Bill Amendment: IL HB1471 | 2021-2022 | 102nd General Assembly
NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: REGULATION-TECH
Status: 2021-04-23 - Rule 19(a) / Re-referred to Rules Committee [HB1471 Detail]
Download: Illinois-2021-HB1471-House_Amendment_001.html
Bill Title: REGULATION-TECH
Status: 2021-04-23 - Rule 19(a) / Re-referred to Rules Committee [HB1471 Detail]
Download: Illinois-2021-HB1471-House_Amendment_001.html
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1 | AMENDMENT TO HOUSE BILL 1471
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2 | AMENDMENT NO. ______. Amend House Bill 1471 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 5. The Department of Insurance Law of the
Civil | ||||||
5 | Administrative Code of Illinois is amended by adding Section | ||||||
6 | 1405-40 as follows:
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7 | (20 ILCS 1405/1405-40 new) | ||||||
8 | Sec. 1405-40. Transfer of the Illinois Comprehensive | ||||||
9 | Health Insurance Plan. Upon entry of an Order of | ||||||
10 | Rehabilitation or Liquidation against the Comprehensive Health | ||||||
11 | Insurance Plan in accordance with Article XIII of the Illinois | ||||||
12 | Insurance Code, all powers, duties, rights, and | ||||||
13 | responsibilities of the Illinois Comprehensive Health | ||||||
14 | Insurance Plan and the Illinois Comprehensive Health Insurance | ||||||
15 | Board under the Comprehensive Health Insurance Plan Act shall | ||||||
16 | be transferred to and vested in the Director of Insurance as |
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1 | rehabilitator or liquidator as provided in the provisions of | ||||||
2 | this amendatory Act of the 102nd General Assembly.
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3 | Section 10. The Comprehensive Health Insurance Plan Act is | ||||||
4 | amended by changing Sections 1.1, 3, and 15 and by adding | ||||||
5 | Sections 16 and 17 as follows:
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6 | (215 ILCS 105/1.1) (from Ch. 73, par. 1301.1)
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7 | Sec. 1.1.
The General Assembly hereby makes the following | ||||||
8 | findings and
declarations:
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9 | (a) The Comprehensive Health Insurance Plan is | ||||||
10 | established as a State
program that is intended to provide
| ||||||
11 | an alternate market for health insurance for certain | ||||||
12 | uninsurable Illinois
residents, and further is intended to | ||||||
13 | provide an
acceptable alternative mechanism as described | ||||||
14 | in the federal Health Insurance
Portability and | ||||||
15 | Accountability Act of 1996 for providing portable and
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16 | accessible individual health insurance coverage for | ||||||
17 | federally eligible
individuals as defined in this Act.
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18 | (b) The State of Illinois may subsidize the cost of | ||||||
19 | health insurance
coverage offered by the Plan. However, | ||||||
20 | since the State
has only a limited amount of
resources, | ||||||
21 | the General Assembly declares that it intends for this | ||||||
22 | program to
provide portable and accessible individual | ||||||
23 | health insurance coverage for every
federally eligible | ||||||
24 | individual who qualifies for coverage in accordance with
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1 | Section 15 of this Act, but does not intend for every
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2 | eligible person who qualifies for Plan coverage in | ||||||
3 | accordance with Section 7
of this Act to be guaranteed a | ||||||
4 | right to be issued a policy under
this
Plan as a matter of | ||||||
5 | entitlement.
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6 | (c) The Comprehensive Health Insurance Plan Board | ||||||
7 | shall operate the Plan
in a manner so that the estimated | ||||||
8 | cost of the program during
any fiscal year will not exceed | ||||||
9 | the total income it expects to receive from
policy | ||||||
10 | premiums, investment income, assessments, or fees | ||||||
11 | collected or
received
by the Board and other funds which | ||||||
12 | are made available from
appropriations for the Plan by
the | ||||||
13 | General Assembly for that fiscal year.
