State of Illinois
92nd General Assembly
Legislation

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[ Introduced ][ Engrossed ][ House Amendment 001 ]


92_SB1849ham002

 










                                           LRB9215452JSpcam01

 1                    AMENDMENT TO SENATE BILL 1849

 2        AMENDMENT NO.     .  Amend Senate Bill 1849, AS  AMENDED,
 3    by  replacing  everything  after the enacting clause with the
 4    following:

 5        "Section 5.  The Illinois Insurance Code  is  amended  by
 6    adding Article XIXE as follows:

 7        (215 ILCS 5/Art. XIXE heading new)
 8             ARTICLE XIXE.  HEALTH CARE SERVICES CONTRACTING

 9        (215 ILCS 5/351E-1 new)
10        Sec.  351E-1.  Short  title. This Article may be cited as
11    the Fairness in Health Care Services Contracting Law.

12        (215 ILCS 5/351E-5 new)
13        Sec. 351E-5.  Purpose. The purpose of this Article is  to
14    provide  reasonable  notice  of  the  terms and conditions of
15    individual or group health care professional or  health  care
16    provider service contracts.

17        (215 ILCS 5/351E-10 new)
18        Sec. 351E-10.  Definitions.
19        "Company"  means,  for  the  purposes  of this Article, a
 
                            -2-            LRB9215452JSpcam01
 1    person that establishes, operates, or  maintains  a  network,
 2    panel,  or  group of health care professionals or health care
 3    providers where the professionals or providers  have  entered
 4    into  a  contract  with  the  company  to provide health care
 5    services to enrollees, beneficiaries, or insureds, including,
 6    but not limited to, insurance companies,  health  maintenance
 7    organizations,  preferred provider organizations, third party
 8    administrators,  independent   practice   associations,   and
 9    physician-hospital organizations.
10        "Contract"  means any written agreement between a company
11    and a health care  professional,  health  care  provider,  or
12    another company for the provision of health care services.
13        "Covered  services"  means  health care services that are
14    eligible for coverage.
15        "Department" means the Department of Insurance.
16        "Health care professional" means  a  physician,  dentist,
17    podiatric  physician,  physician assistant, advanced practice
18    nurse, registered professional nurse,  optometrist,  physical
19    therapist,   clinical   psychologist,  pharmacist,  or  other
20    individual,  or  group,  appropriately  licensed  to  provide
21    health care services.
22        "Health care provider"  means  any  hospital,  ambulatory
23    surgical treatment center, pharmacy, long term care facility,
24    or  other  facility  or  group  that is licensed or otherwise
25    authorized to deliver health care services.
26        "Health care services" means any services included in the
27    furnishing to any individual of medical or  dental  care,  or
28    hospitalization  incident  to  the  furnishing  of medical or
29    dental care, as well as the furnishing to any  individual  of
30    any   other   services   for   the   purpose  of  preventing,
31    alleviating, curing, or healing human illness, condition,  or
32    injury, including home health and pharmaceutical services and
33    products.
34        "Material"  means  a term or condition that is not merely
 
                            -3-            LRB9215452JSpcam01
 1    technical  in  nature  and  results  or  could  result  in  a
 2    substantial change in (i) a term or condition of the contract
 3    such as a change in payment rates or a change in  termination
 4    clauses  or  (ii)  a  administrative  policy  applied  to the
 5    contract such as a change in claims submission procedures  or
 6    a change in appeals procedures.
 7        "Person"   means   an   individual,  group,  corporation,
 8    association, partnership,  limited  liability  company,  sole
 9    proprietorship, or any other legal entity.

10        (215 ILCS 5/351E-15 new)
11        Sec.  351E-15.  Fairness  in  contracting  procedures.  A
12    complete  copy  of the proposed contract with all attachments
13    and  exhibits  shall  be  provided   to   the   health   care
14    professional   or  health  care  provider.  The  health  care
15    professional or health care  provider  shall  be  allowed  at
16    least  30  days  to review the complete contract before being
17    required to sign the contract.

