93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
SB2173


 
Introduced 1/14/2004, by Denny Jacobs
 
SYNOPSIS AS INTRODUCED:
 		




















215 ILCS 5/351B-1
  from Ch. 73, par. 963B-1


215 ILCS 5/351B-2
  from Ch. 73, par. 963B-2


215 ILCS 5/351B-3
  from Ch. 73, par. 963B-3


215 ILCS 5/351B-6
  from Ch. 73, par. 963B-6







    Amends the Small Employer Group Health Insurance Law. Changes the short title of the Act. Modifies the minimum and maximum number of employees, members, or employees of members necessary to require  employers to provide the health insurance policies. Modifies the date the Director shall provide a written report of data from health insurers and employers relating to the coverage sold under this Article to the Governor and to the General Assembly. Makes other changes in language. Effective immediately.



















LRB093 14629 SAS 40142 b




















 


 


A BILL FOR









 














SB2173

LRB093 14629 SAS 40142 b









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    AN ACT concerning insurance.

 
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    Be it enacted by the People of the State of Illinois,
 
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represented in the General Assembly:


 
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    Section 5. The Illinois Insurance Code is amended  by 
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changing Sections 351B-1, 351B-2, 351B-3, and 351B-6 as 
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follows:
 



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    (215 ILCS 5/351B-1)  (from Ch. 73, par. 963B-1)



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    Sec. 351B-1. Short title. This Article may be cited as the 
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Small
Employer Group Health Insurance Coverage Choice Law.

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(Source: P.A. 86-1407.)

 



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    (215 ILCS 5/351B-2)  (from Ch. 73, par. 963B-2)



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    Sec. 351B-2. Findings and purpose. 

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    (a) The General Assembly finds that the cost of group 
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health insurance
is becoming unaffordable to many small 
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employers and their employees.
Further, because of the higher 
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cost
unaffordability of this type of insurance, in some
cases 
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due to the cost of mandated benefits, a significant segment of 
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the
State's working population is unable to pay for many health 
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care services
which is increasing the cost of health insurance 
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for current purchasers
through a cost shift.

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    (b) It is the purpose and intent of this amendatory Act of 
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1990 to
authorize a program whereby small employers may obtain 
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affordable group
health insurance that will increase access to 
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health care, assist in the
reduction of the amount of 
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uncompensated care, and reduce the number of
uninsured people 
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in this State.

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(Source: P.A. 86-1407.)

 



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    (215 ILCS 5/351B-3)  (from Ch. 73, par. 963B-3)



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    Sec. 351B-3. Small employer group accident and health 
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insurance. 

 


 









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    (a) Small employer group accident and health insurance is

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hereby declared to be that form of accident and health 
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insurance that
provides coverage for each person insured under 
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the group policy for the
expenses incurred because of care 
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rendered by a physician or hospital for
the treatment of an 
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injury or sickness and which covers at least 2 but not more 
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than 50
25
employees, members, or employees of members 
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(exclusive of dependents)
written under a master policy issued 
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to any governmental corporation, unit,
agency, or department 
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thereof or to any corporation, copartnership,
or individual 
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employer or to any association upon application of an executive

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officer or trustee of an association having a constitution or 
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bylaws and
formed in good faith for purposes other than that of 
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obtaining insurance,
where officers, members, employees, or 
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employees of members or classes or
departments thereof may be 
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insured for their individual benefit.  In
addition, a small 
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employer group accident and health policy may be written
to 
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insure any group that may be insured under a group life 
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insurance
policy as long as the number of employees, members, 
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or employees of members
(exclusive of dependents) is at least 2 
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but
does not more than 50
exceed 25.  The term "employees" shall

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include the officers, managers, and employees of subsidiary or 
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affiliated
corporations, and the individual proprietors, 
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partners, and employees of
affiliated individuals or firms when 
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the business of the subsidiary or
affiliated corporations or 
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affiliated firms or individuals is controlled by
a common 
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employer through stock ownership, contract, or otherwise.

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    (b) For the purpose of providing coverage authorized under 
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this Article
a trust composed of employers or members each of 
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which has at least 2 but no more than 50
25 or fewer
employees 
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(exclusive of dependents) may serve as the master policyholder.

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(Source: P.A. 86-1407.)

 



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    (215 ILCS 5/351B-6)  (from Ch. 73, par. 963B-6)



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    Sec. 351B-6. The Director shall by rule prescribe a method 
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to collect
data from health insurers and employers relating to 
 


 









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the coverage sold under
this Article.  The data shall include 
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the number of groups purchasing this
coverage, the extent to 
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which other coverage has been replaced with this
coverage, if 
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any, the number of insureds, and a summary of the types of

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coverage provided by policies authorized by this Article.  
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Statistically
valid survey methods may be used to compile this 
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data.

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    Not later than March 31, 2006
1993, the Director shall 
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provide a written
report of this data to the Governor and to 
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the General Assembly.

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(Source: P.A. 86-1407.)

 

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    Section 99. Effective date. This Act takes effect upon 
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becoming law.