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1 | | terms of the plan) directly or through insurance, |
2 | | reimbursement, or otherwise. |
3 | | "Health insurance coverage" means benefits consisting of |
4 | | medical care (provided directly, through insurance or |
5 | | reimbursement, or otherwise and including items and services |
6 | | paid for as medical care) under any hospital or medical service |
7 | | policy or certificate, hospital or medical service plan |
8 | | contract, or health maintenance organization contract offered |
9 | | by a health insurance issuer. |
10 | | "Health insurance issuer" means an insurance company, |
11 | | insurance service, or insurance organization (including a |
12 | | health maintenance organization) that is licensed to engage in |
13 | | the business of insurance in a state and that is subject to |
14 | | Illinois law that regulates insurance (within the meaning of |
15 | | Section 514(b)(2) of the federal Employee Retirement Income |
16 | | Security Act of 1974). "Health insurance issuer" does not |
17 | | include a group health plan. |
18 | | "Fraud" means an intentional misrepresentation of a |
19 | | material fact in connection with the coverage. |
20 | | "Individual health insurance coverage" means health |
21 | | insurance coverage offered to individuals in the individual |
22 | | market, including short-term, limited-duration health |
23 | | insurance coverage. |
24 | | "Short-term, limited-duration health insurance coverage" |
25 | | means individual health insurance coverage provided under a |
26 | | contract offered by a licensed health insurance issuer, |
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1 | | regardless of the situs of the delivery of the policy or |
2 | | contract that has a specified, limited-duration. |
3 | | Section 10. Application; scope; duration of coverage. |
4 | | (a) This Act applies to health insurance issuers that offer |
5 | | short-term, limited-duration health insurance coverage to |
6 | | individuals in this State and to short-term, limited-duration |
7 | | health insurance coverage that is delivered or issued for |
8 | | delivery in this State, including coverage issued outside of |
9 | | this State that covers individuals in this State. |
10 | | (b) A short-term, limited-duration health insurance |
11 | | coverage policy (even where issued outside of this State) may |
12 | | not cover any person residing in this State or be delivered or |
13 | | issued for delivery in this State unless the policy complies |
14 | | with the provisions of this Act. |
15 | | (c) Any short-term, limited-duration health insurance |
16 | | coverage policy that is delivered or issued for delivery in |
17 | | this State must have an expiration date in the contract that is |
18 | | less than 91 days and shall not be renewable within a period of |
19 | | 365 days, beginning the day after the contract ends, either at |
20 | | the option of the issuer or the individual. Renewal of a |
21 | | short-term, limited-duration health insurance coverage policy |
22 | | includes the issuance of a new short-term, limited-duration |
23 | | health insurance policy by an issuer to a policyholder within |
24 | | 60 days after the expiration of a policy previously issued by |
25 | | the issuer to the policyholder. |
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1 | | (d) Any short-term, limited-duration health insurance |
2 | | coverage policy that is delivered or issued for delivery in |
3 | | this State may not be rescinded before the expiration date in |
4 | | the contract, except in cases of nonpayment of premiums or |
5 | | fraud. |
6 | | Section 15. Disclosure requirements. |
7 | | (a) A health insurance issuer that offers short-term, |
8 | | limited-duration health insurance coverage shall, in addition |
9 | | to all other documents required, including, but not limited to, |
10 | | the policy, the certificate, the membership booklet, and a |
11 | | description of appeal and external review rights, deliver an |
12 | | outline of coverage to an applicant for or an enrollee in |
13 | | short-term, limited-duration health insurance coverage |
14 | | delivered or issued for delivery in this State. |
15 | | (b) Any short-term, limited-duration health insurance |
16 | | coverage policy that is delivered or issued for delivery in the |
17 | | State shall display prominently in the contract, any |
18 | | application, sales, and marketing materials provided in |
19 | | connection with enrollment in such coverage, and the outline of |
20 | | coverage for such coverage, in at least 14-point, bold type, |
21 | | the following: "WARNING! This plan may not cover all of the |
22 | | health care you need and may leave you with very high medical |
23 | | bills. If you buy this plan, you may not be able to get more |
24 | | complete insurance when this contract ends. You may be able to |
25 | | get more complete insurance now and help to pay for it at |
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1 | | www.healthcare.gov.". |
2 | | (c) Any short-term, limited-duration health insurance |
3 | | coverage policy that is delivered or issued for delivery in |
