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92nd General Assembly

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Public Act 92-0789

SB2225 Enrolled                                LRB9211341DJgc

    AN ACT in relation to public aid.

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

    Section  5.  The  Illinois  Public Aid Code is amended by
changing Sections 5-5 and 12-4.25 as follows:

    (305 ILCS 5/5-5) (from Ch. 23, par. 5-5)
    Sec. 5-5.  Medical services. The Illinois Department,  by
rule,  shall  determine  the  quantity and quality of and the
rate of reimbursement for the medical  assistance  for  which
payment  will  be  authorized, and the medical services to be
provided, which may include all or part of the following: (1)
inpatient  hospital   services;   (2)   outpatient   hospital
services;  (3)  other  laboratory  and  X-ray  services;  (4)
skilled  nursing  home  services;  (5)  physicians'  services
whether  furnished  in  the  office,  the  patient's  home, a
hospital, a skilled nursing home, or elsewhere;  (6)  medical
care,  or  any  other  type  of  remedial  care  furnished by
licensed practitioners; (7) home health  care  services;  (8)
private  duty  nursing  service;  (9)  clinic  services; (10)
dental services; (11) physical therapy and related  services;
(12)  prescribed drugs, dentures, and prosthetic devices; and
eyeglasses prescribed by a physician skilled in the  diseases
of  the  eye,  or by an optometrist, whichever the person may
select; (13) other  diagnostic,  screening,  preventive,  and
rehabilitative  services;  (14) transportation and such other
expenses as may  be  necessary;  (15)  medical  treatment  of
sexual  assault  survivors,  as  defined in Section 1a of the
Sexual  Assault  Survivors  Emergency  Treatment   Act,   for
injuries  sustained  as  a  result  of  the  sexual  assault,
including  examinations  and  laboratory  tests  to  discover
evidence  which  may  be used in criminal proceedings arising
from the sexual assault; (16) the diagnosis and treatment  of
sickle  cell anemia; and (17) any other medical care, and any
other type of remedial care recognized under the laws of this
State, but not including abortions, or  induced  miscarriages
or  premature  births, unless, in the opinion of a physician,
such procedures are necessary for  the  preservation  of  the
life  of  the  woman  seeking  such  treatment,  or except an
induced premature birth intended to  produce  a  live  viable
child  and  such procedure is necessary for the health of the
mother or her unborn child. The Illinois Department, by rule,
shall  prohibit  any   physician   from   providing   medical
assistance  to anyone eligible therefor under this Code where
such  physician  has  been  found  guilty  of  performing  an
abortion procedure in a wilful and wanton manner upon a woman
who was not pregnant at the time such abortion procedure  was
performed.  The  term "any other type of remedial care" shall
include nursing care and nursing home service for persons who
rely on treatment by spiritual means alone through prayer for
healing.
    Notwithstanding any other provision of  this  Section,  a
comprehensive  tobacco  use  cessation  program that includes
purchasing prescription drugs or prescription medical devices
approved by the Food and Drug administration shall be covered
under the medical assistance program under this  Article  for
persons  who are otherwise eligible for assistance under this
Article.
    Notwithstanding any other provision  of  this  Code,  the
Illinois  Department  may  not  require,  as  a  condition of
payment  for  any  laboratory  test  authorized  under   this
Article,  that  a physician's handwritten signature appear on
the laboratory test order form.  The Illinois Department may,
however,  impose  other  appropriate  requirements  regarding
laboratory test order documentation.
    The Illinois Department of Public Aid shall  provide  the
following  services  to persons eligible for assistance under
this Article who are participating in education, training  or
employment  programs  operated  by  the  Department  of Human
Services as successor to the Department of Public Aid:
         (1)  dental services, which shall include but not be
    limited to prosthodontics; and
         (2)  eyeglasses prescribed by a physician skilled in
    the diseases of the eye, or by an optometrist,  whichever
    the person may select.
    The  Illinois  Department,  by  rule, may distinguish and
classify  the  medical  services  to  be  provided  only   in
accordance  with the classes of persons designated in Section
5-2.
    The Illinois Department shall authorize the provision of,
and  shall  authorize  payment  for,  screening  by  low-dose
mammography for the presence  of  occult  breast  cancer  for
women  35  years of age or older who are eligible for medical
assistance  under  this  Article,  as  follows:   a  baseline
mammogram for women 35 to 39  years  of  age  and  an  annual
mammogram for women 40 years of age or older.  All screenings
shall   include   a  physical  breast  exam,  instruction  on
self-examination and information regarding the  frequency  of
self-examination  and  its  value as a preventative tool.  As
used in this Section, "low-dose mammography" means the  x-ray
examination   of   the   breast   using  equipment  dedicated
specifically  for  mammography,  including  the  x-ray  tube,
filter, compression device, image  receptor,  and  cassettes,
with  an average radiation exposure delivery of less than one
rad mid-breast, with 2 views for each breast.
