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1 | AN ACT concerning insurance.
| |||||||||||||||||||||||||||||||||
2 | Be it enacted by the People of the State of Illinois,
| |||||||||||||||||||||||||||||||||
3 | represented in the General Assembly:
| |||||||||||||||||||||||||||||||||
4 | Section 5. The State Employees Group Insurance Act of 1971 | |||||||||||||||||||||||||||||||||
5 | is amended by changing Section 6.11 as follows:
| |||||||||||||||||||||||||||||||||
6 | (5 ILCS 375/6.11)
| |||||||||||||||||||||||||||||||||
7 | Sec. 6.11. Required health benefits; Illinois Insurance | |||||||||||||||||||||||||||||||||
8 | Code
requirements. The program of health
benefits shall provide | |||||||||||||||||||||||||||||||||
9 | the post-mastectomy care benefits required to be covered
by a | |||||||||||||||||||||||||||||||||
10 | policy of accident and health insurance under Section 356t of | |||||||||||||||||||||||||||||||||
11 | the Illinois
Insurance Code. The program of health benefits | |||||||||||||||||||||||||||||||||
12 | shall provide the coverage
required under Sections 356f.1, | |||||||||||||||||||||||||||||||||
13 | 356g, 356g.5, 356g.5-1, 356m,
356u, 356w, 356x, 356z.2, 356z.4, | |||||||||||||||||||||||||||||||||
14 | 356z.6, 356z.8, 356z.9, 356z.10, 356z.11, 356z.12, and | |||||||||||||||||||||||||||||||||
15 | 356z.13, and 356z.14, 356z.15 and 356z.14 , and 356z.17 356z.15 | |||||||||||||||||||||||||||||||||
16 | of the
Illinois Insurance Code.
The program of health benefits | |||||||||||||||||||||||||||||||||
17 | must comply with Section 155.37 of the
Illinois Insurance Code.
| |||||||||||||||||||||||||||||||||
18 | Rulemaking authority to implement Public Act 95-1045 this | |||||||||||||||||||||||||||||||||
19 | amendatory Act of the 95th General Assembly , if any, is | |||||||||||||||||||||||||||||||||
20 | conditioned on the rules being adopted in accordance with all | |||||||||||||||||||||||||||||||||
21 | provisions of the Illinois Administrative Procedure Act and all | |||||||||||||||||||||||||||||||||
22 | rules and procedures of the Joint Committee on Administrative | |||||||||||||||||||||||||||||||||
23 | Rules; any purported rule not so adopted, for whatever reason, |
| |||||||
| |||||||
1 | is unauthorized. | ||||||
2 | (Source: P.A. 95-189, eff. 8-16-07; 95-422, eff. 8-24-07; | ||||||
3 | 95-520, eff. 8-28-07; 95-876, eff. 8-21-08; 95-958, eff. | ||||||
4 | 6-1-09; 95-978, eff. 1-1-09; 95-1005, eff. 12-12-08; 95-1044, | ||||||
5 | eff. 3-26-09; 95-1045, eff. 3-27-09; 95-1049, eff. 1-1-10; | ||||||
6 | 96-139, eff. 1-1-10; 96-328, eff. 8-11-09; 96-639, eff. 1-1-10; | ||||||
7 | revised 10-22-09.) | ||||||
8 | Section 10. The Counties Code is amended by changing | ||||||
9 | Section 5-1069.3 as follows: | ||||||
10 | (55 ILCS 5/5-1069.3)
| ||||||
11 | Sec. 5-1069.3. Required health benefits. If a county, | ||||||
12 | including a home
rule
county, is a self-insurer for purposes of | ||||||
13 | providing health insurance coverage
for its employees, the | ||||||
14 | coverage shall include coverage for the post-mastectomy
care | ||||||
15 | benefits required to be covered by a policy of accident and | ||||||
16 | health
insurance under Section 356t and the coverage required | ||||||
17 | under Sections 356f.1, 356g, 356g.5, 356g.5-1, 356u,
356w, | ||||||
18 | 356x, 356z.6, 356z.8, 356z.9, 356z.10, 356z.11, 356z.12, and | ||||||
19 | 356z.13, and 356z.14, and 356z.15 356z.14 of
the Illinois | ||||||
20 | Insurance Code. The requirement that health benefits be covered
| ||||||
21 | as provided in this Section is an
exclusive power and function | ||||||
22 | of the State and is a denial and limitation under
Article VII, | ||||||
23 | Section 6, subsection (h) of the Illinois Constitution. A home
| ||||||
24 | rule county to which this Section applies must comply with |
| |||||||
| |||||||
1 | every provision of
this Section.
