State of Illinois
90th General Assembly
Legislation

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90_HB1881enr

      215 ILCS 5/107.05         from Ch. 73, par. 719.05
      215 ILCS 5/107.07         from Ch. 73, par. 719.07
      215 ILCS 5/107.12         from Ch. 73, par. 719.12
      215 ILCS 5/107.13         from Ch. 73, par. 719.13
      215 ILCS 5/107.13a        from Ch. 73, par. 719.13a
      215 ILCS 5/107.27         from Ch. 73, par. 719.27
      215 ILCS 5/107.23 rep.
          Amends the Insurance Exchange  Article  of  the  Illinois
      Insurance  Code.  Authorizes the exchange to establish annual
      fees for the admission of syndicates and limited  syndicates.
      Provides  that  the  Director of Insurance shall, rather than
      may, be responsible for examining the  financial  records  of
      the  Exchange  and related parties.  Requires the Exchange to
      file an annual financial statement  with  the  Department  of
      Insurance.  Requires syndicates to file quarterly statements,
      actuarial  opinions,  and  audited financial reports with the
      Department.   Provides  that  liquidation  expenses  of   the
      Illinois  Insurance Exchange Immediate Access Association and
      any liquidator shall be paid from the  insolvent  syndicate's
      trust or custodial account.  Effective immediately.
                                                     LRB9000419JSgc
HB1881 Enrolled                                LRB9000419JSgc
 1        AN ACT relating to medical services, amending named Acts.
 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:
 4        Section 5.  The State Employees Group  Insurance  Act  of
 5    1971 is amended by adding Section 6.9 as follows:
 6        (5 ILCS 375/6.9 new)
 7        Sec.  6.9.  Required  health  benefits.   The  program of
 8    health  benefits  shall  provide  the  post-mastectomy   care
 9    benefits  required  to be covered by a policy of accident and
10    health insurance under Section 356t of the Illinois Insurance
11    Code.  The program  of  health  benefits  shall  provide  the
12    coverage   required   under  Section  356u  of  the  Illinois
13    Insurance Code.
14        Section 10.  The State Mandates Act is amended by  adding
15    Section 8.21 as follows:
16        (30 ILCS 805/8.21 new)
17        Sec.  8.21.  Exempt  mandate.  Notwithstanding Sections 6
18    and 8 of this Act, no reimbursement by the State is  required
19    for  the  implementation  of  any  mandate  created  by  this
20    amendatory Act of 1997.
21        Section  15.  The  Counties  Code  is amended by changing
22    Section 5-1069 and adding Section 5-1069.3 as follows:
23        (55 ILCS 5/5-1069) (from Ch. 34, par. 5-1069)
24        Sec. 5-1069. Group life, health, accident, hospital,  and
25    medical insurance.
26        (a)  The  county  board  of  any  county  may  arrange to
27    provide, for the benefit of employees of  the  county,  group
HB1881 Enrolled            -2-                 LRB9000419JSgc
 1    life,  health,  accident, hospital, and medical insurance, or
 2    any one or any combination of those types  of  insurance,  or
 3    the  county  board  may  self-insure,  for the benefit of its
 4    employees, all or a portion of  the  employees'  group  life,
 5    health, accident, hospital, and medical insurance, or any one
 6    or  any  combination of those types of insurance, including a
 7    combination of self-insurance and other  types  of  insurance
 8    authorized  by  this  Section, provided that the county board
 9    complies with all other requirements  of  this  Section.  The
10    insurance  may  include  provision  for employees who rely on
11    treatment by prayer or spiritual means alone for  healing  in
12    accordance  with the tenets and practice of a well recognized
13    religious denomination.  The county  board  may  provide  for
14    payment  by  the county of a portion or all of the premium or
15    charge for the insurance with the employee paying the balance
16    of the premium or  charge,  if  any.   If  the  county  board
17    undertakes  a plan under which the county pays only a portion
18    of the premium or charge, the county board shall provide  for
19    withholding  and  deducting  from  the  compensation of those
20    employees who consent to join the plan  the  balance  of  the
21    premium or charge for the insurance.
22        (b)  If   the   county   board   does   not  provide  for
23    self-insurance or for a plan under which the  county  pays  a
24    portion or all of the premium or charge for a group insurance
25    plan,  the  county  board  may  provide  for  withholding and
26    deducting  from  the  compensation  of  those  employees  who
27    consent thereto the total premium or  charge  for  any  group
28    life, health, accident, hospital, and medical insurance.
29        (c)  The  county board may exercise the powers granted in
30    this Section only if it provides for self-insurance or, where
31    it makes arrangements to provide group insurance  through  an
32    insurance  carrier,  if  the  kinds  of  group  insurance are
33    obtained from an insurance company authorized to do  business
34    in  the  State  of  Illinois.  The  county board may enact an
HB1881 Enrolled            -3-                 LRB9000419JSgc
 1    ordinance  prescribing  the  method  of  operation   of   the
 2    insurance program.
 3        (d)  If  a  county,  including  a  home rule county, is a
 4    self-insurer  for  purposes  of  providing  health  insurance
 5    coverage for its  employees,  the  insurance  coverage  shall
 6    include  screening  by  low-dose mammography for all women 35
 7    years of age or older  for  the  presence  of  occult  breast
 8    cancer  unless the county elects to provide mammograms itself
 9    under Section 5-1069.1.  The coverage shall be as follows:
10             (1)  A baseline mammogram for women 35 to  39  years
11        of age.
12             (2)  A  mammogram  every  one to 2 years, even if no
13        symptoms are present, for women 40 to 49 years of age.
14             (3)  An annual mammogram for women 40  50  years  of
15        age or older.
16        Those  benefits  shall  be  at  least as favorable as for
17    other radiological  examinations  and  subject  to  the  same
18    dollar  limits,  deductibles,  and co-insurance factors.  For
19    purposes of this subsection, "low-dose mammography" means the
20    x-ray examination of the  breast  using  equipment  dedicated
21    specifically  for  mammography,  including  the  x-ray  tube,
22    filter,  compression  device,  screens,  and image receptors,
23    with an average radiation exposure delivery of less than  one
24    rad mid-breast, with 2 views for each breast. The requirement
25    that  mammograms  be included in health insurance coverage as
26    provided in this subsection (d) is  an  exclusive  power  and
27    function  of  the  State and is a denial and limitation under
28    Article VII,  Section  6,  subsection  (h)  of  the  Illinois
29    Constitution  of  home rule county powers. A home rule county
30    to which this  subsection  applies  must  comply  with  every
31    provision of this subsection.
32        (e)  The   term  "employees"  as  used  in  this  Section
33    includes elected or appointed officials but does not  include
34    temporary employees.
HB1881 Enrolled            -4-                 LRB9000419JSgc
 1    (Source: P.A. 86-962; 87-780.)
 2        (55 ILCS 5/5-1069.3 new)
 3        Sec.  5-1069.3.  Required  health benefits.  If a county,
 4    including a home rule county, is a self-insurer for  purposes
 5    of providing health insurance coverage for its employees, the
 6    coverage  shall include coverage for the post-mastectomy care
 7    benefits required to be covered by a policy of  accident  and
 8    health insurance under Section 356t and the coverage required
 9    under  Section  356u  of  the  Illinois  Insurance Code.  The
10    requirement that health benefits be covered  as  provided  in
11    this  Section is an exclusive power and function of the State
12    and is a denial and limitation under Article VII, Section  6,
13    subsection  (h)  of  the  Illinois Constitution.  A home rule
14    county to which this Section applies must comply  with  every
15    provision of this Section.
16        Section  20.  The  Illinois  Municipal Code is amended by
17    changing  Section  10-4-2  and  adding  Section  10-4-2.3  as
18    follows:
19        (65 ILCS 5/10-4-2) (from Ch. 24, par. 10-4-2)
20        Sec. 10-4-2.  Group insurance.
21        (a)  The corporate authorities of  any  municipality  may
22    arrange  to  provide,  for  the  benefit  of employees of the
23    municipality, group life,  health,  accident,  hospital,  and
24    medical  insurance,  or  any  one or any combination of those
25    types of insurance, and may arrange to provide that insurance
26    for the  benefit  of  the  spouses  or  dependents  of  those
27    employees.  The insurance may include provision for employees
28    or other insured persons who rely on treatment by  prayer  or
29    spiritual  means  alone  for  healing  in accordance with the
30    tenets  and  practice  of   a   well   recognized   religious
31    denomination.   The  corporate  authorities  may  provide for
HB1881 Enrolled            -5-                 LRB9000419JSgc
 1    payment by the municipality of a portion of  the  premium  or
 2    charge for the insurance with the employee paying the balance
 3    of  the  premium  or  charge.  If  the  corporate authorities
 4    undertake a plan under which the municipality pays a  portion
 5    of  the  premium  or  charge, the corporate authorities shall
 6    provide for withholding and deducting from  the  compensation
 7    of those municipal employees who consent to join the plan the
 8    balance of the premium or charge for the insurance.
 9        (b)  If  the  corporate  authorities do not provide for a
10    plan under which the  municipality  pays  a  portion  of  the
11    premium  or  charge for a group insurance plan, the corporate
12    authorities may provide for withholding  and  deducting  from
13    the  compensation  of those employees who consent thereto the
14    premium or charge  for  any  group  life,  health,  accident,
15    hospital, and medical insurance.
16        (c)  The  corporate  authorities  may exercise the powers
17    granted in this Section only if the kinds of group  insurance
18    are  obtained  from  an  insurance  company  authorized to do
19    business in the State of Illinois. The corporate  authorities
20    may enact an ordinance prescribing the method of operation of
21    the insurance program.
22        (d)  If   a   municipality,   including   a   home   rule
23    municipality,  is  a  self-insurer  for purposes of providing
24    health insurance coverage for its  employees,  the  insurance
25    coverage  shall include screening by low-dose mammography for
26    all women 35 years of age or older for the presence of occult
27    breast cancer  unless  the  municipality  elects  to  provide
28    mammograms itself under Section 10-4-2.1.  The coverage shall
29    be as follows:
30             (1)  A  baseline  mammogram for women 35 to 39 years
31        of age.
32             (2)  A mammogram every one to 2 years,  even  if  no
33        symptoms are present, for women 40 to 49 years of age.
34             (3)  An  annual  mammogram  for women 40 50 years of
HB1881 Enrolled            -6-                 LRB9000419JSgc
 1        age or older.
 2        Those benefits shall be at  least  as  favorable  as  for
 3    other  radiological  examinations  and  subject  to  the same
 4    dollar limits, deductibles, and  co-insurance  factors.   For
 5    purposes of this subsection, "low-dose mammography" means the
 6    x-ray  examination  of  the  breast using equipment dedicated
 7    specifically  for  mammography,  including  the  x-ray  tube,
 8    filter, compression device,  screens,  and  image  receptors,
 9    with  an average radiation exposure delivery of less than one
10    rad mid-breast, with 2 views for each breast. The requirement
11    that mammograms be included in health insurance  coverage  as
12    provided  in  this  subsection  (d) is an exclusive power and
13    function of the State and is a denial  and  limitation  under
14    Article  VII,  Section  6,  subsection  (h)  of  the Illinois
15    Constitution of home rule municipality powers.  A  home  rule
16    municipality  to  which  this  subsection applies must comply
17    with every provision of this subsection.
18    (Source: P.A. 86-1475; 87-780.)
