Rep. Bob Morgan
Filed: 5/25/2026
 
 

 
 

 
10400SB2762ham002LRB104 16499 BAB 38211 a

1
AMENDMENT TO SENATE BILL 2762

2    AMENDMENT NO. ______. Amend Senate Bill 2762 by replacing 
3everything after the enacting clause with the following:
 
4    "Section 5. The Counties Code is amended by changing 
5Section 5-1069.3 as follows:
 
6    (55 ILCS 5/5-1069.3)
7    (Text of Section before amendment by P.A. 104-446)
8    Sec. 5-1069.3. Required health benefits. If a county, 
9including a home rule county, is a self-insurer for purposes 
10of providing health insurance coverage for its employees, the 
11coverage shall include coverage for the post-mastectomy care 
12benefits required to be covered by a policy of accident and 
13health insurance under Section 356t and the coverage required 
14under Sections 356g, 356g.5, 356g.5-1, 356m, 356q, 356u, 
15356u.10, 356w, 356x, 356z.4, 356z.4a, 356z.6, 356z.8, 356z.9, 
16356z.10, 356z.11, 356z.12, 356z.13, 356z.14, 356z.15, 356z.22, 
 
 
10400SB2762ham002- 2 -LRB104 16499 BAB 38211 a

1356z.25, 356z.26, 356z.29, 356z.30, 356z.32, 356z.33, 356z.36, 
2356z.40, 356z.41, 356z.45, 356z.46, 356z.47, 356z.48, 356z.51, 
3356z.53, 356z.54, 356z.56, 356z.57, 356z.59, 356z.60, 356z.61, 
4356z.62, 356z.64, 356z.67, 356z.68, 356z.70, 356z.71, 356z.74, 
5and 356z.77, 356z.79, and 356z.80, 356z.81, 356z.82, 356z.83, 
6356z.84, 356z.85, and 356z.88 of the Illinois Insurance Code. 
7The coverage shall comply with Sections 155.22a, 355b, 
8356z.19, and 370c of the Illinois Insurance Code. The 
9Department of Insurance shall enforce the requirements of this 
10Section. The requirement that health benefits be covered as 
11provided in this Section is an exclusive power and function of 
12the State and is a denial and limitation under Article VII, 
13Section 6, subsection (h) of the Illinois Constitution. A home 
14rule county to which this Section applies must comply with 
15every provision of this Section. 
16    Rulemaking authority to implement Public Act 95-1045, if 
17any, is conditioned on the rules being adopted in accordance 
18with all provisions of the Illinois Administrative Procedure 
19Act and all rules and procedures of the Joint Committee on 
20Administrative Rules; any purported rule not so adopted, for 
21whatever reason, is unauthorized. 
22(Source: P.A. 103-84, eff. 1-1-24; 103-91, eff. 1-1-24; 
23103-420, eff. 1-1-24; 103-445, eff. 1-1-24; 103-535, eff. 
248-11-23; 103-551, eff. 8-11-23; 103-605, eff. 7-1-24; 103-718, 
25eff. 7-19-24; 103-751, eff. 8-2-24; 103-914, eff. 1-1-25; 
26103-918, eff. 1-1-25; 103-1024, eff. 1-1-25; 104-1, eff. 
 
 
10400SB2762ham002- 3 -LRB104 16499 BAB 38211 a

16-9-25; 104-42, eff. 8-1-25; 104-68, eff. 1-1-26; 104-73, eff. 
21-1-26; 104-289, eff. 1-1-26; 104-324, eff. 1-1-26; 104-379, 
3eff. 1-1-26; 104-417, eff. 8-15-25; revised 1-7-26.)
 
4    (Text of Section after amendment by P.A. 104-446)
5    Sec. 5-1069.3. Required health benefits. If a county, 
6including a home rule county, is a self-insurer for purposes 
7of providing health insurance coverage for its employees, the 
8coverage shall include coverage for the post-mastectomy care 
9benefits required to be covered by a policy of accident and 
10health insurance under Section 356t and the coverage required 
11under Sections 356g, 356g.5, 356g.5-1, 356m, 356q, 356u, 
12356u.10, 356w, 356x, 356z.4, 356z.4a, 356z.6, 356z.8, 356z.9, 
13356z.10, 356z.11, 356z.12, 356z.13, 356z.14, 356z.15, 356z.22, 
14356z.25, 356z.26, 356z.29, 356z.30, 356z.32, 356z.33, 356z.36, 
15356z.40, 356z.41, 356z.45, 356z.46, 356z.47, 356z.48, 356z.51, 
16356z.53, 356z.54, 356z.56, 356z.57, 356z.59, 356z.60, 356z.61, 
17356z.62, 356z.64, 356z.67, 356z.68, 356z.70, 356z.71, 356z.74, 
18and 356z.77, 356z.79, and 356z.80, 356z.81, 356z.82, 356z.83, 
19356z.84, 356z.85, and 356z.88 of the Illinois Insurance Code. 
20The coverage shall comply with Sections 155.22a, 355b, 
21356z.19, 370c, and 370c.4 of the Illinois Insurance Code. The 
22Department of Insurance shall enforce the requirements of this 
23Section. The requirement that health benefits be covered as 
24provided in this Section is an exclusive power and function of 
25the State and is a denial and limitation under Article VII, 
 
