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Sen. Don Harmon
Filed: 3/15/2013
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1 | | AMENDMENT TO SENATE BILL 2366
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2 | | AMENDMENT NO. ______. Amend Senate Bill 2366 by replacing |
3 | | everything after the enacting clause with the following:
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4 | | "Section 5. The State Employees Group Insurance Act of 1971 |
5 | | is amended by changing Section 6.11 as follows:
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6 | | (5 ILCS 375/6.11)
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7 | | Sec. 6.11. Required health benefits; Illinois Insurance |
8 | | Code
requirements. The program of health
benefits shall provide |
9 | | the post-mastectomy care benefits required to be covered
by a |
10 | | policy of accident and health insurance under Section 356t of |
11 | | the Illinois
Insurance Code. The program of health benefits |
12 | | shall provide the coverage
required under Sections 356g, |
13 | | 356g.5, 356g.5-1, 356m,
356u, 356w, 356x, 356z.2, 356z.4, |
14 | | 356z.6, 356z.8, 356z.9, 356z.10, 356z.11, 356z.12, 356z.13, |
15 | | 356z.14, 356z.15, and 356z.17 , and 356z.22 and 356z.19 of the
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16 | | Illinois Insurance Code.
The program of health benefits must |
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1 | | comply with Sections 155.22a, 155.37, and 356z.19 of the
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2 | | Illinois Insurance Code.
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3 | | Rulemaking authority to implement Public Act 95-1045, if |
4 | | any, is conditioned on the rules being adopted in accordance |
5 | | with all provisions of the Illinois Administrative Procedure |
6 | | Act and all rules and procedures of the Joint Committee on |
7 | | Administrative Rules; any purported rule not so adopted, for |
8 | | whatever reason, is unauthorized. |
9 | | (Source: P.A. 96-139, eff. 1-1-10; 96-328, eff. 8-11-09; |
10 | | 96-639, eff. 1-1-10; 96-1000, eff. 7-2-10; 97-282, eff. 8-9-11; |
11 | | 97-343, eff. 1-1-12; 97-813, eff. 7-13-12.) |
12 | | Section 10. The Counties Code is amended by changing |
13 | | Section 5-1069.3 as follows: |
14 | | (55 ILCS 5/5-1069.3)
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15 | | Sec. 5-1069.3. Required health benefits. If a county, |
16 | | including a home
rule
county, is a self-insurer for purposes of |
17 | | providing health insurance coverage
for its employees, the |
18 | | coverage shall include coverage for the post-mastectomy
care |
19 | | benefits required to be covered by a policy of accident and |
20 | | health
insurance under Section 356t and the coverage required |
21 | | under Sections 356g, 356g.5, 356g.5-1, 356u,
356w, 356x, |
22 | | 356z.6, 356z.8, 356z.9, 356z.10, 356z.11, 356z.12, 356z.13, |
23 | | 356z.14, and 356z.15 , and 356z.22 of
the Illinois Insurance |
24 | | Code. The coverage shall comply with Sections 155.22a and |
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1 | | 356z.19 of
the Illinois Insurance Code. The requirement that |
2 | | health benefits be covered
as provided in this Section is an
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3 | | exclusive power and function of the State and is a denial and |
4 | | limitation under
Article VII, Section 6, subsection (h) of the |
5 | | Illinois Constitution. A home
rule county to which this Section |
6 | | applies must comply with every provision of
this Section.