    Any medical or health  care  provider  shall  immediately
recommend,  to  any  pregnant  woman  who  is  being provided
prenatal services and  is  suspected  of  drug  abuse  or  is
addicted  as  defined  in the Alcoholism and Other Drug Abuse
and Dependency Act,  referral  to  a  local  substance  abuse
treatment  provider  licensed  by  the  Department  of  Human
Services  or  to a licensed hospital which provides substance
abuse treatment services.  The Department of Public Aid shall
assure coverage for the cost of treatment of the  drug  abuse
or  addiction  for pregnant recipients in accordance with the
Illinois Medicaid Program in conjunction with the  Department
of Human Services.
    All  medical  providers  providing  medical assistance to
pregnant women under this Code shall receive information from
the Department on the availability of services under the Drug
Free  Families  with  a  Future  or  any  comparable  program
providing  case  management  services  for  addicted   women,
including  information  on  appropriate  referrals  for other
social services that may  be  needed  by  addicted  women  in
addition to treatment for addiction.
    The   Illinois   Department,   in  cooperation  with  the
Departments of Human Services (as successor to the Department
of Alcoholism and Substance Abuse) and Public Health, through
a  public  awareness  campaign,   may   provide   information
concerning  treatment  for  alcoholism  and  drug  abuse  and
addiction, prenatal health care, and other pertinent programs
directed at reducing the number of drug-affected infants born
to recipients of medical assistance.
    Neither  the  Illinois  Department  of Public Aid nor the
Department of Human Services  shall  sanction  the  recipient
solely on the basis of her substance abuse.
    The  Illinois Department shall establish such regulations
governing  the  dispensing  of  health  services  under  this
Article as it shall deem appropriate.  In  formulating  these
regulations  the  Illinois  Department shall consult with and
give substantial weight to the recommendations offered by the
Citizens  Assembly/Council  on  Public  Aid.  The  Department
should  seek  the  advice  of  formal  professional  advisory
committees  appointed  by  the  Director  of   the   Illinois
Department  for  the  purpose  of providing regular advice on
policy and administrative matters, information  dissemination
and  educational  activities  for  medical  and  health  care
providers,  and  consistency  in  procedures  to the Illinois
Department.
    The Illinois Department may  develop  and  contract  with
Partnerships of medical providers to arrange medical services
for   persons  eligible  under  Section  5-2  of  this  Code.
Implementation  of  this  Section  may  be  by  demonstration
projects in certain geographic areas.  The Partnership  shall
be represented by a sponsor organization.  The Department, by
rule,   shall   develop   qualifications   for   sponsors  of
Partnerships.  Nothing in this Section shall be construed  to
require   that   the   sponsor   organization  be  a  medical
organization.
    The sponsor must negotiate formal written contracts  with
medical  providers  for  physician  services,  inpatient  and
outpatient hospital care, home health services, treatment for
alcoholism and substance abuse, and other services determined
necessary  by the Illinois Department by rule for delivery by
Partnerships.  Physician services must include  prenatal  and
obstetrical  care.   The  Illinois Department shall reimburse
medical  services  delivered  by  Partnership  providers   to
clients  in  target  areas  according  to  provisions of this
Article and the Illinois Health Finance  Reform  Act,  except
that:
         (1)  Physicians  participating  in a Partnership and
    providing certain services, which shall be determined  by
    the  Illinois  Department, to persons in areas covered by
    the Partnership may receive an additional  surcharge  for
    such services.
         (2)  The   Department  may  elect  to  consider  and
    negotiate   financial   incentives   to   encourage   the
    development of Partnerships and the efficient delivery of
    medical care.
         (3)  Persons  receiving  medical  services   through
    Partnerships  may  receive  medical  and  case management
    services above the  level  usually  offered  through  the
    medical assistance program.
    Medical  providers  shall  be  required  to  meet certain
qualifications to participate in Partnerships to  ensure  the
delivery   of   high   quality   medical   services.    These
qualifications  shall  be  determined by rule of the Illinois
Department  and  may  be  higher  than   qualifications   for
participation in the medical assistance program.  Partnership
sponsors  may  prescribe reasonable additional qualifications
for participation by medical providers, only with  the  prior
written approval of the Illinois Department.
