093_HB1648eng HB1648 Engrossed LRB093 06981 JLS 07131 b 1 AN ACT concerning the Comprehensive Health Insurance 2 Plan. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 5. The Comprehensive Health Insurance Plan Act 6 is amended by changing Section 4 as follows: 7 (215 ILCS 105/4) (from Ch. 73, par. 1304) 8 Sec. 4. Powers and authority of the board. The board 9 shall have the general powers and authority granted under the 10 laws of this State to insurance companies licensed to 11 transact health and accident insurance and in addition 12 thereto, the specific authority to: 13 a. Enter into contracts as are necessary or proper to 14 carry out the provisions and purposes of this Act, including 15 the authority, with the approval of the Director, to enter 16 into contracts with similar plans of other states for the 17 joint performance of common administrative functions, or with 18 persons or other organizations for the performance of 19 administrative functions including, without limitation, 20 utilization review and quality assurance programs, or with 21 health maintenance organizations or preferred provider 22 organizations for the provision of health care services. 23 b. Sue or be sued, including taking any legal actions 24 necessary or proper. 25 c. Take such legal action as necessary to: 26 (1) avoid the payment of improper claims against 27 the plan or the coverage provided by or through the plan; 28 (2) to recover any amounts erroneously or 29 improperly paid by the plan; 30 (3) to recover any amounts paid by the plan as a 31 result of a mistake of fact or law; or HB1648 Engrossed -2- LRB093 06981 JLS 07131 b 1 (4) to recover or collect any other amounts, 2 including assessments, that are due or owed the Plan or 3 have been billed on its or the Plan's behalf. 4 d. Establish appropriate rates, rate schedules, rate 5 adjustments, expense allowances, agents' referral fees, claim 6 reserves, and formulas and any other actuarial function 7 appropriate to the operation of the plan. Rates and rate 8 schedules may be adjusted for appropriate risk factors such 9 as age and area variation in claim costs and shall take into 10 consideration appropriate risk factors in accordance with 11 established actuarial and underwriting practices. 12 e. Issue policies of insurance in accordance with the 13 requirements of this Act. 14 f. Appoint appropriate legal, actuarial and other 15 committees as necessary to provide technical assistance in 16 the operation of the plan, policy and other contract design, 17 and any other function within the authority of the plan. 18 g. Borrow money to effect the purposes of the Illinois 19 Comprehensive Health Insurance Plan. Any notes or other 20 evidence of indebtedness of the plan not in default shall be 21 legal investments for insurers and may be carried as admitted 22 assets. 23 h. Establish rules, conditions and procedures for 24 reinsuring risks under this Act. 25 i. Employ and fix the compensation of employees. Such 26 employees may be paid on a warrant issued by the State 27 Treasurer pursuant to a payroll voucher certified by the 28 Board and drawn by the Comptroller against appropriations or 29 trust funds held by the State Treasurer. 30 j. Enter into intergovernmental cooperation agreements 31 with other agencies or entities of State government for the 32 purpose of sharing the cost of providing health care services 33 that are otherwise authorized by this Act for children who 34 are both plan participants and eligible for financial HB1648 Engrossed -3- LRB093 06981 JLS 07131 b 1 assistance from the Division of Specialized Care for Children 2 of the University of Illinois. 3 k. Establish conditions and procedures under which the 4 plan may, if funds permit, discount or subsidize premium 5 rates that are paid directly by senior citizens, as defined 6 by the Board, and other plan participants, who are retired or 7 unemployed and meet other qualifications. 8 l. Establish and maintain the Plan Fund authorized in 9 Section 3 of this Act, which shall be divided into separate 10 accounts, as follows: 11 (1) accounts to fund the administrative, claim, and 12 other expenses of the Plan associated with eligible 13 persons who qualify for Plan coverage under Section 7 of 14 this Act, which shall consist of: 15 (A) premiums paid on behalf of covered 16 persons; 17 (B) appropriated funds and other revenues 18 collected or received by the Board; 19 (C) reserves for future losses maintained by 20 the Board; and 21 (D) interest earnings from investment of the 22 funds in the Plan Fund or any of its accounts other 23 than the funds in the account established under item 24 2 of this subsection; 25 (2) an account, to be denominated the federally 26 eligible individuals account, to fund the administrative, 27 claim, and other expenses of the Plan associated with 28 federally eligible individuals who qualify for Plan 29 coverage under Section 15 of this Act, which shall 30 consist of: 31 (A) premiums paid on behalf of covered 32 persons; 33 (B) assessments and other revenues collected 34 or received by the Board; HB1648 Engrossed -4- LRB093 06981 JLS 07131 b 1 (C) reserves for future losses maintained by 2 the Board; and 3 (D) interest earnings from investment of the 4 federally eligible individuals account funds; and 5 (3) such other accounts as may be appropriate. 6 m. Charge and collect assessments paid by insurers 7 pursuant to Section 12 of this Act and recover any 8 assessments for, on behalf of, or against those insurers. 9 n. Establish conditions and procedures under which the 10 Plan may, if funds permit, provide catastrophic prescription 11 drug insurance, as defined by the Board. 12 (Source: P.A. 90-30, eff. 7-1-97; 91-357, eff. 7-29-99.) 13 Section 99. Effective date. This Act takes effect upon 14 becoming law.