19        (65 ILCS 5/10-4-2.3 new)
20        Sec.   10-4-2.3.  Required   health   benefits.    If   a
21    municipality,  including  a  home  rule  municipality,  is  a
22    self-insurer  for  purposes  of  providing  health  insurance
23    coverage  for  its  employees,  the  coverage  shall  include
24    coverage for the post-mastectomy care benefits required to be
25    covered by a policy of accident and  health  insurance  under
26    Section  356t and the coverage required under Section 356u of
27    the Illinois Insurance Code.   The  requirement  that  health
28    benefits be covered as provided in this is an exclusive power
29    and  function  of  the  State  and is a denial and limitation
30    under Article VII, Section 6, subsection (h) of the  Illinois
31    Constitution.  A home rule municipality to which this Section
32    applies must comply with every provision of this Section.
HB1881 Enrolled            -7-                 LRB9000419JSgc
 1        Section 25.  The School Code is amended by adding Section
 2    10-22.3f as follows:
 3        (105 ILCS 5/10-22.3f new)
 4        Sec.   10-22.3f.  Required  health  benefits.   Insurance
 5    protection and  benefits  for  employees  shall  provide  the
 6    post-mastectomy  care  benefits  required  to be covered by a
 7    policy of accident and health insurance  under  Section  356t
 8    and  the coverage required under Section 356u of the Illinois
 9    Insurance Code.
10        Section 30.  The Illinois Insurance Code  is  amended  by
11    changing  Sections  122-1, 356g, and 1003 and adding Sections
12    356t and 356u as follows:
13        (215 ILCS 5/122-1) (from Ch. 73, par. 734-1)
14        Sec. 122-1.  The authority and jurisdiction of  Insurance
15    Department.   Notwithstanding any other provision of law, and
16    except as provided herein, any person or other  entity  which
17    provides  coverage  in  this  State  for  medical,  surgical,
18    chiropractic,    naprapathic,    physical   therapy,   speech
19    pathology, audiology,  professional  mental  health,  dental,
20    hospital,  ophthalmologic,  or  optometric  expenses, whether
21    such  coverage  is  by  direct-payment,   reimbursement,   or
22    otherwise,   shall   be   presumed   to  be  subject  to  the
23    jurisdiction of the Department unless  the  person  or  other
24    entity shows that while providing such coverage it is subject
25    to  the  jurisdiction  of  another  agency of this state, any
26    subdivision of this state, or the Federal Government, or is a
27    plan of self-insurance  or  other  employee  welfare  benefit
28    program  of an individual employer or labor union established
29    or maintained under or pursuant to  a  collective  bargaining
30    agreement or other arrangement which provides for health care
31    services  solely  for  its  employees  or  members  and their
HB1881 Enrolled            -8-                 LRB9000419JSgc
 1    dependents.
 2    (Source: P.A. 86-753.)
 3        (215 ILCS 5/356g) (from Ch. 73, par. 968g)
 4        Sec. 356g. (a) Every insurer shall provide in each  group
 5    or  individual  policy, contract, or certificate of insurance
 6    issued or renewed for  persons  who  are  residents  of  this
 7    State, coverage for screening by low-dose mammography for all
 8    women  35  years  of  age or older for the presence of occult
 9    breast cancer within the provisions of the policy,  contract,
10    or certificate. The coverage shall be as follows:
11             (1)  A  baseline  mammogram for women 35 to 39 years
12        of age.
13             (2)  An mammogram every 1 to 2  years,  even  if  no
14        symptoms are present, for women 40 to 49 years of age.
15             (3)  An  annual  mammogram  for women 40 50 years of
16        age or older.
17        These benefits shall be at  least  as  favorable  as  for
18    other  radiological  examinations  and  subject  to  the same
19    dollar limits, deductibles,  and  co-insurance  factors.  For
20    purposes  of  this  Section, "low-dose mammography" means the
21    x-ray examination of the  breast  using  equipment  dedicated
22    specifically  for  mammography,  including  the  x-ray  tube,
23    filter,   compression   device,   and  image  receptor,  with
24    radiation exposure delivery of less than 1 rad per breast for
25    2 views of an average size breast.
26        (b)  No policy  of  accident  or  health  insurance  that
27    provides  for  the  surgical  procedure known as a mastectomy
28    shall be issued, amended, delivered or renewed in this  State
29    on or after July 1, 1981, unless coverage is also offered for
30    prosthetic  devices or reconstructive surgery incident to the
31    mastectomy, providing that the mastectomy is performed  after
32    July 1, 1981. The offered coverage for prosthetic devices and
33    reconstructive surgery shall be subject to the deductible and
HB1881 Enrolled            -9-                 LRB9000419JSgc
 1    coinsurance  conditions  applied  to  the mastectomy, and all
 2    other terms and  conditions  applicable  to  other  benefits.
 3    When  a  mastectomy  is performed and there is no evidence of
 4    malignancy then the offered coverage may be  limited  to  the
 5    provision of prosthetic devices and reconstructive surgery to
 6    within  2  years after the date of the mastectomy. As used in
 7    this Section, "mastectomy" means the removal of all  or  part
 8    of  the breast for medically necessary reasons, as determined
 9    by a licensed physician.
10    (Source: P.A. 86-899; 87-518.)
11        (215 ILCS 5/356t new)
12        Sec. 356t.  Post-mastectomy care. An individual or  group
13    policy  of accident and health insurance or managed care plan
14    that provides surgical coverage and  is  amended,  delivered,
15    issued,   or   renewed  after  the  effective  date  of  this
16    amendatory Act  of  1997  shall  provide  inpatient  coverage
17    following a mastectomy for a length of time determined by the
18    attending   physician   to  be  medically  necessary  and  in
19    accordance with  protocols  and  guidelines  based  on  sound
20    scientific  evidence  and  upon evaluation of the patient and
21    the  coverage  for  and  availability  of  a   post-discharge
22    physician  office  visit or in-home nurse visit to verify the
23    condition  of  the  patient  in  the  first  48  hours  after
24    discharge.
25        (215 ILCS 5/356u new)
26        Sec.  356u.   Pap  tests  and  prostate-specific  antigen
27    tests.
28        (a)  A group policy of accident and health insurance that
29    provides  coverage  for  hospital  or  medical  treatment  or
30    services for illness on  an  expense-incurred  basis  and  is
31    amended,  delivered,  issued,  or renewed after the effective
32    date of this amendatory Act of 1997  shall  provide  coverage
HB1881 Enrolled            -10-                LRB9000419JSgc
 1    for all of the following:
 2             (1)  An  annual cervical smear or Pap smear test for
 3        female insureds.
 4             (2)  An annual  digital  rectal  examination  and  a
 5        prostate-specific  antigen  test,  for male insureds upon
 6        the recommendation of a physician  licensed  to  practice
 7        medicine in all its branches for:
 8                  (A)  asymptomatic men age 50 and over;
 9                  (B)  African-American men age 40 and over; and
10                  (C)  men  age 40 and over with a family history
11             of prostate cancer.
12        (b)  This  Section  shall  not   apply   to   agreements,
13    contracts,  or policies that provide coverage for a specified
14    disease or other limited benefit coverage.
15        (215 ILCS 5/1003) (from Ch. 73, par. 1065.703)
16        Sec. 1003.  Definitions.  As used in  this  Article:  (A)
17    "Adverse underwriting decision" means:
18        (1)  any   of  the  following  actions  with  respect  to
19    insurance transactions involving insurance coverage which  is
20    individually underwritten:
21        (a)  a declination of insurance coverage,
22        (b)  a termination of insurance coverage,
23        (c)  failure  of an agent to apply for insurance coverage
24    with  a  specific  insurance  institution  which  the   agent
25    represents and which is requested by an applicant,
26        (d)  in  the  case  of  a  property or casualty insurance
27    coverage:
28        (i) placement by an insurance institution or agent  of  a
29    risk  with  a  residual  market  mechanism,  an  unauthorized
30    insurer  or  an  insurance  institution  which specializes in
31    substandard risks, or
32        (ii) the charging of  a  higher  rate  on  the  basis  of
33    information  which  differs  from that which the applicant or
HB1881 Enrolled            -11-                LRB9000419JSgc
 1    policyholder furnished, or
 2        (e)  in the case of life, health or disability  insurance
 3    coverage, an offer to insure at higher than standard rates.
 4        (2)  Notwithstanding  paragraph  (1) above, the following
 5    actions  shall  not  be   considered   adverse   underwriting
 6    decisions  but the insurance institution or agent responsible
 7    for their occurrence shall nevertheless provide the applicant
 8    or policyholder with the specific reason or reasons for their
 9    occurrence:
10        (a)  the termination of an individual policy  form  on  a
11    class or statewide basis,
12        (b)  a  declination  of insurance coverage solely because
13    such coverage is not available on a class or statewide basis,
14    or
15        (c)  the rescission of a policy.
16        (B)  "Affiliate" or  "affiliated"  means  a  person  that
17    directly,  or  indirectly through one or more intermediaries,
18    controls, is controlled by or is under  common  control  with
19    another person.
20        (C)  "Agent"  means  an  individual,  firm,  partnership,
21    association   or   corporation   who   is   involved  in  the
22    solicitation, negotiation or binding of coverages for  or  on
23    applications  or  policies of insurance, covering property or
24    risks located in  this  State.   For  the  purposes  of  this
25    Article,  both  "Insurance  Agent" and "Insurance Broker", as
26    defined in Section 490, shall be considered an agent.
27        (D)  "Applicant" means any person who seeks  to  contract
28    for  insurance  coverage  other  than  a person seeking group
29    insurance that is not individually underwritten.
30        (E)  "Director" means the Director of Insurance.
31        (F)  "Consumer report" means any written, oral  or  other
32    communication  of  information  bearing on a natural person's
33    credit  worthiness,   credit   standing,   credit   capacity,
34    character,  general  reputation,  personal characteristics or
HB1881 Enrolled            -12-                LRB9000419JSgc
 1    mode of living which is  used  or  expected  to  be  used  in
 2    connection with an insurance transaction.
 3        (G) "Consumer reporting agency" means any person who:
 4        (1) regularly  engages,  in  whole  or  in  part,  in the
 5    practice of assembling or preparing consumer  reports  for  a
 6    monetary fee,
 7        (2) obtains information primarily from sources other than
 8    insurance institutions, and
 9        (3) furnishes consumer reports to other persons.
10        (H)  "Control",  including  the  terms "controlled by" or
11    "under common control with", means the possession, direct  or
12    indirect,  of  the  power to direct or cause the direction of
13    the management and policies of a person, whether through  the
14    ownership  of  voting  securities,  by  contract other than a
15    commercial contract for goods or nonmanagement  services,  or
16    otherwise,  unless  the  power  is  the result of an official
17    position with or corporate office held by the person.
18        (I)  "Declination of insurance coverage" means a  denial,
19    in  whole or in part, by an insurance institution or agent of
20    requested insurance coverage.
21        (J)  "Individual" means any natural person who:
22        (1)  in the case of property or casualty insurance, is  a
23    past, present or proposed named insured or certificateholder;
24        (2)  in the case of life, health or disability insurance,
25    is   a   past,  present  or  proposed  principal  insured  or
26    certificateholder;
27        (3)  is a past, present or proposed policyowner;
28        (4)  is a past or present applicant;
29        (5)  is a past or present claimant; or
30        (6)  derived, derives or is proposed to derive  insurance
31    coverage  under an insurance policy or certificate subject to
32    this Article.
33        (K)  "Institutional   source"   means   any   person   or
34    governmental  entity  that  provides  information  about   an
HB1881 Enrolled            -13-                LRB9000419JSgc
 1    individual    to   an   agent,   insurance   institution   or
 2    insurance-support organization, other than:
 3        (1)  an agent,
 4        (2)  the  individual  who   is   the   subject   of   the
 5    information, or
 6        (3)  a  natural  person  acting  in  a  personal capacity
 7    rather than in a business or professional capacity.
