shall be made directly 12 to the health care professional, or health care facility, 13 dental care provider, or dental care facility, including any 14 interest required under Section 368a, of this Code for failure 15 to pay claims within 30 days after receipt by the insurer of 16 due proof of loss. Nothing in this Section shall be construed 17 to prevent any parties from reconciling duplicate payments. 18 (Source: P.A. 91-605, eff. 12-14-99; 91-788, eff. 6-9-00.) 19 Section 10. The Dental Service Plan Act is amended by 20 adding Section 38.1 as follows: 21 (215 ILCS 110/38.1 new) 22 Sec. 38.1. Illinois Insurance Code provisions. Every 23 dental service plan corporation shall comply with Section 370a 24 of the Illinois Insurance Code. SB1392 Engrossed - 2 - LRB104 06099 BAB 16132 b SB1392 Engrossed- 3 -LRB104 06099 BAB 16132 b SB1392 Engrossed - 3 - LRB104 06099 BAB 16132 b SB1392 Engrossed - 3 - LRB104 06099 BAB 16132 b 1 Section 15. The Health Maintenance Organization Act is 2 amended by changing Section 5-3 as follows: 3 (215 ILCS 125/5-3) (from Ch. 111 1/2, par. 1411.2) 4 (Text of Section before amendment by P.A. 103-808) 5 Sec. 5-3. Illinois Insurance Code provisions. 6 (a) Health Maintenance Organizations shall be subject to 7 the provisions of Sections 133, 134, 136, 137, 139, 140, 8 141.1, 141.2, 141.3, 143, 143.31, 143c, 147, 148, 149, 151, 9 152, 153, 154, 154.5, 154.6, 154.7, 154.8, 155.04, 155.22a, 10 155.49, 352c, 355.2, 355.3, 355.6, 355b, 355c, 356f, 356g.5-1, 11 356m, 356q, 356u.10, 356v, 356w, 356x, 356z.2, 356z.3a, 12 356z.4, 356z.4a, 356z.5, 356z.6, 356z.8, 356z.9, 356z.10, 13 356z.11, 356z.12, 356z.13, 356z.14, 356z.15, 356z.17, 356z.18, 14 356z.19, 356z.20, 356z.21, 356z.22, 356z.23, 356z.24, 356z.25, 15 356z.26, 356z.28, 356z.29, 356z.30, 356z.31, 356z.32, 356z.33, 16 356z.34, 356z.35, 356z.36, 356z.37, 356z.38, 356z.39, 356z.40, 17 356z.40a, 356z.41, 356z.44, 356z.45, 356z.46, 356z.47, 18 356z.48, 356z.49, 356z.50, 356z.51, 356z.53, 356z.54, 356z.55, 19 356z.56, 356z.57, 356z.58, 356z.59, 356z.60, 356z.61, 356z.62, 20 356z.63, 356z.64, 356z.65, 356z.66, 356z.67, 356z.68, 356z.69, 21 356z.70, 356z.71, 356z.72, 356z.73, 356z.74, 356z.75, 356z.77, 22 364, 364.01, 364.3, 367.2, 367.2-5, 367i, 368a, 368b, 368c, 23 368d, 368e, 370a, 370c, 370c.1, 401, 401.1, 402, 403, 403A, 24 408, 408.2, 409, 412, 444, and 444.1, paragraph (c) of SB1392 Engrossed - 3 - LRB104 06099 BAB 16132 b SB1392 Engrossed- 4 -LRB104 06099 BAB 16132 b SB1392 Engrossed - 4 - LRB104 06099 BAB 16132 b SB1392 Engrossed - 4 - LRB104 06099 BAB 16132 b 1 subsection (2) of Section 367, and Articles IIA, VIII 1/2, 2 XII, XII 1/2, XIII, XIII 1/2, XXV, XXVI, and XXXIIB of the 3 Illinois Insurance Code. 4 (b) For purposes of the Illinois Insurance Code, except 5 for Sections 444 and 444.1 and Articles XIII and XIII 1/2, 6 Health Maintenance Organizations in the following categories 7 are deemed to be "domestic companies": 8 (1) a corporation authorized under the Dental Service 9 Plan Act or the Voluntary Health Services Plans Act; 10 (2) a corporation organized under the laws of this 11 State; or 12 (3) a corporation organized under the laws of another 13 state, 30% or more of the enrollees of which are residents 14 of this State, except a corporation subject to 15 substantially the same requirements in its state of 16 organization as is a "domestic company" under Article VIII 17 1/2 of the Illinois Insurance Code. 18 (c) In considering the merger, consolidation, or other 19 acquisition of control of a Health Maintenance Organization 20 pursuant to Article VIII 1/2 of the Illinois Insurance