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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.)".