 8        (L)  "Insurance  institution"  means   any   corporation,
 9    association, partnership, reciprocal exchange, inter-insurer,
10    Lloyd's  insurer,  fraternal  benefit society or other person
11    engaged in the  business  of  insurance,  health  maintenance
12    organizations   as  defined  in  Section  2  of  the  "Health
13    Maintenance  Organization  Act",  medical  service  plans  as
14    defined in Section 2  of  "The  Medical  Service  Plan  Act",
15    hospital service corporation under "The Nonprofit Health Care
16    Service Plan Act", voluntary health services plans as defined
17    in  Section  2  of "The Voluntary Health Services Plans Act",
18    vision service plans as defined in Section 2 of  "The  Vision
19    Service Plan Act", dental service plans as defined in Section
20    4  of  "The  Dental  Service  Plan  Act",  and pharmaceutical
21    service plans as defined in Section 4 of "The  Pharmaceutical
22    Service Plan Act".  "Insurance institution" shall not include
23    agents or insurance-support organizations.
24        (M)  "Insurance-support   organization"  means:  (1)  any
25    person who regularly engages, in whole or  in  part,  in  the
26    practice   of  assembling  or  collecting  information  about
27    natural persons for the  primary  purpose  of  providing  the
28    information   to   an  insurance  institution  or  agent  for
29    insurance transactions, including:
30        (a)  the furnishing of consumer reports or  investigative
31    consumer reports to an insurance institution or agent for use
32    in connection with an insurance transaction, or
33        (b)  the   collection   of   personal   information  from
34    insurance institutions,  agents  or  other  insurance-support
HB1881 Enrolled            -14-                LRB9000419JSgc
 1    organizations  for  the  purpose  of  detecting or preventing
 2    fraud, material misrepresentation or  material  nondisclosure
 3    in  connection with insurance underwriting or insurance claim
 4    activity.
 5        (2) Notwithstanding paragraph (1)  above,  the  following
 6    persons    shall   not   be   considered   "insurance-support
 7    organizations"  for  purposes  of   this   Article:   agents,
 8    government institutions, insurance institutions, medical care
 9    institutions and medical professionals.
10        (N)  "Insurance   transaction"   means   any  transaction
11    involving  insurance  primarily  for  personal,   family   or
12    household  needs  rather  than business or professional needs
13    which entails:
14        (1)  the determination of an individual's eligibility for
15    an insurance coverage, benefit or payment, or
16        (2)  the servicing of an insurance  application,  policy,
17    contract or certificate.
18        (O)  "Investigative  consumer  report"  means  a consumer
19    report or  portion  thereof  in  which  information  about  a
20    natural  person's  character,  general  reputation,  personal
21    characteristics   or  mode  of  living  is  obtained  through
22    personal interviews with  the  person's  neighbors,  friends,
23    associates,  acquaintances  or  others who may have knowledge
24    concerning such items of information.
25        (P)  "Medical-care institution"  means  any  facility  or
26    institution  that is licensed to provide health care services
27    to natural persons, including but not limited to:  hospitals,
28    skilled  nursing  facilities,  home-health  agencies, medical
29    clinics, rehabilitation agencies and  public-health  agencies
30    and health-maintenance organizations.
31        (Q)  "Medical  professional" means any person licensed or
32    certified    to  provide  health  care  services  to  natural
33    persons, including but not limited to, a physician,  dentist,
34    nurse,   optometrist,  chiropractor,  naprapath,  pharmacist,
HB1881 Enrolled            -15-                LRB9000419JSgc
 1    physical  or  occupational  therapist,   psychiatric   social
 2    worker,  speech  therapist,  clinical  dietitian  or clinical
 3    psychologist.
 4        (R)  "Medical-record    information"    means    personal
 5    information which:
 6        (1)  relates  to  an  individual's  physical  or   mental
 7    condition, medical history or medical treatment, and
 8        (2)  is   obtained   from   a   medical  professional  or
 9    medical-care institution, from the individual,  or  from  the
10    individual's spouse, parent or legal guardian.
11        (S)  "Person"  means  any  natural  person,  corporation,
12    association, partnership or other legal entity.
13        (T)  "Personal   information"   means   any  individually
14    identifiable  information  gathered  in  connection  with  an
15    insurance transaction from which judgments can be made  about
16    an  individual's  character,  habits,  avocations,  finances,
17    occupation,  general  reputation, credit, health or any other
18    personal characteristics.  "Personal information" includes an
19    individual's   name   and   address    and    "medical-record
20    information" but does not include "privileged information".
21        (U)  "Policyholder" means any person who:
22        (1)  in  the  case  of  individual  property  or casualty
23    insurance, is a present named insured;
24        (2)  in the case of individual life, health or disability
25    insurance, is a present policyowner; or
26        (3)  in the case of group insurance which is individually
27    underwritten, is a present group certificateholder.
28        (V)  "Pretext interview" means  an  interview  whereby  a
29    person,  in  an attempt to obtain information about a natural
30    person, performs one or more of the following acts:
31        (1)  pretends to be someone he or she is not,
32        (2)  pretends to represent a person he or she is  not  in
33    fact representing,
34        (3)  misrepresents the true purpose of the interview, or
HB1881 Enrolled            -16-                LRB9000419JSgc
 1        (4)  refuses to identify himself or herself upon request.
 2        (W)  "Privileged   information"  means  any  individually
 3    identifiable information that: (1) relates  to  a  claim  for
 4    insurance   benefits   or  a  civil  or  criminal  proceeding
 5    involving an individual, and (2) is collected  in  connection
 6    with  or  in reasonable anticipation of a claim for insurance
 7    benefits  or  civil  or  criminal  proceeding  involving   an
 8    individual;  provided, however, information otherwise meeting
 9    the requirements of this  subsection  shall  nevertheless  be
10    considered "personal information" under this Article if it is
11    disclosed in violation of Section 1014 of this Article.
12        (X)  "Residual  market  mechanism"  means an association,
13    organization or other entity described in Article  XXXIII  of
14    this Act, or Section 7-501 of "The Illinois Vehicle Code".
15        (Y)  "Termination  of insurance coverage" or "termination
16    of an  insurance  policy"  means  either  a  cancellation  or
17    nonrenewal  of  an insurance policy, in whole or in part, for
18    any reason other  than  the  failure  to  pay  a  premium  as
19    required by the policy.
20        (Z) "Unauthorized insurer" means an insurance institution
21    that  has  not been granted a certificate of authority by the
22    Director to transact the business of insurance in this State.
23    (Source: P.A. 82-108.)
24        Section 32.  The Comprehensive Health Insurance Plan  Act
25    is amended by changing Section 8 as follows:
26        (215 ILCS 105/8) (from Ch. 73, par. 1308)
27        Sec. 8.  Minimum benefits.
28        a.  Availability.  The  Plan  shall  offer in an annually
29    renewable policy major  medical  expense  coverage  to  every
30    eligible  person  who  is  not  eligible for Medicare.  Major
31    medical expense coverage offered by the  Plan  shall  pay  an
32    eligible  person's  covered expenses, subject to limit on the
HB1881 Enrolled            -17-                LRB9000419JSgc
 1    deductible  and   coinsurance   payments   authorized   under
 2    paragraph  (4)  of  subsection  d  of  this  Section, up to a
 3    lifetime benefit limit of $500,000  per  covered  individual.
 4    The  maximum limit under this subsection shall not be altered
 5    by the Board, and no  actuarial  equivalent  benefit  may  be
 6    substituted  by  the  Board.  Any  person who otherwise would
 7    qualify for coverage under the Plan, but is excluded  because
 8    he or she is eligible for Medicare, shall be eligible for any
 9    separate  Medicare  supplement  policy  which  the  Board may
10    offer.
11        b.  Covered expenses.  Covered expenses shall be  limited
12    to  the reasonable and customary charge, including negotiated
13    fees, in the locality for the following services and articles
14    when medically necessary and prescribed by a person  licensed
15    and  practicing  within the scope of his or her profession as
16    authorized by State law:
17             (1)  Hospital room and board and any other  hospital
18        services,  except  that inpatient hospitalization for the
19        treatment of mental and emotional disorders shall only be
20        covered for a maximum of 45 days in a calendar year.
21             (2)  Professional  services  for  the  diagnosis  or
22        treatment of injuries,  illnesses  or  conditions,  other
23        than   dental,  or  outpatient  mental  as  described  in
24        paragraph (17), which are  rendered  by  a  physician  or
25        chiropractor,  or  by other licensed professionals at the
26        physician's or chiropractor's direction.
27             (3)  If  surgery  has  been  recommended,  a  second
28        opinion may be required. The charge for a second  opinion
29        as  to  whether  the  surgery is required will be paid in
30        full  without  regard   to   deductible   or   co-payment
31        requirements.   If  the  second  opinion differs from the
32        first, the charge for a third opinion, if  desired,  will
33        also  be  paid  in  full  without regard to deductible or
34        co-payment  requirements.   Regardless  of  whether   the
HB1881 Enrolled            -18-                LRB9000419JSgc
 1        second  opinion  or  third  opinion confirms the original
 2        recommendation, it is the patient's decision  whether  to
 3        undergo surgery.
 4             (4)  Drugs  requiring a physician's or other legally
 5        authorized prescription.
 6             (5)  Skilled nursing  care  provided  in  a  skilled
 7        nursing facility for not more than 120 days in a calendar
 8        year,  provided  the  service  commences  within  14 days
 9        following a confinement of at least 3 consecutive days in
10        a hospital for the same condition.
11             (6)  Services of a home health agency in accord with
12        a home health care plan, up to a maximum  of  270  visits
13        per year.
14             (7)  Services  of  a  licensed  hospice for not more
15        than 180 days during a policy year.
16             (8)  Use of radium or other radioactive materials.
17             (9)  Oxygen.
18             (10)  Anesthetics.
19             (11)  Orthoses and prostheses other than dental.
20             (12)  Rental or purchase in  accordance  with  Board
21        policies  or  procedures  of  durable  medical equipment,
22        other than eyeglasses or hearing aids, for which there is
23        no personal use in the absence of the condition for which
24        it is prescribed.
25             (13)  Diagnostic x-rays and laboratory tests.
26             (14)  Oral surgery  for  excision  of  partially  or
27        completely  unerupted  impacted  teeth  or  the  gums and
28        tissues of the mouth, when not  performed  in  connection
29        with  the routine extraction or repair of teeth, and oral
30        surgery  and  procedures,  including   orthodontics   and
31        prosthetics  necessary  for craniofacial or maxillofacial
32        conditions and to correct congenital defects or  injuries
33        due to accident.
34             (15)  Physical,  speech, and functional occupational
HB1881 Enrolled            -19-                LRB9000419JSgc
 1        therapy  as   medically   necessary   and   provided   by
 2        appropriate licensed professionals.
 3             (16)  Transportation    provided   by   a   licensed
 4        ambulance service to the  nearest  health  care  facility
 5        qualified  to  treat  the  illness,  injury or condition,
 6        subject  to  the  provisions  of  the  Emergency  Medical
 7        Systems (EMS) Act.
 8             (17)  The first 50  professional  outpatient  visits
 9        for  diagnosis  and  treatment  of  mental  and emotional
10        disorders rendered during the year, up to  a  maximum  of
11        $80 per visit.
12             (18)  Human organ or tissue transplants specified by
13        the  Board that are performed at a hospital designated by
14        the Board as a participating transplant center  for  that
15        specific organ or tissue transplant.
