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90_HB0048 New Act 30 ILCS 105/5.449 new Creates the Senior Health Insurance Coverage Commission Act. Provides for a Senior Health Insurance Coverage Commission consisting of the State Treasurer, State Comptroller, Director of Insurance, and 18 persons appointed by the Governor and confirmed by the Senate to provide for health insurance for persons age 62 or older whose income is less than $10,000 per year. Authorizes the Commission to charge premiums for the coverage and to impose an annual privilege fee on insurers and pharmaceutical companies to pay for the coverage. Creates the Senior Health Insurance Coverage Fund, a special fund in the State Treasury. Sets forth the powers of the Commission. Effective July 1, 1997. LRB9000696JSgc LRB9000696JSgc 1 AN ACT concerning senior citizen health insurance. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 1. Short title. This Act may be cited as the 5 Senior Health Insurance Coverage Commission Act. 6 Section 5. Definition. In this Act: 7 "Commission" means the Senior Health Insurance Coverage 8 Commission. 9 "Eligible person" means a senior citizen who is a 10 resident of this State and whose income is less than $10,000 11 per year. 12 "Health insurance" means hospital, surgical, or medical 13 coverage provided under an expense-incurred policy or 14 contract, minimum premium plan, stop-loss coverage, nonprofit 15 health care service plan contract, health maintenance 16 organization, limited health service organization, any other 17 subscriber contract, or any other health care plan or 18 arrangement that pays for or furnishes medical or health care 19 services by a provider of those services whether by insurance 20 or otherwise. 21 "Pharmaceutical company" means any person or entity that 22 manufactures or distributes drugs as defined in the Pharmacy 23 Practice Act of 1987. 24 "Senior citizen" means an individual who is at least 62 25 years of age. 26 Section 10. Senior Health Insurance Coverage Commission. 27 (a) There is created the Senior Health Insurance 28 Coverage Commission. The Commission shall consist of the 29 State Treasurer, State Comptroller, Director of Insurance, 30 and 18 persons appointed by the Governor and confirmed by the -2- LRB9000696JSgc 1 Senate. The persons appointed by the Governor shall include 2 6 persons who represent statewide senior citizens 3 organizations. Two persons appointed by the Governor shall 4 represent the insurance industry and 2 persons shall 5 represent the pharmaceutical industry. Of the persons 6 appointed by the Governor who do not represent the insurance 7 or pharmaceutical industry, 6 shall be residents of the First 8 Judicial District, 2 shall be residents of the Second 9 Judicial District, 2 shall be residents of the Third Judicial 10 District, 2 shall be residents of the Fourth Judicial 11 District, and 2 shall be residents of the Fifth Judicial 12 District. Persons appointed by the Governor shall serve for 13 terms of 4 years. The State Comptroller, State Treasurer, 14 and Director of Insurance shall serve ex officio. The 15 members of the Commission shall elect one of the members to 16 serve as chairman of the Commission. 17 (b) The Commission shall oversee, regulate, and provide 18 health insurance for eligible persons. The cost of the 19 health insurance shall be paid by premiums collected by the 20 Commission and from moneys appropriated to the Commission 21 from the Senior Health Insurance Coverage Fund. Moneys in the 22 Fund may, pursuant to appropriation, be used to pay the 23 expenses of the Commission. 24 (c) The Senior Health Insurance Coverage Fund is created 25 as an interest-bearing special fund in the State treasury. 26 The Commission shall impose upon all insurers and 27 pharmaceutical companies that transact business in this State 28 an annual fee for the privilege of transacting business in 29 this State. The Commission shall establish the fee in an 30 amount sufficient to provide the insurance coverage specified 31 in this Act and to pay the related administrative costs. The 32 fee shall be imposed as a percentage, not to exceed 3%, of 33 the profits reported by the insurer or pharmaceutical company 34 for the previous year. Insurers and pharmaceutical companies -3- LRB9000696JSgc 1 shall remit the fee to the Commission within 60 days of being 2 notified of the amount of the fee. The Commission shall 3 deposit all moneys received as fees imposed on insurers and 4 pharmaceutical companies and as premiums from eligible 5 persons into the Fund. 6 Section 15. Provision of insurance coverage. 7 (a) The Commission shall provide coverage for eligible 8 persons who apply and qualify under the rules of the 9 Commission. The Commission shall issue all rules necessary 10 for the implementation of this Act. 11 (b) The Commission may charge a premium to eligible 12 persons who seek coverage. There shall be 2 categories of 13 premium. One category shall be charged to eligible persons 14 whose income does not exceed $5,000 per year and one category 15 of premium shall be charged to eligible persons whose income 16 exceeds $5,000 per year but does not exceed $10,000 per year. 17 The Commission shall establish the amount of the premium for 18 each of the 2 categories based upon an evaluation of the 19 application of the eligible person considering the eligible 20 person's health care risks and income. The Commission shall 21 review the status of each covered eligible person annually to 22 assure that the eligible person continues to meet the 23 eligibility requirements. 24 (c) The Commission shall have the general powers and 25 authority granted under the laws of this State to insurance 26 companies authorized to transact accident and health 27 insurance. The Commission may establish procedures for and 28 select an administering carrier. The Commission shall have 29 the authority granted to the Illinois Comprehensive Health 30 Insurance Board under Section 4 of the Comprehensive Health 31 Insurance Plan Act. 32 Section 20. Insurance coverage; source of funds. -4- LRB9000696JSgc 1 (a) The cost of health insurance coverage and the 2 expenses of the Commission may be paid only upon 3 authorization by the Commission from moneys appropriated to 4 it from the Senior Health Insurance Coverage Fund. 5 (b) The Commission shall establish procedures for 6 managing and accounting for the moneys in the Fund. 7 Section 25. Annual privilege fee. For the privilege of 8 transacting business in this State, a domestic, foreign, or 9 alien insurance company doing business in this State and a 10 pharmaceutical company doing business in this State shall pay 11 to the Senior Health Insurance Coverage Commission for 12 deposit into the Senior Health Insurance Coverage Fund the 13 fee imposed under Section 10 of this Act. 14 Section 97. The State Finance Act is amended by adding 15 Section 5.449 as follows: 16 (30 ILCS 105/5.449 new) 17 Sec. 5.449. The Senior Health Insurance Coverage Fund. 18 Section 99. Effective date. This Act takes effect July 19 1, 1997.
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