Illinois General Assembly - Full Text of HB5516
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Full Text of HB5516  102nd General Assembly

HB5516 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB5516

 

Introduced 1/31/2022, by Rep. Thaddeus Jones

 

SYNOPSIS AS INTRODUCED:
 
215 ILCS 5/155.49 new
215 ILCS 110/25  from Ch. 32, par. 690.25
215 ILCS 125/5-3  from Ch. 111 1/2, par. 1411.2
215 ILCS 130/4003  from Ch. 73, par. 1504-3

    Amends the Illinois Insurance Code to provide that every company authorized to do business in the State or accredited by the State with assets of at least $50,000,000 shall submit a report on its voluntary supplier diversity program, or the company's procurement program if there is no supplier diversity program, to the Department of Insurance. Provides that the voluntary supplier diversity report shall set forth specified information. Provides that each company is required to submit a report to the Department on or before November 15, 2022, and on or before November 15 every year thereafter. Provides that the Department shall publish the results of supplier diversity reports on its Internet website for 5 years after submission. Provides that the Department shall hold an annual insurance company supplier diversity workshop in February of 2023 and every February thereafter to discuss the reports with representatives of the companies and vendors. Provides that the Department shall prepare a one-page template for the voluntary supplier diversity reports. Provides that the Department may adopt rules necessary to implement the provisions. Makes conforming changes in the Dental Service Plan Act, the Health Maintenance Organization Act, and the Limited Health Service Organization Act.


LRB102 20335 BMS 29190 b

 

 

A BILL FOR

 

HB5516LRB102 20335 BMS 29190 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
5adding Section 155.49 as follows:
 
6    (215 ILCS 5/155.49 new)
7    Sec. 155.49. Insurance company supplier diversity report.
8    (a) Every company authorized to do business in this State
9or accredited by this State with assets of at least
10$50,000,000 shall submit a 2-page report on its voluntary
11supplier diversity program, or the company's procurement
12program if there is no supplier diversity program, to the
13Department. The report shall set forth all of the following:
14        (1) The name, address, phone number, and email address
15    of the point of contact for the supplier diversity program
16    for vendors to register with the program.
17        (2) Local and State certifications the company accepts
18    or recognizes for minority-owned, women-owned, LGBT-owned,
19    or veteran-owned business status.
20        (3) On the second page, a narrative explaining the
21    results of the program and the tactics to be employed to
22    achieve the goals of its voluntary supplier diversity
23    program.

 

 

HB5516- 2 -LRB102 20335 BMS 29190 b

1        (4) The voluntary goals for the calendar year for
2    which the report is made in each category for the entire
3    budget of the company and the commodity codes or a
4    description of particular goods and services for the area
5    of procurement in which the company expects most of those
6    goals to focus on in that year.
7    Each company is required to submit a searchable report, in
8Portable Document Format (PDF), to the Department on or before
9November 15, 2022 and on or before November 15 every year
10thereafter.
11    (b) For each report submitted under subsection (a), the
12Department shall publish the results on its Internet website
13for 5 years after submission. The Department is not
14responsible for collecting the reports or for the content of
15the reports.
16    (c) The Department shall hold an annual insurance company
17supplier diversity workshop in February of 2023 and every
18February thereafter to discuss the reports with
19representatives of the companies and vendors.
20    (d) The Department shall prepare a one-page template, not
21including the narrative section, for the voluntary supplier
22diversity reports.
23    (e) The Department may adopt such rules as it deems
24necessary to implement this Section.
 
25    Section 10. The Dental Service Plan Act is amended by

 

 

HB5516- 3 -LRB102 20335 BMS 29190 b

1changing Section 25 as follows:
 
2    (215 ILCS 110/25)  (from Ch. 32, par. 690.25)
3    Sec. 25. Application of Insurance Code provisions. Dental
4service plan corporations and all persons interested therein
5or dealing therewith shall be subject to the provisions of
6Articles IIA, XI, and XII 1/2 and Sections 3.1, 133, 136, 139,
7140, 143, 143c, 149, 155.49, 355.2, 355.3, 367.2, 401, 401.1,
8402, 403, 403A, 408, 408.2, and 412, and subsection (15) of
9Section 367 of the Illinois Insurance Code.
10(Source: P.A. 99-151, eff. 7-28-15.)
 
11    Section 15. The Health Maintenance Organization Act is
12amended by changing Section 5-3 as follows:
 
13    (215 ILCS 125/5-3)  (from Ch. 111 1/2, par. 1411.2)
14    Sec. 5-3. Insurance Code provisions.
15    (a) Health Maintenance Organizations shall be subject to
16the provisions of Sections 133, 134, 136, 137, 139, 140,
17141.1, 141.2, 141.3, 143, 143c, 147, 148, 149, 151, 152, 153,
18154, 154.5, 154.6, 154.7, 154.8, 155.04, 155.22a, 155.49,
19355.2, 355.3, 355b, 356g.5-1, 356m, 356v, 356w, 356x, 356y,
20356z.2, 356z.4, 356z.4a, 356z.5, 356z.6, 356z.8, 356z.9,
21356z.10, 356z.11, 356z.12, 356z.13, 356z.14, 356z.15, 356z.17,
22356z.18, 356z.19, 356z.21, 356z.22, 356z.25, 356z.26, 356z.29,
23356z.30, 356z.30a, 356z.32, 356z.33, 356z.35, 356z.36,