18        (215 ILCS 5/351E-20 new)
19        Sec. 351E-20.  Payment rates.
20        (a)  Payments  under  a  contract  with  a  health   care
21    professional  or health care provider shall not be based upon
22    rates agreed to by the professional or  provider  in  another
23    contract.
24        (b)  Payment  to  a professional or provider for services
25    provided may not be reduced using  an  amount,  discount,  or
26    payment   reduction   formula   or   methodology   that   the
27    professional  or  provider  has not directly and specifically
28    agreed upon and  is  included  in  the  written  contract  as
29    applying to the service in question.
30        (c)  A  method or process that allows the professional or
31    provider to ascertain the payment  amounts  for  each  health
32    care service shall be provided prior to signing the contract,
 
                            -4-            LRB9215452JSpcam01
 1    and  if  the health care professional or health care provider
 2    is not paid on  a  service  by  service  basis,  the  amounts
 3    payable  and  terms of payment under that alternative payment
 4    system shall be stated.
 5        (d)  A method or process that allows the professional  or
 6    provider  to ascertain any claims adjudication processes that
 7    affect under what circumstances a service will be paid  shall
 8    be provided prior to signing the contract.
 9        (e)  Nothing  in  this  Section  shall prohibit a company
10    from establishing payment amounts for service codes  for  new
11    services.

12        (215 ILCS 5/351E-25 new)
13        Sec.  351E-25.  Payment advice. A payment statement shall
14    be furnished to a health care  professional  or  health  care
15    provider  for  services  provided  under  the  contract  that
16    identifies  the disposition of each claim, including services
17    billed, the contracted payment rates, and the actual payment,
18    if any, for the services billed, the reason for  any  payment
19    reduction  to  the claim submitted, and the reason for denial
20    of any claim. Nothing in this Section requires that a  health
21    care  professional  or  health  care  provider  be  paid on a
22    service by service basis.  Payments  may  be  made  based  on
23    capitation  and other payment arrangements. The company shall
24    pay to health care professionals and  health  care  providers
25    the  amount  specified  in  the  contract  for  the  services
26    provided  reduced  only  by  any  amounts due from enrollees,
27    beneficiaries, or insureds such as  coinsurance,  copayments,
28    and  deductibles.   Health care professionals and health care
29    providers shall be allowed to collect such amounts  due  from
30    enrollees, beneficiaries, or insureds.

31        (215 ILCS 5/351E-30 new)
32        Sec.    351E-30.  Proposed   changes.   A   health   care
 
                            -5-            LRB9215452JSpcam01
 1    professional  or  health  care  provider  shall  be  provided
 2    written notice  of  any  proposed  material  changes  to  the
 3    contract  or its administrative policies. The professional or
 4    provider shall be given  the  opportunity  to  terminate  the
 5    contract  prior to the effective date of the proposed change.
 6    At least 90 days notice  of  any  proposed  change  shall  be
 7    provided.

 8        (215 ILCS 5/351E-35 new)
 9        Sec.   351E-35.  Noncovered   services.   A  health  care
10    professional and health care provider may  bill  and  collect
11    payments from enrollees, beneficiaries, insureds, or patients
12    for  services  not  covered for the enrollees, beneficiaries,
13    insureds, or patients.

14        (215 ILCS 5/351E-40 new)
15        Sec. 351E-40.  Billing for  covered  services.  A  health
16    care professional or health care provider shall be allowed to
17    submit  an initial claim for services within 6 months and any
18    final claim within one year  after  the  date  services  were
19    rendered.

