102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB3926

 

Introduced 1/21/2022, by Sen. Laura Fine

 

SYNOPSIS AS INTRODUCED:
 
215 ILCS 5/121-2.05  from Ch. 73, par. 733-2.05
215 ILCS 5/352c new
215 ILCS 5/356z.18
215 ILCS 5/367.3  from Ch. 73, par. 979.3
215 ILCS 5/367a  from Ch. 73, par. 979a
215 ILCS 5/368f
215 ILCS 125/5-3  from Ch. 111 1/2, par. 1411.2
215 ILCS 130/4003  from Ch. 73, par. 1504-3
215 ILCS 190/Act rep.

    Amends the Illinois Insurance Code. Sets forth provisions concerning short-term, limited-duration insurance. Provides that on and after January 1, 2023, no company shall issue, deliver, amend, or renew short-term, limited-duration insurance to any natural or legal person that is a resident or domiciled in the State. Provides that the Department of Insurance may adopt rules as deemed necessary that prescribe specific standards for or restrictions on policy provisions, benefit design, disclosures, and sales and marketing practices for excepted benefits. Provides that the Director of Insurance's authority under specified provisions is extended to group and blanket excepted benefits. Provides that the language does not apply to limited-scope dental, limited-scope vision, long-term care, Medicare supplement, credit life, credit health, or any excepted benefits that are filed under specified provisions. Provides that nothing in the language shall be construed to limit the Director's authority under other statutes. Makes conforming changes in the Health Maintenance Organization Act and the Limited Health Service Organization Act. Repeals the Short-Term, Limited-Duration Health Insurance Coverage Act. Effective January 1, 2023.


LRB102 24061 BMS 34191 b

 

 

A BILL FOR

 

SB3926LRB102 24061 BMS 34191 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 Illinois Insurance Code is amended by
5changing Sections 121-2.05, 356z.18, 367.3, 367a, and 368f and
6by adding Section 352c as follows:
 
7    (215 ILCS 5/121-2.05)  (from Ch. 73, par. 733-2.05)
8    Sec. 121-2.05. Group insurance policies issued and
9delivered in other State-Transactions in this State. With the
10exception of insurance transactions authorized under Sections
11230.2 or 367.3 of this Code or transactions described under
12Section 352c, transactions in this State involving group
13legal, group life and group accident and health or blanket
14accident and health insurance or group annuities where the
15master policy of such groups was lawfully issued and delivered
16in, and under the laws of, a State in which the insurer was
17authorized to do an insurance business, to a group properly
18established pursuant to law or regulation, and where the
19policyholder is domiciled or otherwise has a bona fide situs.
20(Source: P.A. 86-753.)
 
21    (215 ILCS 5/352c new)
22    Sec. 352c. Short-term, limited-duration insurance

 

 

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1prohibited; rules for excepted benefits.
2    (a) Definitions. As used in this Section:
3    "Excepted benefits" has the meaning given to that term in
442 U.S.C. 300gg-91 and implementing regulations. "Excepted
5benefits" includes individual, group, or blanket coverage.
6    "Short-term, limited-duration insurance" means any type of
7accident and health insurance offered or provided within this
8State pursuant to a group or individual policy or individual
9certificate by a company, regardless of the situs state of the
10delivery of the policy, that has an expiration date specified
11in the contract that is fewer than 365 days after the original
12effective date. Regardless of the duration of coverage,
13"short-term, limited-duration insurance" does not include
14excepted benefits or any student health insurance coverage.
15    "Student health insurance coverage" has the meaning given
16to that term in 45 CFR 147.145.
17    (b) On and after January 1, 2023, no company shall issue,
18deliver, amend, or renew short-term, limited-duration
19insurance to any natural or legal person that is a resident or
20domiciled in this State.
21    (c) To prevent the use, design, and combination of
22excepted benefits to circumvent State or federal requirements
23for comprehensive forms of health insurance coverage, to
24prevent confusion or misinformation of insureds about
25duplicate or distinct types of coverage, and to ensure a
26measure of consistency within product lines across the