 
10400SB2762ham002- 4 -LRB104 16499 BAB 38211 a

1Section 6, subsection (h) of the Illinois Constitution. A home 
2rule county to which this Section applies must comply with 
3every provision of this Section. 
4    Rulemaking authority to implement Public Act 95-1045, if 
5any, is conditioned on the rules being adopted in accordance 
6with all provisions of the Illinois Administrative Procedure 
7Act and all rules and procedures of the Joint Committee on 
8Administrative Rules; any purported rule not so adopted, for 
9whatever reason, is unauthorized. 
10(Source: P.A. 103-84, eff. 1-1-24; 103-91, eff. 1-1-24; 
11103-420, eff. 1-1-24; 103-445, eff. 1-1-24; 103-535, eff. 
128-11-23; 103-551, eff. 8-11-23; 103-605, eff. 7-1-24; 103-718, 
13eff. 7-19-24; 103-751, eff. 8-2-24; 103-914, eff. 1-1-25; 
14103-918, eff. 1-1-25; 103-1024, eff. 1-1-25; 104-1, eff. 
156-9-25; 104-42, eff. 8-1-25; 104-68, eff. 1-1-26; 104-73, eff. 
161-1-26; 104-289, eff. 1-1-26; 104-324, eff. 1-1-26; 104-379, 
17eff. 1-1-26; 104-417, eff. 8-15-25; 104-446, eff. 6-1-26; 
18revised 1-7-26.)
 
19    Section 10. The Illinois Municipal Code is amended by 
20changing Section 10-4-2.3 as follows:
 
21    (65 ILCS 5/10-4-2.3)
22    (Text of Section before amendment by P.A. 104-446)
23    Sec. 10-4-2.3. Required health benefits. If a 
24municipality, including a home rule municipality, is a 
 
 
10400SB2762ham002- 5 -LRB104 16499 BAB 38211 a

1self-insurer for purposes of providing health insurance 
2coverage for its employees, the coverage shall include 
3coverage for the post-mastectomy care benefits required to be 
4covered by a policy of accident and health insurance under 
5Section 356t and the coverage required under Sections 356g, 
6356g.5, 356g.5-1, 356m, 356q, 356u, 356u.10, 356w, 356x, 
7356z.4, 356z.4a, 356z.6, 356z.8, 356z.9, 356z.10, 356z.11, 
8356z.12, 356z.13, 356z.14, 356z.15, 356z.22, 356z.25, 356z.26, 
9356z.29, 356z.30, 356z.32, 356z.33, 356z.36, 356z.40, 356z.41, 
10356z.45, 356z.46, 356z.47, 356z.48, 356z.51, 356z.53, 356z.54, 
11356z.56, 356z.57, 356z.59, 356z.60, 356z.61, 356z.62, 356z.64, 
12356z.67, 356z.68, 356z.70, 356z.71, 356z.74, and 356z.77, 
13356z.79, and 356z.80, 356z.81, 356z.82, 356z.83, 356z.84, 
14356z.85, and 356z.88 of the Illinois Insurance Code. The 
15coverage shall comply with Sections 155.22a, 355b, 356z.19, 
16and 370c of the Illinois Insurance Code. The Department of 
17Insurance shall enforce the requirements of this Section. The 
18requirement that health benefits be covered as provided in 
19this Section is an exclusive power and function of the State 
20and is a denial and limitation under Article VII, Section 6, 
21subsection (h) of the Illinois Constitution. A home rule 
22municipality to which this Section applies must comply with 
23every provision of this Section. 
24    Rulemaking authority to implement Public Act 95-1045, if 
25any, is conditioned on the rules being adopted in accordance 
26with all provisions of the Illinois Administrative Procedure 
 
 
10400SB2762ham002- 6 -LRB104 16499 BAB 38211 a

1Act and all rules and procedures of the Joint Committee on 
2Administrative Rules; any purported rule not so adopted, for 
3whatever reason, is unauthorized. 
4(Source: P.A. 103-84, eff. 1-1-24; 103-91, eff. 1-1-24; 
5103-420, eff. 1-1-24; 103-445, eff. 1-1-24; 103-535, eff. 
68-11-23; 103-551, eff. 8-11-23; 103-605, eff. 7-1-24; 103-718, 
7eff. 7-19-24; 103-751, eff. 8-2-24; 103-914, eff. 1-1-25; 
8103-918, eff. 1-1-25; 103-1024, eff. 1-1-25; 104-1, eff. 
96-9-25; 104-42, eff. 8-1-25; 104-68, eff. 1-1-26; 104-73, eff. 
101-1-26; 104-289, eff. 1-1-26; 104-324, eff. 1-1-26; 104-379, 
11eff. 1-1-26; 104-417, eff. 8-15-25; revised 1-8-26.)
 