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7 | | Rulemaking authority to implement Public Act 95-1045, if |
8 | | any, is conditioned on the rules being adopted in accordance |
9 | | with all provisions of the Illinois Administrative Procedure |
10 | | Act and all rules and procedures of the Joint Committee on |
11 | | Administrative Rules; any purported rule not so adopted, for |
12 | | whatever reason, is unauthorized. |
13 | | (Source: P.A. 96-139, eff. 1-1-10; 96-328, eff. 8-11-09; |
14 | | 96-1000, eff. 7-2-10; 97-282, eff. 8-9-11; 97-343, eff. 1-1-12; |
15 | | 97-813, eff. 7-13-12.) |
16 | | Section 15. The Illinois Municipal Code is amended by |
17 | | changing Section 10-4-2.3 as follows: |
18 | | (65 ILCS 5/10-4-2.3)
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19 | | Sec. 10-4-2.3. Required health benefits. If a |
20 | | municipality, including a
home rule municipality, is a |
21 | | self-insurer for purposes of providing health
insurance |
22 | | coverage for its employees, the coverage shall include coverage |
23 | | for
the post-mastectomy care benefits required to be covered by |
24 | | a policy of
accident and health insurance under Section 356t |
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1 | | and the coverage required
under Sections 356g, 356g.5, |
2 | | 356g.5-1, 356u, 356w, 356x, 356z.6, 356z.8, 356z.9, 356z.10, |
3 | | 356z.11, 356z.12, 356z.13, 356z.14, and 356z.15 , and 356z.22 of |
4 | | the Illinois
Insurance
Code. The coverage shall comply with |
5 | | Sections 155.22a and 356z.19 of
the Illinois Insurance Code. |
6 | | The requirement that health
benefits be covered as provided in |
7 | | this is an exclusive power and function of
the State and is a |
8 | | denial and limitation under Article VII, Section 6,
subsection |
9 | | (h) of the Illinois Constitution. A home rule municipality to |
10 | | which
this Section applies must comply with every provision of |
11 | | this Section.
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12 | | Rulemaking authority to implement Public Act 95-1045, if |
13 | | any, is conditioned on the rules being adopted in accordance |
14 | | with all provisions of the Illinois Administrative Procedure |
15 | | Act and all rules and procedures of the Joint Committee on |
16 | | Administrative Rules; any purported rule not so adopted, for |
17 | | whatever reason, is unauthorized. |
18 | | (Source: P.A. 96-139, eff. 1-1-10; 96-328, eff. 8-11-09; |
19 | | 96-1000, eff. 7-2-10; 97-282, eff. 8-9-11; 97-343, eff. 1-1-12; |
20 | | 97-813, eff. 7-13-12.) |
21 | | Section 20. The School Code is amended by changing Section |
22 | | 10-22.3f as follows: |
23 | | (105 ILCS 5/10-22.3f)
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24 | | Sec. 10-22.3f. Required health benefits. Insurance |
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1 | | protection and
benefits
for employees shall provide the |
2 | | post-mastectomy care benefits required to be
covered by a |
3 | | policy of accident and health insurance under Section 356t and |
4 | | the
coverage required under Sections 356g, 356g.5, 356g.5-1, |
5 | | 356u, 356w, 356x,
356z.6, 356z.8, 356z.9, 356z.11, 356z.12, |
6 | | 356z.13, 356z.14, and 356z.15 , and 356z.22 of
the
Illinois |
7 | | Insurance Code.
Insurance policies shall comply with Section |
8 | | 356z.19 of the Illinois Insurance Code. The coverage shall |
9 | | comply with Section 155.22a of
the Illinois Insurance Code.
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10 | | Rulemaking authority to implement Public Act 95-1045, if |
11 | | any, is conditioned on the rules being adopted in accordance |
12 | | with all provisions of the Illinois Administrative Procedure |
13 | | Act and all rules and procedures of the Joint Committee on |
14 | | Administrative Rules; any purported rule not so adopted, for |
15 | | whatever reason, is unauthorized. |
16 | | (Source: P.A. 96-139, eff. 1-1-10; 96-328, eff. 8-11-09; |
17 | | 96-1000, eff. 7-2-10; 97-282, eff. 8-9-11; 97-343, eff. 1-1-12; |
18 | | 97-813, eff. 7-13-12.) |
19 | | Section 25. The Illinois Insurance Code is amended by |
20 | | adding Section 356z.22 as follows: |
21 | | (215 ILCS 5/356z.22 new) |
22 | | Sec. 356z.22. Telehealth. |
23 | | (a) The General Assembly finds and declares the following: |
24 | | (1) Lack of primary care providers, specialty |
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1 | | providers, and transportation continue to be significant |
2 | | barriers to access to health services in medically |
3 | | underserved rural and urban areas. |
4 | | (2) Parts of Illinois have difficulty attracting and |
5 | | retaining health professionals, as well as supporting |
6 | | local health facilities to provide a continuum of health |
7 | | care. |
8 | | (3) Individuals in rural areas are much less likely to |
9 | | have access to the specialty health services they need, due |
10 | | to major distance and time barriers, transportation |