| ||||||
2 | Rulemaking authority to implement Public Act 95-1045 this | ||||||
3 | amendatory Act of the 95th General Assembly , if any, is | ||||||
4 | conditioned on the rules being adopted in accordance with all | ||||||
5 | provisions of the Illinois Administrative Procedure Act and all | ||||||
6 | rules and procedures of the Joint Committee on Administrative | ||||||
7 | Rules; any purported rule not so adopted, for whatever reason, | ||||||
8 | is unauthorized. | ||||||
9 | (Source: P.A. 95-189, eff. 8-16-07; 95-422, eff. 8-24-07; | ||||||
10 | 95-520, eff. 8-28-07; 95-876, eff. 8-21-08; 95-958, eff. | ||||||
11 | 6-1-09; 95-978, eff. 1-1-09; 95-1005, eff. 12-12-08; 95-1045, | ||||||
12 | eff. 3-27-09; 95-1049, eff. 1-1-10; 96-139, eff. 1-1-10; | ||||||
13 | 96-328, eff. 8-11-09; revised 10-22-09.) | ||||||
14 | Section 15. The Illinois Municipal Code is amended by | ||||||
15 | changing Section 10-4-2.3 as follows: | ||||||
16 | (65 ILCS 5/10-4-2.3)
| ||||||
17 | Sec. 10-4-2.3. Required health benefits. If a | ||||||
18 | municipality, including a
home rule municipality, is a | ||||||
19 | self-insurer for purposes of providing health
insurance | ||||||
20 | coverage for its employees, the coverage shall include coverage | ||||||
21 | for
the post-mastectomy care benefits required to be covered by | ||||||
22 | a policy of
accident and health insurance under Section 356t | ||||||
23 | and the coverage required
under Sections 356f.1, 356g, 356g.5, | ||||||
24 | 356g.5-1, 356u, 356w, 356x, 356z.6, 356z.8, 356z.9, 356z.10, |
| |||||||
| |||||||
1 | 356z.11, 356z.12, and 356z.13, and 356z.14, and 356z.15 356z.14 | ||||||
2 | of the Illinois
Insurance
Code. The requirement that health
| ||||||
3 | benefits be covered as provided in this is an exclusive power | ||||||
4 | and function of
the State and is a denial and limitation under | ||||||
5 | Article VII, Section 6,
subsection (h) of the Illinois | ||||||
6 | Constitution. A home rule municipality to which
this Section | ||||||
7 | applies must comply with every provision of this Section.
| ||||||
8 | Rulemaking authority to implement Public Act 95-1045 this | ||||||
9 | amendatory Act of the 95th General Assembly , if any, is | ||||||
10 | conditioned on the rules being adopted in accordance with all | ||||||
11 | provisions of the Illinois Administrative Procedure Act and all | ||||||
12 | rules and procedures of the Joint Committee on Administrative | ||||||
13 | Rules; any purported rule not so adopted, for whatever reason, | ||||||
14 | is unauthorized. | ||||||
15 | (Source: P.A. 95-189, eff. 8-16-07; 95-422, eff. 8-24-07; | ||||||
16 | 95-520, eff. 8-28-07; 95-876, eff. 8-21-08; 95-958, eff. | ||||||
17 | 6-1-09; 95-978, eff. 1-1-09; 95-1005, eff. 12-12-08; 95-1045, | ||||||
18 | eff. 3-27-09; 95-1049, eff. 1-1-10; 96-139, eff. 1-1-10; | ||||||
19 | 96-328, eff. 8-11-09; revised 10-23-09.)
| ||||||
20 | Section 20. The School Code is amended by changing Section | ||||||
21 | 10-22.3f as follows: | ||||||
22 | (105 ILCS 5/10-22.3f)
| ||||||
23 | Sec. 10-22.3f. Required health benefits. Insurance | ||||||
24 | protection and
benefits
for employees shall provide the |
| |||||||
| |||||||
1 | post-mastectomy care benefits required to be
covered by a | ||||||
2 | policy of accident and health insurance under Section 356t and | ||||||
3 | the
coverage required under Sections 356f.1, 356g, 356g.5, | ||||||
4 | 356g.5-1, 356u, 356w, 356x,
356z.6, 356z.8, 356z.9, 356z.11, | ||||||
5 | 356z.12, 356z.13, and 356z.14, and 356z.15 356z.14 of
the
| ||||||
6 | Illinois Insurance Code.
| ||||||
7 | Rulemaking authority to implement Public Act 95-1045 this | ||||||
8 | amendatory Act of the 95th General Assembly , if any, is | ||||||
9 | conditioned on the rules being adopted in accordance with all | ||||||
10 | provisions of the Illinois Administrative Procedure Act and all | ||||||
11 | rules and procedures of the Joint Committee on Administrative | ||||||
12 | Rules; any purported rule not so adopted, for whatever reason, | ||||||
13 | is unauthorized. | ||||||
14 | (Source: P.A. 95-189, eff. 8-16-07; 95-422, eff. 8-24-07; | ||||||
15 | 95-876, eff. 8-21-08; 95-958, eff. 6-1-09; 95-978, eff. 1-1-09; | ||||||
16 | 95-1005, 12-12-08; 95-1045, eff. 3-27-09; 95-1049, eff. | ||||||
17 | 1-1-10; 96-139, eff. 1-1-10; 96-328, eff. 8-11-09; revised | ||||||
18 | 10-23-09.)
| ||||||
19 | Section 25. The Illinois Insurance Code is amended by | ||||||
20 | adding Section 356f.1 as follows: | ||||||
21 | (215 ILCS 5/356f.1 new) | ||||||
22 | Sec. 356f.1. Health care services appeals,
complaints, and
| ||||||
23 | external independent reviews. | ||||||
24 | (a) A policy of accident or health insurance or managed |
| |||||||
| |||||||
1 | care plan shall establish and maintain an appeals procedure as
| ||||||
2 | outlined in this Section. Compliance with this Section's | ||||||
3 | appeals procedures shall
satisfy a policy or plan's obligation | ||||||
4 | to provide appeal procedures under any
other State law or | ||||||
5 | rules. | ||||||
6 | (b) When an appeal concerns a decision or action by a | ||||||
7 | policy of accident or health insurance or managed care plan,
| ||||||
8 | its
employees, or its subcontractors that relates to (i) health | ||||||
9 | care services,
procedures, or
treatments
for an enrollee with | ||||||
10 | an ongoing course of treatment ordered
by a health care | ||||||
11 | provider,
the denial of which could significantly
increase the | ||||||
12 | risk to an
enrollee's health
or (ii) a treatment referral, | ||||||
13 | service,
or procedure, the denial of which could significantly
| ||||||
14 | increase the risk to an
enrollee's health,
the policy or plan | ||||||
15 | must allow for the filing of an appeal
either orally or in | ||||||
16 | writing. Upon submission of the appeal, a policy or plan
must | ||||||
17 | notify the party filing the appeal, as soon as possible, but in | ||||||
18 | no event
more than 24 hours after the submission of the appeal, | ||||||
19 | of all information
that the plan requires to evaluate the | ||||||
20 | appeal.
