State of Illinois
90th General Assembly
Legislation

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[ Engrossed ][ House Amendment 001 ]

90_HB0843

      New Act
          Creates the Patient Access to  Treatment  Act.   Provides
      that   managed   care   entities   may   not  deny  or  limit
      reimbursement to a member for dermatological services on  the
      grounds that the member was not referred to the provider by a
      person   acting   on  behalf  of  the  managed  care  entity.
      Prohibits unreasonable cost-sharing  arrangements.   Requires
      terms  and  conditions  of  coverage  to  be  disclosed  in a
      readable and understandable format consistent with  standards
      developed  for  supplemental  insurance  coverage  under  the
      federal Social Security Act.  Effective immediately.
                                                     LRB9001150JSgc
                                               LRB9001150JSgc
 1        AN ACT to create the Patient Access to Treatment Act.
 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    Patient Access to Treatment Act.
 6        Section 5.  Definitions.  In this Act:
 7        "Cost-sharing   requirements"  means  requirements  in  a
 8    contract, agreement or other arrangement  with,  or  that  is
 9    issued,  underwritten,  or  administered  by,  a managed care
10    entity under which a member is required to pay  for  part  of
11    health  care  services  that  are covered by the managed care
12    entity, and those cost-sharing  requirements  shall  include,
13    but  shall  not  be  limited to, deductibles, copayments, and
14    coinsurance.
15        "Department" means the Department of Insurance.
16        "Enrollee" means an individual entitled to the  provision
17    of or reimbursement for health care services under a group or
18    individual contract, agreement, or other arrangement with, or
19    that has been issued by, a health maintenance organization.
20        "Health  care  services" means health care related items,
21    treatment, and services sold or rendered by a provider within
22    the scope of the provider's license or  legal  authorization,
23    and  includes,  but  is  not  limited  to, hospital, medical,
24    surgical,   dental,   vision,   and   pharmaceutical   items,
25    treatment, and services.
26        "Health  maintenance  organization"   means   an   entity
27    required   to   be  licensed  under  the  Health  Maintenance
28    Organization Act.
29        "Insured" means an individual entitled  to  reimbursement
30    for  expenses  of  health  care  services  under  a  group or
31    individual policy underwritten, issued, or administered by an
                            -2-                LRB9001150JSgc
 1    insurer.
 2        "Insurer"  means  any  entity  that  is  required  to  be
 3    licensed under the Illinois Insurance Code.
 4        "Managed  care  entity"  means   a   health   maintenance
 5    organization, an insurer, a hospital, or medical service plan
 6    licensed  under  the  Health  Maintenance  Organization  Act,
 7    Illinois  Insurance Code, Limited Health Service Organization
 8    Act, Dental Service Plan  Act,  Pharmaceutical  Service  Plan
 9    Act,  Vision  Service  Plan Act, or Voluntary Health Services
10    Plans Act, an employer or employee organization or plan,  and
11    any    other   entity,   including   a   preferred   provider
12    organization, that  establishes,  operates,  or  maintains  a
13    network  of  providers,  conducts or arranges for utilization
14    review activities, and contracts with  a  health  maintenance
15    organization, an insurer, a hospital or medical service plan,
16    an  employer,  an  employer  organization,  or with any other
17    entity providing coverage for health care services.
18        "Member" means an enrollee, an  insured,  and  any  other
19    person  entitled  to  receive health care coverage for health
20    care services from a managed care entity.
21        "Person" means an  individual,  an  agency,  a  political
22    subdivision,   a   partnership,   a  corporation,  a  limited
23    liability company, an association, or any other entity.
24        "Provider"  means  a  person  duly  licensed  or  legally
25    authorized to provide health care services.
26        "Provider network" means, with respect to a managed  care
27    entity,  providers who have entered into an agreement, either
28    directly or  indirectly  through  another  person,  with  the
29    managed  care  entity under which the providers are obligated
30    to provide health care services to  members  of  the  managed
31    care  entity  in return for reimbursement as set forth in the
32    agreement and in accordance with any other  requirements  set
33    forth in the agreement.
                            -3-                LRB9001150JSgc
 1        Section  10.  Direct access.  Managed care entities shall
 2    not deny or limit  reimbursement  for  health  care  services
 3    provided  to  a  member  by  a  dermatologist,  or  deny  the
 4    provision   of   health  care  services  to  a  member  by  a
 5    dermatologist,  on  the  grounds  that  the  member  was  not
 6    referred to the dermatologist by a provider or  other  person
 7    acting  on behalf of, pursuant to an agreement with, or under
 8    the direction of, whether direct  or  indirect,  the  managed