Code, 21 (1) the Director shall give primary consideration to 22 the continuation of benefits to enrollees and the 23 financial conditions of the acquired Health Maintenance 24 Organization after the merger, consolidation, or other 25 acquisition of control takes effect; 26 (2)(i) the criteria specified in subsection (1)(b) of SB1392 Engrossed - 4 - LRB104 06099 BAB 16132 b SB1392 Engrossed- 5 -LRB104 06099 BAB 16132 b SB1392 Engrossed - 5 - LRB104 06099 BAB 16132 b SB1392 Engrossed - 5 - LRB104 06099 BAB 16132 b 1 Section 131.8 of the Illinois Insurance Code shall not 2 apply and (ii) the Director, in making his determination 3 with respect to the merger, consolidation, or other 4 acquisition of control, need not take into account the 5 effect on competition of the merger, consolidation, or 6 other acquisition of control; 7 (3) the Director shall have the power to require the 8 following information: 9 (A) certification by an independent actuary of the 10 adequacy of the reserves of the Health Maintenance 11 Organization sought to be acquired; 12 (B) pro forma financial statements reflecting the 13 combined balance sheets of the acquiring company and 14 the Health Maintenance Organization sought to be 15 acquired as of the end of the preceding year and as of 16 a date 90 days prior to the acquisition, as well as pro 17 forma financial statements reflecting projected 18 combined operation for a period of 2 years; 19 (C) a pro forma business plan detailing an 20 acquiring party's plans with respect to the operation 21 of the Health Maintenance Organization sought to be 22 acquired for a period of not less than 3 years; and 23 (D) such other information as the Director shall 24 require. 25 (d) The provisions of Article VIII 1/2 of the Illinois 26 Insurance Code and this Section 5-3 shall apply to the sale by SB1392 Engrossed - 5 - LRB104 06099 BAB 16132 b SB1392 Engrossed- 6 -LRB104 06099 BAB 16132 b SB1392 Engrossed - 6 - LRB104 06099 BAB 16132 b SB1392 Engrossed - 6 - LRB104 06099 BAB 16132 b 1 any health maintenance organization of greater than 10% of its 2 enrollee population (including, without limitation, the health 3 maintenance organization's right, title, and interest in and 4 to its health care certificates). 5 (e) In considering any management contract or service 6 agreement subject to Section 141.1 of the Illinois Insurance 7 Code, the Director (i) shall, in addition to the criteria 8 specified in Section 141.2 of the Illinois Insurance Code, 9 take into account the effect of the management contract or 10 service agreement on the continuation of benefits to enrollees 11 and the financial condition of the health maintenance 12 organization to be managed or serviced, and (ii) need not take 13 into account the effect of the management contract or service 14 agreement on competition. 15 (f) Except for small employer groups as defined in the 16 Small Employer Rating, Renewability and Portability Health 17 Insurance Act and except for medicare supplement policies as 18 defined in Section 363 of the Illinois Insurance Code, a 19 Health Maintenance Organization may by contract agree with a 20 group or other enrollment unit to effect refunds or charge 21 additional premiums under the following terms and conditions: 22 (i) the amount of, and other terms and conditions with 23 respect to, the refund or additional premium are set forth 24 in the group or enrollment unit contract agreed in advance 25 of the period for which a refund is to be paid or 26 additional premium is to be charged (which period shall SB1392 Engrossed - 6 - LRB104 06099 BAB 16132 b SB1392 Engrossed- 