    Nothing  in  this  Section shall limit the free choice of
practitioners, hospitals,  and  other  providers  of  medical
services  by  clients.  In order to ensure patient freedom of
choice, the Illinois Department shall immediately  promulgate
all  rules  and  take  all  other  necessary  actions so that
provided  services  may  be  accessed  from   therapeutically
certified  optometrists  to  the  full extent of the Illinois
Optometric  Practice  Act  of  1987  without   discriminating
between service providers.
    The  Department  shall apply for a waiver from the United
States Health Care Financing Administration to allow for  the
implementation of Partnerships under this Section.
    The   Illinois   Department  shall  require  health  care
providers to maintain records that document the medical  care
and  services  provided  to  recipients of Medical Assistance
under this Article.  The Illinois  Department  shall  require
health  care  providers to make available, when authorized by
the patient, in writing, the  medical  records  in  a  timely
fashion  to  other  health care providers who are treating or
serving persons eligible for Medical  Assistance  under  this
Article.    All  dispensers  of  medical  services  shall  be
required to maintain and  retain  business  and  professional
records  sufficient  to  fully  and  accurately  document the
nature,  scope,  details  and  receipt  of  the  health  care
provided to persons eligible  for  medical  assistance  under
this  Code, in accordance with regulations promulgated by the
Illinois Department.  The rules and regulations shall require
that proof of the receipt of  prescription  drugs,  dentures,
prosthetic  devices  and eyeglasses by eligible persons under
this Section accompany each claim for reimbursement submitted
by the dispenser of such medical services. No such claims for
reimbursement shall be approved for payment by  the  Illinois
Department without such proof of receipt, unless the Illinois
Department  shall have put into effect and shall be operating
a system of post-payment audit and review which shall,  on  a
sampling basis, be deemed adequate by the Illinois Department
to  assure  that such drugs, dentures, prosthetic devices and
eyeglasses for which payment is being made are actually being
received by eligible recipients. Within  90  days  after  the
effective  date  of this amendatory Act of 1984, the Illinois
Department shall establish  a  current  list  of  acquisition
costs   for  all  prosthetic  devices  and  any  other  items
recognized as medical  equipment  and  supplies  reimbursable
under  this Article and shall update such list on a quarterly
basis, except that the acquisition costs of all  prescription
drugs  shall be updated no less frequently than every 30 days
as required by Section 5-5.12.
    The rules and  regulations  of  the  Illinois  Department
shall require that a written statement including the required
opinion   of  a  physician  shall  accompany  any  claim  for
reimbursement  for  abortions,  or  induced  miscarriages  or
premature  births.   This  statement  shall   indicate   what
procedures were used in providing such medical services.
    The Illinois Department shall require that all dispensers
of medical services, other than an individual practitioner or
group  of  practitioners,  desiring  to  participate  in  the
Medical  Assistance program established under this Article to
disclose all financial, beneficial, ownership, equity, surety
or other  interests  in  any  and  all  firms,  corporations,
partnerships,   associations,   business  enterprises,  joint
ventures, agencies,  institutions  or  other  legal  entities
providing  any  form  of  health  care services in this State
under this Article.
    The Illinois Department may require that  all  dispensers
of  medical  services  desiring to participate in the medical
assistance program established under this  Article  disclose,
under  such  terms  and conditions as the Illinois Department
may  by  rule  establish,  all  inquiries  from  clients  and
attorneys  regarding  medical  bills  paid  by  the  Illinois
Department,  which   inquiries   could   indicate   potential
existence of claims or liens for the Illinois Department.
    Enrollment   of  a  vendor  that  provides  non-emergency
medical transportation, defined by the  Department  by  rule,
shall  be  conditional  for  180  days. During that time, the
Department  of  Public  Aid  may   terminate   the   vendor's
eligibility  to participate in the medical assistance program
without  cause.   That  termination  of  eligibility  is  not
subject to the Department's hearing process.
    The  Illinois  Department   shall   establish   policies,
procedures,   standards   and   criteria   by  rule  for  the
acquisition,  repair  and   replacement   of   orthotic   and
prosthetic devices and durable medical equipment.  Such rules
shall provide, but not be limited to, the following services:
(1)  immediate  repair  or  replacement  of  such  devices by
recipients without medical  authorization;  and  (2)  rental,
lease,   purchase   or   lease-purchase  of  durable  medical
equipment   in   a   cost-effective   manner,   taking   into
consideration the recipient's medical prognosis,  the  extent
of  the recipient's needs, and the requirements and costs for
maintaining  such  equipment.   Such  rules  shall  enable  a
recipient to  temporarily  acquire  and  use  alternative  or
substitute   devices   or   equipment   pending   repairs  or
replacements of any device or equipment previously authorized
for such recipient by the Department. Rules under clause  (2)
above  shall  not  provide  for purchase or lease-purchase of
durable medical equipment or supplies used for the purpose of
oxygen delivery and respiratory care.
