Public Act 094-0048
 
HB1197 Enrolled LRB094 06321 MKM 37764 b

    AN ACT concerning health.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 1. Short title. This Act may be cited as the FY2006
Budget Implementation (Human Services) Act.
 
    Section 5. Purpose. It is the purpose of this Act to
implement the Governor's FY2006 budget recommendations
concerning human services.
 
    Section 10. The Illinois Administrative Procedure Act is
amended by changing Section 5-45 as follows:
 
    (5 ILCS 100/5-45)  (from Ch. 127, par. 1005-45)
    Sec. 5-45. Emergency rulemaking.
    (a) "Emergency" means the existence of any situation that
any agency finds reasonably constitutes a threat to the public
interest, safety, or welfare.
    (b) If any agency finds that an emergency exists that
requires adoption of a rule upon fewer days than is required by
Section 5-40 and states in writing its reasons for that
finding, the agency may adopt an emergency rule without prior
notice or hearing upon filing a notice of emergency rulemaking
with the Secretary of State under Section 5-70. The notice
shall include the text of the emergency rule and shall be
published in the Illinois Register. Consent orders or other
court orders adopting settlements negotiated by an agency may
be adopted under this Section. Subject to applicable
constitutional or statutory provisions, an emergency rule
becomes effective immediately upon filing under Section 5-65 or
at a stated date less than 10 days thereafter. The agency's
finding and a statement of the specific reasons for the finding
shall be filed with the rule. The agency shall take reasonable
and appropriate measures to make emergency rules known to the
persons who may be affected by them.
    (c) An emergency rule may be effective for a period of not
longer than 150 days, but the agency's authority to adopt an
identical rule under Section 5-40 is not precluded. No
emergency rule may be adopted more than once in any 24 month
period, except that this limitation on the number of emergency
rules that may be adopted in a 24 month period does not apply
to (i) emergency rules that make additions to and deletions
from the Drug Manual under Section 5-5.16 of the Illinois
Public Aid Code or the generic drug formulary under Section
3.14 of the Illinois Food, Drug and Cosmetic Act, (ii)
emergency rules adopted by the Pollution Control Board before
July 1, 1997 to implement portions of the Livestock Management
Facilities Act, ; or (iii) emergency rules adopted by the
Illinois Department of Public Health under subsections (a)
through (i) of Section 2 of the Department of Public Health Act
when necessary to protect the public's health. Two or more
emergency rules having substantially the same purpose and
effect shall be deemed to be a single rule for purposes of this
Section.
    (d) In order to provide for the expeditious and timely
implementation of the State's fiscal year 1999 budget,
emergency rules to implement any provision of Public Act 90-587
or 90-588 or any other budget initiative for fiscal year 1999
may be adopted in accordance with this Section by the agency
charged with administering that provision or initiative,
except that the 24-month limitation on the adoption of
emergency rules and the provisions of Sections 5-115 and 5-125
do not apply to rules adopted under this subsection (d). The
adoption of emergency rules authorized by this subsection (d)
shall be deemed to be necessary for the public interest,
safety, and welfare.
    (e) In order to provide for the expeditious and timely
implementation of the State's fiscal year 2000 budget,
emergency rules to implement any provision of this amendatory
Act of the 91st General Assembly or any other budget initiative
for fiscal year 2000 may be adopted in accordance with this
Section by the agency charged with administering that provision
or initiative, except that the 24-month limitation on the
adoption of emergency rules and the provisions of Sections
5-115 and 5-125 do not apply to rules adopted under this
subsection (e). The adoption of emergency rules authorized by
this subsection (e) shall be deemed to be necessary for the
public interest, safety, and welfare.
    (f) In order to provide for the expeditious and timely
implementation of the State's fiscal year 2001 budget,
emergency rules to implement any provision of this amendatory
Act of the 91st General Assembly or any other budget initiative
for fiscal year 2001 may be adopted in accordance with this
Section by the agency charged with administering that provision
or initiative, except that the 24-month limitation on the
adoption of emergency rules and the provisions of Sections
5-115 and 5-125 do not apply to rules adopted under this
subsection (f). The adoption of emergency rules authorized by
this subsection (f) shall be deemed to be necessary for the
public interest, safety, and welfare.
    (g) In order to provide for the expeditious and timely
implementation of the State's fiscal year 2002 budget,
emergency rules to implement any provision of this amendatory
Act of the 92nd General Assembly or any other budget initiative
for fiscal year 2002 may be adopted in accordance with this
Section by the agency charged with administering that provision
or initiative, except that the 24-month limitation on the
adoption of emergency rules and the provisions of Sections
5-115 and 5-125 do not apply to rules adopted under this
subsection (g). The adoption of emergency rules authorized by
this subsection (g) shall be deemed to be necessary for the
public interest, safety, and welfare.
    (h) In order to provide for the expeditious and timely
implementation of the State's fiscal year 2003 budget,
emergency rules to implement any provision of this amendatory
Act of the 92nd General Assembly or any other budget initiative
for fiscal year 2003 may be adopted in accordance with this
Section by the agency charged with administering that provision
or initiative, except that the 24-month limitation on the
adoption of emergency rules and the provisions of Sections
5-115 and 5-125 do not apply to rules adopted under this
subsection (h). The adoption of emergency rules authorized by
this subsection (h) shall be deemed to be necessary for the
public interest, safety, and welfare.
    (i) In order to provide for the expeditious and timely
implementation of the State's fiscal year 2004 budget,
emergency rules to implement any provision of this amendatory
Act of the 93rd General Assembly or any other budget initiative
for fiscal year 2004 may be adopted in accordance with this
Section by the agency charged with administering that provision
or initiative, except that the 24-month limitation on the
adoption of emergency rules and the provisions of Sections
5-115 and 5-125 do not apply to rules adopted under this
subsection (i). The adoption of emergency rules authorized by
this subsection (i) shall be deemed to be necessary for the
public interest, safety, and welfare.
    (j) In order to provide for the expeditious and timely
implementation of the provisions of the State's fiscal year
2005 budget as provided under the Fiscal Year 2005 Budget
Implementation (Human Services) Act, emergency rules to
implement any provision of the Fiscal Year 2005 Budget
Implementation (Human Services) Act may be adopted in
accordance with this Section by the agency charged with
administering that provision, except that the 24-month
limitation on the adoption of emergency rules and the
provisions of Sections 5-115 and 5-125 do not apply to rules
adopted under this subsection (j). The Department of Public Aid
may also adopt rules under this subsection (j) necessary to
administer the Illinois Public Aid Code and the Children's
Health Insurance Program Act. The adoption of emergency rules
authorized by this subsection (j) shall be deemed to be
necessary for the public interest, safety, and welfare.
    (k) In order to provide for the expeditious and timely
implementation of the provisions of the State's fiscal year
2006 budget, emergency rules to implement any provision of this
amendatory Act of the 94th General Assembly or any other budget
initiative for fiscal year 2006 may be adopted in accordance
with this Section by the agency charged with administering that
provision or initiative, except that the 24-month limitation on
the adoption of emergency rules and the provisions of Sections
5-115 and 5-125 do not apply to rules adopted under this
subsection (k). The Department of Public Aid may also adopt
rules under this subsection (k) necessary to administer the
Illinois Public Aid Code, the Senior Citizens and Disabled
Persons Property Tax Relief and Pharmaceutical Assistance Act,
the Senior Citizens and Disabled Persons Prescription Drug
Discount Program Act, and the Children's Health Insurance
Program Act. The adoption of emergency rules authorized by this
subsection (k) shall be deemed to be necessary for the public
interest, safety, and welfare.
(Source: P.A. 92-10, eff. 6-11-01; 92-597, eff. 6-28-02; 93-20,
eff. 6-20-03; 93-829, eff. 7-28-04; 93-841, eff. 7-30-04;
revised 10-25-04.)
 