12    (Text of Section after amendment by P.A. 104-446)
13    Sec. 10-4-2.3. Required health benefits. If a 
14municipality, including a home rule municipality, is a 
15self-insurer for purposes of providing health insurance 
16coverage for its employees, the coverage shall include 
17coverage for the post-mastectomy care benefits required to be 
18covered by a policy of accident and health insurance under 
19Section 356t and the coverage required under Sections 356g, 
20356g.5, 356g.5-1, 356m, 356q, 356u, 356u.10, 356w, 356x, 
21356z.4, 356z.4a, 356z.6, 356z.8, 356z.9, 356z.10, 356z.11, 
22356z.12, 356z.13, 356z.14, 356z.15, 356z.22, 356z.25, 356z.26, 
23356z.29, 356z.30, 356z.32, 356z.33, 356z.36, 356z.40, 356z.41, 
24356z.45, 356z.46, 356z.47, 356z.48, 356z.51, 356z.53, 356z.54, 
25356z.56, 356z.57, 356z.59, 356z.60, 356z.61, 356z.62, 356z.64, 
 
 
10400SB2762ham002- 7 -LRB104 16499 BAB 38211 a

1356z.67, 356z.68, 356z.70, 356z.71, 356z.74, and 356z.77, 
2356z.79, and 356z.80, 356z.81, 356z.82, 356z.83, 356z.84, 
3356z.85, and 356z.88 of the Illinois Insurance Code. The 
4coverage shall comply with Sections 155.22a, 355b, 356z.19, 
5370c, and 370c.4 of the Illinois Insurance Code. The 
6Department of Insurance shall enforce the requirements of this 
7Section. The requirement that health benefits be covered as 
8provided in this Section is an exclusive power and function of 
9the State and is a denial and limitation under Article VII, 
10Section 6, subsection (h) of the Illinois Constitution. A home 
11rule municipality to which this Section applies must comply 
12with every provision of this Section. 
13    Rulemaking authority to implement Public Act 95-1045, if 
14any, is conditioned on the rules being adopted in accordance 
15with all provisions of the Illinois Administrative Procedure 
16Act and all rules and procedures of the Joint Committee on 
17Administrative Rules; any purported rule not so adopted, for 
18whatever reason, is unauthorized. 
19(Source: P.A. 103-84, eff. 1-1-24; 103-91, eff. 1-1-24; 
20103-420, eff. 1-1-24; 103-445, eff. 1-1-24; 103-535, eff. 
218-11-23; 103-551, eff. 8-11-23; 103-605, eff. 7-1-24; 103-718, 
22eff. 7-19-24; 103-751, eff. 8-2-24; 103-914, eff. 1-1-25; 
23103-918, eff. 1-1-25; 103-1024, eff. 1-1-25; 104-1, eff. 
246-9-25; 104-42, eff. 8-1-25; 104-68, eff. 1-1-26; 104-73, eff. 
251-1-26; 104-289, eff. 1-1-26; 104-324, eff. 1-1-26; 104-379, 
26eff. 1-1-26; 104-417, eff. 8-15-25; 104-446, eff. 6-1-26; 
 
 
10400SB2762ham002- 8 -LRB104 16499 BAB 38211 a

1revised 1-8-26.)
 
2    Section 15. The School Code is amended by changing Section 
310-22.3f as follows:
 
4    (105 ILCS 5/10-22.3f)
5    (Text of Section before amendment by P.A. 104-446)
6    Sec. 10-22.3f. Required health benefits. Insurance 
7protection and benefits for employees shall provide the 
8post-mastectomy care benefits required to be covered by a 
9policy of accident and health insurance under Section 356t and 
10the coverage required under Sections 356g, 356g.5, 356g.5-1, 
11356m, 356q, 356u, 356u.10, 356w, 356x, 356z.4, 356z.4a, 
12356z.6, 356z.8, 356z.9, 356z.11, 356z.12, 356z.13, 356z.14, 
13356z.15, 356z.22, 356z.25, 356z.26, 356z.29, 356z.30, 356z.32, 
14356z.33, 356z.36, 356z.40, 356z.41, 356z.45, 356z.46, 356z.47, 
15356z.51, 356z.53, 356z.54, 356z.56, 356z.57, 356z.59, 356z.60, 
16356z.61, 356z.62, 356z.64, 356z.67, 356z.68, 356z.70, 356z.71, 
17356z.74, and 356z.77, 356z.79, and 356z.80, 356z.81, 356z.82, 
18356z.83, 356z.84, 356z.85, and 356z.88 of the Illinois 
19Insurance Code. Insurance policies shall comply with Section 
20356z.19 of the Illinois Insurance Code. The coverage shall 
21comply with Sections 155.22a, 355b, and 370c and Article 
22XXXIIB of the Illinois Insurance Code. The Department of 
23Insurance shall enforce the requirements of this Section. 
24    Rulemaking authority to implement Public Act 95-1045, if 
 