16             (19)  Naprapathic services, as appropriate, provided
17        by a licensed naprapathic practitioner.
18        c.  Exclusion.   Covered  expenses  of the Plan shall not
19    include the following:
20             (1)  Any charge for treatment for cosmetic  purposes
21        other than for reconstructive surgery when the service is
22        incidental  to  or follows surgery resulting from injury,
23        sickness or  other  diseases  of  the  involved  part  or
24        surgery  for  the  repair  or  treatment  of a congenital
25        bodily defect to restore normal bodily functions.
26             (2)  Any charge for care that is primarily for rest,
27        custodial, educational, or domiciliary purposes.
28             (3)  Any charge for services in a  private  room  to
29        the  extent  it  is in excess of the institution's charge
30        for its most common semiprivate room,  unless  a  private
31        room is prescribed as medically necessary by a physician.
32             (4)  That  part  of any charge for room and board or
33        for  services  rendered  or  articles  prescribed  by   a
34        physician,  dentist,  or other health care personnel that
HB1881 Enrolled            -20-                LRB9000419JSgc
 1        exceeds  the  reasonable  and  customary  charge  in  the
 2        locality or for any services or  supplies  not  medically
 3        necessary for the diagnosed injury or illness.
 4             (5)  Any   charge   for  services  or  articles  the
 5        provision of which is not within the scope  of  licensure
 6        of  the  institution or individual providing the services
 7        or articles.
 8             (6)  Any expense incurred  prior  to  the  effective
 9        date  of  coverage  by  the  Plan for the person on whose
10        behalf the expense is incurred.
11             (7)  Dental care, dental surgery,  dental  treatment
12        or  dental  appliances,  except  as provided in paragraph
13        (14) of subsection b of this Section.
14             (8)  Eyeglasses, contact  lenses,  hearing  aids  or
15        their fitting.
16             (9)  Illness or injury due to (A) war or any acts of
17        war;  (B)  commission of, or attempt to commit, a felony;
18        or (C) aviation activities, except when  traveling  as  a
19        fare-paying passenger on a commercial airline.
20             (10)  Services  of  blood  donors  and  any  fee for
21        failure to replace blood provided to an  eligible  person
22        each policy year.
23             (11)  Personal  supplies  or  services provided by a
24        hospital or nursing home,  or  any  other  nonmedical  or
25        nonprescribed supply or service.
26             (12)  Routine  maternity  charges  for  a pregnancy,
27        except where added as optional coverage with  payment  of
28        an   additional  premium  for  pregnancy  resulting  from
29        conception occurring after  the  effective  date  of  the
30        optional coverage.
31             (13)  Expenses  of  obtaining  an  abortion, induced
32        miscarriage or induced premature  birth  unless,  in  the
33        opinion  of  a  physician, those procedures are necessary
34        for the preservation of life of the  woman  seeking  such
HB1881 Enrolled            -21-                LRB9000419JSgc
 1        treatment,  or except an induced premature birth intended
 2        to produce a live  viable  child  and  the  procedure  is
 3        necessary for the health of the mother or unborn child.
 4             (14)  Any  expense or charge for services, drugs, or
 5        supplies that  are:  (i)  not  provided  in  accord  with
 6        generally accepted standards of current medical practice;
 7        (ii)  for procedures, treatments, equipment, transplants,
 8        or  implants,   any   of   which   are   investigational,
 9        experimental,    or    for   research   purposes;   (iii)
10        investigative and not proven safe and effective; or  (iv)
11        for,   or   resulting   from,   a  gender  transformation
12        operation.
13             (15)  Any expense or  charge  for  routine  physical
14        examinations or tests.
15             (16)  Any  expense for which a charge is not made in
16        the absence of insurance or for which there is  no  legal
17        obligation on the part of the patient to pay.
18             (17)  Any  expense  incurred  for  benefits provided
19        under the laws of  the  United  States  and  this  State,
20        including   Medicare   and  Medicaid  and  other  medical
21        assistance,   military    service-connected    disability
22        payments,  medical  services  provided for members of the
23        armed forces and their dependents  or  employees  of  the
24        armed  forces  of the United States, and medical services
25        financed on behalf of all citizens by the United States.
26             (18)  Any   expense   or   charge   for   in   vitro
27        fertilization,  artificial  insemination,  or  any  other
28        artificial means used to cause pregnancy.
29             (19)  Any expense or charge for oral  contraceptives
30        used  for  birth  control  or  any  other temporary birth
31        control measures.
32             (20)  Any expense or  charge  for  sterilization  or
33        sterilization reversals.
34             (21)  Any   expense   or   charge  for  weight  loss
HB1881 Enrolled            -22-                LRB9000419JSgc
 1        programs, exercise equipment, or  treatment  of  obesity,
 2        except  when  certified  by a physician as morbid obesity
 3        (at least 2 times normal body weight).
 4             (22)  Any  expense   or   charge   for   acupuncture
 5        treatment  unless  used  as  an  anesthetic  agent  for a
 6        covered surgery.
 7             (23)  Any expense or charge for or related to  organ
 8        or  tissue  transplants  other  than those performed at a
 9        hospital with a Board approved organ  transplant  program
10        that  has  been designated by the Board as a preferred or
11        exclusive provider organization for that  specific  organ
12        or tissue.
13             (24)  Any   expense   or   charge   for  procedures,
14        treatments, equipment, or services that are  provided  in
15        special settings for research purposes or in a controlled
16        environment,  are  being  studied for safety, efficiency,
17        and effectiveness, and are awaiting  endorsement  by  the
18        appropriate   national  medical  speciality  college  for
19        general use within the medical community.
20        d.  Premiums, deductibles, and coinsurance.
21             (1)  Premiums charged for  coverage  issued  by  the
22        Plan  may not be unreasonable in relation to the benefits
23        provided, the risk experience and the reasonable expenses
24        of providing the coverage.
25             (2)  Separate schedules of premium  rates  based  on
26        sex,  age  and  geographical  location  shall  apply  for
27        individual risks.
28             (3)  The Plan may provide for separate premium rates
29        for  optional  family  coverage  for the spouse or one or
30        more dependents of any  person  eligible  to  be  insured
31        under the Plan who is also the oldest adult member of the
32        family  and  remains continuously enrolled in the Plan as
33        the primary enrollee. The rates shall be such  percentage
34        of  the  applicable individual Plan rate as the Board, in
HB1881 Enrolled            -23-                LRB9000419JSgc
 1        accordance with appropriate actuarial  principles,  shall
 2        establish for each spouse or dependent.
 3             (4)  The  Board  shall determine, in accordance with
 4        appropriate actuarial principles, the average rates  that
 5        individual standard risks in this State are charged by at
 6        least  5  of  the  largest insurers providing coverage to
 7        residents of Illinois that is  substantially  similar  to
 8        the  Plan  coverage.  In the event at least 5 insurers do
 9        not offer substantially similar coverage, the rates shall
10        be established using reasonable actuarial techniques  and
11        shall  reflect  anticipated  claims experience, expenses,
12        and other appropriate risk factors relating to the  Plan.
13        Rates  for  Plan  coverage  shall  be  135%  of  rates so
14        established as applicable for individual standard  risks;
15        provided,   however,   if   after  determining  that  the
16        appropriations made pursuant to Section 12  of  this  Act
17        are  insufficient  to  ensure  that total income from all
18        sources will equal or exceed the total incurred costs and
19        expenses for the current number of enrollees,  the  board
20        shall raise premium rates above this 135% standard to the
21        level it deems necessary to ensure the financial solvency
22        of  the Plan for enrollees already in the Plan. All rates
23        and rate schedules shall be submitted to  the  board  for
24        approval.
25             (5)  The  Plan  coverage  defined in Section 6 shall
26        provide for a choice of deductibles as authorized by  the
27        Board  per individual per annum.  If 2 individual members
28        of a family satisfy the same applicable  deductibles,  no
29        other  member of that family who is eligible for coverage
30        under the Plan shall be required to meet any  deductibles
31        for  the  balance of that calendar year.  The deductibles
32        must be applied first to the authorized amount of covered
33        expenses incurred by the  covered  person.   A  mandatory
34        coinsurance  requirement  shall  be  imposed  at the rate
HB1881 Enrolled            -24-                LRB9000419JSgc
 1        authorized by  the  Board  in  excess  of  the  mandatory
 2        deductible,  the  coinsurance  in  the  aggregate  not to
 3        exceed such amounts as are authorized by  the  Board  per
 4        annum.   At  its discretion the Board may, however, offer
 5        catastrophic coverages or other policies that provide for
 6        larger   deductibles   with   or   without    coinsurance
 7        requirements.   The  deductibles  and coinsurance factors
 8        may  be  adjusted  annually  according  to  the   Medical
 9        Component of the Consumer Price Index.
10             (6)  The  Plan  may  provide  for  and  employ  cost
11        containment  measures and requirements including, but not
12        limited to, preadmission certification,  second  surgical
13        opinion,    concurrent   utilization   review   programs,
14        individual   case    management,    preferred    provider
15        organizations,  and other cost effective arrangements for
16        paying for covered expenses.
17        e.  Scope of coverage.  Except as provided in  subsection
18    c  of  this  Section, if the covered expenses incurred by the
19    eligible person  exceed  the  deductible  for  major  medical
20    expense  coverage  in  a calendar year, the Plan shall pay at
21    least 80% of any additional covered expenses incurred by  the
22    person during the calendar year.
23        f.  Preexisting conditions.
24             (1)  Six months: Plan coverage shall exclude charges
25        or  expenses incurred during the first 6 months following
26        the effective date of coverage as to  any  condition  if:
27        (a)  the  condition  had  manifested  itself within the 6
28        month period immediately preceding the effective date  of
29        coverage  in  such  a manner as would cause an ordinarily
30        prudent person to seek diagnosis, care or  treatment;  or
31        (b)  medical advice, care or treatment was recommended or
32        received within the 6 month period immediately  preceding
33        the effective date of coverage.
34             (2)  (Blank).
HB1881 Enrolled            -25-                LRB9000419JSgc
 1             (3)  Waiver: The preexisting condition exclusions as
 2        set  forth  in  paragraph (1) of this subsection shall be
 3        waived to the extent to which the  eligible  person:  (a)
 4        has  satisfied  similar exclusions under any prior health
 5        insurance  policy  or   plan   that   was   involuntarily
 6        terminated;  (b)  is  ineligible  for any continuation or
 7        conversion  rights  that  would   continue   or   provide
 8        substantially    similar    coverage    following    that
 9        termination;  and  (c)  has applied for Plan coverage not
10        later than 30 days following the involuntary termination.
11        No  policy  or  plan  shall  be  deemed  to   have   been
12        involuntarily  terminated  if  the master policyholder or
13        other  controlling  party  elected  to  change  insurance
14        coverage from one company or plan to another even if that
15        decision resulted in a discontinuation  of  coverage  for
16        any  individual under the plan, either totally or for any
17        medical condition. For each eligible person who qualifies
18        for and elects this waiver, there shall be added to  each
19        payment  of  premium, on a prorated basis, a surcharge of
20        up to 10% of the otherwise applicable annual premium  for
21        as  long  as  that  individual's  coverage under the Plan
22        remains in effect or 60 months, whichever is less.
23        g.  Other sources primary;  nonduplication of benefits.
