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Illinois Compiled Statutes
Information maintained by the Legislative Reference Bureau Updating the database of the Illinois Compiled Statutes (ILCS) is an ongoing process. Recent laws may not yet be included in the ILCS database, but they are found on this site as Public Acts soon after they become law. For information concerning the relationship between statutes and Public Acts, refer to the Guide. Because the statute database is maintained primarily for legislative drafting purposes, statutory changes are sometimes included in the statute database before they take effect. If the source note at the end of a Section of the statutes includes a Public Act that has not yet taken effect, the version of the law that is currently in effect may have already been removed from the database and you should refer to that Public Act to see the changes made to the current law.
() 215 ILCS 5/359a
(215 ILCS 5/359a) (from Ch. 73, par. 971a)
Sec. 359a.
Application.
(1) No policy of insurance except an Industrial Accident and Health
Policy provided for by this article shall be issued, except upon the
signed application of the person or persons sought to be insured. Any
information or statement of the applicant shall plainly appear upon such
application in the form of interrogatories by the insurer and answers by
the applicant. The insured shall not be bound by any statement made in an
application for any policy, including an Industrial Accident and Health
Policy, unless a copy of such application is attached to or endorsed on the
policy when issued as a part thereof. If any such policy delivered or
issued for delivery to any person in this state shall be reinstated or
renewed, and the insured or the beneficiary or assignee of such policy
shall make written request to the insurer for a copy of the application, if
any, for such reinstatement or renewal, the insurer shall within fifteen
days after the receipt of such request at its home office or any branch
office of the insurer, deliver or mail to the person making such request, a
copy of such application. If such copy shall not be so delivered or mailed,
the insurer shall be precluded from introducing such application as
evidence in any action or proceeding based upon or involving such policy or
its reinstatement or renewal.
(2) No alteration of any written application for any such policy shall
be made by any person other than the applicant without his written consent,
except that insertions may be made by the insurer, for administrative
purposes only, in such manner as to indicate clearly that such insertions
are not to be ascribed to the applicant.
(3) The falsity of any statement in the application for any policy
covered by this act may not bar the right to recovery thereunder unless
such false statement materially affected either the acceptance of the risk
or the hazard assumed by the insurer.
(Source: Laws 1951, p. 611.)
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215 ILCS 5/359b (215 ILCS 5/359b)
Sec. 359b. (Repealed).
(Source: P.A. 96-857, eff. 1-5-10. Repealed by P.A. 98-969, eff. 1-1-15 .) |
215 ILCS 5/359c (215 ILCS 5/359c)
Sec. 359c. (Repealed).
(Source: P.A. 97-524, eff. 1-1-12. Repealed by P.A. 98-969, eff. 1-1-15 .) |
215 ILCS 5/360a
(215 ILCS 5/360a) (from Ch. 73, par. 972a)
Sec. 360a.
Notice,
waiver.
The acknowledgement by any insurer of the receipt of notice given under
any policy covered by this article, or the furnishing of forms for filing
proofs of loss, or the acceptance of such proofs, or the investigation of
any claim thereunder shall not operate as a waiver of any of the rights of
the insurer in defense of any claim arising under such policy.
(Source: Laws 1951, p. 611.)
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215 ILCS 5/361a
(215 ILCS 5/361a) (from Ch. 73, par. 973a)
Sec. 361a.
Age
limit.
If any such policy contains a provision establishing, as an age limit or
otherwise, a date after which the coverage provided by the policy will not
be effective, and if such date falls within a period for which premium is
accepted by the insurer or if the insurer accepts a premium after such
date, the coverage provided by the policy will continue in force subject to
any right of cancellation until the end of the period for which premium has
been accepted. In the event the age of the insured has been misstated and
if, according to the correct age of the insured, the coverage provided by
the policy would not have become effective, or would have ceased prior to
the acceptance of such premium or premiums, then the liability of the
insurer shall be limited to the refund, upon request, of all premiums paid
for the period not covered by the policy.
(Source: Laws 1951, p. 611.)
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215 ILCS 5/362a (215 ILCS 5/362a) Sec. 362a. (Repealed). (Source: P.A. 99-143, eff. 7-27-15. Repealed by P.A. 103-718, eff. 7-19-24.) |
215 ILCS 5/363 (215 ILCS 5/363) (from Ch. 73, par. 975) (Text of Section from P.A. 103-102) Sec. 363. Medicare supplement policies; minimum standards. (1) Except as otherwise specifically provided therein, this Section and Section 363a of this Code shall apply to: (a) all Medicare supplement policies and subscriber | | contracts delivered or issued for delivery in this State on and after January 1, 1989; and
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| (b) all certificates issued under group Medicare
| | supplement policies or subscriber contracts, which certificates are issued or issued for delivery in this State on and after January 1, 1989.
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| This Section shall not apply to "Accident Only" or "Specified Disease" types of policies. The provisions of this Section are not intended to prohibit or apply to policies or health care benefit plans, including group conversion policies, provided to Medicare eligible persons, which policies or plans are not marketed or purported or held to be Medicare supplement policies or benefit plans.
(2) For the purposes of this Section and Section 363a, the following terms have the following meanings:
(a) "Applicant" means:
(i) in the case of individual Medicare supplement
| | policy, the person who seeks to contract for insurance benefits, and
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| (ii) in the case of a group Medicare policy or
| | subscriber contract, the proposed certificate holder.
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| (b) "Certificate" means any certificate delivered or
| | issued for delivery in this State under a group Medicare supplement policy.
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| (c) "Medicare supplement policy" means an individual
| | policy of accident and health insurance, as defined in paragraph (a) of subsection (2) of Section 355a of this Code, or a group policy or certificate delivered or issued for delivery in this State by an insurer, fraternal benefit society, voluntary health service plan, or health maintenance organization, other than a policy issued pursuant to a contract under Section 1876 of the federal Social Security Act (42 U.S.C. Section 1395 et seq.) or a policy issued under a demonstration project specified in 42 U.S.C. Section 1395ss(g)(1), or any similar organization, that is advertised, marketed, or designed primarily as a supplement to reimbursements under Medicare for the hospital, medical, or surgical expenses of persons eligible for Medicare.
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| (d) "Issuer" includes insurance companies, fraternal
| | benefit societies, voluntary health service plans, health maintenance organizations, or any other entity providing Medicare supplement insurance, unless the context clearly indicates otherwise.
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| (e) "Medicare" means the Health Insurance for the
| | Aged Act, Title XVIII of the Social Security Amendments of 1965.