 

 

HB5516- 4 -LRB102 20335 BMS 29190 b

1356z.41, 364, 364.01, 367.2, 367.2-5, 367i, 368a, 368b, 368c,
2368d, 368e, 370c, 370c.1, 401, 401.1, 402, 403, 403A, 408,
3408.2, 409, 412, 444, and 444.1, paragraph (c) of subsection
4(2) of Section 367, and Articles IIA, VIII 1/2, XII, XII 1/2,
5XIII, XIII 1/2, XXV, XXVI, and XXXIIB of the Illinois
6Insurance Code.
7    (b) For purposes of the Illinois Insurance Code, except
8for Sections 444 and 444.1 and Articles XIII and XIII 1/2,
9Health Maintenance Organizations in the following categories
10are deemed to be "domestic companies":
11        (1) a corporation authorized under the Dental Service
12    Plan Act or the Voluntary Health Services Plans Act;
13        (2) a corporation organized under the laws of this
14    State; or
15        (3) a corporation organized under the laws of another
16    state, 30% or more of the enrollees of which are residents
17    of this State, except a corporation subject to
18    substantially the same requirements in its state of
19    organization as is a "domestic company" under Article VIII
20    1/2 of the Illinois Insurance Code.
21    (c) In considering the merger, consolidation, or other
22acquisition of control of a Health Maintenance Organization
23pursuant to Article VIII 1/2 of the Illinois Insurance Code,
24        (1) the Director shall give primary consideration to
25    the continuation of benefits to enrollees and the
26    financial conditions of the acquired Health Maintenance

 

 

HB5516- 5 -LRB102 20335 BMS 29190 b

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

 

 

HB5516- 6 -LRB102 20335 BMS 29190 b

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

 

 

HB5516- 7 -LRB102 20335 BMS 29190 b

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

 

 

HB5516- 8 -LRB102 20335 BMS 29190 b

1unit and the resulting refund to the group or enrollment unit
2or (2) the Health Maintenance Organization's unprofitable
3experience with respect to the group or enrollment unit and
4the resulting additional premium to be paid by the group or
5enrollment unit.
6    In no event shall the Illinois Health Maintenance
7Organization Guaranty Association be liable to pay any
8contractual obligation of an insolvent organization to pay any
9refund authorized under this Section.
10    (g) Rulemaking authority to implement Public Act 95-1045,
11if any, is conditioned on the rules being adopted in
12accordance with all provisions of the Illinois Administrative
13Procedure Act and all rules and procedures of the Joint
14Committee on Administrative Rules; any purported rule not so
15adopted, for whatever reason, is unauthorized.
16(Source: P.A. 100-24, eff. 7-18-17; 100-138, eff. 8-18-17;
17100-863, eff. 8-14-18; 100-1026, eff. 8-22-18; 100-1057, eff.
181-1-19; 100-1102, eff. 1-1-19; 101-13, eff. 6-12-19; 101-81,
19eff. 7-12-19; 101-281, eff. 1-1-20; 101-371, eff. 1-1-20;
20101-393, eff. 1-1-20; 101-452, eff. 1-1-20; 101-461, eff.
211-1-20; 101-625, eff. 1-1-21.)
 
22    Section 20. The Limited Health Service Organization Act is
23amended by changing Section 4003 as follows:
 
24    (215 ILCS 130/4003)  (from Ch. 73, par. 1504-3)

 

 

HB5516- 9 -LRB102 20335 BMS 29190 b

1    Sec. 4003. Illinois Insurance Code provisions. Limited
2health service organizations shall be subject to the
3provisions of Sections 133, 134, 136, 137, 139, 140, 141.1,
4141.2, 141.3, 143, 143c, 147, 148, 149, 151, 152, 153, 154,
5154.5, 154.6, 154.7, 154.8, 155.04, 155.37, 155.49, 355.2,
6355.3, 355b, 356v, 356z.10, 356z.21, 356z.22, 356z.25,
7356z.26, 356z.29, 356z.30a, 356z.32, 356z.33, 356z.41, 368a,
8401, 401.1, 402, 403, 403A, 408, 408.2, 409, 412, 444, and
9444.1 and Articles IIA, VIII 1/2, XII, XII 1/2, XIII, XIII 1/2,
10XXV, and XXVI of the Illinois Insurance Code. For purposes of
11the Illinois Insurance Code, except for Sections 444 and 444.1
12and Articles XIII and XIII 1/2, limited health service
13organizations in the following categories are deemed to be
14domestic companies:
15        (1) a corporation under the laws of this State; or
16        (2) a corporation organized under the laws of another
17    state, 30% or more of the enrollees of which are residents
18    of this State, except a corporation subject to
19    substantially the same requirements in its state of
20    organization as is a domestic company under Article VIII
21    1/2 of the Illinois Insurance Code.
22(Source: P.A. 100-24, eff. 7-18-17; 100-138, eff. 8-18-17;
23100-201, eff. 8-18-17; 100-863, eff. 8-14-18; 100-1057, eff.
241-1-19; 100-1102, eff. 1-1-19; 101-81, eff. 7-12-19; 101-281,
25eff. 1-1-20; 101-393, eff. 1-1-20; 101-625, eff. 1-1-21.)