 
10400SB2762ham002- 9 -LRB104 16499 BAB 38211 a

1any, is conditioned on the rules being adopted in accordance 
2with all provisions of the Illinois Administrative Procedure 
3Act and all rules and procedures of the Joint Committee on 
4Administrative Rules; any purported rule not so adopted, for 
5whatever reason, is unauthorized. 
6(Source: P.A. 103-84, eff. 1-1-24; 103-91, eff. 1-1-24; 
7103-420, eff. 1-1-24; 103-445, eff. 1-1-24; 103-535, eff. 
88-11-23; 103-551, eff. 8-11-23; 103-605, eff. 7-1-24; 103-718, 
9eff. 7-19-24; 103-751, eff. 8-2-24; 103-914, eff. 1-1-25; 
10103-918, eff. 1-1-25; 103-1024, eff. 1-1-25; 104-1, eff. 
116-9-25; 104-27, eff. 1-1-26; 104-42, eff. 8-1-25; 104-68, eff. 
121-1-26; 104-73, eff. 1-1-26; 104-289, eff. 1-1-26; 104-324, 
13eff. 1-1-26; 104-379, eff. 1-1-26; 104-417, eff. 8-15-25; 
14revised 1-8-26.)
 
15    (Text of Section after amendment by P.A. 104-446)
16    Sec. 10-22.3f. Required health benefits. Insurance 
17protection and benefits for employees shall provide the 
18post-mastectomy care benefits required to be covered by a 
19policy of accident and health insurance under Section 356t and 
20the coverage required under Sections 356g, 356g.5, 356g.5-1, 
21356m, 356q, 356u, 356u.10, 356w, 356x, 356z.4, 356z.4a, 
22356z.6, 356z.8, 356z.9, 356z.11, 356z.12, 356z.13, 356z.14, 
23356z.15, 356z.22, 356z.25, 356z.26, 356z.29, 356z.30, 356z.32, 
24356z.33, 356z.36, 356z.40, 356z.41, 356z.45, 356z.46, 356z.47, 
25356z.51, 356z.53, 356z.54, 356z.56, 356z.57, 356z.59, 356z.60, 
 
 
10400SB2762ham002- 10 -LRB104 16499 BAB 38211 a

1356z.61, 356z.62, 356z.64, 356z.67, 356z.68, 356z.70, 356z.71, 
2356z.74, and 356z.77, 356z.79, and 356z.80, 356z.81, 356z.82, 
3356z.83, 356z.84, 356z.85, and 356z.88 of the Illinois 
4Insurance Code. Insurance policies shall comply with Section 
5356z.19 of the Illinois Insurance Code. The coverage shall 
6comply with Sections 155.22a, 355b, 370c, and 370c.4 and 
7Article XXXIIB of the Illinois Insurance Code. The Department 
8of Insurance shall enforce the requirements of this Section. 
9    Rulemaking authority to implement Public Act 95-1045, if 
10any, is conditioned on the rules being adopted in accordance 
11with all provisions of the Illinois Administrative Procedure 
12Act and all rules and procedures of the Joint Committee on 
13Administrative Rules; any purported rule not so adopted, for 
14whatever reason, is unauthorized. 
15(Source: P.A. 103-84, eff. 1-1-24; 103-91, eff. 1-1-24; 
16103-420, eff. 1-1-24; 103-445, eff. 1-1-24; 103-535, eff. 
178-11-23; 103-551, eff. 8-11-23; 103-605, eff. 7-1-24; 103-718, 
18eff. 7-19-24; 103-751, eff. 8-2-24; 103-914, eff. 1-1-25; 
19103-918, eff. 1-1-25; 103-1024, eff. 1-1-25; 104-1, eff. 
206-9-25; 104-27, eff. 1-1-26; 104-42, eff. 8-1-25; 104-68, eff. 
211-1-26; 104-73, eff. 1-1-26; 104-289, eff. 1-1-26; 104-324, 
22eff. 1-1-26; 104-379, eff. 1-1-26; 104-417, eff. 8-15-25; 
23104-446, eff. 6-1-26; revised 1-8-26.)
 
