093_HB2777 LRB093 08497 JLS 08721 b 1 AN ACT concerning the provision of insurance benefits. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Illinois Insurance Code is amended by 5 adding Section 361.5 as follows: 6 (215 ILCS 5/361.5 new) 7 Sec. 361.5. Independent practice association and 8 physician-hospital organization registration. 9 (a) No person may maintain, operate, or represent itself 10 as an independent practice association or physician-hospital 11 organization, unless once every year the person registers the 12 independent practice association or physician-hospital 13 organization with the Department. 14 (b) The provisions of this Section do not apply to: 15 (1) persons providing independent practice 16 association or physician-hospital organization services 17 only to the federal government; or 18 (2) self-insured health plans under the federal 19 Employee Retirement Income Security Act of 1974, however, 20 this Section does apply to persons conducting an 21 independent practice association or physician-hospital 22 organization on behalf of these health plans. 23 (c) The registration shall include submission of all of 24 the following information regarding the independent practice 25 association or physician-hospital organization program 26 activities: 27 (1) The name, address, and telephone number of the 28 independent practice association or physician-hospital 29 organization. 30 (2) The organization and governing structure of the 31 independent practice association or physician-hospital -2- LRB093 08497 JLS 08721 b 1 organization. 2 (3) The number of physicians, practitioners, and 3 health care providers under contract with the independent 4 practice association or physician-hospital organization 5 by health care specialty. 6 (4) The number of lives for which the independent 7 practice association or physician-hospital organization 8 is responsible. 9 (5) Hours of operation of each independent practice 10 association or physician-hospital organization. 11 (6) Description of the grievance process for the 12 independent practice association or physician-hospital 13 organization. 14 (7) The number of covered lives for which the 15 independent practice association or physician-hospital 16 organization was responsible during the previous calendar 17 year, if any. 18 (8) Written policies and procedures for protecting 19 confidential information according to applicable State 20 and federal laws including the federal Health Insurance 21 Portability and Accountability Act of 1996. 22 (9) Information required by the Department by rule 23 to establish adequate risk-based capital retention. 24 (d) If the Department finds that an independent practice 25 association or physician-hospital organization is not in 26 compliance with this Section, the Department shall issue a 27 corrective action plan and allow a reasonable amount of time 28 for compliance with the plan. If the independent practice 29 association or physician-hospital organization does not come 30 into compliance, the Department may issue a cease and desist 31 order. Before issuing a cease and desist order under this 32 Section, the Department shall provide the independent 33 practice association or physician-hospital organization with 34 a written notice of the reasons for the order and allow a -3- LRB093 08497 JLS 08721 b 1 reasonable amount of time to supply additional information 2 demonstrating compliance with requirements of this Section 3 and to request a hearing. The hearing notice shall be sent by 4 certified mail, return receipt requested, and the hearing 5 shall be conducted in accordance with the Illinois 6 Administrative Procedure Act. 7 (e) An independent practice association or 8 physician-hospital organization subject to a corrective 9 action plan may continue to conduct business until a final 10 decision has been issued by the Department. 11 (f) The Department may by rule establish a registration 12 fee for independent practice associations or 13 physician-hospital organizations. All fees paid to and 14 collected by the Department under this Section shall be 15 deposited into the Insurance Producer Administration Fund. 16 Section 99. Effective date. This Act takes effect on 17 December 1, 2003.