SB3407 104TH GENERAL ASSEMBLY

LRB104 18001 BAB 31438 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB3407

Introduced 2/4/2026, by Sen. Karina Villa

SYNOPSIS AS INTRODUCED:

210 ILCS 85/11.11 new

Amends the Hospital Licensing Act. Provides that a hospital licensed under the Act shall not charge a covered hospital employee more than 10% of the total health insurance premium cost. Provides that any agreement permitting a charge to a covered hospital employee in excess of 10% of the total health insurance premium cost shall be deemed invalid, void, and unenforceable. Provides that a hospital in violation of those provisions shall pay a civil penalty of $500 to the Department of Public Health for each impacted covered hospital employee.

A BILL FOR

AN ACT concerning regulation.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Hospital Licensing Act is amended by adding Section 11.11 as follows:

(210 ILCS 85/11.11 new)

Sec. 11.11. Health insurance premiums for hospital employees.

(a) In this Section:

"Covered hospital employee" means any of the following:

(1) An employee of a large hospital who provides patient care, health care services, or services supporting the provision of health care, which includes, but is not limited to, employees performing work in the occupation of a nurse, physician, caregiver, medical resident, intern or fellow, patient care technician, janitor, housekeeping staff person, groundskeeper, guard, clerical worker, nonmanagerial administrative worker, food service worker, gift shop worker, technical and ancillary services worker, medical coding and medical billing personnel, scheduler, call center and warehouse worker, and laundry worker, regardless of formal job title.

(2) A contracted or subcontracted employee, if all of the following apply:

(A) The employee's employer contracts with the hospital employer, or with a contractor or subcontractor to the hospital employer, to provide health care services or services supporting the provision of health care.

(B) The hospital directly or indirectly, or through an agent or any other person, exercises control over the employee's wages, hours, or working conditions. However, "covered hospital employee" includes all employees performing contracted or subcontracted work primarily on the premises of a hospital to provide health care services or services supporting the provision of health care.

"Health insurance premium" means any money charged to a hospital, plan sponsor, or other entity to provide for the medical, dental, or vision insurance coverage for a covered hospital employee.

"Health system" means any entity that:

(1) owns or operates at least one hospital; or

(2) sponsors, supports, or administers graduate medical education programs across a consortium of independent or affiliated hospitals or medical or osteopathic colleges or schools.

"Large hospital" means a hospital licensed under this Act that has net patient revenue of at least $1,000,000,000 per year or is part of a health system that has net patient revenue of at least $1,000,000,000 per year.

(b) A hospital licensed under this Act shall not charge a covered hospital employee more than 10% of the total health insurance premium cost. The requirements of this Section may not be waived. Any agreement permitting a charge to a covered hospital employee in excess of 10% of the total health insurance premium cost shall be deemed invalid, void, and unenforceable under this Section.

(c) A hospital in violation of this Section shall pay a civil penalty of $500 to the Department for each impacted covered hospital employee.