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14 | With the implementation of the federal Patient Protection | ||||||
15 | and Affordable Care Act, the Plan shall discontinue as the | ||||||
16 | alternative market for health insurance for certain Illinois | ||||||
17 | residents and discontinue as the alternative mechanism, as | ||||||
18 | described in the federal Health Insurance Portability and | ||||||
19 | Accountability Act of 1996, effective no later than January 1, | ||||||
20 | 2022. | ||||||
21 | (Source: P.A. 90-30, eff. 7-1-97.)
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22 | (215 ILCS 105/3) (from Ch. 73, par. 1303)
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23 | Sec. 3. Operation of the Plan.
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24 | a. There is hereby created an Illinois Comprehensive | ||||||
25 | Health Insurance Plan.
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1 | b. The Plan shall operate subject to the supervision and | ||||||
2 | control of
the Board. The Board is created as a political | ||||||
3 | subdivision and body
politic and corporate and, as such, is | ||||||
4 | not a State agency. The Board shall
consist of 10 public | ||||||
5 | members, appointed by the Governor with the
advice and consent | ||||||
6 | of the Senate.
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7 | Initial members shall be appointed to the Board by the | ||||||
8 | Governor as
follows: 2 members to serve until July 1, 1988, and | ||||||
9 | until their successors
are appointed and qualified; 2 members | ||||||
10 | to serve until July 1, 1989, and
until their successors are | ||||||
11 | appointed and qualified; 3 members to serve
until July 1, | ||||||
12 | 1990, and until their successors are appointed and qualified;
| ||||||
13 | and 3 members to serve until July 1, 1991, and until their | ||||||
14 | successors are
appointed and qualified. As terms of initial | ||||||
15 | members expire, their
successors shall be appointed for terms | ||||||
16 | to expire the first day in July 3
years thereafter, and until | ||||||
17 | their successors are appointed and qualified.
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18 | Any vacancy in the Board occurring for any reason other | ||||||
19 | than the
expiration of a term shall be filled for the unexpired | ||||||
20 | term in the same
manner as the original appointment.
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21 | Any member of the Board may be removed by the Governor for | ||||||
22 | neglect of
duty, misfeasance, malfeasance, or nonfeasance in | ||||||
23 | office.
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24 | In addition, a representative of the
Governor's Office of | ||||||
25 | Management and Budget, a representative of the Office
of the | ||||||
26 | Attorney General and the Director or the Director's designated
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1 | representative shall be members of the Board. Four members of | ||||||
2 | the General
Assembly, one each appointed by the President and | ||||||
3 | Minority Leader of the
Senate and by the Speaker and Minority | ||||||
4 | Leader of the House of
Representatives, shall serve as | ||||||
5 | nonvoting members of the Board. At least
2 of the public | ||||||
6 | members shall be individuals reasonably expected to qualify
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7 | for coverage under the Plan, the parent or spouse of such an
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8 | individual, or a surviving family member of an individual who | ||||||
9 | could have
qualified for the Plan during his lifetime. The | ||||||
10 | Director or Director's
representative shall be the chairperson | ||||||
11 | of the Board. Members of the Board
shall receive no | ||||||
12 | compensation, but shall be reimbursed for reasonable
expenses | ||||||
13 | incurred in the necessary performance of their duties.
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14 | c. The Board shall make an annual report in September and
| ||||||
15 | shall file the report with the Secretary of the Senate and the | ||||||
16 | Clerk of
the House of Representatives. The report shall | ||||||
17 | summarize the activities of
the Plan in the preceding calendar | ||||||
18 | year, including net written and earned
premiums, the expense | ||||||
19 | of administration, the paid and incurred
losses for the year | ||||||
20 | and other information as may be requested by the
General | ||||||
21 | Assembly. The report shall also include analysis and
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22 | recommendations regarding utilization review, quality | ||||||
23 | assurance and access
to cost effective quality health care.
| ||||||
24 | d. In its plan of operation the Board shall:
| ||||||
25 | (1) Establish procedures for selecting a Plan | ||||||
26 | administrator in
accordance with Section 5 of this Act.
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1 | (2) Establish procedures for the operation of the | ||||||
2 | Board.
