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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.
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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
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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
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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.
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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.