    Section 12. The Illinois Act on the Aging is amended by
changing Section 4.02 as follows:
 
    (20 ILCS 105/4.02)  (from Ch. 23, par. 6104.02)
    Sec. 4.02. The Department shall establish a program of
services to prevent unnecessary institutionalization of
persons age 60 and older in need of long term care or who are
established as persons who suffer from Alzheimer's disease or a
related disorder under the Alzheimer's Disease Assistance Act,
thereby enabling them to remain in their own homes or in other
living arrangements. Such preventive services, which may be
coordinated with other programs for the aged and monitored by
area agencies on aging in cooperation with the Department, may
include, but are not limited to, any or all of the following:
        (a) home health services;
        (b) home nursing services;
        (c) homemaker services;
        (d) chore and housekeeping services;
        (e) day care services;
        (f) home-delivered meals;
        (g) education in self-care;
        (h) personal care services;
        (i) adult day health services;
        (j) habilitation services;
        (k) respite care;
        (k-5) community reintegration services;
        (l) other nonmedical social services that may enable
    the person to become self-supporting; or
        (m) clearinghouse for information provided by senior
    citizen home owners who want to rent rooms to or share
    living space with other senior citizens.
    The Department shall establish eligibility standards for
such services taking into consideration the unique economic and
social needs of the target population for whom they are to be
provided. Such eligibility standards shall be based on the
recipient's ability to pay for services; provided, however,
that in determining the amount and nature of services for which
a person may qualify, consideration shall not be given to the
value of cash, property or other assets held in the name of the
person's spouse pursuant to a written agreement dividing
marital property into equal but separate shares or pursuant to
a transfer of the person's interest in a home to his spouse,
provided that the spouse's share of the marital property is not
made available to the person seeking such services.
    Beginning July 1, 2002, the Department shall require as a
condition of eligibility that all financially eligible
applicants and recipients apply for medical assistance under
Article V of the Illinois Public Aid Code in accordance with
rules promulgated by the Department.
    The Department shall, in conjunction with the Department of
Public Aid, seek appropriate amendments under Sections 1915 and
1924 of the Social Security Act. The purpose of the amendments
shall be to extend eligibility for home and community based
services under Sections 1915 and 1924 of the Social Security
Act to persons who transfer to or for the benefit of a spouse
those amounts of income and resources allowed under Section
1924 of the Social Security Act. Subject to the approval of
such amendments, the Department shall extend the provisions of
Section 5-4 of the Illinois Public Aid Code to persons who, but
for the provision of home or community-based services, would
require the level of care provided in an institution, as is
provided for in federal law. Those persons no longer found to
be eligible for receiving noninstitutional services due to
changes in the eligibility criteria shall be given 60 days
notice prior to actual termination. Those persons receiving
notice of termination may contact the Department and request
the determination be appealed at any time during the 60 day
notice period. With the exception of the lengthened notice and
time frame for the appeal request, the appeal process shall
follow the normal procedure. In addition, each person affected
regardless of the circumstances for discontinued eligibility
shall be given notice and the opportunity to purchase the
necessary services through the Community Care Program. If the
individual does not elect to purchase services, the Department
shall advise the individual of alternative services. The target
population identified for the purposes of this Section are
persons age 60 and older with an identified service need.
Priority shall be given to those who are at imminent risk of
institutionalization. The services shall be provided to
eligible persons age 60 and older to the extent that the cost
of the services together with the other personal maintenance
expenses of the persons are reasonably related to the standards
established for care in a group facility appropriate to the
person's condition. These non-institutional services, pilot
projects or experimental facilities may be provided as part of
or in addition to those authorized by federal law or those
funded and administered by the Department of Human Services.
The Departments of Human Services, Public Aid, Public Health,
Veterans' Affairs, and Commerce and Economic Opportunity and
other appropriate agencies of State, federal and local
governments shall cooperate with the Department on Aging in the
establishment and development of the non-institutional
services. The Department shall require an annual audit from all
chore/housekeeping and homemaker vendors contracting with the
Department under this Section. The annual audit shall assure
that each audited vendor's procedures are in compliance with
Department's financial reporting guidelines requiring an
administrative and employee wage and benefits cost split as
defined in administrative rules a 27% administrative cost split
and a 73% employee wages and benefits cost split. The audit is
a public record under the Freedom of Information Act. The
Department shall execute, relative to the nursing home
prescreening project, written inter-agency agreements with the
Department of Human Services and the Department of Public Aid,
to effect the following: (1) intake procedures and common
eligibility criteria for those persons who are receiving
non-institutional services; and (2) the establishment and
development of non-institutional services in areas of the State
where they are not currently available or are undeveloped. On
and after July 1, 1996, all nursing home prescreenings for
individuals 60 years of age or older shall be conducted by the
Department.
    The Department is authorized to establish a system of
recipient copayment for services provided under this Section,
such copayment to be based upon the recipient's ability to pay
but in no case to exceed the actual cost of the services
provided. Additionally, any portion of a person's income which
is equal to or less than the federal poverty standard shall not
be considered by the Department in determining the copayment.
The level of such copayment shall be adjusted whenever
necessary to reflect any change in the officially designated
federal poverty standard.
    The Department, or the Department's authorized
representative, shall recover the amount of moneys expended for
services provided to or in behalf of a person under this
Section by a claim against the person's estate or against the
estate of the person's surviving spouse, but no recovery may be
had until after the death of the surviving spouse, if any, and
then only at such time when there is no surviving child who is
under age 21, blind, or permanently and totally disabled. This
paragraph, however, shall not bar recovery, at the death of the
person, of moneys for services provided to the person or in
behalf of the person under this Section to which the person was
not entitled; provided that such recovery shall not be enforced
against any real estate while it is occupied as a homestead by
the surviving spouse or other dependent, if no claims by other
creditors have been filed against the estate, or, if such
claims have been filed, they remain dormant for failure of
prosecution or failure of the claimant to compel administration
of the estate for the purpose of payment. This paragraph shall
not bar recovery from the estate of a spouse, under Sections
1915 and 1924 of the Social Security Act and Section 5-4 of the
Illinois Public Aid Code, who precedes a person receiving
services under this Section in death. All moneys for services
paid to or in behalf of the person under this Section shall be
claimed for recovery from the deceased spouse's estate.
"Homestead", as used in this paragraph, means the dwelling
house and contiguous real estate occupied by a surviving spouse
or relative, as defined by the rules and regulations of the
Illinois Department of Public Aid, regardless of the value of
the property.
    The Department shall develop procedures to enhance
availability of services on evenings, weekends, and on an
emergency basis to meet the respite needs of caregivers.
Procedures shall be developed to permit the utilization of
services in successive blocks of 24 hours up to the monthly
maximum established by the Department. Workers providing these
services shall be appropriately trained.
    Beginning on the effective date of this Amendatory Act of
1991, no person may perform chore/housekeeping and homemaker
services under a program authorized by this Section unless that
person has been issued a certificate of pre-service to do so by
his or her employing agency. Information gathered to effect
such certification shall include (i) the person's name, (ii)
the date the person was hired by his or her current employer,
and (iii) the training, including dates and levels. Persons
engaged in the program authorized by this Section before the
effective date of this amendatory Act of 1991 shall be issued a
certificate of all pre- and in-service training from his or her
employer upon submitting the necessary information. The
employing agency shall be required to retain records of all
staff pre- and in-service training, and shall provide such
records to the Department upon request and upon termination of
the employer's contract with the Department. In addition, the
employing agency is responsible for the issuance of
certifications of in-service training completed to their
employees.
    The Department is required to develop a system to ensure
that persons working as homemakers and chore housekeepers
receive increases in their wages when the federal minimum wage
is increased by requiring vendors to certify that they are
meeting the federal minimum wage statute for homemakers and
chore housekeepers. An employer that cannot ensure that the
minimum wage increase is being given to homemakers and chore
housekeepers shall be denied any increase in reimbursement
costs.
    The Department on Aging and the Department of Human
Services shall cooperate in the development and submission of
an annual report on programs and services provided under this
Section. Such joint report shall be filed with the Governor and
the General Assembly on or before September 30 each year.
    The requirement for reporting to the General Assembly shall
be satisfied by filing copies of the report with the Speaker,
the Minority Leader and the Clerk of the House of
Representatives and the President, the Minority Leader and the
Secretary of the Senate and the Legislative Research Unit, as
required by Section 3.1 of the General Assembly Organization
Act and filing such additional copies with the State Government
Report Distribution Center for the General Assembly as is
required under paragraph (t) of Section 7 of the State Library
Act.
    Those persons previously found eligible for receiving
non-institutional services whose services were discontinued
under the Emergency Budget Act of Fiscal Year 1992, and who do
not meet the eligibility standards in effect on or after July
1, 1992, shall remain ineligible on and after July 1, 1992.
Those persons previously not required to cost-share and who
were required to cost-share effective March 1, 1992, shall
continue to meet cost-share requirements on and after July 1,
1992. Beginning July 1, 1992, all clients will be required to
meet eligibility, cost-share, and other requirements and will
have services discontinued or altered when they fail to meet
these requirements.
(Source: P.A. 92-597, eff. 6-28-02; 93-85, eff. 1-1-04; 93-902,
eff. 8-10-04.)
 