24    Section 20. The Illinois Insurance Code is amended by 
25adding Section 356z.88 as follows:
 
 
 
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1    (215 ILCS 5/356z.88 new)
2    Sec. 356z.88. Coverage for seizure detection devices.
3    (a) For the purposes of this Section, "seizure detection 
4device" means a monitoring device cleared by the United States 
5Food and Drug Administration, and any related technology, 
6application, service, or subscription supporting the 
7prescribed use of the device, that provides the following:
8        (1) individual monitoring and alert services relating 
9    to seizure activity;
10        (2) detection or prediction of seizure activity and 
11    transmission of notification of the seizure activity to 
12    the individual or a caregiver for appropriate medical 
13    response; or
14        (3) collection of data of the seizure activity of the 
15    individual that can be used by a health care provider to 
16    diagnose or appropriately treat a health care condition 
17    that causes the seizure activity.
18    (b) A group or individual plan of accident and health 
19insurance or managed care plan amended, delivered, issued, or 
20renewed on or after January 1, 2029 shall provide coverage for 
21medically prescribed seizure detection devices.
22    (c) All seizure detection devices covered under this 
23Section shall be approved for use by individuals, and the 
24choice of device shall be made based upon the individual's 
25circumstances and medical needs in consultation with the 
 
 
10400SB2762ham002- 12 -LRB104 16499 BAB 38211 a

1individual's medical provider.
2    (d) Any individual who has been prescribed a seizure 
3detection device shall not be required to obtain prior 
4authorization for coverage for a seizure detection device, and 
5coverage shall be continuous once the seizure detection device 
6is prescribed.
7    (e) A group or individual policy of accident and health 
8insurance or a managed care plan that is amended, delivered, 
9issued, or renewed on or after January 1, 2028 shall not impose 
10a deductible, coinsurance, copayment, or any other 
11cost-sharing requirement of more than $50 on the coverage of a 
12seizure detection device per plan year. The provisions of this 
13subsection do not apply to coverage under this Section to the 
14extent that the coverage would disqualify a high-deductible 
15health plan from eligibility for a health savings account.
 
16    Section 25. The Health Maintenance Organization Act is 
17amended by changing Section 5-3 as follows:
 
18    (215 ILCS 125/5-3)  (from Ch. 111 1/2, par. 1411.2)
19    Sec. 5-3. Illinois Insurance Code provisions. 
20    (a) Health Maintenance Organizations shall be subject to 
21the provisions of Sections 133, 134, 136, 137, 139, 140, 
22141.1, 141.2, 141.3, 143, 143.31, 143c, 147, 148, 149, 151, 
23152, 153, 154, 154.5, 154.6, 154.7, 154.8, 155.04, 155.22a, 
24155.49, 352c, 355.2, 355.3, 355.6, 355.7, 355b, 355c, 356f, 
 
 
10400SB2762ham002- 13 -LRB104 16499 BAB 38211 a

1356g, 356g.5-1, 356m, 356q, 356u.10, 356v, 356w, 356x, 356z.2, 
2356z.3a, 356z.4, 356z.4a, 356z.5, 356z.6, 356z.8, 356z.9, 
3356z.10, 356z.11, 356z.12, 356z.13, 356z.14, 356z.15, 356z.17, 
4356z.18, 356z.19, 356z.20, 356z.21, 356z.22, 356z.23, 356z.24, 
5356z.25, 356z.26, 356z.28, 356z.29, 356z.30, 356z.31, 356z.32, 
6356z.33, 356z.34, 356z.35, 356z.36, 356z.37, 356z.38, 356z.39, 
7356z.40, 356z.40a, 356z.41, 356z.44, 356z.45, 356z.46, 
8356z.47, 356z.48, 356z.49, 356z.50, 356z.51, 356z.53, 356z.54, 
9356z.55, 356z.56, 356z.57, 356z.58, 356z.59, 356z.60, 356z.61, 
10356z.62, 356z.63, 356z.64, 356z.65, 356z.66, 356z.67, 356z.68, 
11356z.69, 356z.70, 356z.71, 356z.72, 356z.73, 356z.74, 356z.75, 
12356z.76, 356z.77, 356z.78, 356z.79, 356z.80, 356z.81, 356z.82, 
13356z.83, 356z.84, 356z.85, 356z.88, 364, 364.01, 364.3, 367.2, 
14367.2-5, 367i, 368a, 368b, 368c, 368d, 368e, 370a, 370c, 
15370c.1, 401, 401.1, 402, 403, 403A, 408, 408.2, 409, 412, 444, 
16and 444.1, paragraph (c) of subsection (2) of Section 367, and 
17Articles IIA, VIII 1/2, XII, XII 1/2, XIII, XIII 1/2, XXV, 
18XXVI, and XXXIIB of the Illinois Insurance Code.
19    (b) For purposes of the Illinois Insurance Code, except 
20for Sections 444 and 444.1 and Articles XIII and XIII 1/2, 
21Health Maintenance Organizations in the following categories 
22are deemed to be "domestic companies":
23        (1) a corporation authorized under the Dental Service 
24    Plan Act or the Voluntary Health Services Plans Act;
25        (2) a corporation organized under the laws of this 
26    State; or
 