    The Department shall execute,  relative  to  the  nursing
home  prescreening  project,  written inter-agency agreements
with the Department of Human Services and the  Department  on
Aging,  to  effect  the  following: (i) intake procedures and
common  eligibility  criteria  for  those  persons  who   are
receiving    non-institutional   services;   and   (ii)   the
establishment and development of  non-institutional  services
in  areas of the State where they are not currently available
or are undeveloped.
    The Illinois Department shall  develop  and  operate,  in
cooperation  with other State Departments and agencies and in
compliance with  applicable  federal  laws  and  regulations,
appropriate  and  effective systems of health care evaluation
and programs for monitoring of  utilization  of  health  care
services  and  facilities, as it affects persons eligible for
medical assistance under this Code. The  Illinois  Department
shall  report  regularly the results of the operation of such
systems and programs  to  the  Citizens  Assembly/Council  on
Public  Aid  to  enable the Committee to ensure, from time to
time, that these programs are effective and meaningful.
    The Illinois Department  shall  report  annually  to  the
General Assembly, no later than the second Friday in April of
1979 and each year thereafter, in regard to:
         (a)  actual  statistics and trends in utilization of
    medical services by public aid recipients;
         (b)  actual statistics and trends in  the  provision
    of the various medical services by medical vendors;
         (c)  current rate structures and proposed changes in
    those  rate  structures  for the various medical vendors;
    and
         (d)  efforts at utilization review  and  control  by
    the Illinois Department.
    The  period  covered  by each report shall be the 3 years
ending on the June 30 prior to the report.  The report  shall
include   suggested  legislation  for  consideration  by  the
General Assembly.  The filing of one copy of the report  with
the  Speaker,  one copy with the Minority Leader and one copy
with the Clerk of the House of Representatives, one copy with
the President, one copy with the Minority Leader and one copy
with  the  Secretary  of  the  Senate,  one  copy  with   the
Legislative  Research  Unit,  such additional copies with the
State Government Report Distribution Center for  the  General
Assembly  as  is required under paragraph (t) of Section 7 of
the  State  Library  Act  and  one  copy  with  the  Citizens
Assembly/Council on Public Aid  or  its  successor  shall  be
deemed sufficient to comply with this Section.
(Source:  P.A.  91-344,  eff.  1-1-00;  91-462,  eff. 8-6-99;
91-666,  eff.  12-22-99;   92-16,   eff.   6-28-01;   revised
12-13-01.)

    (305 ILCS 5/12-4.25) (from Ch. 23, par. 12-4.25)
    Sec.   12-4.25.  Medical   assistance   program;   vendor
participation.
    (A)  The   Illinois   Department  may  deny,  suspend  or
terminate the eligibility of any person,  firm,  corporation,
association,  agency,  institution  or  other legal entity to
participate as a vendor of goods or  services  to  recipients
under  the  medical  assistance  program  under Article V, if
after reasonable notice and opportunity  for  a  hearing  the
Illinois Department finds:
         (a)  Such   vendor   is   not   complying  with  the
    Department's policy or rules and regulations, or with the
    terms  and  conditions   prescribed   by   the   Illinois
    Department  in its vendor agreement, which document shall
    be  developed  by  the  Department   as   a   result   of
    negotiations   with   each   vendor  category,  including
    physicians,  hospitals,  long   term   care   facilities,
    pharmacists,   optometrists,   podiatrists  and  dentists
    setting forth the terms and conditions applicable to  the
    participation of each vendor group in the program; or
         (b)  Such   vendor   has  failed  to  keep  or  make
    available  for  inspection,  audit  or   copying,   after
    receiving a written request from the Illinois Department,
    such  records  regarding  payments  claimed for providing
    services.  This section does not require vendors to  make
    available  patient  records of patients for whom services
    are not reimbursed under this Code; or
         (c)  Such  vendor  has   failed   to   furnish   any
    information   requested   by   the  Department  regarding
    payments for providing goods or services; or
         (d)  Such vendor has knowingly made, or caused to be
    made, any false statement or representation of a material
    fact in connection with the administration of the medical
    assistance program; or
         (e)  Such vendor has furnished goods or services  to
    a  recipient which are (1) in excess of his or her needs,
    (2) harmful to the recipient, or (3) of grossly  inferior
    quality,  all  of  such  determinations  to be based upon
    competent medical judgment and evaluations; or
         (f)  The   vendor;   a   person   with    management
    responsibility for a vendor; an officer or person owning,
    either  directly  or indirectly, 5% or more of the shares
    of stock or other evidences of ownership in  a  corporate
    vendor;  an  owner  of  a  sole proprietorship which is a
    vendor; or a partner in a partnership which is a  vendor,
    either:
              (1)  was     previously     terminated     from
         participation  in  the  Illinois  medical assistance
         program, or was terminated from participation  in  a
         medical  assistance program in another state that is
         of  the  same  kind  as  the  program   of   medical
         assistance provided under Article V of this Code; or
              (2)  was     a     person    with    management
         responsibility for a  vendor  previously  terminated
         from   participation   in   the   Illinois   medical
         assistance program, or terminated from participation
         in  a  medical  assistance  program in another state
         that is of the same kind as the program  of  medical
         assistance  provided  under  Article V of this Code,
         during the time of conduct which was the  basis  for
         that vendor's termination; or
              (3)  was  an  officer, or person owning, either
         directly or indirectly, 5% or more of the shares  of
         stock or other evidences of ownership in a corporate
         vendor  previously  terminated from participation in
         the  Illinois   medical   assistance   program,   or
         terminated   from   participation   in   a   medical
         assistance  program  in another state that is of the
         same kind  as  the  program  of  medical  assistance
         provided  under  Article  V of this Code, during the
         time  of  conduct  which  was  the  basis  for  that
         vendor's termination; or
              (4)  was an owner of a sole  proprietorship  or
         partner  of a partnership previously terminated from
         participation in  the  Illinois  medical  assistance
         program,  or  terminated  from  participation  in  a
         medical  assistance program in another state that is
         of  the  same  kind  as  the  program   of   medical
         assistance  provided  under  Article V of this Code,
         during the time of conduct which was the  basis  for
         that vendor's termination; or
         (g)  The    vendor;   a   person   with   management
    responsibility for a vendor; an officer or person owning,
    either directly or indirectly, 5% or more of  the  shares
    of  stock  or other evidences of ownership in a corporate
    vendor; an owner of a  sole  proprietorship  which  is  a
    vendor;  or a partner in a partnership which is a vendor,
    either:
              (1)  has engaged  in  practices  prohibited  by
         applicable   federal  or  State  law  or  regulation
         relating to the medical assistance program; or
              (2)  was    a    person     with     management
         responsibility  for  a  vendor at the time that such
         vendor engaged in practices prohibited by applicable
         federal or State law or regulation relating  to  the
         medical assistance program; or
              (3)  was  an  officer, or person owning, either
         directly or indirectly, 5% or more of the shares  of
         stock or other evidences of ownership in a vendor at
         the time such vendor engaged in practices prohibited
         by  applicable  federal  or  State law or regulation
         relating to the medical assistance program; or
              (4)  was an owner of a sole  proprietorship  or
         partner  of  a partnership which was a vendor at the
         time such vendor engaged in practices prohibited  by
         applicable   federal  or  State  law  or  regulation
         relating to the medical assistance program; or.
         (h)  The direct or indirect ownership of the  vendor
    (including  the  ownership  of  a  vendor  that is a sole
    proprietorship, a partner's interest in a vendor that  is
    a  partnership,  or ownership of 5% or more of the shares
    of stock or other evidences of ownership in  a  corporate
    vendor)  has  been  transferred  by  an individual who is
    terminated or barred from participating as  a  vendor  to
    the  individual's spouse, child, brother, sister, parent,
    grandparent,  grandchild,  uncle,  aunt,  niece,  nephew,
    cousin, or relative by marriage.
    (A-5)  The Illinois  Department  may  deny,  suspend,  or
terminate  the  eligibility of any person, firm, corporation,
association, agency, institution, or other  legal  entity  to
participate  as  a  vendor of goods or services to recipients
under the medical assistance  program  under  Article  V  if,
after  reasonable  notice  and opportunity for a hearing, the
Illinois Department finds that  the  vendor;  a  person  with
management  responsibility for a vendor; an officer or person
owning, either directly or indirectly,  5%  or  more  of  the
shares  of  stock  or  other  evidences  of  ownership  in  a
corporate vendor; an owner of a sole proprietorship that is a
vendor;  or  a  partner in a partnership that is a vendor has
been convicted of a felony offense based on fraud or  willful
misrepresentation related to any of the following:
         (1)  The  medical assistance program under Article V
    of this Code.
         (2)  A medical assistance program in  another  state
    that  is  of  the  same  kind  as  the program of medical
    assistance provided under Article V of this Code.
         (3)  The Medicare program under Title XVIII  of  the
    Social Security Act.
         (4)  The provision of health care services.