    Section 15. The Children's Health Insurance Program Act is
amended by changing Section 30 as follows:
 
    (215 ILCS 106/30)
    Sec. 30. Cost sharing.
    (a) Children enrolled in a health benefits program pursuant
to subdivision (a)(2) of Section 25 and persons enrolled in a
health benefits waiver program pursuant to Section 40 shall be
subject to the following cost sharing requirements:
        (1) There shall be no co-payment required for well-baby
    or well-child care, including age-appropriate
    immunizations as required under federal law.
        (2) Health insurance premiums for family members,
    either children or adults, in families whose household
    income is above 150% of the federal poverty level shall be
    payable monthly, subject to rules promulgated by the
    Department for grace periods and advance payments, and
    shall be as follows:
            (A) $15 per month for one family member child.
            (B) $25 per month for 2 family members children.
            (C) $30 per month for 3 family members or more
        children.
            (D) $35 per month for 4 family members.
            (E) $40 per month for 5 or more family members.
        (3) Co-payments for children or adults in families
    whose income is at or below 150% of the federal poverty
    level, at a minimum and to the extent permitted under
    federal law, shall be $2 for all medical visits and
    prescriptions provided under this Act.
        (4) Co-payments for children or adults in families
    whose income is above 150% of the federal poverty level, at
    a minimum and to the extent permitted under federal law
    shall be as follows:
            (A) $5 for medical visits.
            (B) $3 for generic prescriptions and $5 for brand
        name prescriptions.
            (C) $25 for emergency room use for a non-emergency
        situation as defined by the Department by rule.
        (5) The maximum amount of out-of-pocket expenses for
    co-payments shall be $100 per family per year.
    (b) Individuals enrolled in a privately sponsored health
insurance plan pursuant to subdivision (a)(1) of Section 25
shall be subject to the cost sharing provisions as stated in
the privately sponsored health insurance plan.
(Source: P.A. 90-736, eff. 8-12-98; 91-266, eff. 7-23-99.)
 
    Section 20. The Illinois Public Aid Code is amended by
changing Sections 5-5.4, 5-5.12, 5-11, and 12-4.35 as follows:
 