 
10400SB2762ham002- 14 -LRB104 16499 BAB 38211 a

1        (3) a corporation organized under the laws of another 
2    state, 30% or more of the enrollees of which are residents 
3    of this State, except a corporation subject to 
4    substantially the same requirements in its state of 
5    organization as is a "domestic company" under Article VIII 
6    1/2 of the Illinois Insurance Code.
7    (c) In considering the merger, consolidation, or other 
8acquisition of control of a Health Maintenance Organization 
9pursuant to Article VIII 1/2 of the Illinois Insurance Code,
10        (1) the Director shall give primary consideration to 
11    the continuation of benefits to enrollees and the 
12    financial conditions of the acquired Health Maintenance 
13    Organization after the merger, consolidation, or other 
14    acquisition of control takes effect;
15        (2)(i) the criteria specified in subsection (1)(b) of 
16    Section 131.8 of the Illinois Insurance Code shall not 
17    apply and (ii) the Director, in making his determination 
18    with respect to the merger, consolidation, or other 
19    acquisition of control, need not take into account the 
20    effect on competition of the merger, consolidation, or 
21    other acquisition of control;
22        (3) the Director shall have the power to require the 
23    following information:
24            (A) certification by an independent actuary of the 
25        adequacy of the reserves of the Health Maintenance 
26        Organization sought to be acquired;
 
 
10400SB2762ham002- 15 -LRB104 16499 BAB 38211 a

1            (B) pro forma financial statements reflecting the 
2        combined balance sheets of the acquiring company and 
3        the Health Maintenance Organization sought to be 
4        acquired as of the end of the preceding year and as of 
5        a date 90 days prior to the acquisition, as well as pro 
6        forma financial statements reflecting projected 
7        combined operation for a period of 2 years;
8            (C) a pro forma business plan detailing an 
9        acquiring party's plans with respect to the operation 
10        of the Health Maintenance Organization sought to be 
11        acquired for a period of not less than 3 years; and
12            (D) such other information as the Director shall 
13        require.
14    (d) The provisions of Article VIII 1/2 of the Illinois 
15Insurance Code and this Section 5-3 shall apply to the sale by 
16any health maintenance organization of greater than 10% of its 
17enrollee population (including, without limitation, the health 
18maintenance organization's right, title, and interest in and 
19to its health care certificates).
20    (e) In considering any management contract or service 
21agreement subject to Section 141.1 of the Illinois Insurance 
22Code, the Director (i) shall, in addition to the criteria 
23specified in Section 141.2 of the Illinois Insurance Code, 
24take into account the effect of the management contract or 
25service agreement on the continuation of benefits to enrollees 
26and the financial condition of the health maintenance 
 
 
10400SB2762ham002- 16 -LRB104 16499 BAB 38211 a

1organization to be managed or serviced, and (ii) need not take 
2into account the effect of the management contract or service 
3agreement on competition.
4    (f) Except for small employer groups as defined in the 
5Small Employer Rating, Renewability and Portability Health 
6Insurance Act and except for medicare supplement policies as 
7defined in Section 363 of the Illinois Insurance Code, a 
8Health Maintenance Organization may by contract agree with a 
9group or other enrollment unit to effect refunds or charge 
10additional premiums under the following terms and conditions:
11        (i) the amount of, and other terms and conditions with 
12    respect to, the refund or additional premium are set forth 
13    in the group or enrollment unit contract agreed in advance 
14    of the period for which a refund is to be paid or 
15    additional premium is to be charged (which period shall 
16    not be less than one year); and
17        (ii) the amount of the refund or additional premium 
18    shall not exceed 20% of the Health Maintenance 
19    Organization's profitable or unprofitable experience with 
20    respect to the group or other enrollment unit for the 
21    period (and, for purposes of a refund or additional 
22    premium, the profitable or unprofitable experience shall 
23    be calculated taking into account a pro rata share of the 
24    Health Maintenance Organization's administrative and 
25    marketing expenses, but shall not include any refund to be 
26    made or additional premium to be paid pursuant to this 
 