    (B)  The  Illinois  Department  shall  deny,  suspend  or
terminate  the  eligibility of any person, firm, corporation,
association, agency, institution or  other  legal  entity  to
participate  as  a  vendor of goods or services to recipients
under the medical assistance program under Article V:
         (1)  if such vendor is not properly licensed;
         (2)  within 30 days of the date when  such  vendor's
    professional     license,    certification    or    other
    authorization  has  been  refused  renewal  or  has  been
    revoked, suspended or otherwise terminated; or
         (3)  if  such  vendor  has  been  convicted   of   a
    violation of this Code, as provided in Article VIIIA.
    (C)  Upon  termination  of  a vendor of goods or services
from  participation  in  the   medical   assistance   program
authorized   by   this  Article,  a  person  with  management
responsibility for such vendor during the time of any conduct
which served as the basis for that  vendor's  termination  is
barred from participation in the medical assistance program.
    Upon  termination of a corporate vendor, the officers and
persons owning, directly or indirectly, 5%  or  more  of  the
shares of stock or other evidences of ownership in the vendor
during  the time of any conduct which served as the basis for
that vendor's termination are barred  from  participation  in
the  medical  assistance program. A person who owns, directly
or indirectly, 5% or more of the shares  of  stock  or  other
evidences  of  ownership in a terminated corporate vendor may
not transfer his or her ownership interest in that vendor  to
his   or   her   spouse,   child,  brother,  sister,  parent,
grandparent, grandchild, uncle, aunt, niece, nephew,  cousin,
or relative by marriage.
    Upon termination of a sole proprietorship or partnership,
the  owner  or  partners during the time of any conduct which
served as the basis for that vendor's termination are  barred
from  participation  in  the  medical assistance program. The
owner of a terminated vendor that is a  sole  proprietorship,
and  a  partner in a terminated vendor that is a partnership,
may not transfer his or her ownership or partnership interest
in that vendor to his or her spouse, child, brother,  sister,
parent,  grandparent, grandchild, uncle, aunt, niece, nephew,
cousin, or relative by marriage.
    Rules adopted by the  Illinois  Department  to  implement
these  provisions  shall specifically include a definition of
the term "management responsibility" as used in this Section.
Such definition shall include, but not be limited to, typical
job  titles,  and  duties  and  descriptions  which  will  be
considered as  within  the  definition  of  individuals  with
management responsibility for a provider.
    (D)  If  a  vendor  has  been  suspended from the medical
assistance program under Article V of the Code, the  Director
may  require  that such vendor correct any deficiencies which
served as the basis for the suspension.  The  Director  shall
specify  in  the  suspension order a specific period of time,
which shall not exceed one year from the date of  the  order,
during  which  a  suspended  vendor  shall not be eligible to
participate. At the conclusion of the  period  of  suspension
the  Director  shall  reinstate  such vendor, unless he finds
that such vendor has not corrected  deficiencies  upon  which
the suspension was based.
    If   a  vendor  has  been  terminated  from  the  medical
assistance program under Article  V,  such  vendor  shall  be
barred  from participation for at least one year, except that
if a vendor has been terminated based on a  conviction  of  a
violation  of Article VIIIA or a conviction of a felony based
on fraud or a willful misrepresentation related  to  (i)  the
medical  assistance  program  under Article V, (ii) a medical
assistance program in another  state  that  is  of  the  kind
provided  under  Article  V, (iii) the Medicare program under
Title XVIII of the Social Security Act, or (iv) the provision
of health care services, then the vendor shall be barred from
participation for 5 years or for the length of  the  vendor's
sentence for that conviction, whichever is longer. At the end
of  one  year  a vendor who has been terminated may apply for
reinstatement to the program. Upon proper application  to  be
reinstated such vendor may be deemed eligible by the Director
providing   that  such  vendor  meets  the  requirements  for
eligibility under this Code.  If such vendor  is  deemed  not
eligible  for  reinstatement,  he  shall be barred from again
applying for reinstatement for one year  from  the  date  his
application for reinstatement is denied.
    A  vendor  whose  termination  from  participation in the
Illinois medical assistance program under Article V was based
solely on an action by a governmental entity other  than  the
Illinois   Department   may,   upon   reinstatement  by  that
governmental entity or  upon  reversal  of  the  termination,
apply for rescission of the termination from participation in
the   Illinois   medical  assistance  program.   Upon  proper
application for rescission, the vendor may be deemed eligible
by the Director if the  vendor  meets  the  requirements  for
eligibility under this Code.