The policy or plan shall render a decision on the | ||||||
21 | appeal within
24 hours after receipt of the required | ||||||
22 | information. The policy or plan shall
notify the party filing | ||||||
23 | the
appeal and the enrollee, enrollee's primary care physician, | ||||||
24 | and any health care
provider who recommended the health care | ||||||
25 | service involved in the appeal of its
decision orally
| ||||||
26 | followed-up by a written notice of the determination. |
| |||||||
| |||||||
1 | (c) An appeal under subsection (b) may be filed by the
| ||||||
2 | enrollee, the enrollee's designee or guardian, the enrollee's | ||||||
3 | primary care
physician, or the enrollee's health care provider. | ||||||
4 | A policy or plan shall
designate a clinical peer to review
| ||||||
5 | appeals, because these appeals pertain to medical or clinical | ||||||
6 | matters
and such an appeal must be reviewed by an appropriate
| ||||||
7 | health care professional. No one reviewing an appeal may have | ||||||
8 | had any
involvement
in the initial determination that is the | ||||||
9 | subject of the appeal. The written
notice of determination | ||||||
10 | required under subsection (b) shall
include (i) clear and | ||||||
11 | detailed reasons for the determination, (ii)
the medical or
| ||||||
12 | clinical criteria for the determination, which shall be based | ||||||
13 | upon sound
clinical evidence and reviewed on a periodic basis, | ||||||
14 | and (iii) in the case of an
adverse determination, the
| ||||||
15 | procedures for requesting an external independent review under | ||||||
16 | subsection (e). | ||||||
17 | (d) If an appeal filed under subsection (b) is denied | ||||||
18 | because the treatment is not viewed as medically necessary,
| ||||||
19 | then any involved party may request an external independent | ||||||
20 | review
under subsection (e) of the adverse determination. | ||||||
21 | (e) The party seeking an external independent review shall | ||||||
22 | so notify the
policy or plan.
The policy or plan shall seek to | ||||||
23 | resolve all
external independent
reviews in the most | ||||||
24 | expeditious manner and shall make a determination and
provide | ||||||
25 | notice of the determination no more
than 24 hours after the | ||||||
26 | receipt of all necessary information when a delay would
|
| |||||||
| |||||||
1 | significantly increase
the risk to an enrollee's health or when | ||||||
2 | extended health care services for an
enrollee undergoing a
| ||||||
3 | course of treatment prescribed by a health care provider are at | ||||||
4 | issue. In such cases, the following provisions shall apply: | ||||||
5 | (1) Within 30 days after the enrollee receives written | ||||||
6 | notice of an
adverse
determination,
if the enrollee decides | ||||||
7 | to initiate an external independent review, the
enrollee | ||||||
8 | shall send to the policy or plan a written request for an | ||||||
9 | external independent review, including any
information or
| ||||||
10 | documentation to support the enrollee's request for the | ||||||
11 | covered service or
claim for a covered
service. | ||||||
12 | (2) Within 30 days after the policy or plan receives a | ||||||
13 | request for an
external
independent review from an enrollee | ||||||
14 | or within 24 hours after the receipt of a request if a | ||||||
15 | delay would significantly increase the risk to the | ||||||
16 | enrollee's health, the policy or plan shall: | ||||||
17 | (a) provide a mechanism for joint selection of an | ||||||
18 | external independent
reviewer by the enrollee, the | ||||||
19 | enrollee's physician or other health care
provider,
| ||||||
20 | and the policy or plan; and | ||||||
21 | (b) forward to the independent reviewer all | ||||||
22 | medical records and
supporting
documentation | ||||||
23 | pertaining to the case, a summary description of the | ||||||
24 | applicable
issues including a
statement of the | ||||||
25 | decision made by, the criteria used, and the
medical | ||||||
26 | and clinical reasons
for that decision. |
| |||||||
| |||||||
1 | (3) Within 5 days after receipt of all necessary | ||||||
2 | information or within 24 hours when a delay would
| ||||||
3 | significantly increase
the risk to an enrollee's health, | ||||||
4 | the
independent
reviewer
shall evaluate and analyze the | ||||||
5 | case and render a decision that is based on
whether or not | ||||||
6 | the health
care service or claim for the health care | ||||||
7 | service is medically necessary. The
decision by the
| ||||||
8 | independent reviewer is final. If the external independent | ||||||
9 | reviewer determines
the health care
service to be medically
| ||||||
