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90_HB0388
215 ILCS 5/155.31 new
215 ILCS 125/5-3 from Ch. 111 1/2, par. 1411.2
215 ILCS 130/4003 from Ch. 73, par. 1504-3
215 ILCS 165/10 from Ch. 32, par. 604
Amends the Illinois Insurance Code, Health Maintenance
Organization Act, Limited Health Service Organization Act,
and Voluntary Health Services Plans Act. Provides that
insurers may not discriminate against persons based upon
results of genetic testing or screening.
LRB9001345JSgc
LRB9001345JSgc
1 AN ACT to prohibit the use of DNA information as a basis
2 for certain insurability decisions, amending named Acts.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois Insurance Code is amended by
6 adding Section 155.31 as follows:
7 (215 ILCS 5/155.31 new)
8 Sec. 155.31. Genetic testing or screening prohibited.
9 (a) In connection with an individual or group policy of
10 accident and health insurance subject to Article XX of this
11 Code, a company may not do any of the following:
12 (1) Require an individual seeking coverage to
13 submit to genetic testing or screening.
14 (2) Except in accordance with subsection (e) of
15 this Section, take into consideration the results of
16 genetic testing or screening.
17 (3) Make any inquiry to determine the results of
18 genetic testing or screening.
19 (4) Make a decision adverse to the applicant based
20 upon entries in medical records or other reports of
21 genetic testing or screening.
22 (b) In developing and asking questions regarding medical
23 histories of applicants for accident and health insurance, a
24 company may not ask for the results of genetic testing or
25 screening or ask questions designed to ascertain the results
26 of genetic testing or screening.
27 (c) A company may not cancel or refuse to issue or renew
28 accident and health insurance coverage based on the results
29 of genetic testing or screening.
30 (d) A company may not amend, deliver, issue, or renew
31 after the effective date of this amendatory Act of 1997 an
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1 individual or group policy of accident and health insurance
2 that limits benefits based on the results of genetic testing
3 or screening.
4 (e) A company may consider the results of genetic
5 testing or screening if the results are voluntarily submitted
6 by an applicant for coverage or renewal of coverage and the
7 results are favorable to the applicant.
8 (f) Subsections (a), (b), (c), and (d) of this Section
9 do not apply to a company in connection with the issuance of
10 a policy of life insurance or disability insurance.
11 (g) A company that obtains information concerning
12 genetic testing or screening results in connection with the
13 issuance of a policy of life insurance or disability
14 insurance may not do any of the following:
15 (1) Use the information in issuing a type of
16 insurance other than a policy of life insurance or
17 disability insurance for the individual or a member of
18 the individual's family.
19 (2) Provide for rates or any other aspect of
20 coverage that is not reasonably related to the risk
21 involved.
22 (h) As used in this Section, "genetic testing or
23 screening" means a laboratory test of a person's genes or
24 chromosomes for abnormalities, defects, or deficiencies,
25 including carrier status, that are linked to physical or
26 mental disorders or impairments or that indicate a
27 susceptibility to illness, disease, or other disorders,
28 whether physical or mental, that is a direct test for
29 abnormalities, defects, or deficiencies and not an indirect
30 manifestation of genetic disorders.
31 (i) A violation of this Section constitutes an unfair
32 method of competition or an unfair or deceptive act or
33 practice in violation of Article XXVI of this Code.
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1 Section 10. The Health Maintenance Organization Act is
2 amended by changing Section 5-3 as follows:
3 (215 ILCS 125/5-3) (from Ch. 111 1/2, par. 1411.2)
4 Sec. 5-3. Insurance Code provisions.
5 (a) Health Maintenance Organizations shall be subject to
6 the provisions of Sections 133, 134, 137, 140, 141.1, 141.2,
7 141.3, 143, 143c, 147, 148, 149, 151, 152, 153, 154, 154.5,
8 154.6, 154.7, 154.8, 155.04, 155.31, 355.2, 356m, 367i, 401,
9 401.1, 402, 403, 403A, 408, 408.2, and 412, paragraph (c) of
10 subsection (2) of Section 367, and Articles VIII 1/2, XII,
11 XII 1/2, XIII, XIII 1/2, and XXVI of the Illinois Insurance
12 Code.
13 (b) For purposes of the Illinois Insurance Code, except
14 for Articles XIII and XIII 1/2, Health Maintenance
15 Organizations in the following categories are deemed to be
16 "domestic companies":
17 (1) a corporation authorized under the Medical
18 Service Plan Act, the Dental Service Plan Act, the Vision
19 Service Plan Act, the Pharmaceutical Service Plan Act,
20 the Voluntary Health Services Plan Act, or the Nonprofit
21 Health Care Service Plan Act;
22 (2) a corporation organized under the laws of this
23 State; or
24 (3) a corporation organized under the laws of
25 another state, 30% or more of the enrollees of which are
26 residents of this State, except a corporation subject to
27 substantially the same requirements in its state of
28 organization as is a "domestic company" under Article
29 VIII 1/2 of the Illinois Insurance Code.
30 (c) In considering the merger, consolidation, or other
31 acquisition of control of a Health Maintenance Organization
32 pursuant to Article VIII 1/2 of the Illinois Insurance Code,
33 (1) the Director shall give primary consideration
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1 to the continuation of benefits to enrollees and the
2 financial conditions of the acquired Health Maintenance
3 Organization after the merger, consolidation, or other
4 acquisition of control takes effect;
5 (2)(i) the criteria specified in subsection (1)(b)
6 of Section 131.8 of the Illinois Insurance Code shall not
7 apply and (ii) the Director, in making his determination
8 with respect to the merger, consolidation, or other
9 acquisition of control, need not take into account the
10 effect on competition of the merger, consolidation, or
11 other acquisition of control;
12 (3) the Director shall have the power to require
13 the following information:
14 (A) certification by an independent actuary of
15 the adequacy of the reserves of the Health
16 Maintenance Organization sought to be acquired;
17 (B) pro forma financial statements reflecting
18 the combined balance sheets of the acquiring company
19 and the Health Maintenance Organization sought to be
20 acquired as of the end of the preceding year and as
21 of a date 90 days prior to the acquisition, as well
22 as pro forma financial statements reflecting
23 projected combined operation for a period of 2
24 years;
25 (C) a pro forma business plan detailing an
26 acquiring party's plans with respect to the
27 operation of the Health Maintenance Organization
28 sought to be acquired for a period of not less than
29 3 years; and
30 (D) such other information as the Director
31 shall require.