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| (3) No Medicare supplement insurance policy, contract, or certificate, that provides benefits that duplicate benefits provided by Medicare, shall be issued or issued for delivery in this State after December 31, 1988. No such policy, contract, or certificate shall provide lesser benefits than those required under this Section or the existing Medicare Supplement Minimum Standards Regulation, except where duplication of Medicare benefits would result.
(4) Medicare supplement policies or certificates shall have a notice prominently printed on the first page of the policy or attached thereto stating in substance that the policyholder or certificate holder shall have the right to return the policy or certificate within 30 days of its delivery and to have the premium refunded directly to him or her in a timely manner if, after examination of the policy or certificate, the insured person is not satisfied for any reason.
(5) A Medicare supplement policy or certificate may not deny a claim for losses incurred more than 6 months from the effective date of coverage for a preexisting condition. The policy may not define a preexisting condition more restrictively than a condition for which medical advice was given or treatment was recommended by or received from a physician within 6 months before the effective date of coverage.
(6) An issuer of a Medicare supplement policy shall:
(a) not deny coverage to an applicant under 65 years
| | of age who meets any of the following criteria:
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| (i) becomes eligible for Medicare by reason of
| | disability if the person makes application for a Medicare supplement policy within 6 months of the first day on which the person enrolls for benefits under Medicare Part B; for a person who is retroactively enrolled in Medicare Part B due to a retroactive eligibility decision made by the Social Security Administration, the application must be submitted within a 6-month period beginning with the month in which the person received notice of retroactive eligibility to enroll;
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| (ii) has Medicare and an employer group health
| | plan (either primary or secondary to Medicare) that terminates or ceases to provide all such supplemental health benefits;
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| (iii) is insured by a Medicare Advantage plan
| | that includes a Health Maintenance Organization, a Preferred Provider Organization, and a Private Fee-For-Service or Medicare Select plan and the applicant moves out of the plan's service area; the insurer goes out of business, withdraws from the market, or has its Medicare contract terminated; or the plan violates its contract provisions or is misrepresented in its marketing; or
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| (iv) is insured by a Medicare supplement policy
| | and the insurer goes out of business, withdraws from the market, or the insurance company or agents misrepresent the plan and the applicant is without coverage;
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| (b) make available to persons eligible for Medicare
| | by reason of disability each type of Medicare supplement policy the issuer makes available to persons eligible for Medicare by reason of age;
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| (c) not charge individuals who become eligible for
| | Medicare by reason of disability and who are under the age of 65 premium rates for any medical supplemental insurance benefit plan offered by the issuer that exceed the issuer's highest rate on the current rate schedule filed with the Division of Insurance for that plan to individuals who are age 65 or older; and
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| (d) provide the rights granted by items (a) through
| | (d), for 6 months after the effective date of this amendatory Act of the 95th General Assembly, to any person who had enrolled for benefits under Medicare Part B prior to this amendatory Act of the 95th General Assembly who otherwise would have been eligible for coverage under item (a).
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| (7) The Director shall issue reasonable rules and regulations for the following purposes:
(a) To establish specific standards for policy
| | provisions of Medicare policies and certificates. The standards shall be in accordance with the requirements of this Code. No requirement of this Code relating to minimum required policy benefits, other than the minimum standards contained in this Section and Section 363a, shall apply to Medicare supplement policies and certificates. The standards may cover, but are not limited to the following:
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| (A) Terms of renewability.
(B) Initial and subsequent terms of eligibility.
(C) Non-duplication of coverage.
(D) Probationary and elimination periods.
(E) Benefit limitations, exceptions and
| | (F) Requirements for replacement.
(G) Recurrent conditions.
(H) Definition of terms.
(I) Requirements for issuing rebates or credits
| | to policyholders if the policy's loss ratio does not comply with subsection (7) of Section 363a.
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| (J) Uniform methodology for the calculating and
| | reporting of loss ratio information.
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| (K) Assuring public access to loss ratio
| | information of an issuer of Medicare supplement insurance.
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| (L) Establishing a process for approving or
| | disapproving proposed premium increases.
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| (M) Establishing a policy for holding public
| | hearings prior to approval of premium increases.
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| (N) Establishing standards for Medicare Select
| | (O) Prohibited policy provisions not otherwise
| | specifically authorized by statute that, in the opinion of the Director, are unjust, unfair, or unfairly discriminatory to any person insured or proposed for coverage under a medicare supplement policy or certificate.
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| (b) To establish minimum standards for benefits and
| | claims payments, marketing practices, compensation arrangements, and reporting practices for Medicare supplement policies.
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| (c) To implement transitional requirements of
| | Medicare supplement insurance benefits and premiums of Medicare supplement policies and certificates to conform to Medicare program revisions.
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| (8) If an individual is at least 65 years of age but no more than 75 years of age and has an existing Medicare supplement policy, the individual is entitled to an annual open enrollment period lasting 45 days, commencing with the individual's birthday, and the individual may purchase any Medicare supplement policy with the same issuer that offers benefits equal to or lesser than those provided by the previous coverage. During this open enrollment period, an issuer of a Medicare supplement policy shall not deny or condition the issuance or effectiveness of Medicare supplemental coverage, nor discriminate in the pricing of coverage, because of health status, claims experience, receipt of health care, or a medical condition of the individual. An issuer shall provide notice of this annual open enrollment period for eligible Medicare supplement policyholders at the time that the application is made for a Medicare supplement policy or certificate. The notice shall be in a form that may be prescribed by the Department.
(9) Without limiting an individual's eligibility under Department rules implementing 42 U.S.C. 1395ss(s)(2)(A), for at least 63 days after the later of the applicant's loss of benefits or the notice of termination of benefits, including a notice of claim denial due to termination of benefits, under the State's medical assistance program under Article V of the Illinois Public Aid Code, an issuer shall not deny or condition the issuance or effectiveness of any Medicare supplement policy or certificate that is offered and is available for issuance to new enrollees by the issuer; shall not discriminate in the pricing of such a Medicare supplement policy because of health status, claims experience, receipt of health care, or medical condition; and shall not include a policy provision that imposes an exclusion of benefits based on a preexisting condition under such a Medicare supplement policy if the individual:
(a) is enrolled for Medicare Part B;
(b) was enrolled in the State's medical assistance
| | program during the COVID-19 Public Health Emergency described in Section 5-1.5 of the Illinois Public Aid Code;
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| (c) was terminated or disenrolled from the State's
| | medical assistance program after the COVID-19 Public Health Emergency and the later of the date of termination of benefits or the date of the notice of termination, including a notice of a claim denial due to termination, occurred on, after, or no more than 63 days before the end of either, as applicable:
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| (A) the individual's Medicare supplement open
| | enrollment period described in Department rules implementing 42 U.S.C. 1395ss(s)(2)(A); or
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| (B) the 6-month period described in Section
| | 363(6)(a)(i) of this Code; and
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| (d) submits evidence of the date of termination of
| | benefits or notice of termination under the State's medical assistance program with the application for a Medicare supplement policy or certificate.
