Sen. John J. Cullerton
Filed: 2/27/2008
 
 

 




 

 		












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AMENDMENT TO SENATE BILL 2222 




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    AMENDMENT NO. ______. Amend Senate Bill 2222 by replacing 
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everything after the enacting clause with the following:

 
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    "Section 5. The Illinois Insurance Code is amended  by 
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changing Sections 512-3, 512-4, and 512-5 as follows:
 



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    (215 ILCS 5/512-3)  (from Ch. 73, par. 1065.59-3)



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    Sec. 512-3. Definitions. For the purposes of this Article, 
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unless the
context otherwise requires, the terms defined in 
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this Article have the meanings
ascribed
to them herein:

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    (a) "Third party prescription program" or "program" means 
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any system of
providing for the reimbursement of pharmaceutical 
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services and prescription
drug products offered or operated in 
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this State under a contractual arrangement
or agreement between 
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a provider of such services and another party who is
not the 
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consumer of those services and products.  Such programs may 
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include, but need not be limited to, employee benefit
plans 
 


 






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whereby a consumer receives prescription drugs or other 
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pharmaceutical
services and those services are paid for by
an 
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agent of the employer or others.

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    (b) "Third party program administrator" or "administrator" 
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means any person,
partnership or corporation who issues or 
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causes to be issued any payment
or reimbursement to a provider 
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for services rendered pursuant to a third
party prescription 
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program,  but does not include the Director of Healthcare and 
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Family Services or any agent authorized by
the Director to 
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reimburse a provider of services rendered pursuant to a
program 
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of which the Department of Healthcare and Family Services is 
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the third party.
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    (c) "Director" means the Director of the Division of 
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Insurance of the Department of Financial and Professional 
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Regulation.
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    (d) "Division" means the Division of Insurance of the 
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Department of Financial and Professional Regulation. 

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(Source: P.A. 95-331, eff. 8-21-07.)

 



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    (215 ILCS 5/512-4)  (from Ch. 73, par. 1065.59-4)



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    Sec. 512-4. Registration. All third party prescription 
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programs and
administrators doing business in the State shall 
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register with the Director
of Insurance.  The Director shall 
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promulgate regulations establishing criteria
for registration 
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in accordance with the terms of this Article. The Director
may 
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by rule establish an annual registration fee for each third 
 


 






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party administrator.

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(Source: P.A. 82-1005.)

 



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    (215 ILCS 5/512-5)  (from Ch. 73, par. 1065.59-5)



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    Sec. 512-5. Fiduciary and Bonding Requirements.  A third 
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party prescription program administrator shall (1) establish 
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and
maintain a fiduciary account, separate and apart from any 
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and all other
accounts, for the receipt and disbursement of 
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funds for reimbursement of
providers of services under the 
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program, or (2) post,
or cause to be posted, a bond of 
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indemnity in an amount equal to not less
than 10% of the total 
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estimated annual reimbursements under the program.

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    The establishment of such fiduciary accounts and bonds 
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shall be consistent
with applicable State law.
If a bond of 
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indemnity is posted, it shall be held by the Director of 
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Insurance
for the benefit and indemnification of the providers 
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of services under the
third party prescription program.

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    An administrator who operates more than one third party 
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prescription program
may establish and maintain a separate 
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fiduciary account or bond of indemnity
for each such program, 
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or may operate and maintain a consolidated fiduciary
account or 
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bond of indemnity for all such programs.

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    The requirements of this Section do not apply to any third 
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party prescription
program administered by or on behalf of any 
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insurance company, Health Care
Service Plan Corporation or 
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Pharmaceutical Service Plan Corporation authorized
to do 
 


 






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business in the State of Illinois.

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(Source: P.A. 82-1005.)".