 

 

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1individual, group, and blanket markets, the Department may
2adopt rules as deemed necessary that prescribe specific
3standards for or restrictions on policy provisions, benefit
4design, disclosures, and sales and marketing practices for
5excepted benefits. For purposes of these rules, the Director's
6authority under subsections (3) and (4) of Section 355a is
7extended to group and blanket excepted benefits. To ensure
8compliance with these rules, the Director may require policy
9forms and rates to be filed as provided in Sections 143 and 355
10and rules thereunder with respect to excepted benefits
11coverage intended to be issued to residents of this State
12under a master contract issued to a group domiciled or
13otherwise with bona fide situs outside of this State. This
14subsection does not apply to limited-scope dental,
15limited-scope vision, long-term care, Medicare supplement,
16credit life, credit health, or any excepted benefits that are
17filed under subsections (b) through (l) of Class 2 or under
18Class 3 of Section 4. Nothing in this subsection shall be
19construed to limit the Director's authority under other
20statutes.
 
21
22    (215 ILCS 5/356z.18)
23    Sec. 356z.18. Prosthetic and customized orthotic devices.
24    (a) For the purposes of this Section:
25    "Customized orthotic device" means a supportive device for

 

 

SB3926- 4 -LRB102 24061 BMS 34191 b

1the body or a part of the body, the head, neck, or extremities,
2and includes the replacement or repair of the device based on
3the patient's physical condition as medically necessary,
4excluding foot orthotics defined as an in-shoe device designed
5to support the structural components of the foot during
6weight-bearing activities.
7    "Licensed provider" means a prosthetist, orthotist, or
8pedorthist licensed to practice in this State.
9    "Prosthetic device" means an artificial device to replace,
10in whole or in part, an arm or leg and includes accessories
11essential to the effective use of the device and the
12replacement or repair of the device based on the patient's
13physical condition as medically necessary.
14    (b) This amendatory Act of the 96th General Assembly shall
15provide benefits to any person covered thereunder for expenses
16incurred in obtaining a prosthetic or custom orthotic device
17from any Illinois licensed prosthetist, licensed orthotist, or
18licensed pedorthist as required under the Orthotics,
19Prosthetics, and Pedorthics Practice Act.
20    (c) A group or individual major medical policy of accident
21or health insurance or managed care plan or medical, health,
22or hospital service corporation contract that provides
23coverage for prosthetic or custom orthotic care and is
24amended, delivered, issued, or renewed 6 months after the
25effective date of this amendatory Act of the 96th General
26Assembly must provide coverage for prosthetic and orthotic

 

 

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1devices in accordance with this subsection (c). The coverage
2required under this Section shall be subject to the other
3general exclusions, limitations, and financial requirements of
4the policy, including coordination of benefits, participating
5provider requirements, utilization review of health care
6services, including review of medical necessity, case
7management, and experimental and investigational treatments,
8and other managed care provisions under terms and conditions
9that are no less favorable than the terms and conditions that
10apply to substantially all medical and surgical benefits
11provided under the plan or coverage.
12    (d) The policy or plan or contract may require prior
13authorization for the prosthetic or orthotic devices in the
14same manner that prior authorization is required for any other
15covered benefit.
16    (e) Repairs and replacements of prosthetic and orthotic
17devices are also covered, subject to the co-payments and
18deductibles, unless necessitated by misuse or loss.
19    (f) A policy or plan or contract may require that, if
20coverage is provided through a managed care plan, the benefits
21mandated pursuant to this Section shall be covered benefits
22only if the prosthetic or orthotic devices are provided by a
23licensed provider employed by a provider service who contracts
24with or is designated by the carrier, to the extent that the
25carrier provides in-network and out-of-network service, the
26coverage for the prosthetic or orthotic device shall be

 

 

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1offered no less extensively.
2    (g) The policy or plan or contract shall also meet
3adequacy requirements as established by the Health Care
4Reimbursement Reform Act of 1985 of the Illinois Insurance
5Code.
6    (h) This Section shall not apply to accident only,
7specified disease, short-term travel hospital or medical,
8hospital confinement indemnity, credit, dental, vision,
9Medicare supplement, long-term care, basic hospital and
10medical-surgical expense coverage, disability income insurance
11coverage, coverage issued as a supplement to liability
12insurance, workers' compensation insurance, or automobile
13medical payment insurance.
14(Source: P.A. 96-833, eff. 6-1-10.)
 