10 | necessary, then the policy or plan shall pay for the health | ||||||
11 | care service. | ||||||
12 | (4) The policy or plan shall be solely responsible for | ||||||
13 | paying the fees
of the external
independent reviewer who is | ||||||
14 | selected to perform the review. | ||||||
15 | (5) An external independent reviewer who acts in good | ||||||
16 | faith shall have
immunity
from any civil or criminal | ||||||
17 | liability or professional discipline as a result of
acts or | ||||||
18 | omissions with
respect to any external independent review, | ||||||
19 | unless the acts or omissions
constitute wilful and wanton
| ||||||
20 | misconduct. For purposes of any proceeding, the good faith | ||||||
21 | of the person
participating shall be
presumed. | ||||||
22 | (6) Future contractual or employment action by the | ||||||
23 | policy or plan
regarding the
patient's physician or other | ||||||
24 | health care provider shall not be based solely on
the | ||||||
25 | physician's or other
health care provider's participation | ||||||
26 | in this procedure. |
| |||||||
| |||||||
1 | (7) For the purposes of this Section, an external | ||||||
2 | independent reviewer
shall: | ||||||
3 | (a) be a clinical peer; | ||||||
4 | (b) have no direct financial interest in | ||||||
5 | connection with the case; and | ||||||
6 | (c) have not been informed of the specific identity | ||||||
7 | of the enrollee. | ||||||
8 | (f) Nothing in this Section shall be construed to require a | ||||||
9 | policy or
plan to pay for a health care service not covered | ||||||
10 | under the enrollee's
certificate of coverage or policy. | ||||||
11 | (g) A policy of accident or health insurance or managed | ||||||
12 | care plan shall provide each enrollee, prospective enrollee, | ||||||
13 | and enrollee representative with written notification of the | ||||||
14 | policy's or plan's appeal process and any external review | ||||||
15 | appeals process that is available to the enrollee. This | ||||||
16 | notification shall be provided at the time the insured enrolls | ||||||
17 | in the health insurance or managed care plan, renews such | ||||||
18 | enrollment, or requests to reverse or modify an adverse | ||||||
19 | determination made by the insurer or managed care plan.
The | ||||||
20 | notice outlined in this subsection (g) shall describe the | ||||||
21 | policy's or plan's appeals process, any applicable forms, and | ||||||
22 | the time frames for appeals, complaints, and external review | ||||||
23 | appeals and shall include a phone number to call for more | ||||||
24 | information from the policy or plan concerning the appeals | ||||||
25 | process.
|
| |||||||
| |||||||
1 | Section 30. The Health Maintenance Organization Act is | ||||||
2 | amended by changing Section 5-3 as follows:
| ||||||
3 | (215 ILCS 125/5-3) (from Ch. 111 1/2, par. 1411.2)
| ||||||
4 | (Text of Section before amendment by P.A. 96-833 ) | ||||||
5 | Sec. 5-3. Insurance Code provisions.
| ||||||
6 | (a) Health Maintenance Organizations
shall be subject to | ||||||
7 | the provisions of Sections 133, 134, 137, 140, 141.1,
141.2, | ||||||
8 | 141.3, 143, 143c, 147, 148, 149, 151,
152, 153, 154, 154.5, | ||||||
9 | 154.6,
154.7, 154.8, 155.04, 355.2, 356f.1, 356g.5-1, 356m, | ||||||
10 | 356v, 356w, 356x, 356y,
356z.2, 356z.4, 356z.5, 356z.6, 356z.8, | ||||||
11 | 356z.9, 356z.10, 356z.11, 356z.12, 356z.13, 356z.14, 356z.15 | ||||||
12 | 356z.14 , 356z.17 356z.15 , 364.01, 367.2, 367.2-5, 367i, 368a, | ||||||
13 | 368b, 368c, 368d, 368e, 370c,
401, 401.1, 402, 403, 403A,
408, | ||||||
14 | 408.2, 409, 412, 444,
and
444.1,
paragraph (c) of subsection | ||||||
15 | (2) of Section 367, and Articles IIA, VIII 1/2,
XII,
XII 1/2, | ||||||
16 | XIII, XIII 1/2, XXV, and XXVI of the Illinois Insurance Code.
| ||||||
17 | (b) For purposes of the Illinois Insurance Code, except for | ||||||
18 | Sections 444
and 444.1 and Articles XIII and XIII 1/2, Health | ||||||
19 | Maintenance Organizations in
the following categories are | ||||||
20 | deemed to be "domestic companies":
| ||||||
21 | (1) a corporation authorized under the
Dental Service | ||||||
22 | Plan Act or the Voluntary Health Services Plans Act;
| ||||||
23 | (2) a corporation organized under the laws of this | ||||||
24 | State; or
| ||||||
25 | (3) a corporation organized under the laws of another |
| |||||||
| |||||||
1 | state, 30% or more
of the enrollees of which are residents | ||||||
2 | of this State, except a
corporation subject to | ||||||
3 | substantially the same requirements in its state of
| ||||||
4 | organization as is a "domestic company" under Article VIII | ||||||
5 | 1/2 of the
Illinois Insurance Code.
