SB2235 99TH GENERAL ASSEMBLY

99TH GENERAL ASSEMBLY State of Illinois 2015 and 2016
SB2235

Introduced 1/13/2016, by Sen. William R. Haine

SYNOPSIS AS INTRODUCED:

5 ILCS 375/6.12a new

Amends the State Employees Group Insurance Act of 1971. Provides that the failure of the State to make any payment to a provider for a period of 6 months may be considered by the provider to be a material breach of the contract by the State. Provides that a provider who has entered into a contract to provide services under the Act and who has not received any payment for services for a period of 6 months (1) may consider the contract null and void; (2) may opt out of the obligation to provide services under the terms and conditions of the contract; and (3) shall, upon providing notice to the State department, be deemed an out-of-network provider. Effective immediately.

LRB099 16134 MLM 40459 b

FISCAL NOTE ACT MAY APPLY

A BILL FOR

SB2235

LRB099 16134 MLM 40459 b

1 AN ACT concerning regulation.

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 adding Section 6.12a as follows:

6 (5 ILCS 375/6.12a new)

7 Sec. 6.12a. Nullification of in-network provider

8 contracts. The failure of the State of Illinois to make any

9 payment to a provider for a period of 6 months may be

10 considered by the provider to be a material breach of the

11 contract by the State. Notwithstanding the provisions of

12 Section 6.12, a provider who has entered into a contract to

13 provide services under this Act and who has not received any

14 payment for services for a period of 6 months: (1) may consider

15 the contract null and void; (2) may opt out of the obligation

16 to provide services under the terms and conditions of the

17 contract; and (3) shall, upon providing notice to the

18 Department, be deemed an out-of-network provider.

19 Section 99. Effective date. This Act takes effect upon

20 becoming law.