11 | | limitations, or mobility limitations, all of which lead to |
12 | | disparities in access to care. |
13 | | (4) Hospital emergency rooms have become the default |
14 | | provider of health care to patients with acute crises and |
15 | | for whom no appropriate alternatives are available, and the |
16 | | majority of emergency rooms do not have reliable, ready |
17 | | consultative access to psychiatrists or other medical |
18 | | specialties. |
19 | | (5) Telehealth has been shown to be an effective medium |
20 | | through which to deliver physical health and mental health |
21 | | care. |
22 | | (6) Key findings from the Illinois Rural Health |
23 | | Association's Mental Health Access Forum Report recommend |
24 | | the increased use of telehealth and technology to improve |
25 | | access to care, increase training opportunities, and |
26 | | evaluate quality of care. |
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1 | | (7) The State of Illinois has already recognized, and |
2 | | currently reimburses providers for, telepsychiatry |
3 | | services to patients receiving State public aid. |
4 | | (8) Telehealth is a mode of delivering health care |
5 | | services of a personal, family, and public health nature |
6 | | through utilizing information and communication |
7 | | technologies to enable the examination, diagnosis, |
8 | | consultation, treatment, education, care management, and |
9 | | self-management of patients at a distance from health
care |
10 | | providers. |
11 | | (9) The use of information and telecommunication |
12 | | technologies to deliver health services has the potential |
13 | | to reduce costs, improve quality, change the conditions of |
14 | | practice, and improve access to health care, particularly |
15 | | in rural and other medically underserved areas, as well as |
16 | | in emergency rooms in large urban areas where the wait for |
17 | | specialty care can be lengthy. |
18 | | (10) Telehealth will assist in maintaining or |
19 | | improving the physical and economic health of medically |
20 | | underserved communities by keeping the source of medical |
21 | | care in the local area by assisting primary care |
22 | | physicians, strengthening the health infrastructure, and |
23 | | preserving health care-related jobs. |
24 | | (11) Consumers of health care will benefit from |
25 | | telehealth in many ways, including expanded access to |
26 | | providers, faster and more convenient treatment, better |
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1 | | continuity of care, reduction of lost work time and travel |
2 | | costs, and the ability to remain with support networks. |
3 | | (12) It is the intent of the General Assembly that the |
4 | | fundamental health care provider-patient relationship not |
5 | | only be preserved, but also be augmented and enhanced, |
6 | | through the use of telehealth as a tool to be integrated |
7 | | into practices. |
8 | | (13)
Without the assurance of payment and the |
9 | | resolution of legal and policy barriers, the full potential |
10 | | of telehealth will not be realized. |
11 | | The purpose of this Section is to require certain insurers, |
12 | | nonprofit health service plans, managed care organizations, |
13 | | and health maintenance organizations to provide coverage for |
14 | | health care services delivered through telehealth in a certain |
15 | | manner; prohibit certain insurers, nonprofit health service |
16 | | plans, health maintenance organizations and managed care |
17 | | organizations from excluding a health care service from |
18 | | coverage solely because it is delivered by telehealth and not |
19 | | in another manner; require certain insurers, nonprofit health |
20 | | service plans, and health maintenance organizations to |
21 | | reimburse health care providers for certain services under |
22 | | certain circumstances; authorize the imposition of a |
23 | | deductible, copayment, coinsurance amount, or annual dollar |
24 | | maximum for certain services; prohibit the imposition of a |
25 | | lifetime dollar maximum for certain services; prohibit a health |
26 | | insurance policy or contract from distinguishing between |
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1 | | patients in rural or urban locations in providing certain |
2 | | coverage; and provide for the application of this Code. |
3 | | (b) For the purposes of this Section: |
4 | | "Asynchronous store and forward" means the transmission of |
5 | | a patient's medical information from an originating site to the |
6 | | health care provider at a distant site without the presence of |
7 | | the patient. |
8 | | "Distant site" means the location at which the provider |
9 | | rendering the service is located. |
10 | | "Facility fee" means the reimbursement made to the |
11 | | following originating sites for the telehealth service: |
12 | | physician's office, local health departments, community mental |