| ||||||
6 | (c) In considering the merger, consolidation, or other | ||||||
7 | acquisition of
control of a Health Maintenance Organization | ||||||
8 | pursuant to Article VIII 1/2
of the Illinois Insurance Code,
| ||||||
9 | (1) the Director shall give primary consideration to | ||||||
10 | the continuation of
benefits to enrollees and the financial | ||||||
11 | conditions of the acquired Health
Maintenance Organization | ||||||
12 | after the merger, consolidation, or other
acquisition of | ||||||
13 | control takes effect;
| ||||||
14 | (2)(i) the criteria specified in subsection (1)(b) of | ||||||
15 | Section 131.8 of
the Illinois Insurance Code shall not | ||||||
16 | apply and (ii) the Director, in making
his determination | ||||||
17 | with respect to the merger, consolidation, or other
| ||||||
18 | acquisition of control, need not take into account the | ||||||
19 | effect on
competition of the merger, consolidation, or | ||||||
20 | other acquisition of control;
| ||||||
21 | (3) the Director shall have the power to require the | ||||||
22 | following
information:
| ||||||
23 | (A) certification by an independent actuary of the | ||||||
24 | adequacy
of the reserves of the Health Maintenance | ||||||
25 | Organization sought to be acquired;
| ||||||
26 | (B) pro forma financial statements reflecting the |
| |||||||
| |||||||
1 | combined balance
sheets of the acquiring company and | ||||||
2 | the Health Maintenance Organization sought
to be | ||||||
3 | acquired as of the end of the preceding year and as of | ||||||
4 | a date 90 days
prior to the acquisition, as well as pro | ||||||
5 | forma financial statements
reflecting projected | ||||||
6 | combined operation for a period of 2 years;
| ||||||
7 | (C) a pro forma business plan detailing an | ||||||
8 | acquiring party's plans with
respect to the operation | ||||||
9 | of the Health Maintenance Organization sought to
be | ||||||
10 | acquired for a period of not less than 3 years; and
| ||||||
11 | (D) such other information as the Director shall | ||||||
12 | require.
| ||||||
13 | (d) The provisions of Article VIII 1/2 of the Illinois | ||||||
14 | Insurance Code
and this Section 5-3 shall apply to the sale by | ||||||
15 | any health maintenance
organization of greater than 10% of its
| ||||||
16 | enrollee population (including without limitation the health | ||||||
17 | maintenance
organization's right, title, and interest in and to | ||||||
18 | its health care
certificates).
| ||||||
19 | (e) In considering any management contract or service | ||||||
20 | agreement subject
to Section 141.1 of the Illinois Insurance | ||||||
21 | Code, the Director (i) shall, in
addition to the criteria | ||||||
22 | specified in Section 141.2 of the Illinois
Insurance Code, take | ||||||
23 | into account the effect of the management contract or
service | ||||||
24 | agreement on the continuation of benefits to enrollees and the
| ||||||
25 | financial condition of the health maintenance organization to | ||||||
26 | be managed or
serviced, and (ii) need not take into account the |
| |||||||
| |||||||
1 | effect of the management
contract or service agreement on | ||||||
2 | competition.
| ||||||
3 | (f) Except for small employer groups as defined in the | ||||||
4 | Small Employer
Rating, Renewability and Portability Health | ||||||
5 | Insurance Act and except for
medicare supplement policies as | ||||||
6 | defined in Section 363 of the Illinois
Insurance Code, a Health | ||||||
7 | Maintenance Organization may by contract agree with a
group or | ||||||
8 | other enrollment unit to effect refunds or charge additional | ||||||
9 | premiums
under the following terms and conditions:
| ||||||
10 | (i) the amount of, and other terms and conditions with | ||||||
11 | respect to, the
refund or additional premium are set forth | ||||||
12 | in the group or enrollment unit
contract agreed in advance | ||||||
13 | of the period for which a refund is to be paid or
| ||||||
14 | additional premium is to be charged (which period shall not | ||||||
15 | be less than one
year); and
| ||||||
16 | (ii) the amount of the refund or additional premium | ||||||
17 | shall not exceed 20%
of the Health Maintenance | ||||||
18 | Organization's profitable or unprofitable experience
with | ||||||
19 | respect to the group or other enrollment unit for the | ||||||
20 | period (and, for
purposes of a refund or additional | ||||||
21 | premium, the profitable or unprofitable
experience shall | ||||||
22 | be calculated taking into account a pro rata share of the
| ||||||
23 | Health Maintenance Organization's administrative and | ||||||
24 | marketing expenses, but
shall not include any refund to be | ||||||
25 | made or additional premium to be paid
pursuant to this | ||||||
26 | subsection (f)). The Health Maintenance Organization and |
| |||||||
| |||||||
1 | the
group or enrollment unit may agree that the profitable | ||||||
2 | or unprofitable
experience may be calculated taking into | ||||||
3 | account the refund period and the
immediately preceding 2 | ||||||
4 | plan years.
| ||||||
5 | The Health Maintenance Organization shall include a | ||||||
6 | statement in the
evidence of coverage issued to each enrollee | ||||||
7 | describing the possibility of a
refund or additional premium, | ||||||
8 | and upon request of any group or enrollment unit,
provide to | ||||||
9 | the group or enrollment unit a description of the method used | ||||||
10 | to
calculate (1) the Health Maintenance Organization's | ||||||
11 | profitable experience with
respect to the group or enrollment | ||||||
12 | unit and the resulting refund to the group
or enrollment unit | ||||||
13 | or (2) the Health Maintenance Organization's unprofitable
| ||||||
14 | experience with respect to the group or enrollment unit and the | ||||||
15 | resulting
additional premium to be paid by the group or | ||||||
16 | enrollment unit.
| ||||||
17 | In no event shall the Illinois Health Maintenance | ||||||
18 | Organization
Guaranty Association be liable to pay any | ||||||
19 | contractual obligation of an
insolvent organization to pay any | ||||||
20 | refund authorized under this Section.