20        (215 ILCS 5/351E-45 new)
21        Sec.   351E-45.  Recoupments.   Any   attempt  to  recoup
22    payments  shall  be  initiated   by   providing   a   written
23    explanation  of  any  proposed recoupment, including, but not
24    limited to, the name of the patient, the date of service, the
25    service code, and the payment amount, the details  concerning
26    the  reasons  for  the  recoupment, and an explanation of the
27    appeal process. A health care  professional  or  health  care
28    provider  shall  be  given  60  days  to  appeal the proposed
29    recoupment  or  to  repay  the  recoupment  amount.  If   the
30    professional  or  provider  chooses  to  appeal  the proposed
31    recoupment and,  upon  appeal,  the  proposed  recoupment  is
 
                            -6-            LRB9215452JSpcam01
 1    determined  to  be  appropriate, the professional or provider
 2    must pay the recoupment within 30 days  after  receiving  the
 3    notice of the final appeal's decision. If the professional or
 4    provider does not make any required recoupment payment within
 5    these  time frames, the company may offset future payments to
 6    effectuate the recoupment. Attempts to  recoup  any  payments
 7    shall  be  initiated  within  24  months  after  the  date of
 8    service, except in an  instance  in  which  the  health  care
 9    professional or health care provider has been found guilty of
10    committing civil or criminal insurance fraud.

11        (215 ILCS 5/351E-50 new)
12        Sec.  351E-50.  Prohibition of waiver of requirements and
13    prohibitions. No contract or  administrative  policy,  either
14    formal  or  informal,  shall  contain  any  provision,  term,
15    condition,  or procedure that limits, restricts, or otherwise
16    waives any of the requirements and prohibitions set forth  in
17    this  Article. Any provision purporting to make such a waiver
18    is void and unenforceable.

19        (215 ILCS 5/351E-55 new)
20        Sec.  351E-55.  Employment  contracts.  Nothing  in  this
21    Article shall  be  construed  to  mean  that  a  health  care
22    professional  employment  contract  is  addressed  under this
23    Article.

24        (215 ILCS 5/351E-60 new)
25        Sec.  351E-60.  Rulemaking.  The  Director  of  Insurance
26    shall issue such rules as he or she shall deem  necessary  to
27    administer this Article.

28        (215 ILCS 5/351E-65 new)
29        Sec.  351E-65.  Enforcement. The Department shall enforce
30    the provisions of this Article pursuant  to  the  enforcement
 
                            -7-            LRB9215452JSpcam01
 1    powers  granted  it  by law. The Department is hereby granted
 2    specific authority to issue a cease and desist order,  impose
 3    a civil penalty, or otherwise penalize persons violating this
 4    Article.

 5        (215 ILCS 5/351E-70 new)
 6        Sec. 351E-70.  Applicability.
 7        (a)  This  Article  applies  to  any  contract  between a
 8    company  and  a  health  care  professional  or  health  care
 9    provider for the provision of health care  services  amended,
10    delivered,  issued, or renewed on or after the effective date
11    of this amendatory Act of the 92nd General Assembly.
12        (b)  This  Article   does   not   diminish   duties   and
13    responsibilities  under  other  federal or State law or rules
14    promulgated thereunder.
15        (c)  This Article does not apply to  self-insured  health
16    plans  under  the federal Employee Retirement Income Security
17    Act of 1974, however, this Article does  apply  to  companies
18    contracting on behalf of these health plans.

19        Section  90.  The  Health Maintenance Organization Act is
20    amended by changing Section 4-6.5 as follows:

21        (215 ILCS 125/4-6.5)
22        Sec. 4-6.5.  Required health benefits; Illinois Insurance
23    Code requirements.   A  health  maintenance  organization  is
24    subject  to  the  provisions  of  Article  XIXE  and Sections
25    155.37, 356t, 356u, and  356z.1  of  the  Illinois  Insurance
26    Code.
27    (Source:  P.A.  92-130,  eff.  7-20-01; 92-440, eff. 8-17-01;
28    revised 9-12-01.)

29        Section 99. Effective date. This  Act  takes  effect  180
30    days after becoming law.".

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