SB3096 Engrossed LRB096 20150 RPM 35695 b

1     AN ACT concerning insurance.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Charitable Trust Act is amended by adding
5 Section 20 as follows:
 
6     (760 ILCS 55/20 new)
7     Sec. 20. Medical Sharing Trust Law.
8     (a) This Section may be referred to as the Medical Sharing
9 Trust Law.
10     (b) For the purposes of this Section, "Medical Sharing
11 Trust" means an organization that facilitates payment of the
12 medical expenses of its participants as provided in this
13 Section and complies with all provisions of this Act and the
14 Solicitation for Charity Act.
15     (c) An organization complying with this Section as a
16 Medical Sharing Trust is not subject to the provisions of the
17 Illinois Insurance Code. A Medical Sharing Trust shall not
18 offer any services that are regulated under any provision of
19 the Illinois Insurance Code.
20     (d) No Medical Sharing Trust shall be offered, issued,
21 sold, or solicited to participants in this State as exempt
22 under subsection (c) of this Section unless the Medical Sharing
23 Trust has complied with all requirements set forth in

 

 

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1 subsections (b) and (e) of this Section.
2     (e) The following provisions shall apply concerning the
3 operation of a Medical Sharing Trust:
4         (1) A Medical Sharing Trust shall facilitate payments
5     directly between participants who have present medical
6     needs and participants with the ability to pay for the
7     benefit of those participants in need. A Medical Sharing
8     Trust is prohibited from assuming liability for or
9     guaranteeing payment of any medical expenses and from
10     comingling participants' funds.
11         (2) All participants shall execute a release stating
12     that no other participants or the Medical Sharing Trust
13     shall be legally obligated in any way to pay for a medical
14     need.
15         (3) A Medical Sharing Trust shall facilitate the
16     payments provided for in paragraph (1) of this subsection
17     (e) through payments made directly from one participant to
18     another without transferring funds to a third party or the
19     Medical Sharing Trust.
20         (4) A Medical Sharing Trust may cancel the membership
21     of a participant when that participant indicates their
22     unwillingness to participate by failing to make a payment
23     to another participant for a period in excess of 60 days.
24         (5) A Medical Sharing Trust may establish
25     qualifications of participation relating to the health of
26     the prospective participant.

 

 

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1         (6) A Medical Sharing Trust may establish
2     qualifications as to the participants' physical or medical
3     needs necessary for eligibility for payment among the
4     participants.
5         (7) A Medical Sharing Trust shall provide the following
6     verbatim written disclaimer on all applications for
7     membership or participation:
8             "WARNING: This organization is not insurance or an
9         insurance policy nor is it offered through an insurance
10         company. Whether anyone chooses to assist you with your
11         medical bills will be totally voluntary, as no other
12         member will be compelled by law to contribute toward
13         your medical bills. As such, this organization should
14         never be considered to be providing insurance. Whether
15         you receive any payments for medical expenses and
16         whether or not this organization continues to operate,
17         you are always personally responsible for the payment
18         of your own medical bills. This organization is not
19         subject to the regulatory requirements of the Illinois
20         Insurance Code.".
21         (8) A Medical Sharing Trust shall provide to its
22     participants, within 30 days after enrollment, a complete
23     set of its rules for the sharing of needs, appeals of
24     decisions made by the Medical Sharing Trust, and the filing
25     of complaints. The rules must be in the participant's
26     native language if requested by the participant.

 

 

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1         (9) A Medical Sharing Trust shall have a Certificate of
2     Authority to do business in Illinois.
3         (10) A Medical Sharing Trust shall be controlled by a
4     board of directors, the majority of which is elected by its
5     members.