| ||||||
21 | (g) Rulemaking authority to implement Public Act 95-1045 | ||||||
22 | this amendatory Act of the 95th General Assembly , if any, is | ||||||
23 | conditioned on the rules being adopted in accordance with all | ||||||
24 | provisions of the Illinois Administrative Procedure Act and all | ||||||
25 | rules and procedures of the Joint Committee on Administrative | ||||||
26 | Rules; any purported rule not so adopted, for whatever reason, |
| |||||||
| |||||||
1 | is unauthorized. | ||||||
2 | (Source: P.A. 95-422, eff. 8-24-07; 95-520, eff. 8-28-07; | ||||||
3 | 95-876, eff. 8-21-08; 95-958, eff. 6-1-09; 95-978, eff. 1-1-09; | ||||||
4 | 95-1005, eff. 12-12-08; 95-1045, eff. 3-27-09; 95-1049, eff. | ||||||
5 | 1-1-10; 96-328, eff. 8-11-09; 96-639, eff. 1-1-10; revised | ||||||
6 | 10-23-09.) | ||||||
7 | (Text of Section after amendment by P.A. 96-833 ) | ||||||
8 | Sec. 5-3. Insurance Code provisions.
| ||||||
9 | (a) Health Maintenance Organizations
shall be subject to | ||||||
10 | the provisions of Sections 133, 134, 137, 140, 141.1,
141.2, | ||||||
11 | 141.3, 143, 143c, 147, 148, 149, 151,
152, 153, 154, 154.5, | ||||||
12 | 154.6,
154.7, 154.8, 155.04, 355.2, 356f.1, 356g.5-1, 356m, | ||||||
13 | 356v, 356w, 356x, 356y,
356z.2, 356z.4, 356z.5, 356z.6, 356z.8, | ||||||
14 | 356z.9, 356z.10, 356z.11, 356z.12, 356z.13, 356z.14, 356z.15, | ||||||
15 | 356z.17, 356z.18, 364.01, 367.2, 367.2-5, 367i, 368a, 368b, | ||||||
16 | 368c, 368d, 368e, 370c,
401, 401.1, 402, 403, 403A,
408, 408.2, | ||||||
17 | 409, 412, 444,
and
444.1,
paragraph (c) of subsection (2) of | ||||||
18 | Section 367, and Articles IIA, VIII 1/2,
XII,
XII 1/2, XIII, | ||||||
19 | XIII 1/2, XXV, and XXVI of the Illinois Insurance Code.
| ||||||
20 | (b) For purposes of the Illinois Insurance Code, except for | ||||||
21 | Sections 444
and 444.1 and Articles XIII and XIII 1/2, Health | ||||||
22 | Maintenance Organizations in
the following categories are | ||||||
23 | deemed to be "domestic companies":
| ||||||
24 | (1) a corporation authorized under the
Dental Service | ||||||
25 | Plan Act or the Voluntary Health Services Plans Act;
|
| |||||||
| |||||||
1 | (2) a corporation organized under the laws of this | ||||||
2 | State; or
| ||||||
3 | (3) a corporation organized under the laws of another | ||||||
4 | state, 30% or more
of the enrollees of which are residents | ||||||
5 | of this State, except a
corporation subject to | ||||||
6 | substantially the same requirements in its state of
| ||||||
7 | organization as is a "domestic company" under Article VIII | ||||||
8 | 1/2 of the
Illinois Insurance Code.
| ||||||
9 | (c) In considering the merger, consolidation, or other | ||||||
10 | acquisition of
control of a Health Maintenance Organization | ||||||
11 | pursuant to Article VIII 1/2
of the Illinois Insurance Code,
| ||||||
12 | (1) the Director shall give primary consideration to | ||||||
13 | the continuation of
benefits to enrollees and the financial | ||||||
14 | conditions of the acquired Health
Maintenance Organization | ||||||
15 | after the merger, consolidation, or other
acquisition of | ||||||
16 | control takes effect;
| ||||||
17 | (2)(i) the criteria specified in subsection (1)(b) of | ||||||
18 | Section 131.8 of
the Illinois Insurance Code shall not | ||||||
19 | apply and (ii) the Director, in making
his determination | ||||||
20 | with respect to the merger, consolidation, or other
| ||||||
21 | acquisition of control, need not take into account the | ||||||
22 | effect on
competition of the merger, consolidation, or | ||||||
23 | other acquisition of control;
| ||||||
24 | (3) the Director shall have the power to require the | ||||||
25 | following
information:
| ||||||
26 | (A) certification by an independent actuary of the |
| |||||||
| |||||||
1 | adequacy
of the reserves of the Health Maintenance | ||||||
2 | Organization sought to be acquired;
| ||||||
3 | (B) pro forma financial statements reflecting the | ||||||
4 | combined balance
sheets of the acquiring company and | ||||||
5 | the Health Maintenance Organization sought
to be | ||||||
6 | acquired as of the end of the preceding year and as of | ||||||
7 | a date 90 days
prior to the acquisition, as well as pro | ||||||
8 | forma financial statements
reflecting projected | ||||||
9 | combined operation for a period of 2 years;
| ||||||
10 | (C) a pro forma business plan detailing an | ||||||
11 | acquiring party's plans with
respect to the operation | ||||||
12 | of the Health Maintenance Organization sought to
be | ||||||
13 | acquired for a period of not less than 3 years; and
| ||||||
14 | (D) such other information as the Director shall | ||||||
15 | require.
| ||||||
16 | (d) The provisions of Article VIII 1/2 of the Illinois | ||||||
17 | Insurance Code
and this Section 5-3 shall apply to the sale by | ||||||
18 | any health maintenance
organization of greater than 10% of its
| ||||||
19 | enrollee population (including without limitation the health | ||||||
20 | maintenance
organization's right, title, and interest in and to | ||||||
21 | its health care
certificates).