32 (d) The provisions of Article VIII 1/2 of the Illinois
33 Insurance Code and this Section 5-3 shall apply to the sale
34 by any health maintenance organization of greater than 10% of
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1 its enrollee population (including without limitation the
2 health maintenance organization's right, title, and interest
3 in and to its health care certificates).
4 (e) In considering any management contract or service
5 agreement subject to Section 141.1 of the Illinois Insurance
6 Code, the Director (i) shall, in addition to the criteria
7 specified in Section 141.2 of the Illinois Insurance Code,
8 take into account the effect of the management contract or
9 service agreement on the continuation of benefits to
10 enrollees and the financial condition of the health
11 maintenance organization to be managed or serviced, and (ii)
12 need not take into account the effect of the management
13 contract or service agreement on competition.
14 (f) Except for small employer groups as defined in the
15 Small Employer Rating, Renewability and Portability Health
16 Insurance Act and except for medicare supplement policies as
17 defined in Section 363 of the Illinois Insurance Code, a
18 Health Maintenance Organization may by contract agree with a
19 group or other enrollment unit to effect refunds or charge
20 additional premiums under the following terms and conditions:
21 (i) the amount of, and other terms and conditions
22 with respect to, the refund or additional premium are set
23 forth in the group or enrollment unit contract agreed in
24 advance of the period for which a refund is to be paid or
25 additional premium is to be charged (which period shall
26 not be less than one year); and
27 (ii) the amount of the refund or additional premium
28 shall not exceed 20% of the Health Maintenance
29 Organization's profitable or unprofitable experience with
30 respect to the group or other enrollment unit for the
31 period (and, for purposes of a refund or additional
32 premium, the profitable or unprofitable experience shall
33 be calculated taking into account a pro rata share of the
34 Health Maintenance Organization's administrative and
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1 marketing expenses, but shall not include any refund to
2 be made or additional premium to be paid pursuant to this
3 subsection (f)). The Health Maintenance Organization and
4 the group or enrollment unit may agree that the
5 profitable or unprofitable experience may be calculated
6 taking into account the refund period and the immediately
7 preceding 2 plan years.
8 The Health Maintenance Organization shall include a
9 statement in the evidence of coverage issued to each enrollee
10 describing the possibility of a refund or additional premium,
11 and upon request of any group or enrollment unit, provide to
12 the group or enrollment unit a description of the method used
13 to calculate (1) the Health Maintenance Organization's
14 profitable experience with respect to the group or enrollment
15 unit and the resulting refund to the group or enrollment unit
16 or (2) the Health Maintenance Organization's unprofitable
17 experience with respect to the group or enrollment unit and
18 the resulting additional premium to be paid by the group or
19 enrollment unit.
20 In no event shall the Illinois Health Maintenance
21 Organization Guaranty Association be liable to pay any
22 contractual obligation of an insolvent organization to pay
23 any refund authorized under this Section.
24 (Source: P.A. 88-313; 89-90, eff. 6-30-95.)
25 Section 15. The Limited Health Service Organization Act
26 is amended by changing Section 4003 as follows:
27 (215 ILCS 130/4003) (from Ch. 73, par. 1504-3)
28 Sec. 4003. Illinois Insurance Code provisions. Limited
29 health service organizations shall be subject to the
30 provisions of Sections 133, 134, 137, 140, 141.1, 141.2,
31 141.3, 143, 143c, 147, 148, 149, 151, 152, 153, 154, 154.5,
32 154.6, 154.7, 154.8, 155.04, 155.31, 355.2, 401, 401.1, 402,
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1 403, 403A, 408, 408.2, and 412, and Articles VIII 1/2, XII,
2 XII 1/2, XIII, XIII 1/2, and XXVI of the Illinois Insurance
3 Code. For purposes of the Illinois Insurance Code, except
4 for Articles XIII and XIII 1/2, limited health service
5 organizations in the following categories are deemed to be
6 domestic companies:
7 (1) a corporation under the laws of this State; or
8 (2) a corporation organized under the laws of
9 another state, 30% of more of the enrollees of which are
10 residents of this State, except a corporation subject to
11 substantially the same requirements in its state of
12 organization as is a domestic company under Article VIII
13 1/2 of the Illinois Insurance Code.
14 (Source: P.A. 86-600; 87-587; 87-1090.)
15 Section 20. The Voluntary Health Services Plans Act is
16 amended by changing Section 10 as follows:
17 (215 ILCS 165/10) (from Ch. 32, par. 604)
18 Sec. 10. Application of Insurance Code provisions.
19 Health services plan corporations and all persons interested
20 therein or dealing therewith shall be subject to the
21 provisions of Article XII 1/2 and Sections 3.1, 133, 140,
22 143, 143c, 149, 155.31, 354, 355.2, 356r, 367.2, 401, 401.1,
23 402, 403, 403A, 408, 408.2, and 412, and paragraphs (7) and
24 (15) of Section 367 of the Illinois Insurance Code.
25 (Source: P.A. 89-514, eff. 7-17-96.)