    (305 ILCS 5/5-5.4)  (from Ch. 23, par. 5-5.4)
    Sec. 5-5.4. Standards of Payment - Department of Public
Aid. The Department of Public Aid shall develop standards of
payment of skilled nursing and intermediate care services in
facilities providing such services under this Article which:
    (1) Provide for the determination of a facility's payment
for skilled nursing and intermediate care services on a
prospective basis. The amount of the payment rate for all
nursing facilities certified by the Department of Public Health
under the Nursing Home Care Act as Intermediate Care for the
Developmentally Disabled facilities, Long Term Care for Under
Age 22 facilities, Skilled Nursing facilities, or Intermediate
Care facilities under the medical assistance program shall be
prospectively established annually on the basis of historical,
financial, and statistical data reflecting actual costs from
prior years, which shall be applied to the current rate year
and updated for inflation, except that the capital cost element
for newly constructed facilities shall be based upon projected
budgets. The annually established payment rate shall take
effect on July 1 in 1984 and subsequent years. No rate increase
and no update for inflation shall be provided on or after July
1, 1994 and before July 1, 2006 2005, unless specifically
provided for in this Section. The changes made by this
amendatory Act of the 93rd General Assembly extending the
duration of the prohibition against a rate increase or update
for inflation are effective retroactive to July 1, 2004.
    For facilities licensed by the Department of Public Health
under the Nursing Home Care Act as Intermediate Care for the
Developmentally Disabled facilities or Long Term Care for Under
Age 22 facilities, the rates taking effect on July 1, 1998
shall include an increase of 3%. For facilities licensed by the
Department of Public Health under the Nursing Home Care Act as
Skilled Nursing facilities or Intermediate Care facilities,
the rates taking effect on July 1, 1998 shall include an
increase of 3% plus $1.10 per resident-day, as defined by the
Department.
    For facilities licensed by the Department of Public Health
under the Nursing Home Care Act as Intermediate Care for the
Developmentally Disabled facilities or Long Term Care for Under
Age 22 facilities, the rates taking effect on July 1, 1999
shall include an increase of 1.6% plus $3.00 per resident-day,
as defined by the Department. For facilities licensed by the
Department of Public Health under the Nursing Home Care Act as
Skilled Nursing facilities or Intermediate Care facilities,
the rates taking effect on July 1, 1999 shall include an
increase of 1.6% and, for services provided on or after October
1, 1999, shall be increased by $4.00 per resident-day, as
defined by the Department.
    For facilities licensed by the Department of Public Health
under the Nursing Home Care Act as Intermediate Care for the
Developmentally Disabled facilities or Long Term Care for Under
Age 22 facilities, the rates taking effect on July 1, 2000
shall include an increase of 2.5% per resident-day, as defined
by the Department. For facilities licensed by the Department of
Public Health under the Nursing Home Care Act as Skilled
Nursing facilities or Intermediate Care facilities, the rates
taking effect on July 1, 2000 shall include an increase of 2.5%
per resident-day, as defined by the Department.
    For facilities licensed by the Department of Public Health
under the Nursing Home Care Act as skilled nursing facilities
or intermediate care facilities, a new payment methodology must
be implemented for the nursing component of the rate effective
July 1, 2003. The Department of Public Aid shall develop the
new payment methodology using the Minimum Data Set (MDS) as the
instrument to collect information concerning nursing home
resident condition necessary to compute the rate. The
Department of Public Aid shall develop the new payment
methodology to meet the unique needs of Illinois nursing home
residents while remaining subject to the appropriations
provided by the General Assembly. A transition period from the
payment methodology in effect on June 30, 2003 to the payment
methodology in effect on July 1, 2003 shall be provided for a
period not exceeding 2 years after implementation of the new
payment methodology as follows:
        (A) For a facility that would receive a lower nursing
    component rate per patient day under the new system than
    the facility received effective on the date immediately
    preceding the date that the Department implements the new
    payment methodology, the nursing component rate per
    patient day for the facility shall be held at the level in
    effect on the date immediately preceding the date that the
    Department implements the new payment methodology until a
    higher nursing component rate of reimbursement is achieved
    by that facility.
        (B) For a facility that would receive a higher nursing
    component rate per patient day under the payment
    methodology in effect on July 1, 2003 than the facility
    received effective on the date immediately preceding the
    date that the Department implements the new payment
    methodology, the nursing component rate per patient day for
    the facility shall be adjusted.
        (C) Notwithstanding paragraphs (A) and (B), the
    nursing component rate per patient day for the facility
    shall be adjusted subject to appropriations provided by the
    General Assembly.
    For facilities licensed by the Department of Public Health
under the Nursing Home Care Act as Intermediate Care for the
Developmentally Disabled facilities or Long Term Care for Under
Age 22 facilities, the rates taking effect on March 1, 2001
shall include a statewide increase of 7.85%, as defined by the
Department.
    For facilities licensed by the Department of Public Health
