SB0240eng 96TH GENERAL ASSEMBLY

SB0240 Engrossed LRB096 04317 RPM 14363 b

AN ACT concerning insurance.

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

Section 1. Short title. This Act may be cited as the Medical Sharing Trust Act.

Section 5. Definitions. In this Act:

"Medical Sharing Trust" means an organization that facilitates payment of the medical expenses of its participants as provided in Section 20 of this Act, and complies with all provisions of this Act and of the Illinois Charitable Trust Act.

Section 10. Exemptions. An organization complying with this Act as a Medical Sharing Trust is not subject to the provisions of the Illinois Insurance Code, except that a Medical Sharing Trust offering any services other than those services offered by a Medical Sharing Trust that are regulated under any provision of the Illinois Insurance Code shall be required to comply with the Illinois Insurance Code with respect to the provision of those services.

Section 15. Registration requirements for a Medical Sharing Trust. No Medical Sharing Trust shall be offered, issued, sold, or solicited to participants in this State as exempt under Section 10 of this Act unless the Medical Sharing Trust has complied with all requirements set forth in Sections 5 and 20 of this Act and submitted all of the following to the Attorney General:

(1) The name of the Medical Sharing Trust.

(2) A list identifying the Medical Sharing Trust's executive officer or officers directly responsible for the Medical Sharing Trust's business.

(3) The name and address of the Medical Sharing Trust's agent for service of process in this State, if other than the Medical Sharing Trust.

(4) A true and accurate copy of all forms used for participants' application and agreements with the organization.

(5) A certified copy of its Certificate of Authority to do business from the Illinois Secretary of State.

(6) Proof that the Medical Sharing Trust is controlled by a board of directors, the majority of which is elected by the members of the Medical Sharing Trust.

Section 20. Operation of a Medical Sharing Trust.

(a) A Medical Sharing Trust may facilitate payments between participants who have present medical needs and participants with the ability to pay for the benefits of those participants in need. A Medical Sharing Trust is prohibited from assuming liability for or guaranteeing payment of any medical expenses.

(b) All participants shall execute a release stating that no other participants or the Medical Sharing Trust shall be legally obligated in any way to pay for a medical need.

(c) A Medical Sharing Trust may facilitate the payments provided for in paragraph (a) of this Section 20 through payments made directly from one participant to another.

(d) A Medical Sharing Trust may cancel the membership of a participant when that participant indicates their unwillingness to participate by failing to make a payment to another participant for a period in excess of 60 days.

(e) A Medical Sharing Trust may establish qualifications of participation relating to the health of the prospective participant.

(f) A Medical Sharing Trust may establish qualifications as to the participants' physical or medical needs necessary for eligibility for payment among the participants.

(g) A Medical Sharing Trust shall provide the following verbatim written disclaimer on all applications for membership or participation:

"WARNING: This organization is not insurance or an insurance policy nor is it offered through an insurance company. Whether anyone chooses to assist you with your medical bills will be totally voluntary, as no other member will be compelled by law to contribute toward your medical bills. As such, this organization should never be considered to be providing insurance. Whether you receive any payments for medical expenses and whether or not this organization continues to operate, you are always personally responsible for the payment of your own medical bills. This organization is not subject to the regulatory requirements of the Illinois Insurance Code.".

(h) A Medical Sharing Trust shall provide to its participants, within 30 days of enrollment, a complete set of its rules for the sharing of needs, appeals of decisions made by the Medical Sharing Trust, and the filing of complaints in the participant's native language if requested by the participant.

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