SB2235 99TH GENERAL ASSEMBLY

LRB099 16134 MLM 40459 b

99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB2235

Introduced 1/13/2016, by Sen. William R. Haine

SYNOPSIS AS INTRODUCED:

5 ILCS 375/6.12a new

Amends the State Employees Group Insurance Act of 1971. Provides that the failure of the State to make any payment to a provider for a period of 6 months may be considered by the provider to be a material breach of the contract by the State. Provides that a provider who has entered into a contract to provide services under the Act and who has not received any payment for services for a period of 6 months (1) may consider the contract null and void; (2) may opt out of the obligation to provide services under the terms and conditions of the contract; and (3) shall, upon providing notice to the State department, be deemed an out-of-network provider. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning regulation.

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

Section 5. The State Employees Group Insurance Act of 1971 is amended by adding Section 6.12a as follows:

(5 ILCS 375/6.12a new)

Sec. 6.12a. Nullification of in-network provider contracts. The failure of the State of Illinois to make any payment to a provider for a period of 6 months may be considered by the provider to be a material breach of the contract by the State. Notwithstanding the provisions of Section 6.12, a provider who has entered into a contract to provide services under this Act and who has not received any payment for services for a period of 6 months: (1) may consider the contract null and void; (2) may opt out of the obligation to provide services under the terms and conditions of the contract; and (3) shall, upon providing notice to the Department, be deemed an out-of-network provider.

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