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| (10) Each Medicare supplement policy and certificate available from an insurer on and after the effective date of this amendatory Act of the 103rd General Assembly shall be made available to all applicants who qualify under subparagraph (i) of paragraph (a) of subsection (6) or Department rules implementing 42 U.S.C. 1395ss(s)(2)(A) without regard to age or applicability of a Medicare Part B late enrollment penalty.
(Source: P.A. 102-142, eff. 1-1-22; 103-102, eff. 6-16-23.)
(Text of Section from P.A. 103-747)
Sec. 363. Medicare supplement policies; minimum standards.
(1) Except as otherwise specifically provided therein, this Section and Section 363a of this Code shall apply to:
(a) all Medicare supplement policies and subscriber
| | contracts delivered or issued for delivery in this State on and after January 1, 1989; and
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| (b) all certificates issued under group Medicare
| | supplement policies or subscriber contracts, which certificates are issued or issued for delivery in this State on and after January 1, 1989.
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| This Section shall not apply to "Accident Only" or "Specified Disease" types of policies. The provisions of this Section are not intended to prohibit or apply to policies or health care benefit plans, including group conversion policies, provided to Medicare eligible persons, which policies or plans are not marketed or purported or held to be Medicare supplement policies or benefit plans.
(2) For the purposes of this Section and Section 363a, the following terms have the following meanings:
(a) "Applicant" means:
(i) in the case of individual Medicare supplement
| | policy, the person who seeks to contract for insurance benefits, and
|
| (ii) in the case of a group Medicare policy or
| | subscriber contract, the proposed certificate holder.
|
| (b) "Certificate" means any certificate delivered or
| | issued for delivery in this State under a group Medicare supplement policy.
|
| (c) "Medicare supplement policy" means an individual
| | policy of accident and health insurance, as defined in paragraph (a) of subsection (2) of Section 355a of this Code, or a group policy or certificate delivered or issued for delivery in this State by an insurer, fraternal benefit society, voluntary health service plan, or health maintenance organization, other than a policy issued pursuant to a contract under Section 1876 of the federal Social Security Act (42 U.S.C. Section 1395 et seq.) or a policy issued under a demonstration project specified in 42 U.S.C. Section 1395ss(g)(1), or any similar organization, that is advertised, marketed, or designed primarily as a supplement to reimbursements under Medicare for the hospital, medical, or surgical expenses of persons eligible for Medicare.
|
| (d) "Issuer" includes insurance companies, fraternal
| | benefit societies, voluntary health service plans, health maintenance organizations, or any other entity providing Medicare supplement insurance, unless the context clearly indicates otherwise.
|
| (e) "Medicare" means the Health Insurance for the
| | Aged Act, Title XVIII of the Social Security Amendments of 1965.
|
| (3) No Medicare supplement insurance policy, contract, or certificate, that provides benefits that duplicate benefits provided by Medicare, shall be issued or issued for delivery in this State after December 31, 1988. No such policy, contract, or certificate shall provide lesser benefits than those required under this Section or the existing Medicare Supplement Minimum Standards Regulation, except where duplication of Medicare benefits would result.
(4) Medicare supplement policies or certificates shall have a notice prominently printed on the first page of the policy or attached thereto stating in substance that the policyholder or certificate holder shall have the right to return the policy or certificate within 30 days of its delivery and to have the premium refunded directly to him or her in a timely manner if, after examination of the policy or certificate, the insured person is not satisfied for any reason.
(5) A Medicare supplement policy or certificate may not deny a claim for losses incurred more than 6 months from the effective date of coverage for a preexisting condition. The policy may not define a preexisting condition more restrictively than a condition for which medical advice was given or treatment was recommended by or received from a physician within 6 months before the effective date of coverage.
(6) An issuer of a Medicare supplement policy shall:
(a) not deny coverage to an applicant under 65 years
| | of age who meets any of the following criteria:
|
| (i) becomes eligible for Medicare by reason of
| | disability if the person makes application for a Medicare supplement policy within 6 months of the first day on which the person enrolls for benefits under Medicare Part B; for a person who is retroactively enrolled in Medicare Part B due to a retroactive eligibility decision made by the Social Security Administration, the application must be submitted within a 6-month period beginning with the month in which the person received notice of retroactive eligibility to enroll;
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| (ii) has Medicare and an employer group health
| | plan (either primary or secondary to Medicare) that terminates or ceases to provide all such supplemental health benefits;
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| (iii) is insured by a Medicare Advantage plan
| | that includes a Health Maintenance Organization, a Preferred Provider Organization, and a Private Fee-For-Service or Medicare Select plan and the applicant moves out of the plan's service area; the insurer goes out of business, withdraws from the market, or has its Medicare contract terminated; or the plan violates its contract provisions or is misrepresented in its marketing; or
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| (iv) is insured by a Medicare supplement policy
| | and the insurer goes out of business, withdraws from the market, or the insurance company or agents misrepresent the plan and the applicant is without coverage;
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| (b) make available to persons eligible for Medicare
| | by reason of disability each type of Medicare supplement policy the issuer makes available to persons eligible for Medicare by reason of age;
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| (c) not charge individuals who become eligible for
| | Medicare by reason of disability and who are under the age of 65 premium rates for any medical supplemental insurance benefit plan offered by the issuer that exceed the issuer's highest rate on the current rate schedule filed with the Division of Insurance for that plan to individuals who are age 65 or older; and
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| (d) provide the rights granted by items (a) through
| | (d), for 6 months after the effective date of this amendatory Act of the 95th General Assembly, to any person who had enrolled for benefits under Medicare Part B prior to this amendatory Act of the 95th General Assembly who otherwise would have been eligible for coverage under item (a).
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| (7) The Director shall issue reasonable rules and regulations for the following purposes:
(a) To establish specific standards for policy
| | provisions of Medicare policies and certificates. The standards shall be in accordance with the requirements of this Code. No requirement of this Code relating to minimum required policy benefits, other than the minimum standards contained in this Section and Section 363a, shall apply to Medicare supplement policies and certificates. The standards may cover, but are not limited to the following:
|
| (A) Terms of renewability.
(B) Initial and subsequent terms of eligibility.
(C) Non-duplication of coverage.
(D) Probationary and elimination periods.
(E) Benefit limitations, exceptions and
| | (F) Requirements for replacement.
(G) Recurrent conditions.
(H) Definition of terms.