15    (215 ILCS 5/367.3)  (from Ch. 73, par. 979.3)
16    Sec. 367.3. Group accident and health insurance;
17discretionary groups.
18    (a) No group health insurance offered to a resident of
19this State under a policy issued to a group, other than one
20specifically described in Section 367(1), shall be delivered
21or issued for delivery in this State unless the Director
22determines that:
23        (1) the issuance of the policy is not contrary to the
24    public interest;
25        (2) the issuance of the policy will result in

 

 

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1    economies of acquisition and administration; and
2        (3) the benefits under the policy are reasonable in
3    relation to the premium charged.
4    (b) No such group health insurance may be offered in this
5State under a policy issued in another state unless this State
6or the state in which the group policy is issued has made a
7determination that the requirements of subsection (a) have
8been met.
9    Where insurance is to be offered in this State under a
10policy described in this subsection, the insurer shall file
11for informational review purposes:
12        (1) a copy of the group master contract;
13        (2) a copy of the statute authorizing the issuance of
14    the group policy in the state of situs, which statute has
15    the same or similar requirements as this State, or in the
16    absence of such statute, a certification by an officer of
17    the company that the policy meets the Illinois minimum
18    standards required for individual accident and health
19    policies under authority of Section 401 of this Code, as
20    now or hereafter amended, as promulgated by rule at 50
21    Illinois Administrative Code, Ch. I, Sec. 2007, et seq.,
22    as now or hereafter amended, or by a successor rule;
23        (3) evidence of approval by the state of situs of the
24    group master policy; and
25        (4) copies of all supportive material furnished to the
26    state of situs to satisfy the criteria for approval.

 

 

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1    (c) The Director may, at any time after receipt of the
2information required under subsection (b) and after finding
3that the standards of subsection (a) have not been met, order
4the insurer to cease the issuance or marketing of that
5coverage in this State.
6    (d) Notwithstanding subsections (a) and (b), group Group
7accident and health insurance subject to the provisions of
8this Section is also subject to the provisions of Sections
9352c and Section 367i of this Code and rules thereunder.
10(Source: P.A. 90-655, eff. 7-30-98.)
 
11    (215 ILCS 5/367a)  (from Ch. 73, par. 979a)
12    Sec. 367a. Blanket accident and health insurance.
13    (1) Blanket accident and health insurance is the that form
14of accident and health insurance providing excepted benefits
15as defined in Section 352c that covers covering special groups
16of persons as enumerated in one of the following paragraphs
17(a) to (g), inclusive:
18    (a) Under a policy or contract issued to any carrier for
19hire, which shall be deemed the policyholder, covering a group
20defined as all persons who may become passengers on such
21carrier.
22    (b) Under a policy or contract issued to an employer, who
23shall be deemed the policyholder, covering all employees or
24any group of employees defined by reference to exceptional
25hazards incident to such employment.

 

 

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1    (c) Under a policy or contract issued to a college,
2school, or other institution of learning or to the head or
3principal thereof, who or which shall be deemed the
4policyholder, covering students or teachers. However, except
5where inconsistent with 45 CFR 147.145, student health
6insurance coverage other than excepted benefits that is
7provided pursuant to a written agreement with an institution
8of higher education for the benefit of its enrolled students
9and their dependents shall remain subject to the standards and
10requirements for individual coverage.
11    (d) Under a policy or contract issued in the name of any
12volunteer fire department, first aid, or other such volunteer
13group, which shall be deemed the policyholder, covering all of
14the members of such department or group.
15    (e) Under a policy or contract issued to a creditor, who
16shall be deemed the policyholder, to insure debtors of the
17creditors; Provided, however, that in the case of a loan which
18is subject to the Small Loans Act, no insurance premium or
19other cost shall be directly or indirectly charged or assessed
20against, or collected or received from the borrower.
21    (f) Under a policy or contract issued to a sports team or
22to a camp, which team or camp sponsor shall be deemed the
23policyholder, covering members or campers.
24    (g) Under a policy or contract issued to any other
25substantially similar group which, in the discretion of the
26Director, may be subject to the issuance of a blanket accident

