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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.