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91_HB2713 LRB9103967SMpr 1 AN ACT regarding managed care. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Health Maintenance Organization Act is 5 amended by changing Section 5-7.1 as follows: 6 (215 ILCS 125/5-7.1) (from Ch. 111 1/2, par. 1415.1) 7 Sec. 5-7.1. No health care plan shall include any 8 provision which shall have the effect of denying coverage to 9 or on behalf of an enrollee under thesuchplan on the basis 10 of a failure by the enrollee to file a notice of claim within 11 the time period required by the plan, provided such failure 12 is caused solely by the physical inability or mental 13 incapacity of the enrollee to file such notice of claim 14 because of a period of emergency hospitalization. 15 (Source: P.A. 86-784.) 16 Section 10. The Illinois Public Aid Code is amended by 17 changing Section 5-16 as follows: 18 (305 ILCS 5/5-16) (from Ch. 23, par. 5-16) 19 Sec. 5-16. Managed Care. The Illinois Department may 20 develop and implement a Primary Care Sponsor System 21 consistent with the provisions of this Section. The purpose 22 of this managed care delivery system shall be to contain the 23 costs of providing medical care to Medicaid recipients by 24 having one provider responsible for managing all aspects of a 25 recipient's medical care. This managed care system shall 26 have the following characteristics: 27 (a) The Department, by rule, shall establish 28 criteria to determine which clients must participate in 29 this program; -2- LRB9103967SMpr 1 (b) Providers participating in the program may be 2 paid an amount per patient per month, to be set by the 3 Illinois Department, for managing each recipient's 4 medical care; 5 (c) Providers eligible to participate in the 6 program shall be physicians licensed to practice medicine 7 in all its branches, and the Illinois Department may 8 terminate a provider's participation if the provider is 9 determined to have failed to comply with any applicable 10 program standard or procedure established by the Illinois 11 Department; 12 (d) Each recipient required to participate in the 13 program must select from a panel of primary care 14 providers or networks established by the Department in 15 their communities; 16 (e) A recipient may change his designated primary 17 care provider: 18 (1) when the designated source becomes 19 unavailable, as the Illinois Department shall 20 determine by rule; or 21 (2) when the designated primary care provider 22 notifies the Illinois Department that it wishes to 23 withdraw from any obligation as primary care 24 provider; or 25 (3) in other situations, as the Illinois 26 Department shall provide by rule; 27 (f) The Illinois Department shall, by rule, 28 establish procedures for providing medical services when 29 the designated source becomes unavailable or wishes to 30 withdraw from any obligation as primary care provider 31 taking into consideration the need for emergency or 32 temporary medical assistance and ensuring that the 33 recipient has continuous and unrestricted access to 34 medical care from the date on which thesuch-3- LRB9103967SMpr 1 unavailability or withdrawal becomes effective untilsuch2time asthe recipient designates a primary care source; 3 (g) Only medical care services authorized by a 4 recipient's designated provider, except for emergency 5 services, services performed by a provider that is owned 6 or operated by a county and that provides non-emergency 7 services without regard to ability to pay and such other 8 services as provided by the Illinois Department, shall be 9 subject to payment by the Illinois Department. The 10 Illinois Department shall enter into an intergovernmental 11 agreement with each county that owns or operates such a 12 provider to develop and implement policies to minimize 13 the provision of medical care services provided by county 14 owned or operated providers pursuant to the foregoing 15 exception. 16 The Illinois Department shall seek and obtain necessary 17 authorization provided under federal law to implement such a 18 program including the waiver of any federal regulations. 19 The Illinois Department may implement the amendatory 20 changes to this Section made by this amendatory Act of 1991 21 through the use of emergency rules in accordance with the 22 provisions of Section 5.02 of the Illinois Administrative 23 Procedure Act. For purposes of the Illinois Administrative 24 Procedure Act, the adoption of rules to implement the 25 amendatory changes to this Section made by this amendatory 26 Act of 1991 shall be deemed an emergency and necessary for 27 the public interest, safety and welfare. 28 The Illinois Department may establish a managed care 29 system demonstration program, on a limited basis, as 30 described in this Section. The demonstration program shall 31 terminate on June 30, 1997. Within 30 days after the end of 32 each year of the demonstration program's operation, the 33 Illinois Department shall report to the Governor and the 34 General Assembly concerning the operation of the -4- LRB9103967SMpr 1 demonstration program. 2 (Source: P.A. 87-14; 88-490.)