7 -LRB104 06099 BAB 16132 b SB1392 Engrossed - 7 - LRB104 06099 BAB 16132 b SB1392 Engrossed - 7 - LRB104 06099 BAB 16132 b 1 not be less than one year); and 2 (ii) the amount of the refund or additional premium 3 shall not exceed 20% of the Health Maintenance 4 Organization's profitable or unprofitable experience with 5 respect to the group or other enrollment unit for the 6 period (and, for purposes of a refund or additional 7 premium, the profitable or unprofitable experience shall 8 be calculated taking into account a pro rata share of the 9 Health Maintenance Organization's administrative and 10 marketing expenses, but shall not include any refund to be 11 made or additional premium to be paid pursuant to this 12 subsection (f)). The Health Maintenance Organization and 13 the group or enrollment unit may agree that the profitable 14 or unprofitable experience may be calculated taking into 15 account the refund period and the immediately preceding 2 16 plan years. 17 The Health Maintenance Organization shall include a 18 statement in the evidence of coverage issued to each enrollee 19 describing the possibility of a refund or additional premium, 20 and upon request of any group or enrollment unit, provide to 21 the group or enrollment unit a description of the method used 22 to calculate (1) the Health Maintenance Organization's 23 profitable experience with respect to the group or enrollment 24 unit and the resulting refund to the group or enrollment unit 25 or (2) the Health Maintenance Organization's unprofitable 26 experience with respect to the group or enrollment unit and SB1392 Engrossed - 7 - LRB104 06099 BAB 16132 b SB1392 Engrossed- 8 -LRB104 06099 BAB 16132 b SB1392 Engrossed - 8 - LRB104 06099 BAB 16132 b SB1392 Engrossed - 8 - LRB104 06099 BAB 16132 b 1 the resulting additional premium to be paid by the group or 2 enrollment unit. 3 In no event shall the Illinois Health Maintenance 4 Organization Guaranty Association be liable to pay any 5 contractual obligation of an insolvent organization to pay any 6 refund authorized under this Section. 7 (g) Rulemaking authority to implement Public Act 95-1045, 8 if any, is conditioned on the rules being adopted in 9 accordance with all provisions of the Illinois Administrative 10 Procedure Act and all rules and procedures of the Joint 11 Committee on Administrative Rules; any purported rule not so 12 adopted, for whatever reason, is unauthorized. 13 (Source: P.A. 102-30, eff. 1-1-22; 102-34, eff. 6-25-21; 14 102-203, eff. 1-1-22; 102-306, eff. 1-1-22; 102-443, eff. 15 1-1-22; 102-589, eff. 1-1-22; 102-642, eff. 1-1-22; 102-665, 16 eff. 10-8-21; 102-731, eff. 1-1-23; 102-775, eff. 5-13-22; 17 102-804, eff. 1-1-23; 102-813, eff. 5-13-22; 102-816, eff. 18 1-1-23; 102-860, eff. 1-1-23; 102-901, eff. 7-1-22; 102-1093, 19 eff. 1-1-23; 102-1117, eff. 1-13-23; 103-84, eff. 1-1-24; 20 103-91, eff. 1-1-24; 103-123, eff. 1-1-24; 103-154, eff. 21 6-30-23; 103-420, eff. 1-1-24; 103-426, eff. 8-4-23; 103-445, 22 eff. 1-1-24; 103-551, eff. 8-11-23; 103-605, eff. 7-1-24; 23 103-618, eff. 1-1-25; 103-649, eff. 1-1-25; 103-656, eff. 24 1-1-25; 103-700, eff. 1-1-25; 103-718, eff. 7-19-24; 103-751, 25 eff. 8-2-24; 103-753, eff. 8-2-24; 103-758, eff. 1-1-25; 26 103-777, eff. 8-2-24; 103-914, eff. 1-1-25; 103-918, eff. SB1392 Engrossed - 8 - LRB104 06099 BAB 16132 b SB1392 Engrossed- 9 -LRB104 06099 BAB 16132 b SB1392 Engrossed - 9 - LRB104 06099 BAB 16132 b SB1392 Engrossed - 9 - LRB104 06099 BAB 16132 b 1 1-1-25; 103-1024, eff. 1-1-25; revised 9-26-24.) 2 (Text of Section after amendment by P.A. 103-808) 3 Sec. 5-3. Illinois Insurance Code provisions. 