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3 | (3) Create a Plan fund, under management of the Board, | ||||||
4 | to fund
administrative, claim, and other expenses of the | ||||||
5 | Plan.
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6 | (4) Establish procedures for the handling and | ||||||
7 | accounting of assets and
monies of the Plan.
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8 | (5) Develop and implement a program to publicize the | ||||||
9 | existence of the
Plan, the eligibility requirements and | ||||||
10 | procedures for enrollment and to
maintain public awareness | ||||||
11 | of the Plan.
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12 | (6) Establish procedures under which applicants and | ||||||
13 | participants may have
grievances reviewed by a grievance | ||||||
14 | committee appointed by the Board. The
grievances shall be | ||||||
15 | reported to the Board immediately after completion of
the | ||||||
16 | review. The Department and the Board shall retain all | ||||||
17 | written
complaints regarding the Plan for at least 3 | ||||||
18 | years. Oral complaints
shall be reduced to written form | ||||||
19 | and maintained for at least 3 years.
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20 | (7) Provide for other matters as may be necessary and | ||||||
21 | proper for
the execution of its powers, duties and | ||||||
22 | obligations under the Plan.
| ||||||
23 | e. No later than 5 years after the Plan is operative the | ||||||
24 | Board and
the Department shall conduct cooperatively a study | ||||||
25 | of the Plan and the
persons insured by the Plan to determine: | ||||||
26 | (1) claims experience including a
breakdown of medical |
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1 | conditions for which claims were paid; (2) whether
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2 | availability of the Plan affected employment opportunities for
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3 | participants; (3) whether availability of the Plan affected | ||||||
4 | the receipt of
medical assistance benefits by Plan | ||||||
5 | participants; (4) whether a change
occurred in the number of | ||||||
6 | personal bankruptcies due to medical or other
health related | ||||||
7 | costs; (5) data regarding all complaints received about the
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8 | Plan including its operation and services; (6) and any other | ||||||
9 | significant
observations regarding utilization of the Plan. | ||||||
10 | The study shall culminate
in a written report to be presented | ||||||
11 | to the Governor, the President of the
Senate, the Speaker of | ||||||
12 | the House and the chairpersons of the House and
Senate | ||||||
13 | Insurance Committees. The report shall be filed with the
| ||||||
14 | Secretary of the Senate and the Clerk of the House of | ||||||
15 | Representatives. The
report shall also be available to members | ||||||
16 | of the general public upon request.
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17 | (e-5) The Board shall conduct a feasibility study of | ||||||
18 | establishing a small employer health insurance pool in which | ||||||
19 | employers may provide affordable health insurance coverage to | ||||||
20 | their employees. The Board may contract with a private entity | ||||||
21 | or enter into intergovernmental agreements with State agencies | ||||||
22 | for the completion of all or part of the study. The study | ||||||
23 | shall: | ||||||
24 | (i) Analyze other states' experience in establishing | ||||||
25 | small employer health
insurance pools; | ||||||
26 | (ii) Assess the need for a small employer health |
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1 | insurance pool, including the number of individuals who | ||||||
2 | might benefit from it; | ||||||
3 | (iii) Recommend means of establishing a small employer | ||||||
4 | health insurance pool; and | ||||||
5 | (iv) Estimate the cost of providing a small employer | ||||||
6 | health insurance pool through the Illinois Comprehensive | ||||||
7 | Health Insurance Plan or another, public or private | ||||||
8 | entity. | ||||||
9 | The Board may accept donations, in trust, from any legal | ||||||
10 | source, public or private, for deposit into a trust account | ||||||
11 | specifically created for expenditure, without the necessity of | ||||||
12 | being appropriated, solely for the purpose of conducting all | ||||||
13 | or part of the study.
The Board shall issue a report with | ||||||
14 | recommendations to the Governor and the General Assembly by | ||||||
15 | January 1, 2005.
As used in this subsection e-5, "small | ||||||
16 | employer" means an employer having between one and 50 | ||||||
17 | employees.
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18 | f. The Board may:
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19 | (1) Prepare and distribute certificate of eligibility | ||||||
20 | forms and
enrollment instruction forms to insurance | ||||||
21 | producers and to the general
public in this State.