24             (1)  The Plan shall be the last  payor  of  benefits
25        whenever  any  other  benefit  or  source  of third party
26        payment is  available.   Subject  to  the  provisions  of
27        subsection  e  of  Section  7, benefits otherwise payable
28        under Plan coverage shall be reduced by all amounts  paid
29        or payable by Medicare or any other government program or
30        through  any  health  insurance  or  other health benefit
31        plan, whether insured or otherwise, or through any  third
32        party   liability,   settlement,   judgment,   or  award,
33        regardless of the date of the  settlement,  judgment,  or
34        award,  whether  the settlement, judgment, or award is in
HB1881 Enrolled            -26-                LRB9000419JSgc
 1        the form of a contract, agreement, or trust on behalf  of
 2        a   minor   or  otherwise  and  whether  the  settlement,
 3        judgment, or award is payable to the covered person,  his
 4        or  her  dependent,  estate,  personal representative, or
 5        guardian in a lump sum or over time, and by all  hospital
 6        or  medical  expense  benefits  paid or payable under any
 7        worker's  compensation   coverage,   automobile   medical
 8        payment,  or liability insurance, whether provided on the
 9        basis of fault  or  nonfault,  and  by  any  hospital  or
10        medical  benefits  paid  or  payable  under  or  provided
11        pursuant to any State or federal law or program.
12             (2)  The  Plan  shall have a cause of action against
13        any covered person or any other person or entity for  the
14        recovery  of any amount paid to the extent the amount was
15        for treatment, services, or supplies not covered in  this
16        Section  or  in  excess  of benefits as set forth in this
17        Section.
18             (3)  Whenever benefits are due from the Plan because
19        of sickness or an injury to a  covered  person  resulting
20        from  a  third party's wrongful act or negligence and the
21        covered person has recovered or may recover damages  from
22        a  third  party  or  its insurer, the Plan shall have the
23        right to reduce benefits or to  refuse  to  pay  benefits
24        that  otherwise  may  be payable by the amount of damages
25        that the covered person  has  recovered  or  may  recover
26        regardless  of  the date of the sickness or injury or the
27        date of any settlement, judgment, or award resulting from
28        that sickness or injury.
29             During the pendency of any action or claim  that  is
30        brought  by  or  on  behalf of a covered person against a
31        third party or  its  insurer,  any  benefits  that  would
32        otherwise  be  payable  except for the provisions of this
33        paragraph (3) shall be paid if  payment  by  or  for  the
34        third  party has not yet been made and the covered person
HB1881 Enrolled            -27-                LRB9000419JSgc
 1        or, if  incapable,  that  person's  legal  representative
 2        agrees  in writing to pay back promptly the benefits paid
 3        as a result of the sickness or injury to  the  extent  of
 4        any  future  payments  made by or for the third party for
 5        the sickness or  injury.   This  agreement  is  to  apply
 6        whether  or not liability for the payments is established
 7        or admitted by the third party or whether those  payments
 8        are itemized.
 9             Any  amounts  due  the plan to repay benefits may be
10        deducted from other benefits payable by  the  Plan  after
11        payments by or for the third party are made.
12             (4)  Benefits  due  from  the Plan may be reduced or
13        refused  as  an  offset  against  any  amount   otherwise
14        recoverable under this Section.
15        h.  Right of subrogation; recoveries.
16             (1)  Whenever  the Plan has paid benefits because of
17        sickness or an injury to  any  covered  person  resulting
18        from  a  third party's wrongful act or negligence, or for
19        which  an  insurer  is  liable  in  accordance  with  the
20        provisions of any policy of insurance,  and  the  covered
21        person  has recovered or may recover damages from a third
22        party that is liable for the damages, the Plan shall have
23        the right to  recover  the  benefits  it  paid  from  any
24        amounts  that  the  covered  person  has  received or may
25        receive regardless of the date of the sickness or  injury
26        or  the  date  of  any  settlement,  judgment,  or  award
27        resulting  from  that sickness or injury.  The Plan shall
28        be subrogated to any right of recovery the covered person
29        may have under the terms of any private or public  health
30        care  coverage  or liability coverage, including coverage
31        under the  Workers'  Compensation  Act  or  the  Workers'
32        Occupational  Diseases  Act,  without  the  necessity  of
33        assignment  of claim or other authorization to secure the
34        right of recovery.  To enforce its subrogation right, the
HB1881 Enrolled            -28-                LRB9000419JSgc
 1        Plan may (i) intervene or join in an action or proceeding
 2        brought  by  the   covered   person   or   his   personal
 3        representative,   including  his  guardian,  conservator,
 4        estate, dependents, or survivors, against any third party
 5        or the third party's insurer that may be liable  or  (ii)
 6        institute  and  prosecute  legal  proceedings against any
 7        third party or the third  party's  insurer  that  may  be
 8        liable for the sickness or injury in an appropriate court
 9        either  in  the  name  of  the Plan or in the name of the
10        covered person or his personal representative,  including
11        his   guardian,   conservator,   estate,  dependents,  or
12        survivors.
13             (2)  If any action or claim  is  brought  by  or  on
14        behalf  of  a covered person against a third party or the
15        third party's insurer, the covered person or his personal
16        representative,  including  his  guardian,   conservator,
17        estate,  dependents,  or survivors, shall notify the Plan
18        by personal service or registered mail of the  action  or
19        claim and of the name of the court in which the action or
20        claim  is  brought, filing proof thereof in the action or
21        claim.  The Plan may, at any time thereafter, join in the
22        action or claim upon its motion so  that  all  orders  of
23        court  after  hearing  and judgment shall be made for its
24        protection.  No release or  settlement  of  a  claim  for
25        damages  and  no  satisfaction  of judgment in the action
26        shall be valid without the written consent of the Plan to
27        the extent of its interest in the settlement or  judgment
28        and of the covered person or his personal representative.
29             (3)  In  the  event  that  the covered person or his
30        personal representative fails to institute  a  proceeding
31        against  any  appropriate  third  party  before the fifth
32        month before the action would be barred, the Plan may, in
33        its own name or in the name  of  the  covered  person  or
34        personal  representative,  commence  a proceeding against
HB1881 Enrolled            -29-                LRB9000419JSgc
 1        any appropriate third party for the recovery  of  damages
 2        on  account  of  any  sickness,  injury,  or death to the
 3        covered person.  The covered person  shall  cooperate  in
 4        doing  what is reasonably necessary to assist the Plan in
 5        any recovery and shall not take  any  action  that  would
 6        prejudice  the  Plan's right to recovery.  The Plan shall
 7        pay to the covered person or his personal  representative
 8        all  sums  collected  from any third party by judgment or
 9        otherwise in excess of amounts paid in benefits under the
10        Plan and amounts paid or to be paid as  costs,  attorneys
11        fees,  and  reasonable  expenses  incurred by the Plan in
12        making the collection or enforcing the judgment.
13             (4)  In the event  that  a  covered  person  or  his
14        personal    representative,   including   his   guardian,
15        conservator, estate, dependents, or  survivors,  recovers
16        damages  from a third party for sickness or injury caused
17        to the covered person, the covered person or the personal
18        representative shall pay to the  Plan  from  the  damages
19        recovered  the  amount  of benefits paid or to be paid on
20        behalf of the covered person.
21             (5)  When the action or  claim  is  brought  by  the
22        covered  person  alone  and  the  covered person incurs a
23        personal liability to pay attorney's fees  and  costs  of
24        litigation,  the  Plan's  claim  for reimbursement of the
25        benefits provided to the covered person shall be the full
26        amount of benefits paid to or on behalf  of  the  covered
27        person  under  this  Act  less  a  pro  rata  share  that
28        represents the Plan's reasonable share of attorney's fees
29        paid  by  the covered person and that portion of the cost
30        of litigation expenses determined by multiplying  by  the
31        ratio  of the full amount of the expenditures to the full
32        amount of the judgement, award, or settlement.
33             (6)  In the event of judgment or award in a suit  or
34        claim  against  a third party or insurer, the court shall
HB1881 Enrolled            -30-                LRB9000419JSgc
 1        first  order  paid  from  any  judgement  or  award   the
 2        reasonable  litigation  expenses  incurred in preparation
 3        and prosecution of the action  or  claim,  together  with
 4        reasonable  attorney's  fees.   After  payment  of  those
 5        expenses  and  attorney's fees, the court shall apply out
 6        of the  balance  of  the  judgment  or  award  an  amount
 7        sufficient  to  reimburse  the  Plan  the  full amount of
 8        benefits paid on behalf of the covered person under  this
 9        Act,  provided  the  court  may  reduce and apportion the
10        Plan's portion of  the  judgement  proportionate  to  the
11        recovery  of the covered person.  The burden of producing
12        evidence sufficient to support the exercise by the  court
13        of its discretion to reduce the amount of a proven charge
14        sought  to  be  enforced  against the recovery shall rest
15        with the party seeking  the  reduction.   The  court  may
16        consider  the  nature  and extent of the injury, economic
17        and non-economic  loss,  settlement  offers,  comparative
18        negligence  as  it  applies to the case at hand, hospital
19        costs, physician costs, and all other appropriate  costs.
20        The  Plan  shall  pay  its pro rata share of the attorney
21        fees based on the Plan's recovery as it compares  to  the
22        total  judgment.   Any  reimbursement  rights of the Plan
23        shall take priority over  all  other  liens  and  charges
24        existing  under the laws of this State with the exception
25        of any attorney liens filed under the Attorneys Lien Act.
26             (7)  The Plan may compromise or settle  and  release
27        any  claim  for benefits provided under this Act or waive
28        any claims for benefits, in whole or  in  part,  for  the
29        convenience  of  the  Plan or if the Plan determines that
30        collection  would  result  in  undue  hardship  upon  the
31        covered person.
32    (Source: P.A. 89-486, eff. 6-21-96.)
33        Section 35.  The Health Maintenance Organization  Act  is
HB1881 Enrolled            -31-                LRB9000419JSgc
 1    amended by changing Section 4-6.1 and adding Section 4-6.5 as
 2    follows:
 3        (215 ILCS 125/4-6.1) (from Ch. 111 1/2, par. 1408.7)
 4        Sec.  4-6.1.  (a)  Every contract or evidence of coverage
 5    issued by a Health Maintenance Organization for  persons  who
 6    are  residents  of  this  State  shall  contain  coverage for
 7    screening by low-dose mammography for all women 35  years  of
 8    age  or  older  for the presence of occult breast cancer. The
 9    coverage shall be as follows:
10             (1)  A baseline mammogram for women 35 to  39  years
11        of age.
12             (2)  A  mammogram  every  1  to  2 years, even if no
13        symptoms are present, for women 40 to 49 years of age.
14             (3)  An annual mammogram for women 40  50  years  of
15        age or older.
16        These  benefits  shall  be  at  least as favorable as for
17    other radiological  examinations  and  subject  to  the  same
18    dollar  limits,  deductibles,  and  co-insurance factors. For
19    purposes of this Section, "low-dose  mammography"  means  the
20    x-ray  examination  of  the  breast using equipment dedicated
21    specifically  for  mammography,  including  the  x-ray  tube,
22    filter,  compression  device,  and   image   receptor,   with
23    radiation exposure delivery of less than 1 rad per breast for
24    2 views of an average size breast.
25    (Source: P.A. 86-899; 86-1028; 87-518.)
26        (215 ILCS 125/4-6.5 new)
27        Sec.   4-6.5.  Required   health   benefits.    A  health
28    maintenance organization is  subject  to  the  provisions  of
29    Sections 356t and 356u of the Illinois Insurance Code.
30        Section  40.  The  Voluntary Health Services Plans Act is
31    amended by changing Section 10 as follows:
HB1881 Enrolled            -32-                LRB9000419JSgc
 1        (215 ILCS 165/10) (from Ch. 32, par. 604)
 2        Sec.  10.  Application  of  Insurance  Code   provisions.
 3    Health  services plan corporations and all persons interested
 4    therein  or  dealing  therewith  shall  be  subject  to   the
 5    provisions  of  Article  XII  1/2 and Sections 3.1, 133, 140,
 6    143, 143c, 149, 354, 355.2, 356r,  356t,  356u,  367.2,  401,
 7    401.1,  402,  403,  403A, 408, 408.2, and 412, and paragraphs
 8    (7) and (15) of Section 367 of the Illinois Insurance Code.
