State of Illinois
92nd General Assembly
Legislation

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92_HB4896ham001

 










                                             LRB9215234JSpcam

 1                    AMENDMENT TO HOUSE BILL 4896

 2        AMENDMENT NO.     .  Amend House Bill 4896  by  replacing
 3    everything after the enacting clause with the following:

 4        "Section  5.  The  Health Maintenance Organization Act is
 5    amended by changing Section 2-8 as follows:

 6        (215 ILCS 125/2-8) (from Ch. 111 1/2, par. 1407.01)
 7        Sec. 2-8.  Provider agreements and stipulations.
 8        (a) All provider contracts currently in existence between
 9    any organization and any hospital which  are  renewed  on  or
10    after   180   days  following  the  effective  date  of  this
11    amendatory  Act  of  1987,  and  all  contracts  between  any
12    organization and any hospital executed on or after  180  days
13    after  such  effective  date,  shall  contain  the  following
14    "hold-harmless"  clause:  "The  provider  agrees  that  in no
15    event,  including  but  not  limited  to  nonpayment  by  the
16    organization of amounts due the hospital provider under  this
17    contract,  insolvency  of  the  organization or any breach of
18    this  contract  by  the  organization,  shall  the   hospital
19    provider  or  its assignees or subcontractors have a right to
20    seek any type  of  payment  from,  bill,  charge,  collect  a
21    deposit  from,  or  have  any recourse against, the enrollee,
22    persons acting on  the  enrollee's  behalf  (other  than  the
 
                            -2-              LRB9215234JSpcam
 1    organization),  the  employer  or  group  contract holder for
 2    services provided pursuant to this contract  except  for  the
 3    payment of applicable co-payments or deductibles for services
 4    covered  by the organization or fees for services not covered
 5    by the organization.  The requirements of this  clause  shall
 6    survive   any  termination  of  this  contract  for  services
 7    rendered prior to such termination, regardless of  the  cause
 8    of   such  termination.  The  organization's  enrollees,  the
 9    persons acting on  the  enrollee's  behalf  (other  than  the
10    organization) and the employer or group contract holder shall
11    be  third  party  beneficiaries  of this clause.  This clause
12    supersedes any oral or  written  agreement  now  existing  or
13    hereafter entered into between the provider and the enrollee,
14    persons  acting  on  the  enrollee's  behalf  (other than the
15    organization) and the employer or group contract holder."  To
16    the  extent  that  any  hospital  provider contract, which is
17    renewed or entered into on or after 180  days  following  the
18    effective  date  of  this  amendatory  Act  of 1987, fails to
19    incorporate such provisions, such provisions shall be  deemed
20    incorporated  into  such  contracts by operation of law as of
21    the date of such renewal or execution.
22        (b)  All  provider  and  subcontractor   contracts   must
23    contain  provisions  whereby  the  provider  or subcontractor
24    shall provide, arrange for, or  participate  in  the  quality
25    assurance  programs mandated by this Act, unless the Illinois
26    Department of Public Health certifies that such programs will
27    be fully implemented without  any  participation  or  actions
28    from such contracting provider.
29        (c)  The  Director  may  promulgate  rules requiring that
30    provider contracts contain provisions  concerning  reasonable
31    notices   to  be  given  between  the  parties  and  for  the
32    organization to provide reasonable notice  to  its  enrollees
33    and  to  the Director.  Notice shall be given for such events
34    as, but not limited to, termination of insurance  protection,
 
                            -3-              LRB9215234JSpcam
 1    quality assurance or availability of medical care.
 2    (Source: P.A. 86-620.)".

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