 

 

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1and health policy or contract.
2    (2) Any insurance company authorized to write accident and
3health insurance in this state shall have the power to issue
4blanket accident and health insurance. No such blanket policy
5may be issued or delivered in this State unless a copy of the
6form thereof shall have been filed in accordance with Section
7355, and it contains in substance such of those provisions
8contained in Sections 357.1 through 357.30 as may be
9applicable to blanket accident and health insurance and the
10following provisions:
11    (a) A provision that the policy and the application shall
12constitute the entire contract between the parties, and that
13all statements made by the policyholder shall, in absence of
14fraud, be deemed representations and not warranties, and that
15no such statements shall be used in defense to a claim under
16the policy, unless it is contained in a written application.
17    (b) A provision that to the group or class thereof
18originally insured shall be added from time to time all new
19persons or individuals eligible for coverage.
20    (3) An individual application shall not be required from a
21person covered under a blanket accident or health policy or
22contract, nor shall it be necessary for the insurer to furnish
23each person a certificate.
24    (4) All benefits under any blanket accident and health
25policy shall be payable to the person insured, or to his
26designated beneficiary or beneficiaries, or to his or her

 

 

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1estate, except that if the person insured be a minor or person
2under legal disability, such benefits may be made payable to
3his or her parent, guardian, or other person actually
4supporting him or her. Provided further, however, that the
5policy may provide that all or any portion of any indemnities
6provided by any such policy on account of hospital, nursing,
7medical or surgical services may, at the insurer's option, be
8paid directly to the hospital or person rendering such
9services; but the policy may not require that the service be
10rendered by a particular hospital or person. Payment so made
11shall discharge the insurer's obligation with respect to the
12amount of insurance so paid.
13    (5) Nothing contained in this section shall be deemed to
14affect the legal liability of policyholders for the death of
15or injury to, any such member of such group.
16(Source: P.A. 83-1362.)
 
17    (215 ILCS 5/368f)
18    Sec. 368f. Military service member insurance
19reinstatement.
20    (a) No Illinois resident activated for military service
21and no spouse or dependent of the resident who becomes
22eligible for a federal government-sponsored health insurance
23program, including the TriCare program providing coverage for
24civilian dependents of military personnel, as a result of the
25activation shall be denied reinstatement into the same

 

 

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1individual health insurance coverage with the health insurer
2that the resident lapsed as a result of activation or becoming
3covered by the federal government-sponsored health insurance
4program. The resident shall have the right to reinstatement in
5the same individual health insurance coverage without medical
6underwriting, subject to payment of the current premium
7charged to other persons of the same age and gender that are
8covered under the same individual health coverage. Except in
9the case of birth or adoption that occurs during the period of
10activation, reinstatement must be into the same coverage type
11as the resident held prior to lapsing the individual health
12insurance coverage and at the same or, at the option of the
13resident, higher deductible level. The reinstatement rights
14provided under this subsection (a) are not available to a
15resident or dependents if the activated person is discharged
16from the military under other than honorable conditions.
17    (b) The health insurer with which the reinstatement is
18being requested must receive a request for reinstatement no
19later than 63 days following the later of (i) deactivation or
20(ii) loss of coverage under the federal government-sponsored
21health insurance program. The health insurer may request proof
22of loss of coverage and the timing of the loss of coverage of
23the government-sponsored coverage in order to determine
24eligibility for reinstatement into the individual coverage.
25The effective date of the reinstatement of individual health
26coverage shall be the first of the month following receipt of