13 | | health centers, outpatient hospitals, and substance abuse |
14 | | treatment centers licensed by the Division of Alcoholism and |
15 | | Substance Abuse of the Department of Human Services. |
16 | | "Interactive telecommunications system" means multimedia |
17 | | communications equipment that includes, at a minimum, audio and |
18 | | video equipment permitting 2-way, real-time interactive |
19 | | communication between the patient and the distant site |
20 | | provider. Telephones, facsimile machines, and electronic mail |
21 | | systems do not meet the definition of "interactive |
22 | | telecommunications system". |
23 | | "Originating site" means the location at which the |
24 | | participant receiving the service is located, including, but |
25 | | not limited to, hospitals, rural health clinics, Federally |
26 | | Qualified Health Centers, and other health care professionals |
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1 | | and providers. |
2 | | "Physician" means a physician licensed to practice |
3 | | medicine in all its branches. |
4 | | "Synchronous interaction" means a real-time interaction |
5 | | between a patient at an originating site and a health care |
6 | | provider located at a distant site. |
7 | | "Telecommunication system" means an asynchronous store and |
8 | | forward technology or an interactive telecommunications |
9 | | system, or both, that is used to transmit data between the |
10 | | originating and distant sites. |
11 | | "Telehealth" means (1) the provision of services and the |
12 | | mode of delivering health care services and public health via |
13 | | information and communication technologies to facilitate the |
14 | | examination, diagnosis, consultation, treatment, education, |
15 | | care management, and self-management of a patient's health care |
16 | | while the patient is at the originating site and the health |
17 | | care provider is at a distant site; telehealth facilitates |
18 | | patient self-management and caregiver support for patients and |
19 | | includes synchronous interactions
and asynchronous store and |
20 | | forward transfers and (2) as it relates to the delivery of |
21 | | health care, mental health care, and public health services, |
22 | | the use of interactive audio, video, or other |
23 | | telecommunications or electronic technology by a licensed |
24 | | health care provider to deliver a health care service within |
25 | | the scope of practice of the health care provider from the |
26 | | distant site to the originating site at which the patient is |
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1 | | located; telehealth is the provision of services via |
2 | | information and communication technologies to facilitate the |
3 | | diagnosis, consultation, treatment, education, care |
4 | | management, and self-management of a patient's health care |
5 | | while the patient is at the originating site and the health |
6 | | care provider is at a distant site; telehealth facilitates |
7 | | patient self-management and caregiver support for patients and |
8 | | includes synchronous interactions and asynchronous store and |
9 | | forward transfers.
"Telehealth" does not include: |
10 | | (A) an audio-only telephone conversation between a |
11 | | health care provider and a patient; |
12 | | (B) an electronic mail message between a health care |
13 | | provider and a patient; or |
14 | | (C) a facsimile transmission between a health care |
15 | | provider and a patient. |
16 | | "Teleophthalmology and teledermatology by store and |
17 | | forward" means an asynchronous transmission of medical |
18 | | information to be reviewed at a later time by a physician at a |
19 | | distant site who is trained in ophthalmology or dermatology or, |
20 | | for teleophthalmology, by an optometrist who is licensed |
21 | | pursuant to the Illinois Optometric Practice Act of 1987 where |
22 | | the physician or optometrist at the distant site reviews the |
23 | | medical information without the patient being present in real |
24 | | time. |
25 | | (c) This Section applies to: |
26 | | (1) insurers and nonprofit health service plans that |
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1 | | provide hospital, medical, mental health, or surgical |
2 | | benefits to individuals or groups on an expense-incurred |
3 | | basis under health insurance policies or contracts that are |
4 | | issued or delivered in this State; and |
5 | | (2) health maintenance organizations that provide |
6 | | hospital, medical, mental health, or surgical benefits to |
7 | | individuals or groups under contracts that are issued or |
8 | | delivered in this State. |
9 | | This Section shall not be construed to alter the scope of |
10 | | practice of any health care provider or authorize the delivery |
11 | | of health care services in a setting or in a manner not |
12 | | otherwise authorized by law.