(I) Requirements for issuing rebates or credits
| | to policyholders if the policy's loss ratio does not comply with subsection (7) of Section 363a.
|
| (J) Uniform methodology for the calculating and
| | reporting of loss ratio information.
|
| (K) Assuring public access to loss ratio
| | information of an issuer of Medicare supplement insurance.
|
| (L) Establishing a process for approving or
| | disapproving proposed premium increases.
|
| (M) Establishing a policy for holding public
| | hearings prior to approval of premium increases.
|
| (N) Establishing standards for Medicare Select
| | (O) Prohibited policy provisions not otherwise
| | specifically authorized by statute that, in the opinion of the Director, are unjust, unfair, or unfairly discriminatory to any person insured or proposed for coverage under a medicare supplement policy or certificate.
|
| (b) To establish minimum standards for benefits and
| | claims payments, marketing practices, compensation arrangements, and reporting practices for Medicare supplement policies.
|
| (c) To implement transitional requirements of
| | Medicare supplement insurance benefits and premiums of Medicare supplement policies and certificates to conform to Medicare program revisions.
|
| (8) If an individual is at least 65 years of age but no more than 75 years of age and has an existing Medicare supplement policy, the individual is entitled to an annual open enrollment period lasting 45 days, commencing with the individual's birthday, and the individual may purchase any Medicare supplement policy with the same issuer or any affiliate authorized to transact business in this State that offers benefits equal to or lesser than those provided by the previous coverage. During this open enrollment period, an issuer of a Medicare supplement policy shall not deny or condition the issuance or effectiveness of Medicare supplemental coverage, nor discriminate in the pricing of coverage, because of health status, claims experience, receipt of health care, or a medical condition of the individual. An issuer shall provide notice of this annual open enrollment period for eligible Medicare supplement policyholders at the time that the application is made for a Medicare supplement policy or certificate. The notice shall be in a form that may be prescribed by the Department.
(Source: P.A. 102-142, eff. 1-1-22; 103-747, eff. 1-1-26.)
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215 ILCS 5/363a
(215 ILCS 5/363a) (from Ch. 73, par. 975a)
Sec. 363a.
Medicare supplement policies; disclosure, advertising, loss
ratio standards.
(1) Scope. This Section pertains to disclosure requirements of
companies and agents and mandatory and prohibited practices of agents
when selling a policy to supplement the Medicare program or any other
health insurance policy sold to individuals eligible for Medicare. No policy
shall be referred to or labeled as a Medicare
supplement policy if it does not comply with the minimum standards
required by regulation pursuant to Section 363 of this Code. Except as
otherwise specifically provided in paragraph (d) of subsection (6), this
Section shall not apply to accident only or specified disease type of
policies or hospital confinement indemnity or other type policies clearly
unrelated to Medicare.
(2) Advertising. An advertisement that describes or offers to provide
information concerning the federal Medicare program shall comply with all
of the following:
(a) It may not include any reference to that program | | on the envelope, the reply envelope, or the address side of the reply postal card, if any, nor use any language to imply that failure to respond to the advertisement might result in loss of Medicare benefits.
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(b) It must include a prominent statement to the
| | effect that in providing supplemental coverage the insurer and agent involved in the solicitation are not in any manner connected with that program.
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|
(c) It must prominently disclose that it is an
| | advertisement for insurance or is intended to obtain insurance prospects.
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(d) It must prominently identify and set forth the
| | actual address of the insurer or insurers that issue the coverage.
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|
(e) It must prominently state that any material or
| | information offered will be delivered in person by a representative of the insurer, if that is the case.
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|
The Director may issue reasonable rules and regulations for the
purpose of establishing criteria and guidelines for the advertising of
Medicare supplement insurance.
(3) Mandatory agent practices. For the purpose of this Act, "home
solicitation sale by an agent" means a sale or attempted sale of an
insurance policy at the purchaser's residence, agent's transient quarters,
or away from the agent's home office when the initial contact is personally
solicited by the agent or insurer. Any agent involved in any home
solicitation sale of a Medicare supplement policy or other policy of
accident and health insurance, subject to subsection (1) of this Section,
sold to individuals eligible for Medicare shall promptly do the following:
(a) Identify himself as an insurance agent.
(b) Identify the insurer or insurers for which he is
| |
(c) Provide the purchaser with a clearly printed or
| | typed identification of his name, address, telephone number, and the name of the insurer in which the insurance is to be written.
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|
(d) Determine what, if any, policy is appropriate,
| | suitable, and nonduplicative for the purchaser considering existing coverage and be able to provide proof to the company that such a determination has been made.
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|
(e) Fully and completely disclose the purchaser's
| | medical history on the application if required for issue.
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|
(f) Complete a Policy Check List in duplicate as
| |
POLICY CHECK LIST
Applicant's Name:
Policy Number:
Name of Existing Insurer:
Expiration Date of Existing Insurance:
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Medicare |
Existing |
Supplement |
Insured's |
Pays |
Coverage |
Pays |
Responsibility |
|
Service
Hospital
Skilled
Nursing
Home Care
Prescription
Drugs
This policy does/does not (circle one) comply with
| | the minimum standards for Medicare supplements set forth in Section 363 of the Illinois Insurance Code.
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|
Signature of Applicant
Signature of Agent
This Policy Check List is to be completed in the
| | presence of the purchaser at the point of sale, and copies of it, completed and duly signed, are to be provided to the purchaser and to the company.
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|
(g) Except in the case of refunds of premium made
| | pursuant to subsection (5) of Section 363 of this Code, send by mail to an insured or an applicant for insurance, when the insurer follows a practice of having agents return premium refund drafts issued by the insurer, a premium refund draft within 2 weeks of its receipt by the agent from the insurer making such refund.
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|
(h) Deliver to the purchaser, along with every policy
| | issued pursuant to Section 363 of this Code, an Outline of Coverage as described in paragraph (b) of subsection (6) of this Section.
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|
(4) Prohibited agent practices.
(a) No insurance agent engaged in a home solicitation
| | sale of a Medicare supplement policy or other policy of accident and health insurance, subject to subsection (1) of this Section, sold to individuals eligible for Medicare shall use any false, deceptive, or misleading representation to induce a sale, or use any plan, scheme, or ruse, that misrepresents the true status or mission of the person making the call, or represent directly or by implication that the agent:
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|
(i) Is offering insurance that is approved or
| | recommended by the State or federal government to supplement Medicare.
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|
(ii) Is in any way representing, working for, or
| | compensated by a local, State, or federal government agency.
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|
(iii) Is engaged in an advisory business in which
| | his compensation is unrelated to the sale of insurance by the use of terms such as Medicare consultant, Medicare advisor, Medicare Bureau, disability insurance consultant, or similar expression in a letter, envelope, reply card, or other.