 

 

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1the notice requesting reinstatement.
2    (c) All insurers must provide written notice to the
3policyholder of individual health coverage of the rights
4described in subsection (a) of this Section. In lieu of the
5inclusion of the notice in the individual health insurance
6policy, an insurance company may satisfy the notification
7requirement by providing a single written notice:
8        (1) in conjunction with the enrollment process for a
9    policyholder initially enrolling in the individual
10    coverage on or after the effective date of this amendatory
11    Act of the 94th General Assembly; or
12        (2) by mailing written notice to policyholders whose
13    coverage was effective prior to the effective date of this
14    amendatory Act of the 94th General Assembly no later than
15    90 days following the effective date of this amendatory
16    Act of the 94th General Assembly.
17    (d) The provisions of subsection (a) of this Section do
18not apply to any policy or certificate providing coverage for
19any specified disease, specified accident or accident-only
20coverage, credit, dental, disability income, hospital
21indemnity, long-term care, Medicare supplement, vision care,
22or short-term travel nonrenewable health policy or other
23limited-benefit supplemental insurance, or any coverage issued
24as a supplement to any liability insurance, workers'
25compensation or similar insurance, or any insurance under
26which benefits are payable with or without regard to fault,

 

 

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1whether written on a group, blanket, or individual basis.
2    (e) Nothing in this Section shall require an insurer to
3reinstate the resident if the insurer requires residency in an
4enrollment area and those residency requirements are not met
5after deactivation or loss of coverage under the
6government-sponsored health insurance program.
7    (f) All terms, conditions, and limitations of the
8individual coverage into which reinstatement is made apply
9equally to all insureds enrolled in the coverage.
10    (g) The Secretary may adopt rules as may be necessary to
11carry out the provisions of this Section.
12(Source: P.A. 94-1037, eff. 7-20-06.)
 
13    Section 10. The Health Maintenance Organization Act is
14amended by changing Section 5-3 as follows:
 
15    (215 ILCS 125/5-3)  (from Ch. 111 1/2, par. 1411.2)
16    Sec. 5-3. Insurance Code provisions.
17    (a) Health Maintenance Organizations shall be subject to
18the provisions of Sections 133, 134, 136, 137, 139, 140,
19141.1, 141.2, 141.3, 143, 143c, 147, 148, 149, 151, 152, 153,
20154, 154.5, 154.6, 154.7, 154.8, 155.04, 155.22a, 352c, 355.2,
21355.3, 355b, 356g.5-1, 356m, 356q, 356v, 356w, 356x, 356y,
22356z.2, 356z.4, 356z.4a, 356z.5, 356z.6, 356z.8, 356z.9,
23356z.10, 356z.11, 356z.12, 356z.13, 356z.14, 356z.15, 356z.17,
24356z.18, 356z.19, 356z.21, 356z.22, 356z.25, 356z.26, 356z.29,

 

 

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1356z.30, 356z.30a, 356z.32, 356z.33, 356z.35, 356z.36,
2356z.40, 356z.41, 356z.43, 356z.46, 356z.47, 356z.48, 356z.50,
3356z.51, 364, 364.01, 367.2, 367.2-5, 367i, 368a, 368b, 368c,
4368d, 368e, 370c, 370c.1, 401, 401.1, 402, 403, 403A, 408,
5408.2, 409, 412, 444, and 444.1, paragraph (c) of subsection
6(2) of Section 367, and Articles IIA, VIII 1/2, XII, XII 1/2,
7XIII, XIII 1/2, XXV, XXVI, and XXXIIB of the Illinois
8Insurance Code.
9    (b) For purposes of the Illinois Insurance Code, except
10for Sections 444 and 444.1 and Articles XIII and XIII 1/2,
11Health Maintenance Organizations in the following categories
12are deemed to be "domestic companies":
13        (1) a corporation authorized under the Dental Service
14    Plan Act or the Voluntary Health Services Plans Act;
15        (2) a corporation organized under the laws of this
16    State; or
17        (3) a corporation organized under the laws of another
18    state, 30% or more of the enrollees of which are residents
19    of this State, except a corporation subject to
20    substantially the same requirements in its state of
21    organization as is a "domestic company" under Article VIII
22    1/2 of the Illinois Insurance Code.
23    (c) In considering the merger, consolidation, or other
24acquisition of control of a Health Maintenance Organization
25pursuant to Article VIII 1/2 of the Illinois Insurance Code,
26        (1) the Director shall give primary consideration to