 
10400SB2762ham002- 17 -LRB104 16499 BAB 38211 a

1    subsection (f)). The Health Maintenance Organization and 
2    the group or enrollment unit may agree that the profitable 
3    or unprofitable experience may be calculated taking into 
4    account the refund period and the immediately preceding 2 
5    plan years.
6    The Health Maintenance Organization shall include a 
7statement in the evidence of coverage issued to each enrollee 
8describing the possibility of a refund or additional premium, 
9and upon request of any group or enrollment unit, provide to 
10the group or enrollment unit a description of the method used 
11to calculate (1) the Health Maintenance Organization's 
12profitable experience with respect to the group or enrollment 
13unit and the resulting refund to the group or enrollment unit 
14or (2) the Health Maintenance Organization's unprofitable 
15experience with respect to the group or enrollment unit and 
16the resulting additional premium to be paid by the group or 
17enrollment unit.
18    In no event shall the Illinois Health Maintenance 
19Organization Guaranty Association be liable to pay any 
20contractual obligation of an insolvent organization to pay any 
21refund authorized under this Section.
22    (g) Rulemaking authority to implement Public Act 95-1045, 
23if any, is conditioned on the rules being adopted in 
24accordance with all provisions of the Illinois Administrative 
25Procedure Act and all rules and procedures of the Joint 
26Committee on Administrative Rules; any purported rule not so 
 
 
10400SB2762ham002- 18 -LRB104 16499 BAB 38211 a

1adopted, for whatever reason, is unauthorized. 
2(Source: P.A. 103-84, eff. 1-1-24; 103-91, eff. 1-1-24; 
3103-123, eff. 1-1-24; 103-154, eff. 6-30-23; 103-420, eff. 
41-1-24; 103-426, eff. 8-4-23; 103-445, eff. 1-1-24; 103-551, 
5eff. 8-11-23; 103-605, eff. 7-1-24; 103-618, eff. 1-1-25; 
6103-649, eff. 1-1-25; 103-656, eff. 1-1-25; 103-700, eff. 
71-1-25; 103-718, eff. 7-19-24; 103-751, eff. 8-2-24; 103-753, 
8eff. 8-2-24; 103-758, eff. 1-1-25; 103-777, eff. 8-2-24; 
9103-808, eff. 1-1-26; 103-914, eff. 1-1-25; 103-918, eff. 
101-1-25; 103-1024, eff. 1-1-25; 104-1, eff. 6-9-25; 104-28, 
11eff. 1-1-26; 104-42, eff. 8-1-25; 104-68, eff. 1-1-26; 104-73, 
12eff. 1-1-26; 104-98, eff. 1-1-26; 104-289, eff. 1-1-26; 
13104-324, eff. 1-1-26; 104-334, eff. 8-15-25; 104-379, eff. 
141-1-26; 104-417, eff. 8-15-25; revised 11-21-25.)
 
15    Section 30. The Limited Health Service Organization Act is 
16amended by changing Section 4003 as follows:
 
17    (215 ILCS 130/4003)  (from Ch. 73, par. 1504-3)
18    Sec. 4003. Illinois Insurance Code provisions. Limited 
19health service organizations shall be subject to the 
20provisions of Sections 133, 134, 136, 137, 139, 140, 141.1, 
21141.2, 141.3, 143, 143.31, 143c, 147, 148, 149, 151, 152, 153, 
22154, 154.5, 154.6, 154.7, 154.8, 155.04, 155.37, 155.49, 352c, 
23355.2, 355.3, 355b, 355d, 356m, 356q, 356v, 356z.4, 356z.4a, 
24356z.10, 356z.21, 356z.22, 356z.25, 356z.26, 356z.29, 356z.32, 
 
 
10400SB2762ham002- 19 -LRB104 16499 BAB 38211 a

1356z.33, 356z.41, 356z.46, 356z.47, 356z.51, 356z.53, 356z.54, 
2356z.57, 356z.59, 356z.61, 356z.64, 356z.67, 356z.68, 356z.71, 
3356z.73, 356z.74, 356z.75, 356z.79, 356z.80, 356z.81, 356z.83, 
4356z.84, 356z.85, 356z.88, 364.3, 368a, 370a, 401, 401.1, 402, 
5403, 403A, 408, 408.2, 409, 412, 444, and 444.1 and Articles 
6IIA, VIII 1/2, XII, XII 1/2, XIII, XIII 1/2, XXV, XXVI, and 
7XXXIIB of the Illinois Insurance Code. Nothing in this Section 
8shall require a limited health care plan to cover any service 
9that is not a limited health service. For purposes of the 
10Illinois Insurance Code, except for Sections 444 and 444.1 and 
11Articles XIII and XIII 1/2, limited health service 
12organizations in the following categories are deemed to be 
13domestic companies:
14        (1) a corporation under the laws of this State; or
15        (2) a corporation organized under the laws of another 
16    state, 30% or more of the enrollees of which are residents 
17    of this State, except a corporation subject to 
18    substantially the same requirements in its state of 
19    organization as is a domestic company under Article VIII 
20    1/2 of the Illinois Insurance Code.
21(Source: P.A. 103-84, eff. 1-1-24; 103-91, eff. 1-1-24; 
22103-420, eff. 1-1-24; 103-426, eff. 8-4-23; 103-445, eff. 
231-1-24; 103-605, eff. 7-1-24; 103-649, eff. 1-1-25; 103-656, 
24eff. 1-1-25; 103-700, eff. 1-1-25; 103-718, eff. 7-19-24; 
25103-751, eff. 8-2-24; 103-758, eff. 1-1-25; 103-832, eff. 
261-1-25; 103-1024, eff. 1-1-25; 104-1, eff. 6-9-25; 104-42, 
 