4 | | this State shall display prominently in the footer on every |
5 | | page of the contract, in any application, sales, and marketing |
6 | | materials provided in connection with enrollment in such |
7 | | coverage, and in the outline of coverage for such coverage, in |
8 | | at least 14-point, bold type, the following: "WARNING! This is |
9 | | temporary coverage. This policy provides limited benefits.". |
10 | | (d) Any identification card for short-term, |
11 | | limited-duration health insurance coverage that is delivered |
12 | | or issued for delivery in this State must prominently display |
13 | | the following in bold type: "WARNING! This is temporary |
14 | | coverage. This policy provides limited benefits.". |
15 | | (e) Any individual selling a short-term, limited-duration |
16 | | health insurance coverage policy in this State must read out |
17 | | loud the disclosure in subsection (b) to a prospective |
18 | | purchaser. |
19 | | Section 20. Filing and approval. |
20 | | (a) Coverage subject to this Act may not be delivered or |
21 | | issued for delivery unless it has been approved by the |
22 | | Department. |
23 | | (b) A health insurance issuer who intends to deliver or |
24 | | issue for delivery a short-term, limited-duration health |
25 | | insurance coverage policy in this State shall file with the |
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1 | | Department: |
2 | | (1) all paperwork required by health insurance issuers |
3 | | of individual health insurance coverage; |
4 | | (2) all sales and marketing materials provided in |
5 | | connection with enrollment in such coverage; and |
6 | | (3) the outline of such coverage. |
7 | | (c) The Department shall adopt any rules necessary to carry |
8 | | out the provisions of this Act. |
9 | | (d) The Department shall adopt any rules necessary to |
10 | | protect Illinois consumers and promote the stability of |
11 | | Illinois' health insurance markets. |
12 | | Section 25. Illinois Insurance Code and benefit |
13 | | requirements. |
14 | | (a) Short-term, limited-duration coverage shall be subject |
15 | | to Sections 143c, 155.36, 355, 356a, 356b, 356c, 356e, 356f, |
16 | | 356g, 356g.5, 356g.5-1, 356h, 356i, 356k, 356L, 356m, 356n, |
17 | | 356p, 356q, 356r, 356s, 356t, 356u, 356v, 356w, 356x, 356z.1, |
18 | | 356z.2, 356z.3a, 356z.4, 356z.5, 356z.6, 356z.7, 356z.8, |
19 | | 356z.9, 356z.10, 356z.11, 356z.12, 356z.13, 356z.14, 356z.15, |
20 | | 356z.17, 356z.18, 356z.19, 356z.20, 356z.21, 356z.22, 356z.24, |
21 | | 356z.25, 356z.25, 364, 364.01, 367b, 367k, 370a, and 370c, |
22 | | subsections (7) and (8) of Section 367, and subsection (a) of |
23 | | Section 370i of the Illinois Insurance Code. |
24 | | (b) Short-term, limited-duration coverage shall also be |
25 | | subject to the provisions of the Network Adequacy and |
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1 | | Transparency Act, the Managed Care Reform and Patients Rights |
2 | | Act, the Topical Eye Medication Prescription Act, the Organ |
3 | | Transplant Medication Notification Act, and the Health Carrier |
4 | | External Review Act. |
5 | | Section 90. The Illinois Insurance Code is amended by |
6 | | changing Section 356z.16 and by changing and renumbering |
7 | | Section 356z.25 (as added by Public Act 100-386) as follows: |
8 | | (215 ILCS 5/356z.16) |
9 | | Sec. 356z.16. Applicability of mandated benefits to |
10 | | supplemental policies. Unless specified otherwise, the |
11 | | following Sections of the Illinois Insurance Code do not apply |
12 | | to short-term travel, disability income, long-term care, |
13 | | accident only, or limited (excluding short-term, |
14 | | limited-duration health insurance coverage policies as defined |
15 | | in the Short-Term, Limited-Duration Health Insurance Coverage |
16 | | Act) or specified disease policies: 355b, 356b, 356c, 356d, |
17 | | 356g, 356k, 356m, 356n, 356p, 356q, 356r, 356t, 356u, 356w, |
18 | | 356x, 356z.1, 356z.2, 356z.4, 356z.5, 356z.6, 356z.8, 356z.12, |
19 | | 356z.14, 356z.19, 356z.21, 356z.25, 364.01, 367.2-5, and 367e.
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20 | | (Source: P.A. 100-386, eff. 1-1-18 .) |
21 | | (215 ILCS 5/356z.27) |
22 | | Sec. 356z.27 356z.25 . Preexisting condition exclusion. No |
23 | | policy of individual or group accident and health insurance , |
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1 | | including short-term, limited-duration health insurance |
2 | | coverage as defined in the Short-Term, Limited-Duration Health |
3 | | Insurance Coverage Act issued, amended, delivered, or renewed |
4 | | on or after January 1, 2018 ( the effective date of Public Act |
5 | | 100-386) this amendatory Act of the 100th General Assembly may |
6 | | impose any preexisting condition exclusion, as defined in the |
7 | | Illinois Health Insurance Portability and Accountability Act, |
8 | | with respect to such plan or coverage.
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9 | | (Source: P.A. 100-386, eff. 1-1-18; revised 9-15-17.)
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10 | | Section 99. Effective date. This Act takes effect January |
11 | | 1, 2019.".
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