 

 

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1    the continuation of benefits to enrollees and the
2    financial conditions of the acquired Health Maintenance
3    Organization after the merger, consolidation, or other
4    acquisition of control takes effect;
5        (2)(i) the criteria specified in subsection (1)(b) of
6    Section 131.8 of the Illinois Insurance Code shall not
7    apply and (ii) the Director, in making his determination
8    with respect to the merger, consolidation, or other
9    acquisition of control, need not take into account the
10    effect on competition of the merger, consolidation, or
11    other acquisition of control;
12        (3) the Director shall have the power to require the
13    following information:
14            (A) certification by an independent actuary of the
15        adequacy of the reserves of the Health Maintenance
16        Organization sought to be acquired;
17            (B) pro forma financial statements reflecting the
18        combined balance sheets of the acquiring company and
19        the Health Maintenance Organization sought to be
20        acquired as of the end of the preceding year and as of
21        a date 90 days prior to the acquisition, as well as pro
22        forma financial statements reflecting projected
23        combined operation for a period of 2 years;
24            (C) a pro forma business plan detailing an
25        acquiring party's plans with respect to the operation
26        of the Health Maintenance Organization sought to be

 

 

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1        acquired for a period of not less than 3 years; and
2            (D) such other information as the Director shall
3        require.
4    (d) The provisions of Article VIII 1/2 of the Illinois
5Insurance Code and this Section 5-3 shall apply to the sale by
6any health maintenance organization of greater than 10% of its
7enrollee population (including without limitation the health
8maintenance organization's right, title, and interest in and
9to its health care certificates).
10    (e) In considering any management contract or service
11agreement subject to Section 141.1 of the Illinois Insurance
12Code, the Director (i) shall, in addition to the criteria
13specified in Section 141.2 of the Illinois Insurance Code,
14take into account the effect of the management contract or
15service agreement on the continuation of benefits to enrollees
16and the financial condition of the health maintenance
17organization to be managed or serviced, and (ii) need not take
18into account the effect of the management contract or service
19agreement on competition.
20    (f) Except for small employer groups as defined in the
21Small Employer Rating, Renewability and Portability Health
22Insurance Act and except for medicare supplement policies as
23defined in Section 363 of the Illinois Insurance Code, a
24Health Maintenance Organization may by contract agree with a
25group or other enrollment unit to effect refunds or charge
26additional premiums under the following terms and conditions:

 

 

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1        (i) the amount of, and other terms and conditions with
2    respect to, the refund or additional premium are set forth
3    in the group or enrollment unit contract agreed in advance
4    of the period for which a refund is to be paid or
5    additional premium is to be charged (which period shall
6    not be less than one year); and
7        (ii) the amount of the refund or additional premium
8    shall not exceed 20% of the Health Maintenance
9    Organization's profitable or unprofitable experience with
10    respect to the group or other enrollment unit for the
11    period (and, for purposes of a refund or additional
12    premium, the profitable or unprofitable experience shall
13    be calculated taking into account a pro rata share of the
14    Health Maintenance Organization's administrative and
15    marketing expenses, but shall not include any refund to be
16    made or additional premium to be paid pursuant to this
17    subsection (f)). The Health Maintenance Organization and
18    the group or enrollment unit may agree that the profitable
19    or unprofitable experience may be calculated taking into
20    account the refund period and the immediately preceding 2
21    plan years.
22    The Health Maintenance Organization shall include a
23statement in the evidence of coverage issued to each enrollee
24describing the possibility of a refund or additional premium,
25and upon request of any group or enrollment unit, provide to
26the group or enrollment unit a description of the method used