All laws regarding the |
13 | | confidentiality of health care information and a patient's |
14 | | rights to his or her medical information shall apply to |
15 | | telehealth interactions. This Section applies to a group or |
16 | | individual policy of accident and health insurance or managed |
17 | | care plan amended, delivered, issued, or renewed after the |
18 | | effective date of this amendatory Act of the 98th General |
19 | | Assembly. |
20 | | (d) An entity subject to this Section: |
21 | | (1) shall provide coverage under a health insurance |
22 | | policy or contract for health care services appropriately |
23 | | delivered through telehealth; |
24 | | (2) may not exclude from coverage a health care service |
25 | | solely because it is provided through telehealth and is not |
26 | | provided through an in-person consultation or contact |
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1 | | between a health care provider and a patient; and |
2 | | (3) shall not require that in-person contact occur |
3 | | between a health care provider and a patient before payment |
4 | | is made for the covered services appropriately provided |
5 | | through telehealth. |
6 | | No health care service plan shall require the health care |
7 | | provider to document a barrier to an in-person visit for |
8 | | coverage of services to be provided via telehealth. No health |
9 | | care service plan shall limit the type of setting where |
10 | | services are provided for the patient or by the health care |
11 | | provider before payment is made for the covered services |
12 | | appropriately provided through telehealth, subject to the |
13 | | terms and conditions of the contract entered into between the |
14 | | enrollee or subscriber and the health care service plan and its |
15 | | participating providers or provider groups. |
16 | | Notwithstanding any other provision, this Section shall |
17 | | not be interpreted to authorize a health care service plan to |
18 | | require the use of telehealth when the health care provider has |
19 | | determined that it is not appropriate. |
20 | | (e) With regard to reimbursement, an entity subject to this |
21 | | Section: |
22 | | (1) shall reimburse a health care provider for the |
23 | | examination, diagnosis, consultation, and treatment of an |
24 | | insured patient for a health care service covered under a |
25 | | health insurance policy or contract that can appropriately |
26 | | be provided through telehealth; |
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1 | | (2) is not required to: |
2 | | (A) reimburse a health care provider for a health |
3 | | care service delivered in person or through telehealth |
4 | | that is not a covered benefit under the health |
5 | | insurance policy or contract; or |
6 | | (B) reimburse a health care provider who is not a |
7 | | covered provider under the health insurance policy or |
8 | | contract; |
9 | | (3) may impose the same deductible, copayment, or |
10 | | coinsurance amount on benefits for health care services |
11 | | that are delivered through an in-person consultation or |
12 | | through telehealth; and |
13 | | (4) may not impose a lifetime dollar maximum. |
14 | | A facility fee shall be paid to providers. Participating |
15 | | providers shall be reimbursed for the appropriate current |
16 | | procedural terminology (CPT) code for the telehealth service |
17 | | rendered. |
18 | | (f) A patient receiving services by store and forward shall |
19 | | be notified of the right to receive interactive communication |
20 | | with the distant specialist physician or optometrist, and shall |
21 | | receive an interactive communication with the distant |
22 | | specialist physician or optometrist upon request. If |
23 | | requested, communication with the distant specialist physician |
24 | | or optometrist may occur either at the time of the consultation |
25 | | or within 30 days after the patient's notification of the |
26 | | results of the consultation. If the reviewing optometrist |
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1 | | identifies a disease or condition requiring consultation or |
2 | | referral, then that consultation or referral shall be with an |
3 | | ophthalmologist or other appropriate physician and surgeon as |
4 | | required. |
5 | | (g) The requirements for telehealth services are as |
6 | | follows: |
7 | | (1) A physician or other licensed health care |
8 | | professional must be present at all times with the patient |
9 | | at the originating site. |
10 | | (2) The distant site provider must be a physician or |
11 | | other licensed health care professional who is licensed by |
12 | | the State of Illinois or by the state where the patient is |
13 | | located. |
14 | | (3) Medical data may be exchanged through a |
15 | | telecommunication system. |
16 | | (4) The interactive telecommunications system must, at |
17 | | a minimum, have the capability of allowing the consulting |
18 | | physician to examine the patient sufficiently to allow |
19 | | proper diagnosis of the involved body system. The system |
20 | | must also be capable of transmitting clearly audible heart |
21 | | tones and lung sounds as well as clear video images of the |
22 | | patient and any diagnostic tools such as radiographs. |
23 | | (h) The requirements for telepsychiatry services are as |
24 | | follows: |
25 | | (1) A physician or other licensed clinician as defined |
26 | | in Section 132.25 of Title 59 of the Illinois |
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1 | | Administrative Code must be present at all times with the |
2 | | patient at the originating site. |
3 | | (2) The distant site provider must be a physician |
4 | | licensed by the State of Illinois or by the state where the |
5 | | patient is located and must have completed or be registered |
6 | | in and supervised by a physician who has completed an |
7 | | approved general psychiatry residency program. When |
8 | | treating patients age 16 and younger, the physician must |
9 | | have also completed an approved child and adolescent |
10 | | residency program or be registered in an approved general |
11 | | psychiatry residency program or a child and adolescent |
12 | | psychiatry fellowship program and supervised by a |
13 | | physician who has completed an approved child and |
14 | | adolescent psychiatry fellowship program. The distant site |
15 | | provider must personally render the telepsychiatry |
16 | | service. Telepsychiatry services must be rendered using an |
17 | | interactive telecommunications system. |
18 | | Group psychotherapy is a covered telepsychiatry service. |
19 | | (i) The originating site must maintain records to document |
20 | | the services provided to patients and the health care |
21 | | professionals and providers involved in the services at all |
22 | | originating and distant site locations.
