093_HB1648ham001
LRB093 06981 JLS 13442 a
1 AMENDMENT TO HOUSE BILL 1648
2 AMENDMENT NO. . Amend House Bill 1648 by replacing
3 everything after the enacting clause with the following:
4 "Section 5. The Comprehensive Health Insurance Plan Act
5 is amended by changing Section 4 as follows:
6 (215 ILCS 105/4) (from Ch. 73, par. 1304)
7 Sec. 4. Powers and authority of the board. The board
8 shall have the general powers and authority granted under the
9 laws of this State to insurance companies licensed to
10 transact health and accident insurance and in addition
11 thereto, the specific authority to:
12 a. Enter into contracts as are necessary or proper to
13 carry out the provisions and purposes of this Act, including
14 the authority, with the approval of the Director, to enter
15 into contracts with similar plans of other states for the
16 joint performance of common administrative functions, or with
17 persons or other organizations for the performance of
18 administrative functions including, without limitation,
19 utilization review and quality assurance programs, or with
20 health maintenance organizations or preferred provider
21 organizations for the provision of health care services.
22 b. Sue or be sued, including taking any legal actions
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1 necessary or proper.
2 c. Take such legal action as necessary to:
3 (1) avoid the payment of improper claims against
4 the plan or the coverage provided by or through the plan;
5 (2) to recover any amounts erroneously or
6 improperly paid by the plan;
7 (3) to recover any amounts paid by the plan as a
8 result of a mistake of fact or law; or
9 (4) to recover or collect any other amounts,
10 including assessments, that are due or owed the Plan or
11 have been billed on its or the Plan's behalf.
12 d. Establish appropriate rates, rate schedules, rate
13 adjustments, expense allowances, agents' referral fees, claim
14 reserves, and formulas and any other actuarial function
15 appropriate to the operation of the plan. Rates and rate
16 schedules may be adjusted for appropriate risk factors such
17 as age and area variation in claim costs and shall take into
18 consideration appropriate risk factors in accordance with
19 established actuarial and underwriting practices.
20 e. Issue policies of insurance in accordance with the
21 requirements of this Act.
22 f. Appoint appropriate legal, actuarial and other
23 committees as necessary to provide technical assistance in
24 the operation of the plan, policy and other contract design,
25 and any other function within the authority of the plan.
26 g. Borrow money to effect the purposes of the Illinois
27 Comprehensive Health Insurance Plan. Any notes or other
28 evidence of indebtedness of the plan not in default shall be
29 legal investments for insurers and may be carried as admitted
30 assets.
31 h. Establish rules, conditions and procedures for
32 reinsuring risks under this Act.
33 i. Employ and fix the compensation of employees. Such
34 employees may be paid on a warrant issued by the State
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1 Treasurer pursuant to a payroll voucher certified by the
2 Board and drawn by the Comptroller against appropriations or
3 trust funds held by the State Treasurer.
4 j. Enter into intergovernmental cooperation agreements
5 with other agencies or entities of State government for the
6 purpose of sharing the cost of providing health care services
7 that are otherwise authorized by this Act for children who
8 are both plan participants and eligible for financial
9 assistance from the Division of Specialized Care for Children
10 of the University of Illinois.
11 k. Establish conditions and procedures under which the
12 plan may, if funds permit, discount or subsidize premium
13 rates that are paid directly by senior citizens, as defined
14 by the Board, and other plan participants, who are retired or
15 unemployed and meet other qualifications.
16 l. Establish and maintain the Plan Fund authorized in
17 Section 3 of this Act, which shall be divided into separate
18 accounts, as follows:
19 (1) accounts to fund the administrative, claim, and
20 other expenses of the Plan associated with eligible
21 persons who qualify for Plan coverage under Section 7 of
22 this Act, which shall consist of:
23 (A) premiums paid on behalf of covered
24 persons;
25 (B) appropriated funds and other revenues
26 collected or received by the Board;
27 (C) reserves for future losses maintained by
28 the Board; and
29 (D) interest earnings from investment of the
30 funds in the Plan Fund or any of its accounts other
31 than the funds in the account established under item
32 2 of this subsection;
33 (2) an account, to be denominated the federally
34 eligible individuals account, to fund the administrative,
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1 claim, and other expenses of the Plan associated with
2 federally eligible individuals who qualify for Plan
3 coverage under Section 15 of this Act, which shall
4 consist of:
5 (A) premiums paid on behalf of covered
6 persons;
7 (B) assessments and other revenues collected
8 or received by the Board;
9 (C) reserves for future losses maintained by
10 the Board; and
11 (D) interest earnings from investment of the
12 federally eligible individuals account funds; and
13 (3) such other accounts as may be appropriate.
14 m. Charge and collect assessments paid by insurers
15 pursuant to Section 12 of this Act and recover any
16 assessments for, on behalf of, or against those insurers.
17 n. Establish conditions and procedures under which the
18 Plan may, if funds permit, provide catastrophic prescription
19 drug insurance, as defined by the Board.
20 (Source: P.A. 90-30, eff. 7-1-97; 91-357, eff. 7-29-99.)
21 Section 99. Effective date. This Act takes effect upon
22 becoming law.".