 

 

SB3926- 19 -LRB102 24061 BMS 34191 b

1to calculate (1) the Health Maintenance Organization's
2profitable experience with respect to the group or enrollment
3unit and the resulting refund to the group or enrollment unit
4or (2) the Health Maintenance Organization's unprofitable
5experience with respect to the group or enrollment unit and
6the resulting additional premium to be paid by the group or
7enrollment unit.
8    In no event shall the Illinois Health Maintenance
9Organization Guaranty Association be liable to pay any
10contractual obligation of an insolvent organization to pay any
11refund authorized under this Section.
12    (g) Rulemaking authority to implement Public Act 95-1045,
13if any, is conditioned on the rules being adopted in
14accordance with all provisions of the Illinois Administrative
15Procedure Act and all rules and procedures of the Joint
16Committee on Administrative Rules; any purported rule not so
17adopted, for whatever reason, is unauthorized.
18(Source: P.A. 101-13, eff. 6-12-19; 101-81, eff. 7-12-19;
19101-281, eff. 1-1-20; 101-371, eff. 1-1-20; 101-393, eff.
201-1-20; 101-452, eff. 1-1-20; 101-461, eff. 1-1-20; 101-625,
21eff. 1-1-21; 102-30, eff. 1-1-22; 102-34, eff. 6-25-21;
22102-203, eff. 1-1-22; 102-306, eff. 1-1-22; 102-443, eff.
231-1-22; 102-589, eff. 1-1-22; 102-642, eff. 1-1-22; 102-665,
24eff. 10-8-21; revised 10-27-21.)
 
25    Section 15. The Limited Health Service Organization Act is

 

 

SB3926- 20 -LRB102 24061 BMS 34191 b

1amended by changing Section 4003 as follows:
 
2    (215 ILCS 130/4003)  (from Ch. 73, par. 1504-3)
3    Sec. 4003. Illinois Insurance Code provisions. Limited
4health service organizations shall be subject to the
5provisions of Sections 133, 134, 136, 137, 139, 140, 141.1,
6141.2, 141.3, 143, 143c, 147, 148, 149, 151, 152, 153, 154,
7154.5, 154.6, 154.7, 154.8, 155.04, 155.37, 352c, 355.2,
8355.3, 355b, 356q, 356v, 356z.10, 356z.21, 356z.22, 356z.25,
9356z.26, 356z.29, 356z.30a, 356z.32, 356z.33, 356z.41,
10356z.46, 356z.47, 356z.51, 356z.43, 368a, 401, 401.1, 402,
11403, 403A, 408, 408.2, 409, 412, 444, and 444.1 and Articles
12IIA, VIII 1/2, XII, XII 1/2, XIII, XIII 1/2, XXV, and XXVI of
13the Illinois Insurance Code. For purposes of the Illinois
14Insurance Code, except for Sections 444 and 444.1 and Articles
15XIII and XIII 1/2, limited health service organizations in the
16following categories are deemed to be domestic companies:
17        (1) a corporation under the laws of this State; or
18        (2) a corporation organized under the laws of another
19    state, 30% or more of the enrollees of which are residents
20    of this State, except a corporation subject to
21    substantially the same requirements in its state of
22    organization as is a domestic company under Article VIII
23    1/2 of the Illinois Insurance Code.
24(Source: P.A. 101-81, eff. 7-12-19; 101-281, eff. 1-1-20;
25101-393, eff. 1-1-20; 101-625, eff. 1-1-21; 102-30, eff.

 

 

SB3926- 21 -LRB102 24061 BMS 34191 b

11-1-22; 102-203, eff. 1-1-22; 102-306, eff. 1-1-22; 102-642,
2eff. 1-1-22; revised 10-27-21.)
 
3    (215 ILCS 190/Act rep.)
4    Section 20. The Short-Term, Limited-Duration Health
5Insurance Coverage Act is repealed.
 
6    Section 99. Effective date. This Act takes effect January
71, 2023.