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22 | (2) Provide for reinsurance of risks incurred by the | ||||||
23 | Plan and enter into
reinsurance agreements with insurers | ||||||
24 | to establish a reinsurance plan for
risks of coverage | ||||||
25 | described in the Plan, or obtain commercial reinsurance
to | ||||||
26 | reduce the risk of loss through the Plan.
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1 | (3) Issue additional types of health insurance | ||||||
2 | policies to provide
optional coverages as are otherwise | ||||||
3 | permitted by this Act including a
Medicare supplement | ||||||
4 | policy designed to supplement Medicare.
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5 | (4) Provide for and employ cost containment measures | ||||||
6 | and requirements
including, but not limited to, | ||||||
7 | preadmission certification, second surgical
opinion, | ||||||
8 | concurrent utilization review programs, and individual | ||||||
9 | case
management for the purpose of making the pool more | ||||||
10 | cost effective.
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11 | (5) Design, utilize, contract, or otherwise arrange | ||||||
12 | for the
delivery of cost effective health care services, | ||||||
13 | including establishing or
contracting with preferred | ||||||
14 | provider organizations, health maintenance organizations, | ||||||
15 | and other limited network
provider
arrangements.
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16 | (6) Adopt bylaws, rules, regulations, policies and | ||||||
17 | procedures as
may be necessary or convenient for the | ||||||
18 | implementation of the Act and the
operation of the Plan.
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19 | (7) Administer separate pools, separate accounts, or | ||||||
20 | other plans or
arrangements as required by this Act to | ||||||
21 | separate federally eligible
individuals or groups of | ||||||
22 | federally eligible individuals who qualify for Plan
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23 | coverage under Section 15 of this Act from eligible | ||||||
24 | persons or groups of
eligible persons who qualify for Plan | ||||||
25 | coverage under Section 7 of this Act and
apportion the | ||||||
26 | costs of the
administration among such separate pools, |
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1 | separate accounts, or other plans or
arrangements.
| ||||||
2 | g. The Director may, by rule, establish additional powers | ||||||
3 | and duties of
the Board and may adopt rules for any other | ||||||
4 | purposes, including the
operation of the Plan, as are | ||||||
5 | necessary or proper to implement this Act.
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6 | h. The Board is not liable for any obligation of the Plan. | ||||||
7 | There is no
liability on the part of any member or employee of | ||||||
8 | the Board , or the
Department, or the Director, both as | ||||||
9 | regulator and as rehabilitator or liquidator, and no cause of | ||||||
10 | action of any nature may arise against them,
for any action | ||||||
11 | taken or omission made by them in the performance of their
| ||||||
12 | powers and duties under this Act, unless the action or | ||||||
13 | omission
constitutes willful or wanton misconduct. The Board | ||||||
14 | may provide in its
bylaws or rules for indemnification of, and | ||||||
15 | legal representation for, its
members and employees.
| ||||||
16 | i. There is no liability on the part of any insurance | ||||||
17 | producer for the
failure of any applicant to be accepted by the | ||||||
18 | Plan unless the failure of
the applicant to be accepted by the | ||||||
19 | Plan is due to an act or omission by
the insurance producer | ||||||
20 | which constitutes willful or wanton misconduct.
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21 | j. Not later than 60 days after the effective date of this | ||||||
22 | amendatory Act of the 102nd General Assembly, the Board shall | ||||||
23 | develop a plan of rehabilitation or liquidation and | ||||||
24 | dissolution, including the consent of a majority of the Board | ||||||
25 | to the entry of an order of rehabilitation or liquidation, to | ||||||
26 | wind down the affairs of the Plan, including details for the |
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1 | transition to other health plans of any persons currently | ||||||
2 | enrolled in the Plan, for presentation to and approval by the | ||||||
3 | Director. Upon the Director's approval of the plan of | ||||||
4 | rehabilitation or liquidation and dissolution, the Director | ||||||
5 | shall thereafter report to the Attorney General of this State, | ||||||
6 | whose duty it shall be to file a complaint for rehabilitation | ||||||
7 | or liquidation of the Plan pursuant to the provisions of | ||||||
8 | Article XIII of the Illinois Insurance Code. Upon entry of a | ||||||
9 | final Order of Rehabilitation or Liquidation and the | ||||||
10 | Director's appointment as statutory rehabilitator or | ||||||
11 | liquidator, the Director shall begin to administer and oversee | ||||||
12 | the wind-down and dissolution of the Plan in accordance with | ||||||
13 | the provisions of Article XIII. | ||||||
14 | (Source: P.A. 92-597, eff. 6-28-02; 93-622, eff. 12-18-03; | ||||||
15 | 93-824, eff. 7-28-04 .)