 9    (Source: P.A. 89-514, eff. 7-17-96.)
10        Section 45.  The Illinois Public Aid Code is  amended  by
11    changing Section 5-5 and adding Section 5-16.8 as follows:
12        (305 ILCS 5/5-5) (from Ch. 23, par. 5-5)
13        (Text of Section before amendment by P.A. 89-507)
14        Sec.  5-5.  Medical services. The Illinois Department, by
15    rule, shall determine the quantity and  quality  of  and  the
16    rate  of  reimbursement  for the medical assistance for which
17    payment will be authorized, and the medical  services  to  be
18    provided, which may include all or part of the following: (1)
19    inpatient   hospital   services;   (2)   outpatient  hospital
20    services;  (3)  other  laboratory  and  X-ray  services;  (4)
21    skilled  nursing  home  services;  (5)  physicians'  services
22    whether furnished  in  the  office,  the  patient's  home,  a
23    hospital,  a  skilled nursing home, or elsewhere; (6) medical
24    care, or  any  other  type  of  remedial  care  furnished  by
25    licensed  practitioners;  (7)  home health care services; (8)
26    private duty  nursing  service;  (9)  clinic  services;  (10)
27    dental  services; (11) physical therapy and related services;
28    (12) prescribed drugs, dentures, and prosthetic devices;  and
29    eyeglasses  prescribed by a physician skilled in the diseases
30    of the eye, or by an optometrist, whichever  the  person  may
31    select;  (13)  other  diagnostic,  screening, preventive, and
32    rehabilitative services; (14) transportation and  such  other
HB1881 Enrolled            -33-                LRB9000419JSgc
 1    expenses  as  may  be  necessary;  (15)  medical treatment of
 2    sexual assault survivors, as defined in  Section  1a  of  the
 3    Sexual   Assault   Survivors  Emergency  Treatment  Act,  for
 4    injuries  sustained  as  a  result  of  the  sexual  assault,
 5    including  examinations  and  laboratory  tests  to  discover
 6    evidence which may be used in  criminal  proceedings  arising
 7    from  the sexual assault; (16) the diagnosis and treatment of
 8    sickle cell anemia; and (17) any other medical care, and  any
 9    other type of remedial care recognized under the laws of this
10    State,  but  not including abortions, or induced miscarriages
11    or premature births, unless, in the opinion of  a  physician,
12    such  procedures  are  necessary  for the preservation of the
13    life of the  woman  seeking  such  treatment,  or  except  an
14    induced  premature  birth  intended  to produce a live viable
15    child and such procedure is necessary for the health  of  the
16    mother or her unborn child. The Illinois Department, by rule,
17    shall   prohibit   any   physician   from  providing  medical
18    assistance to anyone eligible therefor under this Code  where
19    such  physician  has  been  found  guilty  of  performing  an
20    abortion procedure in a wilful and wanton manner upon a woman
21    who  was not pregnant at the time such abortion procedure was
22    performed. The term "any other type of remedial  care"  shall
23    include nursing care and nursing home service for persons who
24    rely on treatment by spiritual means alone through prayer for
25    healing.
26        The  Illinois  Department  shall  provide  the  following
27    services  to  persons  eligible  for  assistance  under  this
28    Article  who  are  participating  in  education,  training or
29    employment programs:
30             (1)  dental services, which shall include but not be
31        limited to prosthodontics; and
32             (2)  eyeglasses prescribed by a physician skilled in
33        the diseases of the eye, or by an optometrist,  whichever
34        the person may select.
HB1881 Enrolled            -34-                LRB9000419JSgc
 1        The  Illinois  Department,  by  rule, may distinguish and
 2    classify  the  medical  services  to  be  provided  only   in
 3    accordance  with the classes of persons designated in Section
 4    5-2.
 5        The Illinois Department shall authorize the provision of,
 6    and  shall  authorize  payment  for,  screening  by  low-dose
 7    mammography for the presence  of  occult  breast  cancer  for
 8    women  35  years of age or older who are eligible for medical
 9    assistance  under  this  Article,  as  follows:   a  baseline
10    mammogram for women 35 to 39 years of age; a mammogram  every
11    1  to  2 years, even if no symptoms are present, for women 40
12    to 49 years of age; and an annual mammogram for women  40  50
13    years  of  age  or  older.   All  screenings  shall include a
14    physical breast exam,  instruction  on  self-examination  and
15    information  regarding  the frequency of self-examination and
16    its value as a preventative tool.  As used in  this  Section,
17    "low-dose  mammography"  means  the  x-ray examination of the
18    breast   using   equipment   dedicated    specifically    for
19    mammography,  including  the  x-ray tube, filter, compression
20    device,  image  receptor,  and  cassettes,  with  an  average
21    radiation exposure delivery of less than one rad  mid-breast,
22    with 2 views for each breast.
23        Any  medical  or  health  care provider shall immediately
24    recommend, to  any  pregnant  woman  who  is  being  provided
25    prenatal  services  and  is  suspected  of  drug  abuse or is
26    addicted as defined in the Alcoholism and  Other  Drug  Abuse
27    and  Dependency  Act,  referral  to  a  local substance abuse
28    treatment provider licensed by the Department  of  Alcoholism
29    and  Substance Abuse or to a licensed hospital which provides
30    substance abuse treatment services.  The Department of Public
31    Aid shall assure coverage for the cost of  treatment  of  the
32    drug abuse or addiction for pregnant recipients in accordance
33    with  the  Illinois  Medicaid Program in conjunction with the
34    Department of Alcoholism and Substance Abuse.
HB1881 Enrolled            -35-                LRB9000419JSgc
 1        All medical providers  providing  medical  assistance  to
 2    pregnant women under this Code shall receive information from
 3    the Department on the availability of services under the Drug
 4    Free  Families  with  a  Future  or  any  comparable  program
 5    providing   case  management  services  for  addicted  women,
 6    including information  on  appropriate  referrals  for  other
 7    social  services  that  may  be  needed  by addicted women in
 8    addition to treatment for addiction.
 9        The  Illinois  Department,  in   cooperation   with   the
10    Departments  of  Alcoholism  and  Substance  Abuse and Public
11    Health, through a  public  awareness  campaign,  may  provide
12    information  concerning  treatment  for  alcoholism  and drug
13    abuse  and  addiction,  prenatal  health  care,   and   other
14    pertinent   programs  directed  at  reducing  the  number  of
15    drug-affected  infants  born   to   recipients   of   medical
16    assistance.
17        The Department shall not sanction the recipient solely on
18    the basis of her substance abuse.
19        The  Illinois Department shall establish such regulations
20    governing  the  dispensing  of  health  services  under  this
21    Article as it shall deem appropriate.  In  formulating  these
22    regulations  the  Illinois  Department shall consult with and
23    give substantial weight to the recommendations offered by the
24    Citizens  Assembly/Council  on  Public  Aid.  The  Department
25    should  seek  the  advice  of  formal  professional  advisory
26    committees  appointed  by  the  Director  of   the   Illinois
27    Department  for  the  purpose  of providing regular advice on
28    policy and administrative matters, information  dissemination
29    and  educational  activities  for  medical  and  health  care
30    providers,  and  consistency  in  procedures  to the Illinois
31    Department.
32        The Illinois Department may  develop  and  contract  with
33    Partnerships of medical providers to arrange medical services
34    for   persons  eligible  under  Section  5-2  of  this  Code.
HB1881 Enrolled            -36-                LRB9000419JSgc
 1    Implementation  of  this  Section  may  be  by  demonstration
 2    projects in certain geographic areas.  The Partnership  shall
 3    be represented by a sponsor organization.  The Department, by
 4    rule,   shall   develop   qualifications   for   sponsors  of
 5    Partnerships.  Nothing in this Section shall be construed  to
 6    require   that   the   sponsor   organization  be  a  medical
 7    organization.
 8        The sponsor must negotiate formal written contracts  with
 9    medical  providers  for  physician  services,  inpatient  and
10    outpatient hospital care, home health services, treatment for
11    alcoholism and substance abuse, and other services determined
12    necessary  by the Illinois Department by rule for delivery by
13    Partnerships.  Physician services must include  prenatal  and
14    obstetrical  care.   The  Illinois Department shall reimburse
15    medical  services  delivered  by  Partnership  providers   to
16    clients  in  target  areas  according  to  provisions of this
17    Article and the Illinois Health Finance  Reform  Act,  except
18    that:
19             (1)  Physicians  participating  in a Partnership and
20        providing certain services, which shall be determined  by
21        the  Illinois  Department, to persons in areas covered by
22        the Partnership may receive an additional  surcharge  for
23        such services.
24             (2)  The   Department  may  elect  to  consider  and
25        negotiate   financial   incentives   to   encourage   the
26        development of Partnerships and the efficient delivery of
27        medical care.
28             (3)  Persons  receiving  medical  services   through
29        Partnerships  may  receive  medical  and  case management
30        services above the  level  usually  offered  through  the
31        medical assistance program.
32        Medical  providers  shall  be  required  to  meet certain
33    qualifications to participate in Partnerships to  ensure  the
34    delivery   of   high   quality   medical   services.    These
HB1881 Enrolled            -37-                LRB9000419JSgc
 1    qualifications  shall  be  determined by rule of the Illinois
 2    Department  and  may  be  higher  than   qualifications   for
 3    participation in the medical assistance program.  Partnership
 4    sponsors  may  prescribe reasonable additional qualifications
 5    for participation by medical providers, only with  the  prior
 6    written approval of the Illinois Department.
 7        Nothing  in  this  Section shall limit the free choice of
 8    practitioners, hospitals,  and  other  providers  of  medical
 9    services by clients.
10        The  Department  shall apply for a waiver from the United
11    States Health Care Financing Administration to allow for  the
12    implementation of Partnerships under this Section.
13        The   Illinois   Department  shall  require  health  care
14    providers to maintain records that document the medical  care
15    and  services  provided  to  recipients of Medical Assistance
16    under this Article.  The Illinois  Department  shall  require
17    health  care  providers to make available, when authorized by
18    the patient, in writing, the  medical  records  in  a  timely
19    fashion  to  other  health care providers who are treating or
20    serving persons eligible for Medical  Assistance  under  this
21    Article.    All  dispensers  of  medical  services  shall  be
22    required to maintain and  retain  business  and  professional
23    records  sufficient  to  fully  and  accurately  document the
24    nature,  scope,  details  and  receipt  of  the  health  care
25    provided to persons eligible  for  medical  assistance  under
26    this  Code, in accordance with regulations promulgated by the
27    Illinois Department. The rules and regulations shall  require
28    that  proof  of  the receipt of prescription drugs, dentures,
29    prosthetic devices and eyeglasses by eligible  persons  under
30    this Section accompany each claim for reimbursement submitted
31    by the dispenser of such medical services. No such claims for
32    reimbursement  shall  be approved for payment by the Illinois
33    Department without such proof of receipt, unless the Illinois
34    Department shall have put into effect and shall be  operating
HB1881 Enrolled            -38-                LRB9000419JSgc
 1    a  system  of post-payment audit and review which shall, on a
 2    sampling basis, be deemed adequate by the Illinois Department
 3    to assure that such drugs, dentures, prosthetic  devices  and
 4    eyeglasses for which payment is being made are actually being
 5    received  by  eligible  recipients.  Within 90 days after the
 6    effective date of this amendatory Act of 1984,  the  Illinois
 7    Department  shall  establish  a  current  list of acquisition
 8    costs  for  all  prosthetic  devices  and  any  other   items
 9    recognized  as  medical  equipment  and supplies reimbursable
10    under this Article and shall update such list on a  quarterly
11    basis,  except that the acquisition costs of all prescription
12    drugs shall be updated no less frequently than every 30  days
13    as required by Section 5-5.12.