under the Nursing Home Care Act as Intermediate Care for the
Developmentally Disabled facilities or Long Term Care for Under
Age 22 facilities, the rates taking effect on April 1, 2002
shall include a statewide increase of 2.0%, as defined by the
Department. This increase terminates on July 1, 2002; beginning
July 1, 2002 these rates are reduced to the level of the rates
in effect on March 31, 2002, as defined by the Department.
    For facilities licensed by the Department of Public Health
under the Nursing Home Care Act as skilled nursing facilities
or intermediate care facilities, the rates taking effect on
July 1, 2001 shall be computed using the most recent cost
reports on file with the Department of Public Aid no later than
April 1, 2000, updated for inflation to January 1, 2001. For
rates effective July 1, 2001 only, rates shall be the greater
of the rate computed for July 1, 2001 or the rate effective on
June 30, 2001.
    Notwithstanding any other provision of this Section, for
facilities licensed by the Department of Public Health under
the Nursing Home Care Act as skilled nursing facilities or
intermediate care facilities, the Illinois Department shall
determine by rule the rates taking effect on July 1, 2002,
which shall be 5.9% less than the rates in effect on June 30,
2002.
    Notwithstanding any other provision of this Section, for
facilities licensed by the Department of Public Health under
the Nursing Home Care Act as skilled nursing facilities or
intermediate care facilities, if the payment methodologies
required under Section 5A-12 and the waiver granted under 42
CFR 433.68 are approved by the United States Centers for
Medicare and Medicaid Services, the rates taking effect on July
1, 2004 shall be 3.0% greater than the rates in effect on June
30, 2004. These rates shall take effect only upon approval and
implementation of the payment methodologies required under
Section 5A-12.
    Notwithstanding any other provisions of this Section, for
facilities licensed by the Department of Public Health under
the Nursing Home Care Act as skilled nursing facilities or
intermediate care facilities, the rates taking effect on
January 1, 2005 shall be 3% more than the rates in effect on
December 31, 2004.
    For facilities licensed by the Department of Public Health
under the Nursing Home Care Act as Intermediate Care for the
Developmentally Disabled facilities or as long-term care
facilities for residents under 22 years of age, the rates
taking effect on July 1, 2003 shall include a statewide
increase of 4%, as defined by the Department.
    Notwithstanding any other provision of this Section, for
facilities licensed by the Department of Public Health under
the Nursing Home Care Act as skilled nursing facilities or
intermediate care facilities, effective January 1, 2005,
facility rates shall be increased by the difference between (i)
a facility's per diem property, liability, and malpractice
insurance costs as reported in the cost report filed with the
Department of Public Aid and used to establish rates effective
July 1, 2001 and (ii) those same costs as reported in the
facility's 2002 cost report. These costs shall be passed
through to the facility without caps or limitations, except for
adjustments required under normal auditing procedures.
    Rates established effective each July 1 shall govern
payment for services rendered throughout that fiscal year,
except that rates established on July 1, 1996 shall be
increased by 6.8% for services provided on or after January 1,
1997. Such rates will be based upon the rates calculated for
the year beginning July 1, 1990, and for subsequent years
thereafter until June 30, 2001 shall be based on the facility
cost reports for the facility fiscal year ending at any point
in time during the previous calendar year, updated to the
midpoint of the rate year. The cost report shall be on file
with the Department no later than April 1 of the current rate
year. Should the cost report not be on file by April 1, the
Department shall base the rate on the latest cost report filed
by each skilled care facility and intermediate care facility,
updated to the midpoint of the current rate year. In
determining rates for services rendered on and after July 1,
1985, fixed time shall not be computed at less than zero. The
Department shall not make any alterations of regulations which
would reduce any component of the Medicaid rate to a level
below what that component would have been utilizing in the rate
effective on July 1, 1984.
    (2) Shall take into account the actual costs incurred by
facilities in providing services for recipients of skilled
nursing and intermediate care services under the medical
assistance program.
    (3) Shall take into account the medical and psycho-social
characteristics and needs of the patients.
    (4) Shall take into account the actual costs incurred by
facilities in meeting licensing and certification standards
imposed and prescribed by the State of Illinois, any of its
political subdivisions or municipalities and by the U.S.
Department of Health and Human Services pursuant to Title XIX
of the Social Security Act.
    The Department of Public Aid shall develop precise
standards for payments to reimburse nursing facilities for any
utilization of appropriate rehabilitative personnel for the
provision of rehabilitative services which is authorized by
federal regulations, including reimbursement for services
provided by qualified therapists or qualified assistants, and
which is in accordance with accepted professional practices.
Reimbursement also may be made for utilization of other
supportive personnel under appropriate supervision.
(Source: P.A. 92-10, eff. 6-11-01; 92-31, eff. 6-28-01; 92-597,
eff. 6-28-02; 92-651, eff. 7-11-02; 92-848, eff. 1-1-03; 93-20,
eff. 6-20-03; 93-649, eff. 1-8-04; 93-659, eff. 2-3-04; 93-841,
eff. 7-30-04; 93-1087, eff. 2-28-05.)
 