4 (a) Health Maintenance Organizations shall be subject to 5 the provisions of Sections 133, 134, 136, 137, 139, 140, 6 141.1, 141.2, 141.3, 143, 143.31, 143c, 147, 148, 149, 151, 7 152, 153, 154, 154.5, 154.6, 154.7, 154.8, 155.04, 155.22a, 8 155.49, 352c, 355.2, 355.3, 355.6, 355b, 355c, 356f, 356g, 9 356g.5-1, 356m, 356q, 356u.10, 356v, 356w, 356x, 356z.2, 10 356z.3a, 356z.4, 356z.4a, 356z.5, 356z.6, 356z.8, 356z.9, 11 356z.10, 356z.11, 356z.12, 356z.13, 356z.14, 356z.15, 356z.17, 12 356z.18, 356z.19, 356z.20, 356z.21, 356z.22, 356z.23, 356z.24, 13 356z.25, 356z.26, 356z.28, 356z.29, 356z.30, 356z.31, 356z.32, 14 356z.33, 356z.34, 356z.35, 356z.36, 356z.37, 356z.38, 356z.39, 15 356z.40, 356z.40a, 356z.41, 356z.44, 356z.45, 356z.46, 16 356z.47, 356z.48, 356z.49, 356z.50, 356z.51, 356z.53, 356z.54, 17 356z.55, 356z.56, 356z.57, 356z.58, 356z.59, 356z.60, 356z.61, 18 356z.62, 356z.63, 356z.64, 356z.65, 356z.66, 356z.67, 356z.68, 19 356z.69, 356z.70, 356z.71, 356z.72, 356z.73, 356z.74, 356z.75, 20 356z.77, 364, 364.01, 364.3, 367.2, 367.2-5, 367i, 368a, 368b, 21 368c, 368d, 368e, 370a, 370c, 370c.1, 401, 401.1, 402, 403, 22 403A, 408, 408.2, 409, 412, 444, and 444.1, paragraph (c) of 23 subsection (2) of Section 367, and Articles IIA, VIII 1/2, 24 XII, XII 1/2, XIII, XIII 1/2, XXV, XXVI, and XXXIIB of the 25 Illinois Insurance Code. SB1392 Engrossed - 9 - LRB104 06099 BAB 16132 b SB1392 Engrossed- 10 -LRB104 06099 BAB 16132 b SB1392 Engrossed - 10 - LRB104 06099 BAB 16132 b SB1392 Engrossed - 10 - LRB104 06099 BAB 16132 b 1 (b) For purposes of the Illinois Insurance Code, except 2 for Sections 444 and 444.1 and Articles XIII and XIII 1/2, 3 Health Maintenance Organizations in the following categories 4 are deemed to be "domestic companies": 5 (1) a corporation authorized under the Dental Service 6 Plan Act or the Voluntary Health Services Plans Act; 7 (2) a corporation organized under the laws of this 8 State; or 9 (3) a corporation organized under the laws of another 10 state, 30% or more of the enrollees of which are residents 11 of this State, except a corporation subject to 12 substantially the same requirements in its state of 13 organization as is a "domestic company" under Article VIII 14 1/2 of the Illinois Insurance Code. 15 (c) In considering the merger, consolidation, or other 16 acquisition of control of a Health Maintenance Organization 17 pursuant to Article VIII 1/2 of the Illinois Insurance Code, 18 (1) the Director shall give primary consideration to 19 the continuation of benefits to enrollees and the 20 financial conditions of the acquired Health Maintenance 21 Organization after the merger, consolidation, or other 22 acquisition of control takes effect; 23 (2)(i) the criteria specified in subsection (1)(b) of 24 Section 131.8 of the Illinois Insurance Code shall not 25 apply and (ii) the Director, in making his determination 26 with respect to the merger, consolidation, or other SB1392 Engrossed - 10 - LRB104 06099 BAB 16132 b SB1392 Engrossed- 11 -LRB104 06099 BAB 16132 b SB1392 Engrossed - 11 - LRB104 06099 BAB 16132 b SB1392 Engrossed - 11 - LRB104 06099 BAB 16132 b 1 acquisition of control, need not take into account the 2 effect on competition of the merger, consolidation, or 3 other acquisition of control; 4 (3) the Director shall have the power to require the 5 following information: 6 (A) certification by an independent actuary of the 7 adequacy of the reserves of the Health Maintenance 8 Organization sought to be acquired; 9 (B) pro forma financial statements reflecting the 10 combined balance sheets of the acquiring