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16 | (215 ILCS 105/15)
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17 | Sec. 15. Alternative portable coverage for federally | ||||||
18 | eligible individuals.
| ||||||
19 | (a) Notwithstanding the requirements of subsection a of | ||||||
20 | Section 7 and
except as otherwise provided in this Section, | ||||||
21 | any
federally eligible individual for whom a Plan
application, | ||||||
22 | and such enclosures and supporting documentation as the Board | ||||||
23 | may
require, is received by the Board within 90 days after the
| ||||||
24 | termination of prior
creditable coverage shall qualify to | ||||||
25 | enroll in the Plan under the
portability provisions of this |
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1 | Section.
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2 | A federally eligible person who has
been certified as | ||||||
3 | eligible pursuant to the federal Trade
Act of 2002
and whose | ||||||
4 | Plan application and enclosures and supporting
documentation | ||||||
5 | as the Board may require is received by the Board within 63 | ||||||
6 | days
after the termination of previous creditable coverage | ||||||
7 | shall qualify to enroll
in the Plan under the portability | ||||||
8 | provisions of this Section.
| ||||||
9 | (b) Any federally eligible individual seeking Plan | ||||||
10 | coverage under this
Section must submit with his or her | ||||||
11 | application evidence, including acceptable
written | ||||||
12 | certification of previous creditable coverage, that will | ||||||
13 | establish to
the Board's satisfaction, that he or she meets | ||||||
14 | all of the requirements to be a
federally eligible individual | ||||||
15 | and is currently and
permanently residing in this State (as of | ||||||
16 | the date his or her application was
received by the Board).
| ||||||
17 | (c) Except as otherwise provided in this Section, a period | ||||||
18 | of creditable
coverage shall not be counted, with respect to
| ||||||
19 | qualifying an applicant for Plan coverage as a federally | ||||||
20 | eligible individual
under this Section, if after such period | ||||||
21 | and before the application for Plan
coverage was received by | ||||||
22 | the Board, there was at least a 90-day
period during
all of | ||||||
23 | which the individual was not covered under any creditable | ||||||
24 | coverage.
| ||||||
25 | For a federally eligible person who has
been certified as | ||||||
26 | eligible
pursuant to the federal Trade Act of 2002, a period of |
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| |||||||
1 | creditable
coverage shall not be counted, with respect to | ||||||
2 | qualifying an applicant for Plan
coverage as a federally | ||||||
3 | eligible individual under this Section, if after such
period | ||||||
4 | and before the application for Plan coverage was received by | ||||||
5 | the Board,
there was at
least a 63-day period during all of | ||||||
6 | which the individual was not covered under
any creditable | ||||||
7 | coverage.
| ||||||
8 | (d) Any federally eligible individual who the Board | ||||||
9 | determines qualifies for
Plan coverage under this Section | ||||||
10 | shall be offered his or her choice of
enrolling in one of | ||||||
11 | alternative portability health benefit plans which the
Board
| ||||||
12 | is authorized under this Section to establish for these | ||||||
13 | federally eligible
individuals
and their dependents.
| ||||||
14 | (e) The Board shall offer a choice of health care | ||||||
15 | coverages consistent with
major medical coverage under the | ||||||
16 | alternative health benefit plans authorized by
this Section to | ||||||
17 | every federally eligible individual.