 
10400SB2762ham002- 20 -LRB104 16499 BAB 38211 a

1eff. 8-1-25; 104-73, eff. 1-1-26; 104-98, eff. 1-1-26; 
2104-289, eff. 1-1-26; 104-324, eff. 1-1-26; 104-334, eff. 
38-15-25; 104-379, eff. 1-1-26; 104-417, eff. 8-15-25; revised 
411-21-25.)
 
5    Section 35. The Voluntary Health Services Plans Act is 
6amended by changing Section 10 as follows:
 
7    (215 ILCS 165/10)  (from Ch. 32, par. 604)
8    Sec. 10. Application of Illinois Insurance Code 
9provisions. Health services plan corporations and all persons 
10interested therein or dealing therewith shall be subject to 
11the provisions of Articles IIA and XII 1/2 and Sections 3.1, 
12133, 136, 139, 140, 143, 143.31, 143c, 149, 155.22a, 155.37, 
13354, 355.2, 355.3, 355.7, 355b, 355d, 356g, 356g.5, 356g.5-1, 
14356m, 356q, 356r, 356t, 356u, 356u.10, 356v, 356w, 356x, 356y, 
15356z.1, 356z.2, 356z.3a, 356z.4, 356z.4a, 356z.5, 356z.6, 
16356z.8, 356z.9, 356z.10, 356z.11, 356z.12, 356z.13, 356z.14, 
17356z.15, 356z.18, 356z.19, 356z.21, 356z.22, 356z.25, 356z.26, 
18356z.29, 356z.30, 356z.32, 356z.32a, 356z.33, 356z.40, 
19356z.41, 356z.46, 356z.47, 356z.51, 356z.53, 356z.54, 356z.56, 
20356z.57, 356z.59, 356z.60, 356z.61, 356z.62, 356z.64, 356z.67, 
21356z.68, 356z.71, 356z.72, 356z.74, 356z.75, 356z.77, 356z.79, 
22356z.80, 356z.81, 356z.83, 356z.84, 356z.85, 356z.88, 364.01, 
23364.3, 367.2, 368a, 370a, 401, 401.1, 402, 403, 403A, 408, 
24408.2, and 412, and paragraphs (7) and (15) of Section 367 of 
 
 
10400SB2762ham002- 21 -LRB104 16499 BAB 38211 a

1the Illinois Insurance Code.
2    Rulemaking authority to implement Public Act 95-1045, if 
3any, is conditioned on the rules being adopted in accordance 
4with all provisions of the Illinois Administrative Procedure 
5Act and all rules and procedures of the Joint Committee on 
6Administrative Rules; any purported rule not so adopted, for 
7whatever reason, is unauthorized. 
8(Source: P.A. 103-84, eff. 1-1-24; 103-91, eff. 1-1-24; 
9103-420, eff. 1-1-24; 103-445, eff. 1-1-24; 103-551, eff. 
108-11-23; 103-605, eff. 7-1-24; 103-656, eff. 1-1-25; 103-718, 
11eff. 7-19-24; 103-751, eff. 8-2-24; 103-753, eff. 8-2-24; 
12103-758, eff. 1-1-25; 103-832, eff. 1-1-25; 103-914, eff. 
131-1-25; 103-918, eff. 1-1-25; 103-1024, eff. 1-1-25; 104-1, 
14eff. 6-9-25; 104-28, eff. 1-1-26; 104-42, eff. 8-1-25; 104-73, 
15eff. 1-1-26; 104-98, eff. 1-1-26; 104-289, eff. 1-1-26; 
16104-324, eff. 1-1-26; 104-379, eff. 1-1-26; 104-417, eff. 
178-15-25; revised 11-21-25.)
 
18    Section 95. No acceleration or delay. Where this Act makes 
19changes in a statute that is represented in this Act by text 
20that is not yet or no longer in effect (for example, a Section 
21represented by multiple versions), the use of that text does 
22not accelerate or delay the taking effect of (i) the changes 
23made by this Act or (ii) provisions derived from any other 
24Public Act.
 
 
 
10400SB2762ham002- 22 -LRB104 16499 BAB 38211 a

1    Section 99. Effective date. This Act takes effect upon 
2becoming law.".