093_HB2359 LRB093 10692 JLS 11054 b 1 AN ACT concerning provider billing. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Illinois Insurance Code is amended by 5 adding Section 368b as follows: 6 (215 ILCS 5/368b new) 7 Sec. 368b. Requirements to enable electronic exchange of 8 information. 9 (a) An accident and health insurer licensed in Illinois 10 shall have the ability to accept health claims or equivalent 11 encounter information, referral certification, authorization, 12 and eligibility transactions electronically and shall utilize 13 the federal standards for these electronic transactions 14 established by the Department of Health and Human Services 15 pursuant to Section 262 of Pub.L. 104-191 (42 U.S.C. 1320d et 16 seq.) and Part 162 of Title 45, Code of Federal Regulations. 17 A health care professional or health care facility that 18 is licensed to provide health care services in Illinois and 19 that accepts patients who are enrolled in an individual 20 health plan or a group health plan, including a health 21 insurance issuer offering coverage through the group health 22 plan, Medicaid, or the State employee health plan shall 23 submit health claims or equivalent encounter information, 24 referral certification, authorization, and eligibility 25 transactions electronically and shall utilize the federal 26 standards for these electronic transactions established by 27 the Department of Health and Human Services pursuant to 28 Section 262 of Pub.L. 104-191 (42 U.S.C. 1320d et seq.) and 29 Part 162 of Title 45, Code of Federal Regulations. 30 (b) The Department shall establish a timetable for 31 implementation of the electronic transmission of health care -2- LRB093 10692 JLS 11054 b 1 transactions. The timetable shall not require implementation 2 prior to the compliance date set forth by the U.S. Department 3 of Health and Human Services for federal standards for 4 electronic health care transactions pursuant to Section 262 5 of Pub.L. 104-191 (42 U.S.C. 1320d et seq.) and Part 162 of 6 Title 45, Code of Federal Regulations or any extension 7 granted by the Secretary of Health and Human Services to 8 comply with the federal standards. 9 (c) The Director may temporarily waive the application 10 of this Section in cases in which: 11 (1) there is no method available for the submission 12 of claims in an electronic form; or 13 (2) the entity submitting the claim is a small 14 health care professional or health care facility with 15 fewer than 10 full-time equivalent employees that has 16 demonstrated that compliance with this Act will result in 17 an undue hardship or other special circumstance on the 18 health care professional or health care facility. 19 (d) The Department shall establish an application and 20 review process for health care professionals and health care 21 facilities with identified special circumstances no later 22 than 6 months prior to the effective date of implementation 23 as determined under subsection (b). 24 (e) The Department shall report to the Governor and the 25 General Assembly within one year after establishing the 26 timetable pursuant to this Section, and at least annually 27 thereafter, on the number of extensions or temporary waivers 28 of the implementation requirement that it has granted 29 pursuant to subsection (c), the reasons therefor, and 30 recommendations to overcome obstacles to full compliance by 31 affected health care professionals and health care 32 facilities. 33 (f) Beginning January 1, 2004, an individual health plan 34 or a group health plan, including a health insurance issuer -3- LRB093 10692 JLS 11054 b 1 offering coverage through the group health plan, or a state 2 agency administering a government health plan, may not deduct 3 more than a $2 per claim service fee for adjudication of any 4 paper health claims. 5 (g) This Section does not apply to long-term care 6 facilities. 7 Section 99. Effective date. This Act takes effect upon 8 becoming law.