The coverages to be | ||||||
18 | offered under the plans, the schedule of
benefits, | ||||||
19 | deductibles, co-payments, exclusions, and other limitations | ||||||
20 | shall be
approved by the Board. One optional form of coverage | ||||||
21 | shall be comparable to
comprehensive health insurance coverage | ||||||
22 | offered in the individual market in
this State or a standard | ||||||
23 | option of coverage available under the group or
individual | ||||||
24 | health insurance laws of the State. The standard benefit plan | ||||||
25 | that
is
authorized by Section 8 of this Act may be used for | ||||||
26 | this purpose. The Board
may also offer a preferred provider |
| |||||||
| |||||||
1 | option and such other options as the Board
determines may be | ||||||
2 | appropriate for these federally eligible individuals who
| ||||||
3 | qualify for Plan coverage pursuant to this Section.
| ||||||
4 | (f) Notwithstanding the requirements of subsection f of | ||||||
5 | Section 8, any
Plan coverage
that is issued to federally | ||||||
6 | eligible individuals who qualify for the Plan
pursuant
to the | ||||||
7 | portability provisions of this Section shall not be subject to | ||||||
8 | any
preexisting conditions exclusion, waiting period, or other | ||||||
9 | similar limitation
on coverage.
| ||||||
10 | (g) Federally eligible individuals who qualify and enroll | ||||||
11 | in the Plan
pursuant
to this Section shall be required to pay | ||||||
12 | such premium rates as the Board shall
establish and approve in | ||||||
13 | accordance with the requirements of Section 7.1 of
this Act.
| ||||||
14 | (h) A federally eligible individual who qualifies and | ||||||
15 | enrolls in the Plan
pursuant to this Section must satisfy on an | ||||||
16 | ongoing basis all of the other
eligibility requirements of | ||||||
17 | this Act to the extent not inconsistent with the
federal | ||||||
18 | Health Insurance Portability and Accountability Act of 1996 in | ||||||
19 | order to
maintain continued eligibility
for coverage under the | ||||||
20 | Plan.
| ||||||
21 | (i) New enrollment and policy renewals are discontinued on | ||||||
22 | December 31, 2021. | ||||||
23 | (Source: P.A. 100-201, eff. 8-18-17.)
| ||||||
24 | (215 ILCS 105/16 new) | ||||||
25 | Sec. 16. Cessation of operations. |
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| |||||||
1 | (a) Except as otherwise provided in this Section, the | ||||||
2 | insurance operations of the Plan authorized by this Act shall | ||||||
3 | cease on December 31, 2021. | ||||||
4 | (b) Coverage under the Plan does not apply to services | ||||||
5 | provided on or after January 1, 2022. | ||||||
6 | (c) The Plan shall cease providing coverage for | ||||||
7 | participants enrolled prior to January 1, 2022 at 11:59 p.m. | ||||||
8 | on December 31, 2021. | ||||||
9 | (d) A claim for payment under the Plan must be submitted | ||||||
10 | within 180 days after January 1, 2022 and paid in accordance | ||||||
11 | with the provisions of Article XIII of the Illinois Insurance | ||||||
12 | Code. | ||||||
13 | (e) Any claim or grievance shall be resolved by the court | ||||||
14 | supervising the Plan's Article XIII rehabilitation or | ||||||
15 | liquidation proceedings. | ||||||
16 | (f) Balance billing by a health care provider that is not a | ||||||
17 | member of the provider network used by the Plan is prohibited. | ||||||
18 | (g) The Board shall, not later than 60 days after the | ||||||
19 | effective date of this amendatory Act of the 102nd General | ||||||
20 | Assembly, submit to the Director a plan of rehabilitation or | ||||||
21 | liquidation and dissolution, which must provide for, but shall | ||||||
22 | not be limited to, the following: | ||||||
23 | (1) continuity of care for an individual who is | ||||||
24 | covered under the Plan and is an inpatient on January 1, | ||||||