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|
(iv) Will provide a continuing service to the
| | purchaser of the policy unless he does provide services to the purchaser beyond the sale and renewal of policies.
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|
(b) No agent engaged in a home solicitation sale of a
| | Medicare supplement policy or other policy of accident and health insurance sold to individuals eligible for Medicare shall misrepresent, directly or by implication, any of the following:
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|
(i) The identity of the insurance company or
| |
(ii) That the assistance programs of the State or
| | county or the federal Medicare programs for medical insurance are to be discontinued or are increasing in cost to the prospective buyer or are in any way endangered.
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|
(iii) That an insurance company in which the
| | prospective purchaser is insured is financially unstable, cancelling its outstanding policies, merging, or withdrawing from the State.
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|
(iv) The coverage of the policy being sold.
(v) The effective date of coverage under the
| |
(vi) That any pre-existing health condition of
| | the purchaser is irrelevant.
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|
(vii) The right of the purchaser to cancel the
| | policy within 30 days after receiving it.
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|
(5) Mandatory company practices. Any company involved in the sale of
Medicare supplement policies or any policies of accident and health insurance
(subject to subsection (1) of this Section) sold to individuals eligible
for Medicare shall do the following:
(a) Be able to readily determine the number of
| | accident and health policies in force with the company on each insured eligible for Medicare.
|
|
(b) Make certain that policies of Medicare supplement
| | insurance are not issued, and any premium collected for those policies is refunded, when they are deemed duplicative, inappropriate, or not suitable considering existing coverage with the company.
|
|
(c) Maintain copies of the Policy Check List as
| | completed by the agent at the point of sale of a Medicare supplement policy or any policy of accident and health insurance (subject to subsection (1) of this Section) sold to individuals eligible for Medicare on file at the company's regional or other administrative office.
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|
(6) Disclosures. In order to provide for full and fair disclosure in
the sale of Medicare supplement policies, there must be compliance with the following:
(a) No Medicare supplement policy or certificate
| | shall be delivered in this State unless an outline of coverage is delivered to the applicant at the time application is made and, except for direct response policies, an acknowledgement from the applicant of receipt of the outline is obtained.
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|
(b) Outline of coverage requirements for Medicare
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(i) Insurers issuing Medicare supplement policies
| | or certificates for delivery in this State shall provide an outline of coverage to all applicants at the time application is made and, except for direct response policies, shall obtain an acknowledgement of receipt of the outline from the applicant.
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(ii) If an outline of coverage is provided at the
| | time of application and the Medicare supplement policy or certificate is issued on a basis that would require revision of the outline, a substitute outline of coverage properly describing the policy or certificate must accompany the policy or certificate when it is delivered and shall contain immediately above the company name, in no less than 12 point type, the following statement:
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"NOTICE: Read this outline of coverage carefully.
| | It is not identical to the outline of coverage provided upon application and the coverage originally applied for has not been issued.".
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(iii) The outline of coverage provided to
| | applicants shall be in the form prescribed by rule by the Department.
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(c) Insurers issuing policies that provide hospital
| | or medical expense coverage on an expense incurred or indemnity basis, other than incidentally, to a person or persons eligible for Medicare shall provide to the policyholder a buyer's guide approved by the Director. Delivery of the buyer's guide shall be made whether or not the policy qualifies as a "Medicare Supplement Coverage" in accordance with Section 363 of this Code. Except in the case of direct response insurers, delivery of the buyer's guide shall be made at the time of application, and acknowledgement of receipt of certification of delivery of the buyer's guide shall be provided to the insurer. Direct response insurers shall deliver the buyer's guide upon request, but not later than at the time the policy is delivered.
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(d) Outlines of coverage delivered in connection with
| | policies defined in subsection (4) of Section 355a of this Code as Hospital confinement Indemnity (Section 4c), Accident Only Coverage (Section 4f), Specified Disease (Section 4g) or Limited Benefit Health Insurance Coverage to persons eligible for Medicare shall contain, in addition to other requirements for those outlines, the following language that shall be printed on or attached to the first page of the outline of coverage:
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"This policy, certificate or subscriber contract IS
| | NOT A MEDICARE SUPPLEMENT policy or certificate. It does not fully supplement your federal Medicare health insurance. If you are eligible for Medicare, review the Guide to Health Insurance for People with Medicare available from the company.".
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(e) In the case wherein a policy, as defined in
| | paragraph (a) of subsection (2) of Section 355a of this Code, being sold to a person eligible for Medicare provides one or more but not all of the minimum standards for Medicare supplements set forth in Section 363 of this Code, disclosure must be provided that the policy is not a Medicare supplement and does not meet the minimum benefit standards set for those policies in this State.
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(7) Loss ratio standards.
(a) Every issuer of Medicare supplement policies or
| | certificates in this State, as defined in Section 363 of this Code, shall file annually its rates, rating schedule, and supporting documentation demonstrating that it is in compliance with the applicable loss ratio standards of this State. All filings of rates and rating schedules shall demonstrate that the actual and anticipated losses in relation to premiums comply with the requirements of this Code.
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(b) Medicare supplement policies shall, for the
| | entire period for which rates are computed to provide coverage, on the basis of incurred claims experience and earned premiums for the period and in accordance with accepted actuarial principles and practices, return to policyholders in the form of aggregate benefits the following:
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(i) In the case of group policies, at least 75%
| | of the aggregate amount of premiums earned.
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(ii) In the case of individual policies, at least
| | 60% of the aggregate amount of premiums earned; and beginning November 5, 1991, at least 65% of the aggregate amount of premiums earned.
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(iii) In the case of sponsored group policies in
| | which coverage is marketed on an individual basis by direct response to eligible individuals in that group only, at least 65% of the aggregate amount of premiums earned.
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(c) For the purposes of this Section, the insurer
| | shall be deemed to comply with the loss ratio standards if: (i) for the most recent year, the ratio of the incurred losses to earned premiums for policies or certificates that have been in force for 3 years or more is greater than or equal to the applicable percentages contained in this Section; and (ii) the anticipated losses in relation to premiums over the entire period for which the policy is rated comply with the requirements of this Section. An anticipated third-year loss ratio that is greater than or equal to the applicable percentage shall be demonstrated for policies or certificates in force less than 3 years.
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(8) Applicability. This Section shall apply to those companies
writing
the kind or kinds of business enumerated in Classes 1(b) and 2(a) of
Section 4 of this Code and to those entities organized and operating under
the Voluntary Health Services
Plans Act and the Health Maintenance Organization Act.
(9) Penalties.
