State of Illinois
92nd General Assembly
Legislation

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92_HB0241

 
                                               LRB9201409JScs

 1        AN ACT concerning health services.

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

 4        Section  5.  The  State  Employees Group Insurance Act of
 5    1971 is amended by changing Section 6.11 as follows:

 6        (5 ILCS 375/6.11)
 7        Sec. 6.11.  Required health  benefits.   The  program  of
 8    health   benefits  shall  provide  the  post-mastectomy  care
 9    benefits required to be covered by a policy of  accident  and
10    health insurance under Section 356t of the Illinois Insurance
11    Code.   The  program  of  health  benefits  shall provide the
12    coverage required under Sections 356u, 356w,  and  356x,  and
13    356z.1 of the Illinois Insurance Code.
14    (Source: P.A.  90-7,  eff.  6-10-97;  90-655,  eff.  7-30-98;
15    90-741, eff. 1-1-99.)

16        Section  10.  The  Counties  Code  is amended by changing
17    Section 5-1069.3 as follows:

18        (55 ILCS 5/5-1069.3)
19        Sec. 5-1069.3.  Required health benefits.  If  a  county,
20    including  a home rule county, is a self-insurer for purposes
21    of providing health insurance coverage for its employees, the
22    coverage shall include coverage for the post-mastectomy  care
23    benefits  required  to be covered by a policy of accident and
24    health insurance under Section 356t and the coverage required
25    under Sections 356u, 356w,  and  356x,  and  356z.1   of  the
26    Illinois   Insurance   Code.   The  requirement  that  health
27    benefits be  covered  as  provided  in  this  Section  is  an
28    exclusive power and function of the State and is a denial and
29    limitation  under  Article  VII, Section 6, subsection (h) of
 
                            -2-                LRB9201409JScs
 1    the Illinois Constitution.  A home rule county to which  this
 2    Section  applies  must  comply  with  every provision of this
 3    Section.
 4    (Source: P.A. 90-7, eff. 6-10-97; 90-741, eff. 1-1-99.)

 5        Section 15.  The Illinois Municipal Code  is  amended  by
 6    changing Section 10-4-2.3 as follows:

 7        (65 ILCS 5/10-4-2.3)
 8        Sec.   10-4-2.3.    Required   health   benefits.   If  a
 9    municipality,  including  a  home  rule  municipality,  is  a
10    self-insurer  for  purposes  of  providing  health  insurance
11    coverage  for  its  employees,  the  coverage  shall  include
12    coverage for the post-mastectomy care benefits required to be
13    covered by a policy of accident and  health  insurance  under
14    Section  356t  and the coverage required under Sections 356u,
15    356w, and 356x, and 356z.1 of the  Illinois  Insurance  Code.
16    The  requirement  that health benefits be covered as provided
17    in this is an exclusive power and function of the  State  and
18    is  a  denial  and  limitation  under Article VII, Section 6,
19    subsection (h) of the Illinois  Constitution.   A  home  rule
20    municipality  to  which this Section applies must comply with
21    every provision of this Section.
22    (Source: P.A. 90-7, eff. 6-10-97; 90-741, eff. 1-1-99.)

23        Section 20.  The  School  Code  is  amended  by  changing
24    Section 10-22.3f as follows:

25        (105 ILCS 5/10-22.3f)
26        Sec.   10-22.3f.  Required  health  benefits.   Insurance
27    protection and  benefits  for  employees  shall  provide  the
28    post-mastectomy  care  benefits  required  to be covered by a
29    policy of accident and health insurance  under  Section  356t
30    and  the  coverage  required  under  Sections 356u, 356w, and
 
                            -3-                LRB9201409JScs
 1    356x, and 356z.1 of the Illinois Insurance Code.
 2    (Source: P.A. 90-7, eff. 6-10-97; 90-741, eff. 1-1-99.)

 3        Section 25.  The Hospital Licensing  Act  is  amended  by
 4    adding Section 11.4 as follows:

 5        (210 ILCS 85/11.4 new)
 6        Sec.   11.4.    Uniform  standards  of  obstetrical  care
 7    regardless of source of or ability to pay.
 8        (a)  A hospital may not promulgate policies or  implement
 9    practices  that  determine differing standards of obstetrical
10    care based upon a patient's source of payment or  ability  to
11    pay for medical services.
12        (b)  A  hospital shall develop a written policy statement
13    reflecting the requirements of subsection (a) and shall  post
14    written  notices  of this policy in the obstetrical admitting
15    areas of the  hospital  by  July  1,  2001.   Notices  posted
16    pursuant  to  this Section shall be posted in the predominant
17    language or languages spoken in the hospital's service area.