25 | 2022; | ||||||
26 | (2) a final accounting of assessments; |
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| |||||||
1 | (3) resolution of any net asset deficiency; | ||||||
2 | (4) cessation of all liability of the Plan; and | ||||||
3 | (5) final dissolution of the Plan. | ||||||
4 | (h) The plan of rehabilitation or liquidation and | ||||||
5 | dissolution may provide that, with the approval of the | ||||||
6 | Director, a power or duty of the Plan may be delegated to a | ||||||
7 | person that is to perform functions similar to the functions | ||||||
8 | of the Plan. | ||||||
9 | (i) Upon entry of an Order of Rehabilitation or | ||||||
10 | Liquidation against the Plan, the court supervising the | ||||||
11 | rehabilitation or liquidation proceedings shall have the | ||||||
12 | jurisdiction to issue injunctions as set forth in Section 189 | ||||||
13 | of the Illinois Insurance Code, including, but not limited to, | ||||||
14 | the restraining of all persons, companies, and entities from | ||||||
15 | bringing or further prosecuting all actions and proceedings at | ||||||
16 | law or in equity or otherwise, whether in this State or | ||||||
17 | elsewhere, against the Plan or its assets or property or the | ||||||
18 | Director except insofar as those actions or proceedings arise | ||||||
19 | in or are brought in the rehabilitation or liquidation | ||||||
20 | proceedings. | ||||||
21 | (j) Upon the entry of an order of rehabilitation or | ||||||
22 | liquidation, the rights and liabilities of the Plan and of its | ||||||
23 | policyholders and all other persons interested in its assets | ||||||
24 | shall be fixed as of the date of entry of the order directing | ||||||
25 | rehabilitation or liquidation, or such later date as may be | ||||||
26 | provided by order of the court supervising the rehabilitation |
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1 | or liquidation proceedings. | ||||||
2 | (k) Upon the satisfaction of all claims allowed in the | ||||||
3 | rehabilitation or liquidation proceedings, including the costs | ||||||
4 | and expenses of administering the rehabilitation or | ||||||
5 | liquidation, any remaining funds shall be distributed as | ||||||
6 | follows: | ||||||
7 | (1) for the accounts described in paragraph (2) of | ||||||
8 | subsection (l) of Section 4, all funds shall be refunded | ||||||
9 | on a pro rata basis to the insurers that were assessed | ||||||
10 | based on the most recent deficit projections of the Plan's | ||||||
11 | operation pursuant to Section 12 and to covered persons | ||||||
12 | where appropriate; and | ||||||
13 | (2) for all other accounts, all remaining funds shall | ||||||
14 | be released and deposited into the Insurance Producer | ||||||
15 | Administration Fund for use by the Department for | ||||||
16 | initiatives to support the Illinois Health Benefits | ||||||
17 | Exchange. | ||||||
18 | (l) Upon the entry of an Order of Rehabilitation or | ||||||
19 | Liquidation against the Plan, if the Director determines the | ||||||
20 | Plan is holding any surplus funds in a segregated account | ||||||
21 | associated with persons who qualified for coverage under | ||||||
22 | Section 7 that are no longer required for the purposes for | ||||||
23 | which they were acquired and are restricted from any other | ||||||
24 | use, the Director may petition the court for such funds to be | ||||||
25 | released and placed as follows: | ||||||
26 | (1) the first $10,000,000 shall be deposited into the |
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1 | Insurance Producer Administration Fund for use by the | ||||||
2 | Department for initiatives to support the Illinois Health | ||||||
3 | Benefits Exchange; and | ||||||
4 | (2) the remainder shall be deposited into the Parity | ||||||
5 | Advancement Fund.