company and 11 the Health Maintenance Organization sought to be 12 acquired as of the end of the preceding year and as of 13 a date 90 days prior to the acquisition, as well as pro 14 forma financial statements reflecting projected 15 combined operation for a period of 2 years; 16 (C) a pro forma business plan detailing an 17 acquiring party's plans with respect to the operation 18 of the Health Maintenance Organization sought to be 19 acquired for a period of not less than 3 years; and 20 (D) such other information as the Director shall 21 require. 22 (d) The provisions of Article VIII 1/2 of the Illinois 23 Insurance Code and this Section 5-3 shall apply to the sale by 24 any health maintenance organization of greater than 10% of its 25 enrollee population (including, without limitation, the health 26 maintenance organization's right, title, and interest in and SB1392 Engrossed - 11 - LRB104 06099 BAB 16132 b SB1392 Engrossed- 12 -LRB104 06099 BAB 16132 b SB1392 Engrossed - 12 - LRB104 06099 BAB 16132 b SB1392 Engrossed - 12 - LRB104 06099 BAB 16132 b 1 to its health care certificates). 2 (e) In considering any management contract or service 3 agreement subject to Section 141.1 of the Illinois Insurance 4 Code, the Director (i) shall, in addition to the criteria 5 specified in Section 141.2 of the Illinois Insurance Code, 6 take into account the effect of the management contract or 7 service agreement on the continuation of benefits to enrollees 8 and the financial condition of the health maintenance 9 organization to be managed or serviced, and (ii) need not take 10 into account the effect of the management contract or service 11 agreement on competition. 12 (f) Except for small employer groups as defined in the 13 Small Employer Rating, Renewability and Portability Health 14 Insurance Act and except for medicare supplement policies as 15 defined in Section 363 of the Illinois Insurance Code, a 16 Health Maintenance Organization may by contract agree with a 17 group or other enrollment unit to effect refunds or charge 18 additional premiums under the following terms and conditions: 19 (i) the amount of, and other terms and conditions with 20 respect to, the refund or additional premium are set forth 21 in the group or enrollment unit contract agreed in advance 22 of the period for which a refund is to be paid or 23 additional premium is to be charged (which period shall 24 not be less than one year); and 25 (ii) the amount of the refund or additional premium 26 shall not exceed 20% of the Health Maintenance SB1392 Engrossed - 12 - LRB104 06099 BAB 16132 b SB1392 Engrossed- 13 -LRB104 06099 BAB 16132 b SB1392 Engrossed - 13 - LRB104 06099 BAB 16132 b SB1392 Engrossed - 13 - LRB104 06099 BAB 16132 b 1 Organization's profitable or unprofitable experience with 2 respect to the group or other enrollment unit for the 3 period (and, for purposes of a refund or additional 4 premium, the profitable or unprofitable experience shall 5 be calculated taking into account a pro rata share of the 6 Health Maintenance Organization's administrative and 7 marketing expenses, but shall not include any refund to be 8 made or additional premium to be paid pursuant to this 9 subsection (f)). The Health Maintenance Organization and 10 the group or enrollment unit may agree that the profitable 11 or unprofitable experience may be calculated taking into 12 account the refund period and the immediately preceding 2 13 plan years. 