18        Section 30.  The Illinois Insurance Code  is  amended  by
19    adding Section 356z.1 as follows:

20        (215 ILCS 5/356z.1 new)
21        Sec.   356z.1.  Birth   control  coverage.   A  group  or
22    individual policy of accident and health insurance or managed
23    care plan amended, delivered, issued, or  renewed  after  the
24    effective  date  of  this  amendatory Act of the 92nd General
25    Assembly that provides coverage for prescribed drugs approved
26    by the federal Food and Drug Administration for the treatment
27    of impotence must also provide coverage for prescribed  drugs
28    approved  by the federal Food and Drug Administration for the
29    prevention of pregnancy on the same terms and conditions that
30    are generally applicable to  coverage  for  other  prescribed
 
                            -4-                LRB9201409JScs
 1    drugs approved by the federal Food and Drug Administration.

 2        Section  35.  The  Health Maintenance Organization Act is
 3    amended by changing Section 5-3 as follows:

 4        (215 ILCS 125/5-3) (from Ch. 111 1/2, par. 1411.2)
 5        Sec. 5-3.  Insurance Code provisions.
 6        (a)  Health Maintenance Organizations shall be subject to
 7    the provisions of Sections 133, 134, 137, 140, 141.1,  141.2,
 8    141.3,  143,  143c, 147, 148, 149, 151, 152, 153, 154, 154.5,
 9    154.6, 154.7, 154.8, 155.04, 355.2, 356m, 356v,  356w,  356x,
10    356y,  356z.1,  367i,  368a, 401, 401.1, 402, 403, 403A, 408,
11    408.2, 409, 412, 444, and 444.1, paragraph (c) of  subsection
12    (2) of Section 367, and Articles IIA, VIII 1/2, XII, XII 1/2,
13    XIII, XIII 1/2, XXV, and XXVI of the Illinois Insurance Code.
14        (b)  For  purposes of the Illinois Insurance Code, except
15    for Sections 444 and 444.1 and Articles XIII  and  XIII  1/2,
16    Health  Maintenance Organizations in the following categories
17    are deemed to be "domestic companies":
18             (1)  a  corporation  authorized  under  the   Dental
19        Service  Plan  Act or the Voluntary Health Services Plans
20        Act;
21             (2)  a corporation organized under the laws of  this
22        State; or
23             (3)  a  corporation  organized  under  the  laws  of
24        another  state, 30% or more of the enrollees of which are
25        residents of this State, except a corporation subject  to
26        substantially  the  same  requirements  in  its  state of
27        organization as is a  "domestic  company"  under  Article
28        VIII 1/2 of the Illinois Insurance Code.
29        (c)  In  considering  the merger, consolidation, or other
30    acquisition of control of a Health  Maintenance  Organization
31    pursuant to Article VIII 1/2 of the Illinois Insurance Code,
32             (1)  the  Director  shall give primary consideration
 
                            -5-                LRB9201409JScs
 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
 
                            -6-                LRB9201409JScs
 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
 
                            -7-                LRB9201409JScs
 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.  90-25,  eff.  1-1-98;  90-177,  eff.  7-23-97;
25    90-372,  eff.  7-1-98;  90-583,  eff.  5-29-98;  90-655, eff.
26    7-30-98; 90-741, eff. 1-1-99; 91-357, eff.  7-29-99;  91-406,
27    eff.  1-1-00;  91-549,  eff.  8-14-99; 91-605, eff. 12-14-99;
28    91-788, eff. 6-9-00.)

29        Section 40.  The Voluntary Health Services Plans  Act  is
30    amended by changing Section 10 as follows:

31        (215 ILCS 165/10) (from Ch. 32, par. 604)
32        Sec.   10.  Application  of  Insurance  Code  provisions.
 
                            -8-                LRB9201409JScs
 1    Health services plan corporations and all persons  interested
 2    therein   or  dealing  therewith  shall  be  subject  to  the
 3    provisions of Articles IIA and XII 1/2 and Sections 3.1, 133,
 4    140, 143, 143c, 149, 354,  355.2,  356r,  356t,  356u,  356v,
 5    356w,  356x, 356y, 356z.1, 367.2, 368a, 401, 401.1, 402, 403,
 6    403A, 408, 408.2, and 412, and paragraphs  (7)  and  (15)  of
 7    Section 367 of the Illinois Insurance Code.
 8    (Source: P.A. 90-7, eff. 6-10-97; 90-25, eff. 1-1-98; 90-655,
 9    eff.  7-30-98;  90-741,  eff.  1-1-99;  91-406,  eff. 1-1-00;
10    91-549, eff. 8-14-99; 91-605,  eff.  12-14-99;  91-788,  eff.
11    6-9-00.)

12        Section  45.   The Illinois Public Aid Code is amended by
13    adding Section 5-16.7a as follows:

14        (305 ILCS 5/5-16.7a new)
15        Sec.  5-16.7a.   Reimbursement  for  epidural  anesthesia
16    services.  The  Department  shall  provide  reimbursement  to
17    medical  providers  for  epidural  anesthesia  services  when
18    ordered   by  the  attending  practitioner  at  the  time  of
19    delivery.

20        Section 99.  Effective date.  This Act takes effect  upon
21    becoming law.

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