| ||||||
6 | (215 ILCS 105/17 new) | ||||||
7 | Sec. 17. Transfer of the Illinois Comprehensive Health | ||||||
8 | Insurance Plan. | ||||||
9 | (a) Upon entry of an Order of Rehabilitation or | ||||||
10 | Liquidation against the Plan all powers, duties, rights, and | ||||||
11 | responsibilities of the Plan and the Board shall be | ||||||
12 | transferred to and vested in the Director, as rehabilitator or | ||||||
13 | liquidator, who is authorized to wind down the affairs of the | ||||||
14 | Plan in accordance with Article XIII of the Illinois Insurance | ||||||
15 | Code. | ||||||
16 | (b) The Director, as rehabilitator or liquidator, shall | ||||||
17 | act on behalf of the Plan and the Board and shall have the | ||||||
18 | power and duty to receive and answer correspondence, and shall | ||||||
19 | evaluate all claims that are timely filed in the | ||||||
20 | rehabilitation or liquidation proceedings and is authorized to | ||||||
21 | make distribution from any unencumbered funds of the Plan's | ||||||
22 | rehabilitation or liquidation estate upon all such claims as | ||||||
23 | are allowed in the proceedings consistent with subsection (1) | ||||||
24 | of Section 205 of the Illinois Insurance Code. Timely filed | ||||||
25 | claims of vendors allowed in the rehabilitation or liquidation |
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1 | proceedings that are not capable of being discharged, in full, | ||||||
2 | from the assets of the rehabilitation or liquidation estate | ||||||
3 | may be presented to the Court of Claims. | ||||||
4 | (c) All books, records, papers, documents, property (real | ||||||
5 | and personal), contracts, causes of action, and pending | ||||||
6 | business pertaining to the powers, duties, rights, and | ||||||
7 | responsibilities transferred by this amendatory Act of the | ||||||
8 | 102nd General Assembly from the Plan and the Board to the | ||||||
9 | Director, as rehabilitator or liquidator, including, but not | ||||||
10 | limited to, material in electronic or magnetic format and | ||||||
11 | necessary computer hardware and software, shall be transferred | ||||||
12 | to the Director, as rehabilitator or liquidator. Records shall | ||||||
13 | be maintained as required by the federal Health Insurance | ||||||
14 | Portability and Accountability Act of 1996, as now or | ||||||
15 | hereafter amended, unless otherwise ordered by the court | ||||||
16 | supervising the rehabilitation or liquidation proceedings. | ||||||
17 | (d) The rights of the employees in the State of Illinois | ||||||
18 | and its agencies under the Personnel Code and applicable | ||||||
19 | collective bargaining agreements or under any pension, | ||||||
20 | retirement, or annuity plan shall not be affected by this | ||||||
21 | amendatory Act of the 102nd General Assembly. | ||||||
22 | (e) Upon entry of an Order of Rehabilitation or | ||||||
23 | Liquidation against the Plan, all unexpended appropriations | ||||||
24 | and balances and other funds available for use by the Plan and | ||||||
25 | the Board shall be transferred to and vested in the Director, | ||||||
26 | as rehabilitator or liquidator. Except as provided in |
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| |||||||
1 | subsection (l) of Section 16, unexpended balances so | ||||||
2 | transferred shall be distributed in accordance with Article | ||||||
3 | XIII of the Illinois Insurance Code for paying the Director's | ||||||
4 | administrative expenses incurred in connection with winding | ||||||
5 | down the affairs of the Plan. | ||||||
6 | (f) Whenever reports or notices are, on the effective date | ||||||
7 | of this amendatory Act of the 102nd General Assembly, required | ||||||
8 | to be made or given or papers or documents furnished or served | ||||||
9 | by any person to or upon the Plan or the Board in connection | ||||||
10 | with any of the powers, duties, rights, and responsibilities | ||||||
11 | transferred by this amendatory Act of the 102nd General | ||||||
12 | Assembly, the same shall be made, given, furnished, or served | ||||||
13 | in the same manner to or upon the Director, as rehabilitator or | ||||||
14 | liquidator. | ||||||
15 | (g) This amendatory Act of the 102nd General Assembly does | ||||||
16 | not affect any act done, ratified, or canceled or any right | ||||||
17 | occurring or established or any action or proceeding had or | ||||||
18 | commenced in the administrative, civil, or criminal cause by | ||||||
19 | the Plan or the Board prior to the entry of an Order of | ||||||
20 | Rehabilitation or Liquidation against the Plan; such actions | ||||||
21 | or proceedings may be prosecuted and continued by the | ||||||
22 | Director, as rehabilitator or liquidator.
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23 | Section 99. Effective date. This Act takes effect upon | ||||||
24 | becoming law.".
|