    (305 ILCS 5/5-5.12)  (from Ch. 23, par. 5-5.12)
    Sec. 5-5.12. Pharmacy payments.
    (a) Every request submitted by a pharmacy for reimbursement
under this Article for prescription drugs provided to a
recipient of aid under this Article shall include the name of
the prescriber or an acceptable identification number as
established by the Department.
    (b) Pharmacies providing prescription drugs under this
Article shall be reimbursed at a rate which shall include a
professional dispensing fee as determined by the Illinois
Department, plus the current acquisition cost of the
prescription drug dispensed. The Illinois Department shall
update its information on the acquisition costs of all
prescription drugs no less frequently than every 30 days.
However, the Illinois Department may set the rate of
reimbursement for the acquisition cost, by rule, at a
percentage of the current average wholesale acquisition cost.
    (c) (Blank). Reimbursement under this Article for
prescription drugs shall be limited to reimbursement for 4
brand-name prescription drugs per patient per month. This
subsection applies only if (i) the brand-name drug was not
prescribed for an acute or urgent condition, (ii) the
brand-name drug was not prescribed for Alzheimer's disease,
arthritis, diabetes, HIV/AIDS, a mental health condition, or
respiratory disease, and (iii) a therapeutically equivalent
generic medication has been approved by the federal Food and
Drug Administration.
    (d) The Department shall not impose requirements for prior
approval based on a preferred drug list for anti-retroviral,
anti-hemophilic factor concentrates, or any atypical
antipsychotics, conventional antipsychotics, or
anticonvulsants used for the treatment of serious mental
illnesses until 30 days after it has conducted a study of the
impact of such requirements on patient care and submitted a
report to the Speaker of the House of Representatives and the
President of the Senate.
(Source: P.A. 92-597, eff. 6-28-02; 92-825, eff. 8-21-02;
93-106, eff. 7-8-03.)
 
