101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB1421

 

Introduced 2/13/2019, by Sen. Laura M. Murphy

 

SYNOPSIS AS INTRODUCED:
 
210 ILCS 88/30
210 ILCS 88/33 new

    Amends the Fair Patient Billing Act. Provides that before pursuing a collection action against an insured patient for the unpaid amount of services rendered, a health care provider must review a patient's file to ensure that the patient does not have a Medicare supplement policy or any other secondary payer health insurance plan. Provides that if, after reviewing a patient's file, the health care provider finds no supplemental policy in the patient's record, the provider must then provide notice to the patient, and give that patient an opportunity to address the issue. Provides that if a health care provider has neither found information indicating the existence of a supplemental policy, nor received payment for services rendered to the patient, the health care provider may proceed with a collection action against the patient in accordance with specified provisions. Defines "supplemental policy". Makes a conforming change.


LRB101 08603 CPF 53682 b

 

 

A BILL FOR

 

SB1421LRB101 08603 CPF 53682 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Fair Patient Billing Act is amended by
5changing Section 30 and by adding Section 33 as follows:
 
6    (210 ILCS 88/30)
7    Sec. 30. Pursuing collection action.
8    (a) Hospitals and their agents may pursue collection action
9against an uninsured patient only if the following conditions
10are met:
11        (1) The hospital has given the uninsured patient the
12    opportunity to:
13            (A) assess the accuracy of the bill;
14            (B) apply for financial assistance under the
15        hospital's financial assistance policy; and
16            (C) avail themselves of a reasonable payment plan.
17        (2) If the uninsured patient has indicated an inability
18    to pay the full amount of the debt in one payment, the
19    hospital has offered the patient a reasonable payment plan.
20    The hospital may require the uninsured patient to provide
21    reasonable verification of his or her inability to pay the
22    full amount of the debt in one payment.
23        (3) To the extent the hospital provides financial

 

 

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1    assistance and the circumstances of the uninsured patient
2    suggest the potential for eligibility for charity care, the
3    uninsured patient has been given at least 60 days following
4    the date of discharge or receipt of outpatient care to
5    submit an application for financial assistance.
6        (4) If the uninsured patient has agreed to a reasonable
7    payment plan with the hospital, and the patient has failed
8    to make payments in accordance with that reasonable payment
9    plan.
10        (5) If the uninsured patient informs the hospital that
11    he or she has applied for health care coverage under
12    Medicaid, Kidcare, or other government-sponsored health
13    care program (and there is a reasonable basis to believe
14    that the patient will qualify for such program) but the
15    patient's application is denied.
16    (b) A hospital may not refer a bill, or portion thereof, to
17a collection agency or attorney for collection action against
18the insured patient, without first offering the patient the
19opportunity to request a reasonable payment plan for the amount
20personally owed by the patient. Such an opportunity shall be
21made available for the 30 days following the date of the
22initial bill, or after exhaustion of the process outlined in
23subsections (a) and (b) of Section 33. If the insured patient
24requests a reasonable payment plan, but fails to agree to a
25plan within 30 days of the request, the hospital may proceed
26with collection action against the patient.

 

 

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1    (c) No collection agency, law firm, or individual may
2initiate legal action for non-payment of a hospital bill
3against a patient without the written approval of an authorized
4hospital employee who reasonably believes that the conditions
5for pursuing collection action under this Section have been
6met.
7    (d) Nothing in this Section prohibits a hospital from
8engaging an outside third party agency, firm, or individual to
9manage the process of implementing the hospital's financial
10assistance and reasonable payment plan programs and policies so
11long as such agency, firm, or individual is contractually bound
12to comply with the terms of this Act.
13(Source: P.A. 94-885, eff. 1-1-07.)
 
14    (210 ILCS 88/33 new)
15    Sec. 33. Supplemental policy collection action.
16    (a) Before pursuing a collection action against an insured
17patient for the unpaid amount of services rendered, a health
18care provider must review a patient's file to ensure that the
19patient does not have a supplemental policy.
20    (b) If, after reviewing a patient's file, the health care
21provider finds no supplemental policy in the patient's record,
22the provider must then provide notice to the patient, and give
23that patient an opportunity to (1) assess the accuracy of the
24bill; (2) indicate or clarify whether he or she is covered by a
25supplemental policy; and (3) address the payment of the unpaid

 

 

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1sum.
2    (c) If, after exhausting the requirements of subsections
3(a) and (b) of this Section, a health care provider has neither
4found information indicating the existence of a supplemental
5policy, nor received payment for services rendered to the
6patient, the health care provider may proceed with a collection
7action against the patient, as provided under subsection (b) of
8Section 30 of this Act.
9    (d) For purposes of this Section, "supplemental policy"
10means a Medicare supplement policy, as defined in subsection
11(c) of Section 363 of the Illinois Insurance Code, or any other
12secondary payer health insurance plan.