(a) Any company or agent who is found to have
| | violated any of the provisions of this Section may be required by order of the Director of Insurance to forfeit by civil penalty not less than $500 nor more than $5,000 for each offense. Written notice will be issued and an opportunity for a hearing will be granted pursuant to subsection (2) of Section 403A of this Code.
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(b) In addition to any other applicable penalties for
| | violations of this Code, the Director may require insurers violating any provision of this Code or regulations promulgated pursuant to this Code to cease marketing in this State any Medicare supplement policy or certificate that is related directly or indirectly to a violation and may require the insurer to take actions as are necessary to comply with the provisions of Sections 363 and 363a of this Code.
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(c) After June 30, 1991, no person may advertise,
| | solicit for the sale or purchase of, offer for sale, or deliver a Medicare supplement policy that has not been approved by the Director. A person who knowingly violates, directly or through an agent, the provisions of this paragraph commits a Class 3 felony. Any person who violates the provisions of this paragraph may be subjected to a civil penalty not to exceed $10,000. The civil penalty authorized in this paragraph shall be enforced in the manner provided in Section 403A of this Code.
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(10) Replacement. Application forms shall include a question
designed
to elicit information as to whether a Medicare supplement policy or
certificate is intended to replace any similar accident and sickness policy
or certificate presently in force. A supplementary application or other
form to be signed by the applicant containing the question may be used.
Upon determining that a sale of Medicare supplement coverage will involve
replacement, an insurer, other than a direct response insurer, or its
agent, shall furnish the applicant, prior to issuance or delivery of the
Medicare supplement policy or certificate, a notice regarding replacement
of Medicare supplement coverage. One copy of the notice shall be provided
to the applicant, and an additional copy signed by the applicant shall be
retained by the insurer. A direct response insurer shall deliver to the
applicant at the time of the issuance of the policy the notice regarding
replacement of Medicare supplement coverage.
(Source: P.A. 93-32, eff. 7-1-03 .)
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215 ILCS 5/364
(215 ILCS 5/364) (from Ch. 73, par. 976)
Sec. 364. Discrimination prohibited. Discrimination between
individuals of the same class of risk in the issuance of its policies
or in the amount of premiums or rates charged
for any insurance covered by this article, or in the benefits
payable thereon, or in any of the terms or conditions of such policy, or
in any other manner whatsoever is prohibited. Nothing in this provision
shall prohibit an insurer from providing incentives for insureds to utilize
the services of a particular hospital or person. It is hereby expressly
provided that whenever the terms "physician" or "doctor" appear or are
used in any way in any policy of accident or health insurance issued in
this state, said terms shall include within their meaning persons
licensed to practice dentistry under the Illinois Dental Practice Act with
regard to benefits payable for services performed by a person so
licensed, which such services are within the coverage provided by the
particular policy or contract of insurance and are within the
professional services authorized to be performed by such person under
and in accordance with the said Act.
No company, in any policy of accident or health insurance issued in this
State, shall make or permit any distinction or discrimination against
individuals solely because of the individuals' disabilities in the amount of
payment of premiums or rates charged for policies of insurance, in the
amount of any dividends or other benefits payable thereon, or in any other
terms and conditions of the contract it makes, except where the distinction
or discrimination is based on sound actuarial principles or is related to
actual or reasonably anticipated experience.
No company shall refuse to insure, or refuse to continue to insure,
or limit the amount or extent or kind of coverage available to an
individual, or charge an individual a different rate for the same coverage
solely because of blindness or partial blindness. With respect to all
other conditions, including the underlying cause of the blindness or
partial blindness, persons who are blind or partially blind shall be
subject to the same standards of sound actuarial principles or actual or
reasonably anticipated experience as are sighted persons. Refusal to
insure includes denial by an insurer of disability insurance coverage on
the grounds that the policy defines "disability" as being presumed in the
event that the insured loses his or her eyesight.
(Source: P.A. 99-143, eff. 7-27-15.)
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215 ILCS 5/364.01 (215 ILCS 5/364.01) Sec. 364.01. Qualified clinical cancer trials. (a) No individual or group policy of accident and health insurance issued or renewed in this State may be cancelled or non-renewed for any individual based on that individual's participation in a qualified clinical cancer trial. (b) Qualified clinical cancer trials must meet the following criteria: (1) the effectiveness of the treatment has not been | | determined relative to established therapies;
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| (2) the trial is under clinical investigation as part
| | of an approved cancer research trial in Phase II, Phase III, or Phase IV of investigation;
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| (3) the trial is:
(A) approved by the Food and Drug Administration;
| | (B) approved and funded by the National
| | Institutes of Health, the Centers for Disease Control and Prevention, the Agency for Healthcare Research and Quality, the United States Department of Defense, the United States Department of Veterans Affairs, or the United States Department of Energy in the form of an investigational new drug application, or a cooperative group or center of any entity described in this subdivision (B); and
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| (4) the patient's primary care physician, if any, is
| | involved in the coordination of care.
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(c) No group policy of accident and health insurance shall exclude coverage for any routine patient care administered to an insured who is a qualified individual participating in a qualified clinical cancer trial, if the policy covers that same routine patient care of insureds not enrolled in a qualified clinical cancer trial.
(d) The coverage that may not be excluded under subsection (c) of this Section is subject to all terms, conditions, restrictions, exclusions, and limitations that apply to the same routine patient care received by an insured not enrolled in a qualified clinical cancer trial, including the application of any authorization requirement, utilization review, or medical management practices. The insured or enrollee shall incur no greater out-of-pocket liability than had the insured or enrollee not enrolled in a qualified clinical cancer trial.
(e) If the group policy of accident and health insurance uses a preferred provider program and a preferred provider provides routine patient care in connection with a qualified clinical cancer trial, then the insurer may require the insured to use the preferred provider if the preferred provider agrees to provide to the insured that routine patient care.
(f) A qualified clinical cancer trial may not pay or refuse to pay for routine patient care of an individual participating in the trial, based in whole or in part on the person's having or not having coverage for routine patient care under a group policy of accident and health insurance.
(g) Nothing in this Section shall be construed to limit an insurer's coverage with respect to clinical trials.
(h) Nothing in this Section shall require coverage for out-of-network services where the underlying health benefit plan does not provide coverage for out-of-network services.