14 The Health Maintenance Organization shall include a 15 statement in the evidence of coverage issued to each enrollee 16 describing the possibility of a refund or additional premium, 17 and upon request of any group or enrollment unit, provide to 18 the group or enrollment unit a description of the method used 19 to calculate (1) the Health Maintenance Organization's 20 profitable experience with respect to the group or enrollment 21 unit and the resulting refund to the group or enrollment unit 22 or (2) the Health Maintenance Organization's unprofitable 23 experience with respect to the group or enrollment unit and 24 the resulting additional premium to be paid by the group or 25 enrollment unit. 26 In no event shall the Illinois Health Maintenance SB1392 Engrossed - 13 - LRB104 06099 BAB 16132 b SB1392 Engrossed- 14 -LRB104 06099 BAB 16132 b SB1392 Engrossed - 14 - LRB104 06099 BAB 16132 b SB1392 Engrossed - 14 - LRB104 06099 BAB 16132 b 1 Organization Guaranty Association be liable to pay any 2 contractual obligation of an insolvent organization to pay any 3 refund authorized under this Section. 4 (g) Rulemaking authority to implement Public Act 95-1045, 5 if any, is conditioned on the rules being adopted in 6 accordance with all provisions of the Illinois Administrative 7 Procedure Act and all rules and procedures of the Joint 8 Committee on Administrative Rules; any purported rule not so 9 adopted, for whatever reason, is unauthorized. 10 (Source: P.A. 102-30, eff. 1-1-22; 102-34, eff. 6-25-21; 11 102-203, eff. 1-1-22; 102-306, eff. 1-1-22; 102-443, eff. 12 1-1-22; 102-589, eff. 1-1-22; 102-642, eff. 1-1-22; 102-665, 13 eff. 10-8-21; 102-731, eff. 1-1-23; 102-775, eff. 5-13-22; 14 102-804, eff. 1-1-23; 102-813, eff. 5-13-22; 102-816, eff. 15 1-1-23; 102-860, eff. 1-1-23; 102-901, eff. 7-1-22; 102-1093, 16 eff. 1-1-23; 102-1117, eff. 1-13-23; 103-84, eff. 1-1-24; 17 103-91, eff. 1-1-24; 103-123, eff. 1-1-24; 103-154, eff. 18 6-30-23; 103-420, eff. 1-1-24; 103-426, eff. 8-4-23; 103-445, 19 eff. 1-1-24; 103-551, eff. 8-11-23; 103-605, eff. 7-1-24; 20 103-618, eff. 1-1-25; 103-649, eff. 1-1-25; 103-656, eff. 21 1-1-25; 103-700, eff. 1-1-25; 103-718, eff. 7-19-24; 103-751, 22 eff. 8-2-24; 103-753, eff. 8-2-24; 103-758, eff. 1-1-25; 23 103-777, eff. 8-2-24; 103-808, eff. 1-1-26; 103-914, eff. 24 1-1-25; 103-918, eff. 1-1-25; 103-1024, eff. 1-1-25; revised 25 11-26-24.) SB1392 Engrossed - 14 - LRB104 06099 BAB 16132 b SB1392 Engrossed- 15 -LRB104 06099 BAB 16132 b SB1392 Engrossed - 15 - LRB104 06099 BAB 16132 b SB1392 Engrossed - 15 - LRB104 06099 BAB 16132 b 1 Section 20. The Limited Health Service Organization Act is 2 amended by changing Section 4003 as follows: 3 (215 ILCS 130/4003) (from Ch. 73, par. 1504-3) 4 Sec. 4003. Illinois Insurance Code provisions. Limited 5 health service organizations shall be subject to the 6 provisions of Sections 133, 134, 136, 137, 139, 140, 141.1, 7 141.2, 141.3, 143, 143.31, 143c, 147, 148, 149, 151, 152, 153, 8 154, 154.5, 154.6, 154.7, 154.8, 155.04, 155.37, 155.49, 352c, 9 355.2, 355.3, 355b, 355d, 356m, 356q, 356v, 356z.4, 356z.4a, 10 356z.10, 356z.21, 356z.22, 356z.25, 356z.26, 356z.29, 356z.32, 11 356z.33, 356z.41, 356z.46, 356z.47, 356z.51, 356z.53, 356z.54, 12 356z.57, 356z.59, 356z.61, 356z.64, 356z.67, 356z.68, 356z.71, 13 356z.73, 356z.74, 356z.75, 364.3, 368a, 370a, 401, 401.1, 402, 14 403, 403A, 408, 408.2, 409, 412, 444, and 444.1 and Articles 15 IIA, VIII 1/2, XII, XII 1/2, XIII, XIII 1/2, XXV, and XXVI of 16 the Illinois Insurance Code. Nothing in this Section shall 17 require a limited health care plan to cover any service that is 18 not a limited health service. For purposes of the Illinois 19 Insurance Code, except for Sections 444 and 444.1 and Articles 20 XIII and XIII 