| ||||||
22 | (e) In considering any management contract or service | ||||||
23 | agreement subject
to Section 141.1 of the Illinois Insurance | ||||||
24 | Code, the Director (i) shall, in
addition to the criteria | ||||||
25 | specified in Section 141.2 of the Illinois
Insurance Code, take | ||||||
26 | into account the effect of the management contract or
service |
| |||||||
| |||||||
1 | agreement on the continuation of benefits to enrollees and the
| ||||||
2 | financial condition of the health maintenance organization to | ||||||
3 | be managed or
serviced, and (ii) need not take into account the | ||||||
4 | effect of the management
contract or service agreement on | ||||||
5 | competition.
| ||||||
6 | (f) Except for small employer groups as defined in the | ||||||
7 | Small Employer
Rating, Renewability and Portability Health | ||||||
8 | Insurance Act and except for
medicare supplement policies as | ||||||
9 | defined in Section 363 of the Illinois
Insurance Code, a Health | ||||||
10 | Maintenance Organization may by contract agree with a
group or | ||||||
11 | other enrollment unit to effect refunds or charge additional | ||||||
12 | premiums
under the following terms and conditions:
| ||||||
13 | (i) the amount of, and other terms and conditions with | ||||||
14 | respect to, the
refund or additional premium are set forth | ||||||
15 | in the group or enrollment unit
contract agreed in advance | ||||||
16 | of the period for which a refund is to be paid or
| ||||||
17 | additional premium is to be charged (which period shall not | ||||||
18 | be less than one
year); and
| ||||||
19 | (ii) the amount of the refund or additional premium | ||||||
20 | shall not exceed 20%
of the Health Maintenance | ||||||
21 | Organization's profitable or unprofitable experience
with | ||||||
22 | respect to the group or other enrollment unit for the | ||||||
23 | period (and, for
purposes of a refund or additional | ||||||
24 | premium, the profitable or unprofitable
experience shall | ||||||
25 | be calculated taking into account a pro rata share of the
| ||||||
26 | Health Maintenance Organization's administrative and |
| |||||||
| |||||||
1 | marketing expenses, but
shall not include any refund to be | ||||||
2 | made or additional premium to be paid
pursuant to this | ||||||
3 | subsection (f)). The Health Maintenance Organization and | ||||||
4 | the
group or enrollment unit may agree that the profitable | ||||||
5 | or unprofitable
experience may be calculated taking into | ||||||
6 | account the refund period and the
immediately preceding 2 | ||||||
7 | plan years.
| ||||||
8 | The Health Maintenance Organization shall include a | ||||||
9 | statement in the
evidence of coverage issued to each enrollee | ||||||
10 | describing the possibility of a
refund or additional premium, | ||||||
11 | and upon request of any group or enrollment unit,
provide to | ||||||
12 | the group or enrollment unit a description of the method used | ||||||
13 | to
calculate (1) the Health Maintenance Organization's | ||||||
14 | profitable experience with
respect to the group or enrollment | ||||||
15 | unit and the resulting refund to the group
or enrollment unit | ||||||
16 | or (2) the Health Maintenance Organization's unprofitable
| ||||||
17 | experience with respect to the group or enrollment unit and the | ||||||
18 | resulting
additional premium to be paid by the group or | ||||||
19 | enrollment unit.
| ||||||
20 | In no event shall the Illinois Health Maintenance | ||||||
21 | Organization
Guaranty Association be liable to pay any | ||||||
22 | contractual obligation of an
insolvent organization to pay any | ||||||
23 | refund authorized under this Section.
| ||||||
24 | (g) Rulemaking authority to implement Public Act 95-1045, | ||||||
25 | if any, is conditioned on the rules being adopted in accordance | ||||||
26 | with all provisions of the Illinois Administrative Procedure |
| |||||||
| |||||||
1 | Act and all rules and procedures of the Joint Committee on | ||||||
2 | Administrative Rules; any purported rule not so adopted, for | ||||||
3 | whatever reason, is unauthorized. | ||||||
4 | (Source: P.A. 95-422, eff. 8-24-07; 95-520, eff. 8-28-07; | ||||||
5 | 95-876, eff. 8-21-08; 95-958, eff. 6-1-09; 95-978, eff. 1-1-09; | ||||||
6 | 95-1005, eff. 12-12-08; 95-1045, eff. 3-27-09; 95-1049, eff. | ||||||
7 | 1-1-10; 96-328, eff. 8-11-09; 96-639, eff. 1-1-10; 96-833, eff. | ||||||
8 | 6-1-10.) | ||||||
9 | Section 35. The Limited Health Service Organization Act is | ||||||
10 | amended by changing Section 4003 as follows:
| ||||||
11 | (215 ILCS 130/4003) (from Ch. 73, par. 1504-3)
| ||||||
12 | Sec. 4003. Illinois Insurance Code provisions. Limited | ||||||
13 | health service
organizations shall be subject to the provisions | ||||||
14 | of Sections 133, 134, 137,
140, 141.1, 141.2, 141.3, 143, 143c, | ||||||
15 | 147, 148, 149, 151, 152, 153, 154, 154.5,
154.6, 154.7, 154.8, | ||||||
16 | 155.04, 155.37, 355.2, 356f.1, 356v, 356z.10, 368a, 401, 401.1,
| ||||||
17 | 402,
403, 403A, 408,
408.2, 409, 412, 444, and 444.1 and | ||||||
18 | Articles IIA, VIII 1/2, XII, XII 1/2,
XIII,
XIII 1/2, XXV, and | ||||||
19 | XXVI of the Illinois Insurance Code. For purposes of the
| ||||||
20 | Illinois Insurance Code, except for Sections 444 and 444.1 and | ||||||
21 | Articles XIII
and XIII 1/2, limited health service | ||||||
22 | organizations in the following categories
are deemed to be | ||||||
23 | domestic companies:
| ||||||
24 | (1) a corporation under the laws of this State; or
|
| |||||||
| |||||||
1 | (2) a corporation organized under the laws of another | ||||||
2 | state, 30% of 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 | (Source: P.A. 95-520, eff. 8-28-07; 95-876, eff. 8-21-08.)