    If  a  vendor  has  been terminated and reinstated to the
medical assistance program under Article V and the vendor  is
terminated  a  second  or  subsequent  time  from the medical
assistance  program,  the  vendor  shall   be   barred   from
participation  for  at least 2 years, except that if a vendor
has been terminated a second time based on a conviction of  a
violation  of Article VIIIA or a conviction of a felony based
on fraud or a willful misrepresentation related  to  (i)  the
medical  assistance  program  under Article V, (ii) a medical
assistance program in another  state  that  is  of  the  kind
provided  under  Article  V, (iii) the Medicare program under
Title XVIII of the Social Security Act, or (iv) the provision
of health care services, then the vendor shall be barred from
participation for life.  At the end of 2 years, a vendor  who
has  been  terminated  may  apply  for  reinstatement  to the
program.  Upon application to be reinstated, the  vendor  may
be  deemed  eligible if the vendor meets the requirements for
eligibility under this Code.  If the  vendor  is  deemed  not
eligible  for  reinstatement, the vendor shall be barred from
again applying for reinstatement for 2 years  from  the  date
the vendor's application for reinstatement is denied.
    (E)  The Illinois Department may recover money improperly
or  erroneously  paid,  or  overpayments,  either  by setoff,
crediting against future  billings  or  by  requiring  direct
repayment to the Illinois Department.
    If  the  Department  of Public Aid establishes through an
administrative hearing that the  overpayments  resulted  from
the  vendor  willfully making, or causing to be made, a false
statement  or  misrepresentation  of  a  material   fact   in
connection  with  billings  and  payments  under  the medical
assistance  program  under  Article  V,  the  Department  may
recover interest on the amount of  the  overpayments  at  the
rate  of  5%  per  annum.  For  purposes  of  this paragraph,
"willfully"  means  that  a  person  makes  a  statement   or
representation  with  actual  knowledge that it was false, or
makes a statement or representation with knowledge  of  facts
or  information  that  would  cause  one to be aware that the
statement or representation was false when made.
    (F)  The Illinois Department may withhold payments to any
vendor during the  pendency  of  any  proceeding  under  this
Section  except  that  if a final administrative decision has
not been issued within 120 days of  the  initiation  of  such
proceedings,  unless  delay  has  been  caused by the vendor,
payments can no longer be withheld, provided,  however,  that
the  120  day  limit  may  be  extended  if said extension is
mutually agreed to by the Illinois Department and the vendor.
The Illinois Department shall state  by  rule  with  as  much
specificity   as   practicable  the  conditions  under  which
payments will not be withheld  during  the  pendency  of  any
proceeding  under  this  Section.  Payments may be denied for
bills submitted  with  service  dates  occurring  during  the
pendency  of  a  proceeding  where  the  final administrative
decision is to terminate eligibility to  participate  in  the
medical  assistance  program.   The Illinois Department shall
state by rule with as much  specificity  as  practicable  the
conditions  under  which payments will not be denied for such
bills. The Department of Public Aid shall  state  by  rule  a
process  and  criteria  by which a vendor may request full or
partial release of payments withheld under  this  subsection.
The  Department must complete a proceeding under this Section
in a timely manner.
    (F-5)  The Illinois Department may  temporarily  withhold
payments to a vendor if any of the following individuals have
been  indicted or otherwise charged under a law of the United
States or this or any other state with a felony offense  that
is based on alleged fraud or willful misrepresentation on the
part  of the individual related to (i) the medical assistance
program  under  Article  V  of  this  Code,  (ii)  a  medical
assistance program provided in another state which is of  the
kind  provided  under  Article  V  of  this  Code,  (iii) the
Medicare program under Title XVIII  of  the  Social  Security
Act, or (iv) the provision of health care services:
         (1)  If  the  vendor is a corporation: an officer of
    the  corporation  or  an  individual  who  owns,   either
    directly or indirectly, 5% or more of the shares of stock
    or other evidence of ownership of the corporation.
         (2)  If  the  vendor  is  a sole proprietorship: the
    owner of the sole proprietorship.
         (3)  If the vendor is a partnership:  a  partner  in
    the partnership.
         (4)  If  the  vendor  is  any  other business entity
    authorized by law to transact business in this State:  an
    officer of the entity or an individual who  owns,  either
    directly  or  indirectly,  5% or more of the evidences of
    ownership of the entity.
    If the Illinois Department withholds payments to a vendor
under this subsection, the Department shall not release those
payments to the vendor while any criminal proceeding  related
to  the indictment or charge is pending unless the Department
determines that there is good cause to release  the  payments
before  completion  of  the proceeding.  If the indictment or
charge results in the individual's conviction,  the  Illinois
Department shall retain all withheld payments, which shall be
considered forfeited to the Department.  If the indictment or
charge  does  not  result in the individual's conviction, the
Illinois Department shall release to the vendor all  withheld
payments.
    (G)  The  provisions of the Administrative Review Law, as
now or hereafter amended,  and  the  rules  adopted  pursuant
thereto,  shall  apply  to and govern all proceedings for the
judicial review of  final  administrative  decisions  of  the
Illinois   Department   under   this   Section.    The   term
"administrative  decision"  is defined as in Section 3-101 of
the Code of Civil Procedure.