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23 | | Section 30. The Health Maintenance Organization Act is |
24 | | amended by changing Section 5-3 as follows:
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1 | | (215 ILCS 125/5-3) (from Ch. 111 1/2, par. 1411.2)
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2 | | Sec. 5-3. Insurance Code provisions.
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3 | | (a) Health Maintenance Organizations
shall be subject to |
4 | | the provisions of Sections 133, 134, 136, 137, 139, 140, 141.1,
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5 | | 141.2, 141.3, 143, 143c, 147, 148, 149, 151,
152, 153, 154, |
6 | | 154.5, 154.6,
154.7, 154.8, 155.04, 155.22a, 355.2, 355.3, |
7 | | 356g.5-1, 356m, 356v, 356w, 356x, 356y,
356z.2, 356z.4, 356z.5, |
8 | | 356z.6, 356z.8, 356z.9, 356z.10, 356z.11, 356z.12, 356z.13, |
9 | | 356z.14, 356z.15, 356z.17, 356z.18, 356z.19, 356z.21, 356z.22, |
10 | | 364.01, 367.2, 367.2-5, 367i, 368a, 368b, 368c, 368d, 368e, |
11 | | 370c,
370c.1, 401, 401.1, 402, 403, 403A,
408, 408.2, 409, 412, |
12 | | 444,
and
444.1,
paragraph (c) of subsection (2) of Section 367, |
13 | | and Articles IIA, VIII 1/2,
XII,
XII 1/2, XIII, XIII 1/2, XXV, |
14 | | and XXVI of the Illinois Insurance Code.
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15 | | (b) For purposes of the Illinois Insurance Code, except for |
16 | | Sections 444
and 444.1 and Articles XIII and XIII 1/2, Health |
17 | | Maintenance Organizations in
the following categories are |
18 | | deemed to be "domestic companies":
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19 | | (1) a corporation authorized under the
Dental Service |
20 | | Plan Act or the Voluntary Health Services Plans Act;
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21 | | (2) a corporation organized under the laws of this |
22 | | State; or
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23 | | (3) a corporation organized under the laws of another |
24 | | state, 30% or more
of the enrollees of which are residents |
25 | | of this State, except a
corporation subject to |
26 | | substantially the same requirements in its state of
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1 | | organization as is a "domestic company" under Article VIII |
2 | | 1/2 of the
Illinois Insurance Code.
|
3 | | (c) In considering the merger, consolidation, or other |
4 | | acquisition of
control of a Health Maintenance Organization |
5 | | pursuant to Article VIII 1/2
of the Illinois Insurance Code,
|
6 | | (1) the Director shall give primary consideration to |
7 | | the continuation of
benefits to enrollees and the financial |
8 | | conditions of the acquired Health
Maintenance Organization |
9 | | after the merger, consolidation, or other
acquisition of |
10 | | control takes effect;
|
11 | | (2)(i) the criteria specified in subsection (1)(b) of |
12 | | Section 131.8 of
the Illinois Insurance Code shall not |
13 | | apply and (ii) the Director, in making
his determination |
14 | | with respect to the merger, consolidation, or other
|
15 | | acquisition of control, need not take into account the |
16 | | effect on
competition of the merger, consolidation, or |
17 | | other acquisition of control;
|
18 | | (3) the Director shall have the power to require the |
19 | | following
information:
|
20 | | (A) certification by an independent actuary of the |
21 | | adequacy
of the reserves of the Health Maintenance |
22 | | Organization sought to be acquired;
|
23 | | (B) pro forma financial statements reflecting the |
24 | | combined balance
sheets of the acquiring company and |
25 | | the Health Maintenance Organization sought
to be |
26 | | acquired as of the end of the preceding year and as of |
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1 | | a date 90 days
prior to the acquisition, as well as pro |
2 | | forma financial statements
reflecting projected |
3 | | combined operation for a period of 2 years;
|
4 | | (C) a pro forma business plan detailing an |
5 | | acquiring party's plans with
respect to the operation |
6 | | of the Health Maintenance Organization sought to
be |
7 | | acquired for a period of not less than 3 years; and
|
8 | | (D) such other information as the Director shall |
9 | | require.