 9    care  entity.   As  frequently  as  reasonably  necessary  to
10    facilitate direct access to providers, but no less frequently
11    than  once  each year, a managed care entity shall deliver to
12    members a complete listing of all providers of dermatological
13    services in any provider network selected by the managed care
14    entity.
15        Section  15.  Prohibition  on  unreasonable  cost-sharing
16    requirements.   Managed  care  entities   shall  not   impose
17    unreasonable cost-sharing requirements on members who receive
18    health  care services from dermatologists that are covered by
19    the managed care entity and that are medically necessary.  By
20    way  of  example,  but  not  in  limitation,  a  cost-sharing
21    requirement shall be deemed to be unreasonable if it requires
22    or effectively causes a member to pay the following amounts;
23             (1)  more  than  20%  of  the  costs  of   medically
24        necessary  health  care  services  covered by the managed
25        care entity; or
26             (2)  more than $1,500 per individual or  $3,000  per
27        family  of  the  costs of medically necessary health care
28        services covered by the managed care entity.
29        Section   20.  Prohibited   reimbursement   arrangements.
30    Managed care  entities  may  pay  providers  using  incentive
31    payments,  but  only if no specific payment or withholding of
32    payment has the direct or  indirect  effect  of  reducing  or
                            -4-                LRB9001150JSgc
 1    limiting  medically  necessary  health  care  services that a
 2    provider would otherwise  be  responsible  for  providing  to
 3    members.
 4        Section    25.  Required   disclosure   of   information.
 5    Prospective members shall be provided information as  to  the
 6    terms  and  conditions of the coverage that they will receive
 7    from the managed care entity so that they can  make  informed
 8    decisions about accepting the coverage.  When the coverage is
 9    described   orally   to   members,  then  easily  understood,
10    truthful, and objective terms shall  be  used.   All  written
11    descriptions  shall be in readable and understandable format,
12    consistent  with   standards   developed   for   supplemental
13    insurance  coverage  under  Title XVII of the Social Security
14    Act.  This format shall be  standardized  so  that  potential
15    members  can  compare  the  attributes of the various managed
16    care entities.  Specific items that must be included  in  any
17    oral or written description of the managed care entity are:
18             (1)  covered    provisions,    benefits,   and   any
19        exclusions by category of service, provider, or physician
20        and, if applicable, by specific service;
21             (2)  any and all prior authorization or other review
22        requirements,    including    preauthorization    review,
23        concurrent  review,  post-service  review,   post-payment
24        review, and any procedures that may lead the member to be
25        denied coverage or not be provided a particular service;
26             (3)  financial     arrangements    or    contractual
27        provisions with providers, utilization review  companies,
28        and  third  party  administrators  that  would  limit the
29        services offered, restrict referral or treatment options,
30        or   negatively   affect   any    provider's    fiduciary
31        responsibility  to the provider's patients, including but
32        not  limited  to  financial  incentives  not  to  provide
33        medical or other services;
                            -5-                LRB9001150JSgc
 1             (4)  explanation of how coverage limitations  affect
 2        members,   including   information  on  member  financial
 3        responsibility for cost-sharing requirements, for payment
 4        of noncovered services, and for  payment  of  out-of-plan
 5        services;
 6             (5)  loss ratios of the managed care entity; and
 7             (6)  member  satisfaction  statistics, including but
 8        not limited to percent of re-enrollment and  reasons  for
 9        leaving the coverage.
10        Section  30.  Enforcement  and  rules.  This Act shall be
11    enforced by the Department.  The Department is authorized  to
12    issue  rules  clarifying  the requirements of this Act.  Each
13    violation of this Act by a managed care entity shall  subject
14    the  managed care entity to a fine of $5,000 per violation as
15    determined  by  the  Department.   The  Department  is   also
16    authorized  to take any action necessary to prevent violation
17    of  this  Act,  including  but  not  limited  to  seeking  an
18    injunction against the managed care entity and  revoking  the
19    managed care entity's license.
20        Section  35.  Limitations.   Nothing in this Act shall be
21    construed as requiring or allowing any  provider  to  provide
22    health  care  services that the provider is not duly licensed
23    or legally authorized to provide or  to  provide  any  health
24    care services that the provider is not qualified to provide.
25        Section  99.  Effective date.  This Act takes effect upon
26    becoming law.

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