101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB5509

 

Introduced , by Rep. Natalie A. Manley

 

SYNOPSIS AS INTRODUCED:
 
215 ILCS 5/356z.12

    Amends the Illinois Insurance Code. Provides that a group or individual policy of accident and health insurance or managed care plan that provides coverage for dependents may not terminate coverage for a dependent before a date not less than 90 days after the death of the insured.


LRB101 18898 BMS 68357 b

FISCAL NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

 

 

A BILL FOR

 

HB5509LRB101 18898 BMS 68357 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Insurance Code is amended by
5changing Section 356z.12 as follows:
 
6    (215 ILCS 5/356z.12)
7    Sec. 356z.12. Dependent coverage.
8    (a) A group or individual policy of accident and health
9insurance or managed care plan that provides coverage for
10dependents and that is amended, delivered, issued, or renewed
11after the effective date of this amendatory Act of the 95th
12General Assembly shall not terminate coverage or deny the
13election of coverage for an unmarried dependent by reason of
14the dependent's age before the dependent's 26th birthday.
15    (a-5) A group or individual policy of accident and health
16insurance or managed care plan subject to subsection (a) may
17not terminate coverage for a dependent before a date not less
18than 90 days after the death of the insured.
19    (b) A policy or plan subject to this Section shall, upon
20amendment, delivery, issuance, or renewal, establish an
21initial enrollment period of not less than 90 days during which
22an insured may make a written election for coverage of an
23unmarried person as a dependent under this Section. After the

 

 

HB5509- 2 -LRB101 18898 BMS 68357 b

1initial enrollment period, enrollment by a dependent pursuant
2to this Section shall be consistent with the enrollment terms
3of the plan or policy.
4    (c) A policy or plan subject to this Section shall allow
5for dependent coverage during the annual open enrollment date
6or the annual renewal date if the dependent, as of the date on
7which the insured elects dependent coverage under this
8subsection, has:
9        (1) a period of continuous creditable coverage of 90
10    days or more; and
11        (2) not been without creditable coverage for more than
12    63 days.
13An insured may elect coverage for a dependent who does not meet
14the continuous creditable coverage requirements of this
15subsection (c) and that dependent shall not be denied coverage
16due to age.
17    For purposes of this subsection (c), "creditable coverage"
18shall have the meaning provided under subsection (C)(1) of
19Section 20 of the Illinois Health Insurance Portability and
20Accountability Act.
21    (d) Military personnel. A group or individual policy of
22accident and health insurance or managed care plan that
23provides coverage for dependents and that is amended,
24delivered, issued, or renewed after the effective date of this
25amendatory Act of the 95th General Assembly shall not terminate
26coverage or deny the election of coverage for an unmarried

 

 

HB5509- 3 -LRB101 18898 BMS 68357 b

1dependent by reason of the dependent's age before the
2dependent's 30th birthday if the dependent (i) is an Illinois
3resident, (ii) served as a member of the active or reserve
4components of any of the branches of the Armed Forces of the
5United States, and (iii) has received a release or discharge
6other than a dishonorable discharge. To be eligible for
7coverage under this subsection (d), the eligible dependent
8shall submit to the insurer a form approved by the Illinois
9Department of Veterans' Affairs stating the date on which the
10dependent was released from service.
11    (e) Calculation of the cost of coverage provided to an
12unmarried dependent under this Section shall be identical.
13    (f) Nothing in this Section shall prohibit an employer from
14requiring an employee to pay all or part of the cost of
15coverage provided under this Section.
16    (g) No exclusions or limitations may be applied to coverage
17elected pursuant to this Section that do not apply to all
18dependents covered under the policy.
19    (h) A policy or plan subject to this Section shall not
20condition eligibility for dependent coverage provided pursuant
21to this Section on enrollment in any educational institution.
22    (i) Notice regarding coverage for a dependent as provided
23pursuant to this Section shall be provided to an insured by the
24insurer:
25        (1) upon application or enrollment;
26        (2) in the certificate of coverage or equivalent

 

 

HB5509- 4 -LRB101 18898 BMS 68357 b

1    document prepared for an insured and delivered on or about
2    the date on which the coverage commences; and
3        (3) (blank).
4(Source: P.A. 98-226, eff. 1-1-14.)