    (305 ILCS 5/5-11)  (from Ch. 23, par. 5-11)
    Sec. 5-11. Co-operative arrangements; contracts with other
State agencies, health care and rehabilitation organizations,
and fiscal intermediaries.
    (a) The Illinois Department may enter into co-operative
arrangements with State agencies responsible for administering
or supervising the administration of health services and
vocational rehabilitation services to the end that there may be
maximum utilization of such services in the provision of
medical assistance.
    The Illinois Department shall, not later than June 30,
1993, enter into one or more co-operative arrangements with the
Department of Mental Health and Developmental Disabilities
providing that the Department of Mental Health and
Developmental Disabilities will be responsible for
administering or supervising all programs for services to
persons in community care facilities for persons with
developmental disabilities, including but not limited to
intermediate care facilities, that are supported by State funds
or by funding under Title XIX of the federal Social Security
Act. The responsibilities of the Department of Mental Health
and Developmental Disabilities under these agreements are
transferred to the Department of Human Services as provided in
the Department of Human Services Act.
    The Department may also contract with such State health and
rehabilitation agencies and other public or private health care
and rehabilitation organizations to act for it in supplying
designated medical services to persons eligible therefor under
this Article. Any contracts with health services or health
maintenance organizations shall be restricted to organizations
which have been certified as being in compliance with standards
promulgated pursuant to the laws of this State governing the
establishment and operation of health services or health
maintenance organizations. The Department shall renegotiate
the contracts with health maintenance organizations and
managed care community networks that took effect August 1,
2003, so as to produce $70,000,000 savings to the Department
net of resulting increases to the fee-for-service program for
State fiscal year 2006. The Department may also contract with
insurance companies or other corporate entities serving as
fiscal intermediaries in this State for the Federal Government
in respect to Medicare payments under Title XVIII of the
Federal Social Security Act to act for the Department in paying
medical care suppliers. The provisions of Section 9 of "An Act
in relation to State finance", approved June 10, 1919, as
amended, notwithstanding, such contracts with State agencies,
other health care and rehabilitation organizations, or fiscal
intermediaries may provide for advance payments.
    (b) For purposes of this subsection (b), "managed care
community network" means an entity, other than a health
maintenance organization, that is owned, operated, or governed
by providers of health care services within this State and that
provides or arranges primary, secondary, and tertiary managed
health care services under contract with the Illinois
Department exclusively to persons participating in programs
administered by the Illinois Department.
    The Illinois Department may certify managed care community
networks, including managed care community networks owned,
operated, managed, or governed by State-funded medical
schools, as risk-bearing entities eligible to contract with the
Illinois Department as Medicaid managed care organizations.
The Illinois Department may contract with those managed care
community networks to furnish health care services to or
arrange those services for individuals participating in
programs administered by the Illinois Department. The rates for
those provider-sponsored organizations may be determined on a
prepaid, capitated basis. A managed care community network may
choose to contract with the Illinois Department to provide only
pediatric health care services. The Illinois Department shall
by rule adopt the criteria, standards, and procedures by which
a managed care community network may be permitted to contract
with the Illinois Department and shall consult with the
Department of Insurance in adopting these rules.
    A county provider as defined in Section 15-1 of this Code
may contract with the Illinois Department to provide primary,
secondary, or tertiary managed health care services as a
managed care community network without the need to establish a
separate entity and shall be deemed a managed care community
network for purposes of this Code only to the extent it
provides services to participating individuals. A county
provider is entitled to contract with the Illinois Department
with respect to any contracting region located in whole or in
part within the county. A county provider is not required to
accept enrollees who do not reside within the county.
    In order to (i) accelerate and facilitate the development
of integrated health care in contracting areas outside counties
with populations in excess of 3,000,000 and counties adjacent
to those counties and (ii) maintain and sustain the high
quality of education and residency programs coordinated and
associated with local area hospitals, the Illinois Department
may develop and implement a demonstration program from managed
care community networks owned, operated, managed, or governed
by State-funded medical schools. The Illinois Department shall
prescribe by rule the criteria, standards, and procedures for
effecting this demonstration program.
    A managed care community network that contracts with the
Illinois Department to furnish health care services to or
arrange those services for enrollees participating in programs
administered by the Illinois Department shall do all of the
following:
        (1) Provide that any provider affiliated with the
    managed care community network may also provide services on
    a fee-for-service basis to Illinois Department clients not
    enrolled in such managed care entities.
        (2) Provide client education services as determined
    and approved by the Illinois Department, including but not
    limited to (i) education regarding appropriate utilization
    of health care services in a managed care system, (ii)
    written disclosure of treatment policies and restrictions
    or limitations on health services, including, but not
    limited to, physical services, clinical laboratory tests,
    hospital and surgical procedures, prescription drugs and
    biologics, and radiological examinations, and (iii)
    written notice that the enrollee may receive from another
    provider those covered services that are not provided by
    the managed care community network.
        (3) Provide that enrollees within the system may choose
    the site for provision of services and the panel of health
    care providers.
        (4) Not discriminate in enrollment or disenrollment
    practices among recipients of medical services or
    enrollees based on health status.
        (5) Provide a quality assurance and utilization review
    program that meets the requirements established by the
    Illinois Department in rules that incorporate those
    standards set forth in the Health Maintenance Organization
    Act.
        (6) Issue a managed care community network
    identification card to each enrollee upon enrollment. The
    card must contain all of the following:
            (A) The enrollee's health plan.
            (B) The name and telephone number of the enrollee's
        primary care physician or the site for receiving
        primary care services.
            (C) A telephone number to be used to confirm
        eligibility for benefits and authorization for
        services that is available 24 hours per day, 7 days per
        week.
        (7) Ensure that every primary care physician and
    pharmacy in the managed care community network meets the
    standards established by the Illinois Department for
    accessibility and quality of care. The Illinois Department
    shall arrange for and oversee an evaluation of the
    standards established under this paragraph (7) and may
    recommend any necessary changes to these standards.
        (8) Provide a procedure for handling complaints that
    meets the requirements established by the Illinois
    Department in rules that incorporate those standards set
    forth in the Health Maintenance Organization Act.
        (9) Maintain, retain, and make available to the
    Illinois Department records, data, and information, in a
    uniform manner determined by the Illinois Department,
    sufficient for the Illinois Department to monitor
    utilization, accessibility, and quality of care.
        (10) Provide that the pharmacy formulary used by the
    managed care community network and its contract providers
    be no more restrictive than the Illinois Department's
    pharmaceutical program on the effective date of this
    amendatory Act of 1998 and as amended after that date.
    The Illinois Department shall contract with an entity or
entities to provide external peer-based quality assurance
review for the managed health care programs administered by the
Illinois Department. The entity shall be representative of
Illinois physicians licensed to practice medicine in all its
branches and have statewide geographic representation in all
specialities of medical care that are provided in managed
health care programs administered by the Illinois Department.
The entity may not be a third party payer and shall maintain
offices in locations around the State in order to provide
service and continuing medical education to physician
participants within those managed health care programs
administered by the Illinois Department. The review process
shall be developed and conducted by Illinois physicians
licensed to practice medicine in all its branches. In
consultation with the entity, the Illinois Department may
contract with other entities for professional peer-based
quality assurance review of individual categories of services
other than services provided, supervised, or coordinated by
physicians licensed to practice medicine in all its branches.
The Illinois Department shall establish, by rule, criteria to
avoid conflicts of interest in the conduct of quality assurance
activities consistent with professional peer-review standards.
All quality assurance activities shall be coordinated by the
Illinois Department.
    Each managed care community network must demonstrate its
ability to bear the financial risk of serving individuals under
this program. The Illinois Department shall by rule adopt
standards for assessing the solvency and financial soundness of
each managed care community network. Any solvency and financial
standards adopted for managed care community networks shall be
no more restrictive than the solvency and financial standards
adopted under Section 1856(a) of the Social Security Act for
provider-sponsored organizations under Part C of Title XVIII of
the Social Security Act.
    The Illinois Department may implement the amendatory
changes to this Code made by this amendatory Act of 1998
through the use of emergency rules in accordance with Section
5-45 of the Illinois Administrative Procedure Act. For purposes
of that Act, the adoption of rules to implement these changes
is deemed an emergency and necessary for the public interest,
safety, and welfare.
    (c) Not later than June 30, 1996, the Illinois Department
shall enter into one or more cooperative arrangements with the
Department of Public Health for the purpose of developing a
single survey for nursing facilities, including but not limited
to facilities funded under Title XVIII or Title XIX of the
federal Social Security Act or both, which shall be
administered and conducted solely by the Department of Public
Health. The Departments shall test the single survey process on
a pilot basis, with both the Departments of Public Aid and
Public Health represented on the consolidated survey team. The
pilot will sunset June 30, 1997. After June 30, 1997, unless
otherwise determined by the Governor, a single survey shall be
implemented by the Department of Public Health which would not
preclude staff from the Department of Public Aid from going
on-site to nursing facilities to perform necessary audits and
reviews which shall not replicate the single State agency
survey required by this Act. This Section shall not apply to
community or intermediate care facilities for persons with
developmental disabilities.
    (d) Nothing in this Code in any way limits or otherwise
impairs the authority or power of the Illinois Department to
enter into a negotiated contract pursuant to this Section with
a managed care community network or a health maintenance
organization, as defined in the Health Maintenance
Organization Act, that provides for termination or nonrenewal
of the contract without cause, upon notice as provided in the
contract, and without a hearing.
(Source: P.A. 92-370, eff. 8-15-01.)
 
