99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB3709

 

Introduced , by Rep. Fred Crespo

 

SYNOPSIS AS INTRODUCED:
 
215 ILCS 5/356z.12

    Amends the Illinois Insurance Code to provide that policies of accident and health insurance or managed care plans that cover dependents and that are amended, delivered, issued, or renewed after the effective date of the Act shall not terminate or deny election of coverage for an unmarried dependent due to age before the dependent's 29th birthday. Effective immediately.


LRB099 05687 MLM 25730 b

 

 

A BILL FOR

 

HB3709LRB099 05687 MLM 25730 b

1    AN ACT concerning insurance.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Insurance Code is amended by
5changing Section 356z.12 as follows:
 
6    (215 ILCS 5/356z.12)
7    Sec. 356z.12. Dependent coverage.
8    (a) A group or individual policy of accident and health
9insurance or managed care plan that provides coverage for
10dependents and that is amended, delivered, issued, or renewed
11after the effective date of this amendatory Act of the 95th
12General Assembly shall not terminate coverage or deny the
13election of coverage for an unmarried dependent by reason of
14the dependent's age before the dependent's 26th birthday.
15    (a-5) A group or individual policy of accident and health
16insurance or managed care plan that provides coverage for
17dependents and that is amended, delivered, issued, or renewed
18after the effective date of this amendatory Act of the 99th
19General Assembly shall not terminate coverage or deny the
20election of coverage for an unmarried dependent by reason of
21the dependent's age before the dependent's 29th birthday.
22    (b) A policy or plan subject to this Section shall, upon
23amendment, delivery, issuance, or renewal, establish an

 

 

HB3709- 2 -LRB099 05687 MLM 25730 b

1initial enrollment period of not less than 90 days during which
2an insured may make a written election for coverage of an
3unmarried person as a dependent under this Section. After the
4initial enrollment period, enrollment by a dependent pursuant
5to this Section shall be consistent with the enrollment terms
6of the plan or policy.
7    (c) A policy or plan subject to this Section shall allow
8for dependent coverage during the annual open enrollment date
9or the annual renewal date if the dependent, as of the date on
10which the insured elects dependent coverage under this
11subsection, has:
12        (1) a period of continuous creditable coverage of 90
13    days or more; and
14        (2) not been without creditable coverage for more than
15    63 days.
16An insured may elect coverage for a dependent who does not meet
17the continuous creditable coverage requirements of this
18subsection (c) and that dependent shall not be denied coverage
19due to age.
20    For purposes of this subsection (c), "creditable coverage"
21shall have the meaning provided under subsection (C)(1) of
22Section 20 of the Illinois Health Insurance Portability and
23Accountability Act.
24    (d) Military personnel. A group or individual policy of
25accident and health insurance or managed care plan that
26provides coverage for dependents and that is amended,

 

 

HB3709- 3 -LRB099 05687 MLM 25730 b

1delivered, issued, or renewed after the effective date of this
2amendatory Act of the 95th General Assembly shall not terminate
3coverage or deny the election of coverage for an unmarried
4dependent by reason of the dependent's age before the
5dependent's 30th birthday if the dependent (i) is an Illinois
6resident, (ii) served as a member of the active or reserve
7components of any of the branches of the Armed Forces of the
8United States, and (iii) has received a release or discharge
9other than a dishonorable discharge. To be eligible for
10coverage under this subsection (d), the eligible dependent
11shall submit to the insurer a form approved by the Illinois
12Department of Veterans' Affairs stating the date on which the
13dependent was released from service.
14    (e) Calculation of the cost of coverage provided to an
15unmarried dependent under this Section shall be identical.
16    (f) Nothing in this Section shall prohibit an employer from
17requiring an employee to pay all or part of the cost of
18coverage provided under this Section.
19    (g) No exclusions or limitations may be applied to coverage
20elected pursuant to this Section that do not apply to all
21dependents covered under the policy.
22    (h) A policy or plan subject to this Section shall not
23condition eligibility for dependent coverage provided pursuant
24to this Section on enrollment in any educational institution.
25    (i) Notice regarding coverage for a dependent as provided
26pursuant to this Section shall be provided to an insured by the

 

 

HB3709- 4 -LRB099 05687 MLM 25730 b

1insurer:
2        (1) upon application or enrollment;
3        (2) in the certificate of coverage or equivalent
4    document prepared for an insured and delivered on or about
5    the date on which the coverage commences; and
6        (3) (blank).
7(Source: P.A. 98-226, eff. 1-1-14.)
 
8    Section 99. Effective date. This Act takes effect upon
9becoming law.