Sen. Heather A. Steans

Filed: 5/22/2018

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 2624

2    AMENDMENT NO. ______. Amend House Bill 2624 by replacing
3everything after the enacting clause with the following:
 
4    "Section 1. Short title. This Act may be cited as the
5Short-Term, Limited-Duration Health Insurance Coverage Act.
 
6    Section 5. Definitions. In this Act:
7    "Department" means the Department of Insurance.
8    "Health insurance coverage" has the meaning given to that
9term in the Illinois Health Insurance Portability and
10Accountability Act.
11    "Health insurance issuer" has the meaning given to that
12term in the Illinois Health Insurance Portability and
13Accountability Act.
14    "Fraud" means an intentional misrepresentation of a
15material fact in connection with the coverage.
16    "Short-term, limited-duration health insurance coverage"

 

 

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1means health insurance coverage provided pursuant to a policy
2with an issuer, regardless of the situs of the delivery of the
3policy, that is less than 365 days after the effective date of
4the policy.
 
5    Section 10. Application; scope; duration of coverage.
6    (a) This Act applies to health insurance issuers that offer
7short-term, limited-duration health insurance coverage to
8individuals in this State and to short-term, limited-duration
9health insurance coverage that is delivered or issued for
10delivery in this State, including coverage issued outside of
11this State that covers individuals in this State.
12    (b) A short-term, limited-duration health insurance
13coverage policy may not be issued or delivered to any person
14residing in this State unless the policy, when delivered or
15issued for delivery in this State, complies with the provisions
16of this Act.
17    (c) Any short-term, limited-duration health insurance
18coverage policy that is delivered or issued for delivery in
19this State must have an expiration date in the policy that is
20less than 181 days after the effective date and shall not be
21renewable or extendable within a period of 365 days after the
22individual's coverage under the policy ends, either at the
23option of the issuer or the individual. Renewal of a
24short-term, limited-duration health insurance coverage policy
25includes the issuance of a new short-term, limited-duration

 

 

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1health insurance policy by an issuer to a policyholder within
260 days after the expiration of a policy previously issued by
3the issuer to the policyholder.
4    (d) Any short-term, limited-duration health insurance
5coverage policy that is delivered or issued for delivery in
6this State may not be rescinded before the expiration date in
7the policy, except in cases of nonpayment of premiums, fraud,
8or as provided in subsection (e).
9    (e) Any short-term, limited-duration health insurance
10coverage policy that is delivered or issued for delivery in
11this State shall contain an option for an individual to cancel
12coverage after any 30-day interval during the term of the plan.
 
13    Section 15. Disclosure requirements.
14    (a) A health insurance issuer that offers short-term,
15limited-duration health insurance coverage to be delivered or
16issued for delivery in this State shall, in addition to all
17other documents required, including, but not limited to, the
18policy, the certificate, the membership booklet, and a
19description of appeal and external review rights, deliver an
20outline of coverage to an applicant for or an enrollee in
21short-term, limited-duration health insurance coverage
22delivered or issued for delivery in this State.
23    (b) Any short-term, limited-duration health insurance
24coverage policy that is delivered or issued for delivery in the
25State shall display prominently in the policy, any application,

 

 

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1sales, and marketing materials provided in connection with
2enrollment in such coverage, and the outline of coverage for
3such coverage, in at least 14-point, bold type, the following:
4"NOTICE: THE SHORT-TERM, LIMITED-DURATION INSURANCE BENEFITS
5UNDER THIS COVERAGE DO NOT MEET ALL FEDERAL REQUIREMENTS TO
6QUALIFY AS "MINIMUM ESSENTIAL COVERAGE" FOR HEALTH INSURANCE
7UNDER THE AFFORDABLE CARE ACT. THIS PLAN OF COVERAGE DOES NOT
8INCLUDE ALL ESSENTIAL HEALTH BENEFITS AS REQUIRED BY THE
9AFFORDABLE CARE ACT. PREEXISTING CONDITIONS ARE NOT COVERED
10UNDER THIS PLAN OF COVERAGE. BE SURE TO CHECK YOUR POLICY
11CAREFULLY TO MAKE SURE YOU UNDERSTAND WHAT THE POLICY DOES AND
12DOES NOT COVER. IF THIS COVERAGE EXPIRES OR YOU LOSE
13ELIGIBILITY FOR THIS COVERAGE, YOU MIGHT HAVE TO WAIT UNTIL THE
14NEXT OPEN ENROLLMENT PERIOD TO GET OTHER HEALTH INSURANCE
15COVERAGE. YOU MAY BE ABLE TO GET LONGER TERM INSURANCE THAT
16QUALIFIES AS "MINIMUM ESSENTIAL COVERAGE" FOR HEALTH INSURANCE
17UNDER THE AFFORDABLE CARE ACT NOW AND HELP TO PAY FOR IT AT
18WWW.HEALTHCARE.GOV.".
19    (c) Any individual selling a short-term, limited-duration
20health insurance coverage policy in this State in face-to-face
21or telephonic sales interactions must read out loud the
22disclosure in subsection (b) to a prospective purchaser. An
23entity selling a short-term, limited-duration health insurance
24coverage policy in Illinois must display the disclosure in
25subsection (b) on the webpage where a prospective purchaser
26would purchase coverage.

 

 

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1    (d) Nothing in this Section precludes an insurer from
2providing disclosures in addition to those required in
3subsections (b) and (c). Nothing in this Section precludes an
4insurer from providing disclosures intended to clarify those
5required in subsections (b) and (c) if approved by the
6Department.
 
7    Section 20. Filing and approval.
8    (a) Coverage subject to this Act may not be delivered or
9issued for delivery in this State unless the policy evidencing
10such coverage has been filed with and been approved by the
11Department.
12    (b) A health insurance issuer who intends to deliver or
13issue for delivery a short-term, limited-duration health
14insurance coverage policy in this State shall file with the
15Department:
16        (1) all paperwork required for individual health
17    insurance coverage pursuant to 50 Ill. Adm. Code 916; and
18        (2) all sales and marketing materials provided in
19    connection with enrollment in such coverage for
20    informational purposes.
21    (c) The Department shall adopt any rules necessary to carry
22out the provisions of this Act.
 
23    Section 99. Effective date. This Act takes effect January
241, 2019.".