(i) As used in this Section, "routine patient care" means all health care services provided in the qualified clinical cancer trial that are otherwise generally covered under the policy if those items or services were not provided in connection with a qualified clinical cancer trial consistent with the standard of care for the treatment of cancer, including the type and frequency of any diagnostic modality, that a provider typically provides to a cancer patient who is not enrolled in a qualified clinical cancer trial. "Routine patient care" does not include, and a group policy of accident and health insurance may exclude, coverage for:
(1) a health care service, item, or drug that is the
| | subject of the cancer clinical trial;
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| (2) a health care service, item, or drug provided
| | solely to satisfy data collection and analysis needs for the qualified clinical cancer trial that is not used in the direct clinical management of the patient;
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| (3) an investigational drug or device that has not
| | been approved for market by the United States Food and Drug Administration;
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| (4) transportation, lodging, food, or other expenses
| | for the patient or a family member or companion of the patient that are associated with the travel to or from a facility providing the qualified clinical cancer trial, unless the policy covers these expenses for a cancer patient who is not enrolled in a qualified clinical cancer trial;
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| (5) a health care service, item, or drug customarily
| | provided by the qualified clinical cancer trial sponsors free of charge for any patient;
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| (6) a health care service or item, which except for
| | the fact that it is being provided in a qualified clinical cancer trial, is otherwise specifically excluded from coverage under the insured's policy, including:
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| (A) costs of extra treatments, services,
| | procedures, tests, or drugs that would not be performed or administered except for the fact that the insured is participating in the cancer clinical trial; and
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| (B) costs of nonhealth care services that the
| | patient is required to receive as a result of participation in the approved cancer clinical trial;
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| (7) costs for services, items, or drugs that are
| | eligible for reimbursement from a source other than a patient's contract or policy providing for third-party payment or prepayment of health or medical expenses, including the sponsor of the approved cancer clinical trial;
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| (8) costs associated with approved cancer clinical
| | trials designed exclusively to test toxicity or disease pathophysiology, unless the policy covers these expenses for a cancer patient who is not enrolled in a qualified clinical cancer trial; or
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| (9) a health care service or item that is eligible
| | for reimbursement by a source other than the insured's policy, including the sponsor of the qualified clinical cancer trial.
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| The definitions of the terms "health care services", "Non-Preferred Provider", "Preferred Provider", and "Preferred Provider Program", stated in 50 Ill. Adm. Code Part 2051 Preferred Provider Programs apply to these terms in this Section.
(j) The external review procedures established under the Health Carrier External Review Act shall apply to the provisions under this Section.
(Source: P.A. 103-154, eff. 6-30-23.)
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215 ILCS 5/364.1
(215 ILCS 5/364.1) (from Ch. 73, par. 976.1)
Sec. 364.1.
Every policy of accident and health insurance
delivered or issued for delivery to any person in this State after the
effective date of this amendatory Act of 1979 which provides coverage
for services coming within the practice of
optometry as defined in the Illinois Optometric Practice Act of
1987, as now or hereafter amended shall, upon
issuance or delivery, be accompanied by a written notice to the
policyholder that such policyholder may elect for optometric services
received to be reimbursed to either a physician licensed to practice
medicine in all its branches or to an optometrist licensed in this State.
(Source: P.A. 85-1209.)
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215 ILCS 5/364.2 (215 ILCS 5/364.2) Sec. 364.2. Purchase of ophthalmic goods or services. An insurer may not require a provider, as a condition of participation by the provider, to purchase ophthalmic goods or services, including but not limited to eyeglass frames, in a quantity or dollar amount in excess of the quantity or dollar amount an enrollee purchases under the terms of the policy.
(Source: P.A. 93-1077, eff. 1-18-05.) |
215 ILCS 5/364.3 (215 ILCS 5/364.3) Sec. 364.3. Insurer uniform electronic prior authorization form; prescription benefits. (a) As used in this Section, "prescribing provider" includes a provider authorized to write a prescription, as described in subsection (e) of Section 3 of the Pharmacy Practice Act, to treat a medical condition of an insured. (b) Notwithstanding any other provision of law to the contrary, on and after July 1, 2021, an insurer that provides prescription drug benefits shall utilize and accept the uniform electronic prior authorization form developed pursuant to subsection (c) when requiring prior authorization for prescription drug benefits. (c) On or before July 1, 2020, the Department shall develop a uniform electronic prior authorization form that shall be used by commercial insurers. Notwithstanding any other provision of law to the contrary, on and after July 1, 2021, every prescribing provider must use the uniform electronic prior authorization form to request prior authorization for coverage of prescription drug benefits and every insurer shall accept the uniform electronic prior authorization form as sufficient to request prior authorization for prescription drug benefits. (d) The Department shall develop the uniform electronic prior authorization form with input from interested parties, including, but not limited to, the following individuals appointed by the Director: 2 psychiatrists recommended by a State organization that represents psychiatrists, 2 pharmacists recommended by a State organization that represents pharmacists, 2 physicians recommended by a State organization that represents physicians, 2 family physicians recommended by a State organization that represents family physicians, 2 pediatricians recommended by a State organization that represents pediatricians, and 2 representatives of the association that represents commercial insurers, from at least one public meeting. (e) The Department, in development of the uniform electronic prior authorization form, shall take into consideration the following: (1) existing prior authorization forms established by | | the federal Centers for Medicare and Medicaid Services and the Department; and
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| (2) national standards pertaining to electronic prior
| | (f) If, upon receipt of a completed and accurate electronic prior authorization request from a prescribing provider pursuant to the submission of a uniform electronic prior authorization form, an insurer fails to use or accept the uniform electronic prior authorization form or fails to respond within 24 hours (if the patient has urgent medication needs) or within 72 hours (if the patient has regular medication needs), then the prior authorization request shall be deemed to have been granted.
(Source: P.A. 101-463, eff. 1-1-20 .)
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215 ILCS 5/367
(215 ILCS 5/367) (from Ch. 73, par. 979)
Sec. 367. Group accident and health insurance.
(1) Group accident and health insurance is hereby declared to be that
form of accident and health insurance covering not less than 2
employees,
members, or employees of members, written under a
master policy issued to any governmental corporation, unit, agency or
department thereof, or to any corporation, copartnership, individual
employer, or to any association upon application of an executive officer or
trustee of such association having a constitution or bylaws and formed in
good faith for purposes other than that of obtaining insurance, where
officers, members, employees, employees of members or classes or department
thereof, may be insured for their individual benefit. In addition a group
accident and health policy may be written to insure any group which may be
insured under a group life insurance policy. The term "employees" shall
include the officers, managers and employees of subsidiary or affiliated
corporations, and the individual proprietors, partners and employees of
affiliated individuals and firms, when the business of such subsidiary or
affiliated corporations, firms or individuals, is controlled by a common
employer through stock ownership, contract or otherwise.
