SB2173 93RD GENERAL ASSEMBLY

LRB093 14629 SAS 40142 b

93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
SB2173

Introduced 1/14/2004, by Denny Jacobs

SYNOPSIS AS INTRODUCED:

215 ILCS 5/351B-1	from Ch. 73, par. 963B-1
215 ILCS 5/351B-2	from Ch. 73, par. 963B-2
215 ILCS 5/351B-3	from Ch. 73, par. 963B-3
215 ILCS 5/351B-6	from Ch. 73, par. 963B-6

Amends the Small Employer Group Health Insurance Law. Changes the short title of the Act. Modifies the minimum and maximum number of employees, members, or employees of members necessary to require employers to provide the health insurance policies. Modifies the date the Director shall provide a written report of data from health insurers and employers relating to the coverage sold under this Article to the Governor and to the General Assembly. Makes other changes in language. Effective immediately.

A BILL FOR

AN ACT concerning insurance.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Insurance Code is amended by changing Sections 351B-1, 351B-2, 351B-3, and 351B-6 as follows:

(215 ILCS 5/351B-1) (from Ch. 73, par. 963B-1)

Sec. 351B-1. Short title. This Article may be cited as the Small Employer Group Health Insurance Coverage Choice Law.

(Source: P.A. 86-1407.)

(215 ILCS 5/351B-2) (from Ch. 73, par. 963B-2)

Sec. 351B-2. Findings and purpose.

(a) The General Assembly finds that the cost of group health insurance is becoming unaffordable to many small employers and their employees. Further, because of the higher cost unaffordability of this type of insurance, in some cases due to the cost of mandated benefits, a significant segment of the State's working population is unable to pay for many health care services which is increasing the cost of health insurance for current purchasers through a cost shift.

(b) It is the purpose and intent of this amendatory Act of 1990 to authorize a program whereby small employers may obtain affordable group health insurance that will increase access to health care, assist in the reduction of the amount of uncompensated care, and reduce the number of uninsured people in this State.

(Source: P.A. 86-1407.)

(215 ILCS 5/351B-3) (from Ch. 73, par. 963B-3)

Sec. 351B-3. Small employer group accident and health insurance.

(a) Small employer group accident and health insurance is hereby declared to be that form of accident and health insurance that provides coverage for each person insured under the group policy for the expenses incurred because of care rendered by a physician or hospital for the treatment of an injury or sickness and which covers at least 2 but not more than 50 25 employees, members, or employees of members (exclusive of dependents) written under a master policy issued to any governmental corporation, unit, agency, or department thereof or to any corporation, copartnership, or individual employer or to any association upon application of an executive officer or trustee of an association having a constitution or bylaws and formed in good faith for purposes other than that of obtaining insurance, where officers, members, employees, or employees of members or classes or departments thereof may be insured for their individual benefit. In addition, a small employer group accident and health policy may be written to insure any group that may be insured under a group life insurance policy as long as the number of employees, members, or employees of members (exclusive of dependents) is at least 2 but does not more than 50 exceed 25. The term "employees" shall include the officers, managers, and employees of subsidiary or affiliated corporations, and the individual proprietors, partners, and employees of affiliated individuals or firms when the business of the subsidiary or affiliated corporations or affiliated firms or individuals is controlled by a common employer through stock ownership, contract, or otherwise.

(b) For the purpose of providing coverage authorized under this Article a trust composed of employers or members each of which has at least 2 but no more than 50 25 or fewer employees (exclusive of dependents) may serve as the master policyholder.

(Source: P.A. 86-1407.)

(215 ILCS 5/351B-6) (from Ch. 73, par. 963B-6)

Sec. 351B-6. The Director shall by rule prescribe a method to collect data from health insurers and employers relating to the coverage sold under this Article. The data shall include the number of groups purchasing this coverage, the extent to which other coverage has been replaced with this coverage, if any, the number of insureds, and a summary of the types of coverage provided by policies authorized by this Article. Statistically valid survey methods may be used to compile this data.

Not later than March 31, 2006 1993, the Director shall provide a written report of this data to the Governor and to the General Assembly.

(Source: P.A. 86-1407.)

Section 99. Effective date. This Act takes effect upon becoming law.