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92_SB0885sam002 LRB9202681JSpcam02 1 AMENDMENT TO SENATE BILL 885 2 AMENDMENT NO. . Amend Senate Bill 885, AS AMENDED, 3 by replacing everything after the enacting clause with the 4 following: 5 "Section 5. The Children's Health Insurance Program Act 6 is amended by changing Sections 25 and 40 as follows: 7 (215 ILCS 106/25) 8 (Section scheduled to be repealed on July 1, 2002) 9 Sec. 25. Health benefits for children. 10 (a) The Department shall, subject to appropriation, 11 provide health benefits coverage to eligible children by: 12 (1) Subsidizing the cost of privately sponsored 13 health insurance, including employer based health 14 insurance, to assist families to take advantage of 15 available privately sponsored health insurance for their 16 eligible children; and 17 (2) Purchasing or providing health care benefits 18 for eligible children. The health benefits provided 19 under this subdivision (a)(2) shall, subject to 20 appropriation and without regard to any applicable cost 21 sharing under Section 30, be identical to the benefits 22 provided for children under the State's approved plan -2- LRB9202681JSpcam02 1 under Title XIX of the Social Security Act. Providers 2 under this subdivision (a)(2) shall be subject to 3 approval by the Department to provide health care under 4 the Illinois Public Aid Code and shall be reimbursed at 5 the same rate as providers under the State's approved 6 plan under Title XIX of the Social Security Act. In 7 addition, providers may retain co-payments when 8 determined appropriate by the Department. 9 (b) The subsidization provided pursuant to subdivision 10 (a)(1) shall be credited to the family of the eligible child. 11 The Department shall make the subsidization pursuant to 12 subdivision (a)(1) available to children whose annual 13 household income is at or below 133% of the federal poverty 14 level. 15 (c) The Department is prohibited from denying coverage 16 to a child who is enrolled in a privately sponsored health 17 insurance plan pursuant to subdivision (a)(1) because the 18 plan does not meet federal benchmarking standards or cost 19 sharing and contribution requirements. To be eligible for 20 inclusion in the Program, the plan shall contain 21 comprehensive major medical coverage which shall consist of 22 physician and hospital inpatient services. The Department is 23 prohibited from denying coverage to a child who is enrolled 24 in a privately sponsored health insurance plan pursuant to 25 subdivision (a)(1) because the plan offers benefits in 26 addition to physician and hospital inpatient services. 27 (d) The total dollar amount of subsidizing coverage per 28 child per month pursuant to subdivision (a)(1) shall be equal 29 to the average dollar payments, less premiums incurred, per 30 child per month pursuant to subdivision (a)(2). The 31 Department shall set this amount prospectively based upon the 32 prior fiscal year's experience adjusted for incurred but not 33 reported claims and estimated increases or decreases in the 34 cost of medical care. Payments obligated before July 1, -3- LRB9202681JSpcam02 1 1999, will be computed using State Fiscal Year 1996 payments 2 for children eligible for Medical Assistance and income 3 assistance under the Aid to Families with Dependent Children 4 Program, with appropriate adjustments for cost and 5 utilization changes through January 1, 1999. The Department 6 is prohibited from providing a subsidy pursuant to 7 subdivision (a)(1) that is more than the individual's monthly 8 portion of the premium. 9 (e) An eligible child may obtain immediate coverage 10 under this Program only once during a medical visit. If 11 coverage lapses, re-enrollment shall be completed in advance 12 of the next covered medical visit and the first month's 13 required premium shall be paid in advance of any covered 14 medical visit. 15 (f) In order to accelerate and facilitate the 16 development of networks to deliver services to children in 17 areas outside counties with populations in excess of 18 3,000,000, in the event less than 25% of the eligible 19 children in a county or contiguous counties has enrolled with 20 a Health Maintenance Organization pursuant to Section 5-11 of 21 the Illinois Public Aid Code, the Department may develop and 22 implement demonstration projects to create alternative 23 networks designed to enhance enrollment and participation in 24 the program. The Department shall prescribe by rule the 25 criteria, standards, and procedures for effecting 26 demonstration projects under this Section. 27 (Source: P.A. 90-736, eff. 8-12-98.) 28 (215 ILCS 106/40) 29 (Section scheduled to be repealed on July 1, 2002) 30 Sec. 40. Waivers. 31 (a) The Department shall request any necessary waivers 32 of federal requirements in order to allow receipt of federal 33 funding for: -4- LRB9202681JSpcam02 1 (1) the coverage of families with eligible children 2 under this Act;and3 (2)forthe coverage of children who would 4 otherwise be eligible under this Act, but who have health 5 insurance; and.6 (3) the coverage of children that are eligible 7 under subsection (b) of Section 25. 8 (b) The failure of the responsible federal agency to 9 approve a waiver for children who would otherwise be eligible 10 under this Act but who have health insurance shall not 11 prevent the implementation of any Section of this Act 12 provided that there are sufficient appropriated funds. 13 (Source: P.A. 90-736, eff. 8-12-98.) 14 Section 99. Effective date. This Act takes effect upon 15 becoming law.".