(2) Any insurance company authorized to write accident and health
insurance in this State shall have power to issue group accident and
health policies. No policy of group accident and health insurance may
be issued or delivered in this State unless a copy of the form thereof
shall have been filed with the department and approved by it in
accordance with Section 355, and it contains in substance those
provisions contained in Sections 357.1 through 357.30 as may be applicable
to group accident and health insurance and the following provisions:
(a) A provision that the policy, the application of | | the employer, or executive officer or trustee of any association, and the individual applications, if any, of the employees, members or employees of members insured shall constitute the entire contract between the parties, and that all statements made by the employer, or the executive officer or trustee, or by the individual employees, members or employees of members shall (in the absence of fraud) be deemed representations and not warranties, and that no such statement shall be used in defense to a claim under the policy, unless it is contained in a written application.
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(b) A provision that the insurer will issue to the
| | employer, or to the executive officer or trustee of the association, for delivery to the employee, member or employee of a member, who is insured under such policy, an individual certificate setting forth a statement as to the insurance protection to which he is entitled and to whom payable.
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(c) A provision that to the group or class thereof
| | originally insured shall be added from time to time all new employees of the employer, members of the association or employees of members eligible to and applying for insurance in such group or class.
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(3) Anything in this code to the contrary notwithstanding, any group
accident and health policy may provide that all or any portion of any
indemnities provided by any such policy on account of hospital, nursing,
medical or surgical services, may, at the insurer's option, be paid
directly to the hospital or person rendering such services; but the
policy may not require that the service be rendered by a particular
hospital or person. Payment so made shall discharge the insurer's
obligation with respect to the amount of insurance so paid. Nothing in this
subsection (3) shall prohibit an insurer from providing incentives for
insureds to utilize the services of a particular hospital or person.
(4) Special group policies may be issued to school districts
providing medical or hospital service, or both, for pupils of the
district injured while participating in any athletic activity under the
jurisdiction of or sponsored or controlled by the district or the
authorities of any school thereof. The provisions of this Section
governing the issuance of group accident and health insurance shall,
insofar as applicable, control the issuance of such policies issued to
schools.
(5) No policy of group accident and health insurance may be issued
or delivered in this State unless it provides that upon the death of the
insured employee or group member the dependents' coverage, if any,
continues for a period of at least 90 days subject to any other policy
provisions relating to termination of dependents' coverage.
(6) No group hospital policy covering miscellaneous hospital
expenses issued or delivered in this State shall contain any exception
or exclusion from coverage which would preclude the payment of expenses
incurred for the processing and administration of blood and its
components.
(7) No policy of group accident and health insurance, delivered in
this State more than 120 days after the effective day of the Section,
which provides inpatient hospital coverage for sicknesses shall exclude
from such coverage the treatment of alcoholism. This subsection shall
not apply to a policy which covers only specified sicknesses.
(8) No policy of group accident and health insurance, which
provides benefits for hospital or medical expenses based upon the actual
expenses incurred, issued or delivered in this State shall contain any
specific exception to coverage which would preclude the payment of
actual expenses incurred in the examination and testing of a victim of
an offense defined in Sections 11-1.20 through 11-1.60 or 12-13 through 12-16 of the Criminal Code
of 1961 or the Criminal Code of 2012, or an attempt to commit such offense,
to establish that sexual contact did occur or did not occur, and to
establish the presence or absence of sexually transmitted
disease or infection, and
examination and treatment of injuries and trauma sustained by the victim of
such offense, arising out of the offense. Every group policy of accident
and health insurance which specifically provides benefits for routine
physical examinations shall provide full coverage for expenses incurred in
the examination and testing of a victim of an offense defined in Sections
11-1.20 through 11-1.60 or 12-13 through 12-16 of the Criminal Code of 1961 or the Criminal Code of 2012, or an attempt to commit such
offense, as set forth in this
Section. This subsection shall not apply to a policy which covers hospital
and medical expenses for specified illnesses and injuries only.
(9) For purposes of enabling the recovery of State funds, any insurance
carrier subject to this Section shall upon reasonable demand by the Department
of Public Health disclose the names and identities of its insureds entitled
to benefits under this provision to the Department of Public Health whenever
the Department of Public Health has determined that it has paid, or is about
to pay, hospital or medical expenses for which an insurance carrier is liable
under this Section. All information received by the Department of Public
Health under this provision shall be held on a confidential basis and shall
not be subject to subpoena and shall not be made public by the Department
of Public Health or used for any purpose other than that authorized by this
Section.
(10) Whenever the Department of Public Health finds that it has paid all
or part of any hospital or medical expenses which an insurance carrier is
obligated to pay under this Section, the Department of Public Health shall
be entitled to receive reimbursement for its payments from such insurance
carrier provided that the Department of Public Health has notified the
insurance carrier of its claim before the carrier has paid the benefits to
its insureds or the insureds' assignees.
(11) (a) No group hospital, medical or surgical expense
| | policy shall contain any provision whereby benefits otherwise payable thereunder are subject to reduction solely on account of the existence of similar benefits provided under other group or group-type accident and sickness insurance policies where such reduction would operate to reduce total benefits payable under these policies below an amount equal to 100% of total allowable expenses provided under these policies.
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(b) When dependents of insureds are covered under 2
| | policies, both of which contain coordination of benefits provisions, benefits of the policy of the insured whose birthday falls earlier in the year are determined before those of the policy of the insured whose birthday falls later in the year. Birthday, as used herein, refers only to the month and day in a calendar year, not the year in which the person was born. The Department of Insurance shall promulgate rules defining the order of benefit determination pursuant to this paragraph (b).
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(12) Every group policy under this Section shall be subject to the
provisions of Sections 356g and 356n of this Code.
(13) No accident and health insurer providing coverage for hospital
or medical expenses on an expense incurred basis shall deny
reimbursement for an otherwise covered expense incurred for any organ
transplantation procedure solely on the basis that such procedure is deemed
experimental or investigational unless supported by the determination of
the Office of Health Care Technology Assessment within the Agency for
Health Care Policy and Research within the federal Department of Health and
Human Services that such procedure is either experimental or investigational or
that there is insufficient data or experience to determine whether an organ
transplantation procedure is clinically acceptable. If an accident and
health insurer has made written request, or had one made on its behalf by a
national organization, for determination by the Office of Health Care
Technology Assessment within the Agency for Health Care Policy and Research
within the federal Department of Health and Human Services as to whether a
specific organ transplantation procedure is clinically acceptable and said
organization fails to respond to such a request within a period of 90 days,
the failure to act may be deemed a determination that the procedure is
deemed to be experimental or investigational.
(14) Whenever a claim for benefits by an insured under a dental
prepayment program is denied or reduced, based on the review of x-ray
films, such review must be performed by a dentist.
(Source: P.A. 96-1551, eff. 7-1-11; 97-1150, eff. 1-25-13 .)
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