    (G-5)  Non-emergency transportation.
         (1)  Notwithstanding any  other  provision  in  this
    Section,  for  non-emergency  transportation vendors, the
    Department may terminate the vendor from participation in
    the medical assistance program prior  to  an  evidentiary
    hearing  but  after  reasonable notice and opportunity to
    respond as established by the Department by rule.
         (2)  Vendors of non-emergency medical transportation
    services, as defined by the  Department  by  rule,  shall
    submit  to  a fingerprint-based criminal background check
    on current and future information available in the  State
    system  and  current  information  available  through the
    Federal Bureau of Investigation's  system  by  submitting
    all necessary fees and information in the form and manner
    prescribed   by  the  Department  of  State  Police.  The
    following individuals shall be subject to the check:
              (A)  In  the  case  of  a  vendor  that  is   a
         corporation, every shareholder who owns, directly or
         indirectly,  5% or more of the outstanding shares of
         the corporation.
              (B)  In  the  case  of  a  vendor  that  is   a
         partnership, every partner.
              (C)  In  the  case  of  a vendor that is a sole
         proprietorship, the sole proprietor.
              (D)  Each officer or manager of the vendor.
         Each such vendor shall be responsible for payment of
    the cost of the criminal background check.
         (3)  Vendors of non-emergency medical transportation
    services may be required  to  post  a  surety  bond.  The
    Department  shall  establish,  by  rule, the criteria and
    requirements for determining when a surety bond  must  be
    posted and the value of the bond.
         (4)  The  Department,  or  its agents, may refuse to
    accept   requests   for   non-emergency    transportation
    authorizations,      including     prior-approval     and
    post-approval  requests,  for  a  specific  non-emergency
    transportation vendor if:
              (A)  the Department has initiated a  notice  of
         termination  of the vendor from participation in the
         medical assistance program; or
              (B)  the Department has issued notification  of
         its  withholding  of payments pursuant to subsection
         (F-5) of this Section; or
              (C)  the Department has issued  a  notification
         of  its  withholding  of  payments  due  to reliable
         evidence  of  fraud  or  willful   misrepresentation
         pending investigation.
    (H)  Nothing  contained  in  this  Code  shall in any way
limit or otherwise impair the authority or power of any State
agency responsible for licensing of vendors.
    (I)  Based on a finding of noncompliance on the part of a
nursing home with any  requirement  for  certification  under
Title XVIII or XIX of the Social Security Act (42 U.S.C. Sec.
1395  et  seq.  or 42 U.S.C. Sec. 1396 et seq.), the Illinois
Department may impose one or more of the  following  remedies
after notice to the facility:
         (1)  Termination of the provider agreement.
         (2)  Temporary management.
         (3)  Denial of payment for new admissions.
         (4)  Civil money penalties.
         (5)  Closure of the facility in emergency situations
    or transfer of residents, or both.
         (6)  State monitoring.
         (7)  Denial  of  all  payments  when the Health Care
    Finance Administration has imposed this sanction.
    The Illinois Department shall by rule establish  criteria
governing continued payments to a nursing facility subsequent
to  termination  of  the facility's provider agreement if, in
the sole discretion of the Illinois Department, circumstances
affecting the health, safety, and welfare of  the  facility's
residents  require  those  continued  payments.  The Illinois
Department may condition  those  continued  payments  on  the
appointment  of temporary management, sale of the facility to
new owners or  operators,  or  other  arrangements  that  the
Illinois  Department  determines  best serve the needs of the
facility's residents.
    Except in the case of a facility that has a  right  to  a
hearing  on  the finding of noncompliance before an agency of
the federal government, a  facility  may  request  a  hearing
before  a State agency on any finding of noncompliance within
60 days after the notice of the intent to  impose  a  remedy.
Except  in the case of civil money penalties, a request for a
hearing shall not  delay  imposition  of  the  penalty.   The
choice of remedies is not appealable at a hearing.  The level
of  noncompliance  may  be  challenged  only in the case of a
civil money penalty. The Illinois Department shall provide by
rule for the State agency that will conduct  the  evidentiary
hearings.
    The  Illinois  Department  may collect interest on unpaid
civil money penalties.
    The Illinois Department may adopt all rules necessary  to
implement this subsection (I).
(Source: P.A. 92-327, eff. 1-1-02; revised 9-18-01.)

    Section  99.  Effective date.  This Act takes effect upon
becoming law.
    Passed in the General Assembly May 29, 2002.
    Approved August 06, 2002.
    Effective August 06, 2002.

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