14        The  rules  and  regulations  of  the Illinois Department
15    shall require that a written statement including the required
16    opinion  of  a  physician  shall  accompany  any  claim   for
17    reimbursement  for  abortions,  or  induced  miscarriages  or
18    premature   births.    This  statement  shall  indicate  what
19    procedures were used in providing such medical services.
20        The Illinois Department shall require that all dispensers
21    of medical services, other than an individual practitioner or
22    group  of  practitioners,  desiring  to  participate  in  the
23    Medical Assistance program established under this Article  to
24    disclose all financial, beneficial, ownership, equity, surety
25    or  other  interests  in  any  and  all  firms, corporations,
26    partnerships,  associations,  business   enterprises,   joint
27    ventures,  agencies,  institutions  or  other  legal entities
28    providing any form of health  care  services  in  this  State
29    under this Article.
30        The  Illinois  Department may require that all dispensers
31    of medical services desiring to participate  in  the  medical
32    assistance  program  established under this Article disclose,
33    under such terms and conditions as  the  Illinois  Department
34    may  by  rule  establish,  all  inquiries  from  clients  and
HB1881 Enrolled            -39-                LRB9000419JSgc
 1    attorneys  regarding  medical  bills  paid  by  the  Illinois
 2    Department,   which   inquiries   could   indicate  potential
 3    existence of claims or liens for the Illinois Department.
 4        The  Illinois  Department   shall   establish   policies,
 5    procedures,   standards   and   criteria   by  rule  for  the
 6    acquisition,  repair  and   replacement   of   orthotic   and
 7    prosthetic devices and durable medical equipment.  Such rules
 8    shall provide, but not be limited to, the following services:
 9    (1)  immediate  repair  or  replacement  of  such  devices by
10    recipients without medical  authorization;  and  (2)  rental,
11    lease,   purchase   or   lease-purchase  of  durable  medical
12    equipment   in   a   cost-effective   manner,   taking   into
13    consideration the recipient's medical prognosis,  the  extent
14    of  the recipient's needs, and the requirements and costs for
15    maintaining  such  equipment.   Such  rules  shall  enable  a
16    recipient to  temporarily  acquire  and  use  alternative  or
17    substitute   devices   or   equipment   pending   repairs  or
18    replacements of any device or equipment previously authorized
19    for such recipient by the Department. Rules under clause  (2)
20    above  shall  not  provide  for purchase or lease-purchase of
21    durable medical equipment or supplies used for the purpose of
22    oxygen delivery and respiratory care.
23        The Department shall execute,  relative  to  the  nursing
24    home  prescreening  project,  written inter-agency agreements
25    with  the  Department  of  Rehabilitation  Services  and  the
26    Department on Aging, to  effect  the  following:  (i)  intake
27    procedures  and common eligibility criteria for those persons
28    who are receiving non-institutional services;  and  (ii)  the
29    establishment  and  development of non-institutional services
30    in areas of the State where they are not currently  available
31    or are undeveloped.
32        The  Illinois  Department  shall  develop and operate, in
33    cooperation with other State Departments and agencies and  in
34    compliance  with  applicable  federal  laws  and regulations,
HB1881 Enrolled            -40-                LRB9000419JSgc
 1    appropriate and effective systems of health  care  evaluation
 2    and  programs  for  monitoring  of utilization of health care
 3    services and facilities, as it affects persons  eligible  for
 4    medical  assistance  under this Code. The Illinois Department
 5    shall report regularly the results of the operation  of  such
 6    systems  and  programs  to  the  Citizens Assembly/Council on
 7    Public Aid to enable the Committee to ensure,  from  time  to
 8    time, that these programs are effective and meaningful.
 9        The  Illinois  Department  shall  report  annually to the
10    General Assembly, no later than the second Friday in April of
11    1979 and each year thereafter, in regard to:
12             (a)  actual statistics and trends in utilization  of
13        medical services by public aid recipients;
14             (b)  actual  statistics  and trends in the provision
15        of the various medical services by medical vendors;
16             (c)  current rate structures and proposed changes in
17        those rate structures for the  various  medical  vendors;
18        and
19             (d)  efforts  at  utilization  review and control by
20        the Illinois Department.
21        The period covered by each report shall be  the  3  years
22    ending  on the June 30 prior to the report.  The report shall
23    include  suggested  legislation  for  consideration  by   the
24    General  Assembly.  The filing of one copy of the report with
25    the Speaker, one copy with the Minority Leader and  one  copy
26    with the Clerk of the House of Representatives, one copy with
27    the President, one copy with the Minority Leader and one copy
28    with   the  Secretary  of  the  Senate,  one  copy  with  the
29    Legislative Research Unit, such additional  copies  with  the
30    State  Government  Report Distribution Center for the General
31    Assembly as is required under paragraph (t) of Section  7  of
32    the  State  Library  Act  and  one  copy  with  the  Citizens
33    Assembly/Council  on  Public  Aid  or  its successor shall be
34    deemed sufficient to comply with this Section.
HB1881 Enrolled            -41-                LRB9000419JSgc
 1    (Source: P.A.  88-670,  eff.  12-2-94;  89-21,  eff.  7-1-95;
 2    89-517, eff. 1-1-97.)
 3        (Text of Section after amendment by P.A. 89-507)
 4        Sec.  5-5.  Medical services. The Illinois Department, by
 5    rule, shall determine the quantity and  quality  of  and  the
 6    rate  of  reimbursement  for the medical assistance for which
 7    payment will be authorized, and the medical  services  to  be
 8    provided, which may include all or part of the following: (1)
 9    inpatient   hospital   services;   (2)   outpatient  hospital
10    services;  (3)  other  laboratory  and  X-ray  services;  (4)
11    skilled  nursing  home  services;  (5)  physicians'  services
12    whether furnished  in  the  office,  the  patient's  home,  a
13    hospital,  a  skilled nursing home, or elsewhere; (6) medical
14    care, or  any  other  type  of  remedial  care  furnished  by
15    licensed  practitioners;  (7)  home health care services; (8)
16    private duty  nursing  service;  (9)  clinic  services;  (10)
17    dental  services; (11) physical therapy and related services;
18    (12) prescribed drugs, dentures, and prosthetic devices;  and
19    eyeglasses  prescribed by a physician skilled in the diseases
20    of the eye, or by an optometrist, whichever  the  person  may
21    select;  (13)  other  diagnostic,  screening, preventive, and
22    rehabilitative services; (14) transportation and  such  other
23    expenses  as  may  be  necessary;  (15)  medical treatment of
24    sexual assault survivors, as defined in  Section  1a  of  the
25    Sexual   Assault   Survivors  Emergency  Treatment  Act,  for
26    injuries  sustained  as  a  result  of  the  sexual  assault,
27    including  examinations  and  laboratory  tests  to  discover
28    evidence which may be used in  criminal  proceedings  arising
29    from  the sexual assault; (16) the diagnosis and treatment of
30    sickle cell anemia; and (17) any other medical care, and  any
31    other type of remedial care recognized under the laws of this
32    State,  but  not including abortions, or induced miscarriages
33    or premature births, unless, in the opinion of  a  physician,
34    such  procedures  are  necessary  for the preservation of the
HB1881 Enrolled            -42-                LRB9000419JSgc
 1    life of the  woman  seeking  such  treatment,  or  except  an
 2    induced  premature  birth  intended  to produce a live viable
 3    child and such procedure is necessary for the health  of  the
 4    mother or her unborn child. The Illinois Department, by rule,
 5    shall   prohibit   any   physician   from  providing  medical
 6    assistance to anyone eligible therefor under this Code  where
 7    such  physician  has  been  found  guilty  of  performing  an
 8    abortion procedure in a wilful and wanton manner upon a woman
 9    who  was not pregnant at the time such abortion procedure was
10    performed. The term "any other type of remedial  care"  shall
11    include nursing care and nursing home service for persons who
12    rely on treatment by spiritual means alone through prayer for
13    healing.
14        The  Illinois  Department of Public Aid shall provide the
15    following services to persons eligible for  assistance  under
16    this  Article who are participating in education, training or
17    employment programs  operated  by  the  Department  of  Human
18    Services as successor to the Department of Public Aid:
19             (1)  dental services, which shall include but not be
20        limited to prosthodontics; and
21             (2)  eyeglasses prescribed by a physician skilled in
22        the  diseases of the eye, or by an optometrist, whichever
23        the person may select.
24        The Illinois Department, by  rule,  may  distinguish  and
25    classify   the  medical  services  to  be  provided  only  in
26    accordance with the classes of persons designated in  Section
27    5-2.
28        The Illinois Department shall authorize the provision of,
29    and  shall  authorize  payment  for,  screening  by  low-dose
30    mammography  for  the  presence  of  occult breast cancer for
31    women 35 years of age or older who are eligible  for  medical
32    assistance  under  this  Article,  as  follows:   a  baseline
33    mammogram  for women 35 to 39 years of age; a mammogram every
34    1 to 2 years, even if no symptoms are present, for  women  40
HB1881 Enrolled            -43-                LRB9000419JSgc
 1    to  49  years of age; and an annual mammogram for women 40 50
 2    years of age  or  older.   All  screenings  shall  include  a
 3    physical  breast  exam,  instruction  on self-examination and
 4    information regarding the frequency of  self-examination  and
 5    its  value  as a preventative tool.  As used in this Section,
 6    "low-dose mammography" means the  x-ray  examination  of  the
 7    breast    using    equipment   dedicated   specifically   for
 8    mammography, including the x-ray  tube,  filter,  compression
 9    device,  image  receptor,  and  cassettes,  with  an  average
10    radiation  exposure delivery of less than one rad mid-breast,
11    with 2 views for each breast.
12        Any medical or health  care  provider  shall  immediately
13    recommend,  to  any  pregnant  woman  who  is  being provided
14    prenatal services and  is  suspected  of  drug  abuse  or  is
15    addicted  as  defined  in the Alcoholism and Other Drug Abuse
16    and Dependency Act,  referral  to  a  local  substance  abuse
17    treatment  provider  licensed  by  the  Department  of  Human
18    Services  or  to a licensed hospital which provides substance
19    abuse treatment services.  The Department of Public Aid shall
20    assure coverage for the cost of treatment of the  drug  abuse
21    or  addiction  for pregnant recipients in accordance with the
22    Illinois Medicaid Program in conjunction with the  Department
23    of Human Services.
24        All  medical  providers  providing  medical assistance to
25    pregnant women under this Code shall receive information from
26    the Department on the availability of services under the Drug
27    Free  Families  with  a  Future  or  any  comparable  program
28    providing  case  management  services  for  addicted   women,
29    including  information  on  appropriate  referrals  for other
30    social services that may  be  needed  by  addicted  women  in
31    addition to treatment for addiction.
32        The   Illinois   Department,   in  cooperation  with  the
33    Departments of Human Services (as successor to the Department
34    of Alcoholism and Substance Abuse) and Public Health, through
HB1881 Enrolled            -44-                LRB9000419JSgc
 1    a  public  awareness  campaign,   may   provide   information
 2    concerning  treatment  for  alcoholism  and  drug  abuse  and
 3    addiction, prenatal health care, and other pertinent programs
 4    directed at reducing the number of drug-affected infants born
 5    to recipients of medical assistance.