|
10 | | (d) The provisions of Article VIII 1/2 of the Illinois |
11 | | Insurance Code
and this Section 5-3 shall apply to the sale by |
12 | | any health maintenance
organization of greater than 10% of its
|
13 | | enrollee population (including without limitation the health |
14 | | maintenance
organization's right, title, and interest in and to |
15 | | its health care
certificates).
|
16 | | (e) In considering any management contract or service |
17 | | agreement subject
to Section 141.1 of the Illinois Insurance |
18 | | Code, the Director (i) shall, in
addition to the criteria |
19 | | specified in Section 141.2 of the Illinois
Insurance Code, take |
20 | | into account the effect of the management contract or
service |
21 | | agreement on the continuation of benefits to enrollees and the
|
22 | | financial condition of the health maintenance organization to |
23 | | be managed or
serviced, and (ii) need not take into account the |
24 | | effect of the management
contract or service agreement on |
25 | | competition.
|
26 | | (f) Except for small employer groups as defined in the |
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1 | | Small Employer
Rating, Renewability and Portability Health |
2 | | Insurance Act and except for
medicare supplement policies as |
3 | | defined in Section 363 of the Illinois
Insurance Code, a Health |
4 | | Maintenance Organization may by contract agree with a
group or |
5 | | other enrollment unit to effect refunds or charge additional |
6 | | premiums
under the following terms and conditions:
|
7 | | (i) the amount of, and other terms and conditions with |
8 | | respect to, the
refund or additional premium are set forth |
9 | | in the group or enrollment unit
contract agreed in advance |
10 | | of the period for which a refund is to be paid or
|
11 | | additional premium is to be charged (which period shall not |
12 | | be less than one
year); and
|
13 | | (ii) the amount of the refund or additional premium |
14 | | shall not exceed 20%
of the Health Maintenance |
15 | | Organization's profitable or unprofitable experience
with |
16 | | respect to the group or other enrollment unit for the |
17 | | period (and, for
purposes of a refund or additional |
18 | | premium, the profitable or unprofitable
experience shall |
19 | | be calculated taking into account a pro rata share of the
|
20 | | Health Maintenance Organization's administrative and |
21 | | marketing expenses, but
shall not include any refund to be |
22 | | made or additional premium to be paid
pursuant to this |
23 | | subsection (f)). The Health Maintenance Organization and |
24 | | the
group or enrollment unit may agree that the profitable |
25 | | or unprofitable
experience may be calculated taking into |
26 | | account the refund period and the
immediately preceding 2 |
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1 | | plan years.
|
2 | | The Health Maintenance Organization shall include a |
3 | | statement in the
evidence of coverage issued to each enrollee |
4 | | describing the possibility of a
refund or additional premium, |
5 | | and upon request of any group or enrollment unit,
provide to |
6 | | the group or enrollment unit a description of the method used |
7 | | to
calculate (1) the Health Maintenance Organization's |
8 | | profitable experience with
respect to the group or enrollment |
9 | | unit and the resulting refund to the group
or enrollment unit |
10 | | or (2) the Health Maintenance Organization's unprofitable
|
11 | | experience with respect to the group or enrollment unit and the |
12 | | resulting
additional premium to be paid by the group or |
13 | | enrollment unit.
|
14 | | In no event shall the Illinois Health Maintenance |
15 | | Organization
Guaranty Association be liable to pay any |
16 | | contractual obligation of an
insolvent organization to pay any |
17 | | refund authorized under this Section.