1/2, limited health service organizations in the 21 following categories are deemed to be domestic companies: 22 (1) a corporation under the laws of this State; or 23 (2) a corporation organized under the laws of another 24 state, 30% or more of the enrollees of which are residents 25 of this State, except a corporation subject to SB1392 Engrossed - 15 - LRB104 06099 BAB 16132 b SB1392 Engrossed- 16 -LRB104 06099 BAB 16132 b SB1392 Engrossed - 16 - LRB104 06099 BAB 16132 b SB1392 Engrossed - 16 - LRB104 06099 BAB 16132 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 (Source: P.A. 102-30, eff. 1-1-22; 102-203, eff. 1-1-22; 5 102-306, eff. 1-1-22; 102-642, eff. 1-1-22; 102-731, eff. 6 1-1-23; 102-775, eff. 5-13-22; 102-813, eff. 5-13-22; 102-816, 7 eff. 1-1-23; 102-860, eff. 1-1-23; 102-1093, eff. 1-1-23; 8 102-1117, eff. 1-13-23; 103-84, eff. 1-1-24; 103-91, eff. 9 1-1-24; 103-420, eff. 1-1-24; 103-426, eff. 8-4-23; 103-445, 10 eff. 1-1-24; 103-605, eff. 7-1-24; 103-649, eff. 1-1-25; 11 103-656, eff. 1-1-25; 103-700, eff. 1-1-25; 103-718, eff. 12 7-19-24; 103-751, eff. 8-2-24; 103-758, eff. 1-1-25; 103-832, 13 eff. 1-1-25; 103-1024, eff. 1-1-25; revised 11-26-24.) 14 Section 25. The Voluntary Health Services Plans Act is 15 amended by changing Section 10 as follows: 16 (215 ILCS 165/10) (from Ch. 32, par. 604) 17 Sec. 10. Application of Illinois Insurance Code 18 provisions. Health services plan corporations and all persons 19 interested therein or dealing therewith shall be subject to 20 the provisions of Articles IIA and XII 1/2 and Sections 3.1, 21 133, 136, 139, 140, 143, 143.31, 143c, 149, 155.22a, 155.37, 22 354, 355.2, 355.3, 355b, 355d, 356g, 356g.5, 356g.5-1, 356m, 23 356q, 356r, 356t, 356u, 356u.10, 356v, 356w, 356x, 356y, 24 356z.1, 356z.2, 356z.3a, 356z.4, 356z.4a, 356z.5, 356z.6, SB1392 Engrossed - 16 - LRB104 06099 BAB 16132 b SB1392 Engrossed- 17 -LRB104 06099 BAB 16132 b SB1392 Engrossed - 17 - LRB104 06099 BAB 16132 b SB1392 Engrossed - 17 - LRB104 06099 BAB 16132 b 1 356z.8, 356z.9, 356z.10, 356z.11, 356z.12, 356z.13, 356z.14, 2 356z.15, 356z.18, 356z.19, 356z.21, 356z.22, 356z.25, 356z.26, 3 356z.29, 356z.30, 356z.32, 356z.32a, 356z.33, 356z.40, 4 356z.41, 356z.46, 356z.47, 356z.51, 356z.53, 356z.54, 356z.56, 5 356z.57, 356z.59, 356z.60, 356z.61, 356z.62, 356z.64, 356z.67, 6 356z.68, 356z.71, 356z.72, 356z.74, 356z.75, 356z.77, 364.01, 7 364.3, 367.2, 368a, 370a, 401, 401.1, 402, 403, 403A, 408, 8 408.2, and 412, and paragraphs (7) and (15) of Section 367 of 9 the Illinois Insurance Code. 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; 102-203, eff. 1-1-22; 17 102-306, eff. 1-1-22; 102-642, eff. 1-1-22; 102-665, eff. 18 10-8-21; 102-731, eff. 1-1-23; 102-775, eff. 5-13-22; 102-804, 19 eff. 1-1-23; 102-813, eff. 5-13-22; 102-816, eff. 1-1-23; 20 102-860, eff. 1-1-23; 102-901, eff. 7-1-22; 102-1093, eff. 21 1-1-23; 102-1117, eff. 1-13-23; 103-84, eff. 1-1-24; 103-91, 22 eff. 1-1-24; 103-420, eff. 1-1-24; 103-445, eff. 1-1-24; 23 103-551, eff. 8-11-23; 103-605, eff. 7-1-24; 103-656, eff. 24 1-1-25; 103-718, eff. 7-19-24; 103-751, eff. 8-2-24; 103-753, 25 eff. 8-2-24; 103-758, eff. 1-1-25; 103-832, eff. 1-1-25; 26 103-914, eff. 1-1-25; 103-918, eff. 1-1-25; 103-1024, eff. SB1392 Engrossed - 17 - LRB104 06099 BAB 16132 b SB1392 Engrossed- 18 -LRB104 06099 BAB 16132 b SB1392 Engrossed - 18 - LRB104 06099 BAB 16132 b SB1392 Engrossed - 18 - LRB104 06099 BAB 16132 b 1 1-1-25; 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. 9 Section 99. Effective date. This Act takes effect January 10 1, 2026. SB1392 Engrossed - 18 - LRB104 06099 BAB 16132 b