 6        Neither  the  Illinois  Department  of Public Aid nor the
 7    Department of Human Services  shall  sanction  the  recipient
 8    solely on the basis of her substance abuse.
 9        The  Illinois Department shall establish such regulations
10    governing  the  dispensing  of  health  services  under  this
11    Article as it shall deem appropriate.  In  formulating  these
12    regulations  the  Illinois  Department shall consult with and
13    give substantial weight to the recommendations offered by the
14    Citizens  Assembly/Council  on  Public  Aid.  The  Department
15    should  seek  the  advice  of  formal  professional  advisory
16    committees  appointed  by  the  Director  of   the   Illinois
17    Department  for  the  purpose  of providing regular advice on
18    policy and administrative matters, information  dissemination
19    and  educational  activities  for  medical  and  health  care
20    providers,  and  consistency  in  procedures  to the Illinois
21    Department.
22        The Illinois Department may  develop  and  contract  with
23    Partnerships of medical providers to arrange medical services
24    for   persons  eligible  under  Section  5-2  of  this  Code.
25    Implementation  of  this  Section  may  be  by  demonstration
26    projects in certain geographic areas.  The Partnership  shall
27    be represented by a sponsor organization.  The Department, by
28    rule,   shall   develop   qualifications   for   sponsors  of
29    Partnerships.  Nothing in this Section shall be construed  to
30    require   that   the   sponsor   organization  be  a  medical
31    organization.
32        The sponsor must negotiate formal written contracts  with
33    medical  providers  for  physician  services,  inpatient  and
34    outpatient hospital care, home health services, treatment for
HB1881 Enrolled            -45-                LRB9000419JSgc
 1    alcoholism and substance abuse, and other services determined
 2    necessary  by the Illinois Department by rule for delivery by
 3    Partnerships.  Physician services must include  prenatal  and
 4    obstetrical  care.   The  Illinois Department shall reimburse
 5    medical  services  delivered  by  Partnership  providers   to
 6    clients  in  target  areas  according  to  provisions of this
 7    Article and the Illinois Health Finance  Reform  Act,  except
 8    that:
 9             (1)  Physicians  participating  in a Partnership and
10        providing certain services, which shall be determined  by
11        the  Illinois  Department, to persons in areas covered by
12        the Partnership may receive an additional  surcharge  for
13        such services.
14             (2)  The   Department  may  elect  to  consider  and
15        negotiate   financial   incentives   to   encourage   the
16        development of Partnerships and the efficient delivery of
17        medical care.
18             (3)  Persons  receiving  medical  services   through
19        Partnerships  may  receive  medical  and  case management
20        services above the  level  usually  offered  through  the
21        medical assistance program.
22        Medical  providers  shall  be  required  to  meet certain
23    qualifications to participate in Partnerships to  ensure  the
24    delivery   of   high   quality   medical   services.    These
25    qualifications  shall  be  determined by rule of the Illinois
26    Department  and  may  be  higher  than   qualifications   for
27    participation in the medical assistance program.  Partnership
28    sponsors  may  prescribe reasonable additional qualifications
29    for participation by medical providers, only with  the  prior
30    written approval of the Illinois Department.
31        Nothing  in  this  Section shall limit the free choice of
32    practitioners, hospitals,  and  other  providers  of  medical
33    services by clients.
34        The  Department  shall apply for a waiver from the United
HB1881 Enrolled            -46-                LRB9000419JSgc
 1    States Health Care Financing Administration to allow for  the
 2    implementation of Partnerships under this Section.
 3        The   Illinois   Department  shall  require  health  care
 4    providers to maintain records that document the medical  care
 5    and  services  provided  to  recipients of Medical Assistance
 6    under this Article.  The Illinois  Department  shall  require
 7    health  care  providers to make available, when authorized by
 8    the patient, in writing, the  medical  records  in  a  timely
 9    fashion  to  other  health care providers who are treating or
10    serving persons eligible for Medical  Assistance  under  this
11    Article.    All  dispensers  of  medical  services  shall  be
12    required to maintain and  retain  business  and  professional
13    records  sufficient  to  fully  and  accurately  document the
14    nature,  scope,  details  and  receipt  of  the  health  care
15    provided to persons eligible  for  medical  assistance  under
16    this  Code, in accordance with regulations promulgated by the
17    Illinois Department. The rules and regulations shall  require
18    that  proof  of  the receipt of prescription drugs, dentures,
19    prosthetic devices and eyeglasses by eligible  persons  under
20    this Section accompany each claim for reimbursement submitted
21    by the dispenser of such medical services. No such claims for
22    reimbursement  shall  be approved for payment by the Illinois
23    Department without such proof of receipt, unless the Illinois
24    Department shall have put into effect and shall be  operating
25    a  system  of post-payment audit and review which shall, on a
26    sampling basis, be deemed adequate by the Illinois Department
27    to assure that such drugs, dentures, prosthetic  devices  and
28    eyeglasses for which payment is being made are actually being
29    received  by  eligible  recipients.  Within 90 days after the
30    effective date of this amendatory Act of 1984,  the  Illinois
31    Department  shall  establish  a  current  list of acquisition
32    costs  for  all  prosthetic  devices  and  any  other   items
33    recognized  as  medical  equipment  and supplies reimbursable
34    under this Article and shall update such list on a  quarterly
HB1881 Enrolled            -47-                LRB9000419JSgc
 1    basis,  except that the acquisition costs of all prescription
 2    drugs shall be updated no less frequently than every 30  days
 3    as required by Section 5-5.12.
 4        The  rules  and  regulations  of  the Illinois Department
 5    shall require that a written statement including the required
 6    opinion  of  a  physician  shall  accompany  any  claim   for
 7    reimbursement  for  abortions,  or  induced  miscarriages  or
 8    premature   births.    This  statement  shall  indicate  what
 9    procedures were used in providing such medical services.
10        The Illinois Department shall require that all dispensers
11    of medical services, other than an individual practitioner or
12    group  of  practitioners,  desiring  to  participate  in  the
13    Medical Assistance program established under this Article  to
14    disclose all financial, beneficial, ownership, equity, surety
15    or  other  interests  in  any  and  all  firms, corporations,
16    partnerships,  associations,  business   enterprises,   joint
17    ventures,  agencies,  institutions  or  other  legal entities
18    providing any form of health  care  services  in  this  State
19    under this Article.
20        The  Illinois  Department may require that all dispensers
21    of medical services desiring to participate  in  the  medical
22    assistance  program  established under this Article disclose,
23    under such terms and conditions as  the  Illinois  Department
24    may  by  rule  establish,  all  inquiries  from  clients  and
25    attorneys  regarding  medical  bills  paid  by  the  Illinois
26    Department,   which   inquiries   could   indicate  potential
27    existence of claims or liens for the Illinois Department.
28        The  Illinois  Department   shall   establish   policies,
29    procedures,   standards   and   criteria   by  rule  for  the
30    acquisition,  repair  and   replacement   of   orthotic   and
31    prosthetic devices and durable medical equipment.  Such rules
32    shall provide, but not be limited to, the following services:
33    (1)  immediate  repair  or  replacement  of  such  devices by
34    recipients without medical  authorization;  and  (2)  rental,
HB1881 Enrolled            -48-                LRB9000419JSgc
 1    lease,   purchase   or   lease-purchase  of  durable  medical
 2    equipment   in   a   cost-effective   manner,   taking   into
 3    consideration the recipient's medical prognosis,  the  extent
 4    of  the recipient's needs, and the requirements and costs for
 5    maintaining  such  equipment.   Such  rules  shall  enable  a
 6    recipient to  temporarily  acquire  and  use  alternative  or
 7    substitute   devices   or   equipment   pending   repairs  or
 8    replacements of any device or equipment previously authorized
 9    for such recipient by the Department. Rules under clause  (2)
10    above  shall  not  provide  for purchase or lease-purchase of
11    durable medical equipment or supplies used for the purpose of
12    oxygen delivery and respiratory care.
13        The Department shall execute,  relative  to  the  nursing
14    home  prescreening  project,  written inter-agency agreements
15    with the Department of Human Services and the  Department  on
16    Aging,  to  effect  the  following: (i) intake procedures and
17    common  eligibility  criteria  for  those  persons  who   are
18    receiving    non-institutional   services;   and   (ii)   the
19    establishment and development of  non-institutional  services
20    in  areas of the State where they are not currently available
21    or are undeveloped.
22        The Illinois Department shall  develop  and  operate,  in
23    cooperation  with other State Departments and agencies and in
24    compliance with  applicable  federal  laws  and  regulations,
25    appropriate  and  effective systems of health care evaluation
26    and programs for monitoring of  utilization  of  health  care
27    services  and  facilities, as it affects persons eligible for
28    medical assistance under this Code. The  Illinois  Department
29    shall  report  regularly the results of the operation of such
30    systems and programs  to  the  Citizens  Assembly/Council  on
31    Public  Aid  to  enable the Committee to ensure, from time to
32    time, that these programs are effective and meaningful.
33        The Illinois Department  shall  report  annually  to  the
34    General Assembly, no later than the second Friday in April of
HB1881 Enrolled            -49-                LRB9000419JSgc
 1    1979 and each year thereafter, in regard to:
 2             (a)  actual  statistics and trends in utilization of
 3        medical services by public aid recipients;
 4             (b)  actual statistics and trends in  the  provision
 5        of the various medical services by medical vendors;
 6             (c)  current rate structures and proposed changes in
 7        those  rate  structures  for the various medical vendors;
 8        and
 9             (d)  efforts at utilization review  and  control  by
10        the Illinois Department.
11        The  period  covered  by each report shall be the 3 years
12    ending on the June 30 prior to the report.  The report  shall
13    include   suggested  legislation  for  consideration  by  the
14    General Assembly.  The filing of one copy of the report  with
15    the  Speaker,  one copy with the Minority Leader and one copy
16    with the Clerk of the House of Representatives, one copy with
17    the President, one copy with the Minority Leader and one copy
18    with  the  Secretary  of  the  Senate,  one  copy  with   the
19    Legislative  Research  Unit,  such additional copies with the
20    State Government Report Distribution Center for  the  General
21    Assembly  as  is required under paragraph (t) of Section 7 of
22    the  State  Library  Act  and  one  copy  with  the  Citizens
23    Assembly/Council on Public Aid  or  its  successor  shall  be
24    deemed sufficient to comply with this Section.
25    (Source:  P.A.  88-670,  eff.  12-2-94;  89-21,  eff. 7-1-95;
26    89-507, eff. 7-1-97; 89-517, eff. 1-1-97; revised 8-26-96.)
27        (305 ILCS 5/5-16.8 new)
28        Sec.  5-16.8.  Required  health  benefits.   The  medical
29    assistance program shall  provide  the  post-mastectomy  care
30    benefits  required  to be covered by a policy of accident and
31    health insurance under Section 356t and the coverage required
32    under Section 356u of the Illinois Insurance Code.
HB1881 Enrolled            -50-                LRB9000419JSgc
 1        Section 95.  No acceleration or delay.   Where  this  Act
 2    makes changes in a statute that is represented in this Act by
 3    text  that  is not yet or no longer in effect (for example, a
 4    Section represented by multiple versions), the  use  of  that
 5    text  does  not  accelerate or delay the taking effect of (i)
 6    the changes made by this Act or (ii) provisions derived  from
 7    any other Public Act.
 8        Section  99.  Effective date.  This Act takes effect upon
 9    becoming law.

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