|
18 | | (g) Rulemaking authority to implement Public Act 95-1045, |
19 | | if any, is conditioned on the rules being adopted in accordance |
20 | | with all provisions of the Illinois Administrative Procedure |
21 | | Act and all rules and procedures of the Joint Committee on |
22 | | Administrative Rules; any purported rule not so adopted, for |
23 | | whatever reason, is unauthorized. |
24 | | (Source: P.A. 96-328, eff. 8-11-09; 96-639, eff. 1-1-10; |
25 | | 96-833, eff. 6-1-10; 96-1000, eff. 7-2-10; 97-282, eff. 8-9-11; |
26 | | 97-343, eff. 1-1-12; 97-437, eff. 8-18-11; 97-486, eff. 1-1-12; |
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1 | | 97-592, eff. 1-1-12; 97-805, eff. 1-1-13; 97-813, eff. |
2 | | 7-13-12.) |
3 | | Section 35. The Limited Health Service Organization Act is |
4 | | amended by changing Section 4003 as follows:
|
5 | | (215 ILCS 130/4003) (from Ch. 73, par. 1504-3)
|
6 | | Sec. 4003. Illinois Insurance Code provisions. Limited |
7 | | health service
organizations shall be subject to the provisions |
8 | | of Sections 133, 134, 136, 137, 139,
140, 141.1, 141.2, 141.3, |
9 | | 143, 143c, 147, 148, 149, 151, 152, 153, 154, 154.5,
154.6, |
10 | | 154.7, 154.8, 155.04, 155.37, 355.2, 355.3, 356v, 356z.10, |
11 | | 356z.21, 356z.22, 368a, 401, 401.1,
402,
403, 403A, 408,
408.2, |
12 | | 409, 412, 444, and 444.1 and Articles IIA, VIII 1/2, XII, XII |
13 | | 1/2,
XIII,
XIII 1/2, XXV, and XXVI of the Illinois Insurance |
14 | | Code. For purposes of the
Illinois Insurance Code, except for |
15 | | Sections 444 and 444.1 and Articles XIII
and XIII 1/2, limited |
16 | | health service organizations in the following categories
are |
17 | | deemed to be domestic companies:
|
18 | | (1) a corporation under the laws of this State; or
|
19 | | (2) a corporation organized under the laws of another |
20 | | state, 30% of more
of the enrollees of which are residents |
21 | | of this State, except a corporation
subject to |
22 | | substantially the same requirements in its state of |
23 | | organization as
is a domestic company under Article VIII |
24 | | 1/2 of the Illinois Insurance Code.
|
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1 | | (Source: P.A. 97-486, eff. 1-1-12; 97-592, 1-1-12; 97-805, eff. |
2 | | 1-1-13; 97-813, eff. 7-13-12.)
|
3 | | Section 40. The Voluntary Health Services Plans Act is |
4 | | amended by changing Section 10 as follows:
|
5 | | (215 ILCS 165/10) (from Ch. 32, par. 604)
|
6 | | Sec. 10. Application of Insurance Code provisions. Health |
7 | | services
plan corporations and all persons interested therein |
8 | | or dealing therewith
shall be subject to the provisions of |
9 | | Articles IIA and XII 1/2 and Sections
3.1, 133, 136, 139, 140, |
10 | | 143, 143c, 149, 155.22a, 155.37, 354, 355.2, 355.3, 356g, |
11 | | 356g.5, 356g.5-1, 356r, 356t, 356u, 356v,
356w, 356x, 356y, |
12 | | 356z.1, 356z.2, 356z.4, 356z.5, 356z.6, 356z.8, 356z.9,
|
13 | | 356z.10, 356z.11, 356z.12, 356z.13, 356z.14, 356z.15, 356z.18, |
14 | | 356z.19, 356z.21, 356z.22, 364.01, 367.2, 368a, 401, 401.1,
|
15 | | 402,
403, 403A, 408,
408.2, and 412, and paragraphs (7) and |
16 | | (15) of Section 367 of the Illinois
Insurance Code.
|
17 | | Rulemaking authority to implement Public Act 95-1045, if |
18 | | any, is conditioned on the rules being adopted in accordance |
19 | | with all provisions of the Illinois Administrative Procedure |
20 | | Act and all rules and procedures of the Joint Committee on |
21 | | Administrative Rules; any purported rule not so adopted, for |
22 | | whatever reason, is unauthorized. |
23 | | (Source: P.A. 96-328, eff. 8-11-09; 96-833, eff. 6-1-10; |
24 | | 96-1000, eff. 7-2-10; 97-282, eff. 8-9-11; 97-343, eff. 1-1-12; |