    (305 ILCS 5/12-4.35)
    Sec. 12-4.35. Medical services for certain noncitizens.
    (a) Notwithstanding Subject to specific appropriation for
this purpose, and notwithstanding Section 1-11 of this Code or
Section 20(a) of the Children's Health Insurance Program Act,
the Department of Public Aid may provide medical services to
noncitizens who have not yet attained 19 years of age and who
are not eligible for medical assistance under Article V of this
Code or under the Children's Health Insurance Program created
by the Children's Health Insurance Program Act due to their not
meeting the otherwise applicable provisions of Section 1-11 of
this Code or Section 20(a) of the Children's Health Insurance
Program Act. The medical services available, standards for
eligibility, and other conditions of participation under this
Section shall be established by rule by the Department;
however, any such rule shall be at least as restrictive as the
rules for medical assistance under Article V of this Code or
the Children's Health Insurance Program created by the
Children's Health Insurance Program Act.
    (b) The Department is authorized to take any action,
including without limitation cessation of enrollment,
reduction of available medical services, and changing
standards for eligibility, that is deemed necessary by the
Department during a State fiscal year to assure that payments
under this Section do not exceed available funds the amounts
appropriated for this purpose.
    (c) Continued In the event that the appropriation in any
fiscal year for the Children's Health Insurance Program created
by the Children's Health Insurance Program Act is determined by
the Department to be insufficient to continue enrollment of
otherwise eligible children under that Program during that
fiscal year, the Department is authorized to use funds
appropriated for the purposes of this Section to fund that
Program and to take any other action necessary to continue the
operation of that Program. Furthermore, continued enrollment
of individuals into the program created under this Section in
any fiscal year is contingent upon continued enrollment of
individuals into the Children's Health Insurance Program
during that fiscal year.
    (d) (Blank). The General Assembly finds that the adoption
of rules to meet the purposes of subsections (a), (b), and (c)
is an emergency and necessary for the public interest, safety,
and welfare. The Department may adopt such rules through the
use of emergency rulemaking in accordance with Section 5-45 of
the Illinois Administrative Procedure Act, except that the
limitation on the number of emergency rules that may be adopted
in a 24-month period shall not apply.
(Source: P.A. 90-588, eff. 7-1-98.)
 
    Section 25. The All-Inclusive Care for the Elderly Act is
amended by changing Sections 10 and 15 as follows:
 
    (320 ILCS 40/10)  (from Ch. 23, par. 6910)
    Sec. 10. Services for eligible persons. Within the context
of the PACE program established under this Act, the Illinois
Department of Public Aid may include any or all of the services
in Article 5 of the Illinois Public Aid Code.
    An eligible person may elect to receive services from the
PACE program. If such an election is made, the eligible person
shall not remain eligible for payment through the regular
Medicare or Medicaid program. All services and programs
provided through the PACE program shall be provided in
accordance with this Act. An eligible person may elect to
disenroll from the PACE program at any time.
    For purposes of this Act, "eligible person" means a frail
elderly individual who voluntarily enrolls in the PACE program,
whose income and resources do not exceed limits established by
the Illinois Department of Public Aid and for whom a licensed
physician certifies that such a program provides an appropriate
alternative to institutionalized care. The term "frail
elderly" means an individual who meets the age and functional
eligibility requirements, as established by the Illinois
Department of Public Aid and the Department on Aging for
nursing home care, and who is 65 years of age or older.
(Source: P.A. 87-411.)
 
    (320 ILCS 40/15)  (from Ch. 23, par. 6915)
    Sec. 15. Program implementation.
    (a) Upon receipt of federal approval waivers, the Illinois
Department of Public Aid shall implement the PACE program
pursuant to the provisions of the approved Title XIX State plan
as a demonstration program to provide the services set forth in
Section 10 to eligible persons, as defined in Section 10, for a
period of 3 years. After the 3 year demonstration, the General
Assembly shall reexamine the PACE program and determine if the
program should be implemented on a permanent basis.
    (b) Using a risk-based financing model, the nonprofit
organization providing the PACE program shall assume
responsibility for all costs generated by the PACE program
participants, and it shall create and maintain a risk reserve
fund that will cover any cost overages for any participant. The
PACE program is responsible for the entire range of services in
the consolidated service model, including hospital and nursing
home care, according to participant need as determined by a
multidisciplinary team. The nonprofit organization providing
the PACE program is responsible for the full financial risk at
the conclusion of the demonstration period and when permanent
waivers from the federal Health Care Financing Administration
are granted. Specific arrangements of the risk-based financing
model shall be adopted and negotiated by the federal Centers
for Medicare and Medicaid Services Health Care Financing
Administration, the nonprofit organization providing the PACE
program, and the Illinois Department of Public Aid.
(Source: P.A. 87-411.)
 
    Section 99. Effective date. This Act takes effect July 1,
2005.