| ||||||
8 | Section 40. The Voluntary Health Services Plans Act is | ||||||
9 | amended by changing Section 10 as follows:
| ||||||
10 | (215 ILCS 165/10) (from Ch. 32, par. 604)
| ||||||
11 | (Text of Section before amendment by P.A. 96-833 ) | ||||||
12 | Sec. 10. Application of Insurance Code provisions. Health | ||||||
13 | services
plan corporations and all persons interested therein | ||||||
14 | or dealing therewith
shall be subject to the provisions of | ||||||
15 | Articles IIA and XII 1/2 and Sections
3.1, 133, 140, 143, 143c, | ||||||
16 | 149, 155.37, 354, 355.2, 356f.1, 356g, 356g.5, 356g.5-1, 356r, | ||||||
17 | 356t, 356u, 356v,
356w, 356x, 356y, 356z.1, 356z.2, 356z.4, | ||||||
18 | 356z.5, 356z.6, 356z.8, 356z.9,
356z.10, 356z.11, 356z.12, | ||||||
19 | 356z.13, 356z.14, 356z.15
356z.14 , 364.01, 367.2, 368a, 401, | ||||||
20 | 401.1,
402,
403, 403A, 408,
408.2, and 412, and paragraphs (7) | ||||||
21 | and (15) of Section 367 of the Illinois
Insurance Code.
| ||||||
22 | Rulemaking authority to implement Public Act 95-1045
this | ||||||
23 | amendatory Act of the 95th General Assembly , if any, is | ||||||
24 | conditioned on the rules being adopted in accordance with all |
| |||||||
| |||||||
1 | provisions of the Illinois Administrative Procedure Act and all | ||||||
2 | rules and procedures of the Joint Committee on Administrative | ||||||
3 | Rules; any purported rule not so adopted, for whatever reason, | ||||||
4 | is unauthorized. | ||||||
5 | (Source: P.A. 95-189, eff. 8-16-07; 95-331, eff. 8-21-07; | ||||||
6 | 95-422, eff. 8-24-07; 95-520, eff. 8-28-07; 95-876, eff. | ||||||
7 | 8-21-08; 95-958, eff. 6-1-09; 95-978, eff. 1-1-09; 95-1005, | ||||||
8 | eff. 12-12-08; 95-1045, eff. 3-27-09; 95-1049, eff. 1-1-10; | ||||||
9 | 96-328, eff. 8-11-09; revised 9-25-09.) | ||||||
10 | (Text of Section after amendment by P.A. 96-833 ) | ||||||
11 | Sec. 10. Application of Insurance Code provisions. Health | ||||||
12 | services
plan corporations and all persons interested therein | ||||||
13 | or dealing therewith
shall be subject to the provisions of | ||||||
14 | Articles IIA and XII 1/2 and Sections
3.1, 133, 140, 143, 143c, | ||||||
15 | 149, 155.37, 354, 355.2, 356f.1, 356g, 356g.5, 356g.5-1, 356r, | ||||||
16 | 356t, 356u, 356v,
356w, 356x, 356y, 356z.1, 356z.2, 356z.4, | ||||||
17 | 356z.5, 356z.6, 356z.8, 356z.9,
356z.10, 356z.11, 356z.12, | ||||||
18 | 356z.13, 356z.14, 356z.15, 356z.18, 364.01, 367.2, 368a, 401, | ||||||
19 | 401.1,
402,
403, 403A, 408,
408.2, and 412, and paragraphs (7) | ||||||
20 | and (15) of Section 367 of the Illinois
Insurance Code.
| ||||||
21 | Rulemaking authority to implement Public Act 95-1045, if | ||||||
22 | any, is conditioned on the rules being adopted in accordance | ||||||
23 | with all provisions of the Illinois Administrative Procedure | ||||||
24 | Act and all rules and procedures of the Joint Committee on | ||||||
25 | Administrative Rules; any purported rule not so adopted, for |
| |||||||
| |||||||
1 | whatever reason, is unauthorized. | ||||||
2 | (Source: P.A. 95-189, eff. 8-16-07; 95-331, eff. 8-21-07; | ||||||
3 | 95-422, eff. 8-24-07; 95-520, eff. 8-28-07; 95-876, eff. | ||||||
4 | 8-21-08; 95-958, eff. 6-1-09; 95-978, eff. 1-1-09; 95-1005, | ||||||
5 | eff. 12-12-08; 95-1045, eff. 3-27-09; 95-1049, eff. 1-1-10; | ||||||
6 | 96-328, eff. 8-11-09; 96-833, eff. 6-1-10.)
| ||||||
7 | Section 95. No acceleration or delay. Where this Act makes | ||||||
8 | changes in a statute that is represented in this Act by text | ||||||
9 | that is not yet or no longer in effect (for example, a Section | ||||||
10 | represented by multiple versions), the use of that text does | ||||||
11 | not accelerate or delay the taking effect of (i) the changes | ||||||
12 | made by this Act or (ii) provisions derived from any other | ||||||
13 | Public Act. |