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Illinois General Assembly· HB 3677Governor Approved

COMPLEX REHAB TECH ACT, the official text

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HB3677 Enrolled                       LRB104 09531 BAB 19594 b

1   AN ACT concerning business.

2   Be it enacted by the People of the State of Illinois,

3 represented in the General Assembly:

4   Section 1. Short title. This Act may be cited as the

5 Complex Rehabilitation Technology Act.

6   Section 5. Definitions. As used in this Act:

7   "Complex manual wheelchair" means a manually driven

8 complex wheelchair that accommodates rehabilitative

9 accessories and features.

10  "Complex power wheelchair" means a power-driven wheelchair

11 that is classified as any of the following: (i) a Group 2 power

12 wheelchair with power options; (ii) a Group 3 power

13 wheelchair; (iii) a Group 4 power wheelchair; or (iv) a Group 5

14 power wheelchair.

15  "Complex rehabilitation technology" means an item that is

16 (i) individually configured for an individual to meet specific

17 and unique medical, physical, and functional needs and

18 capacities for basic activities of daily living and

19 instrumental activities of daily living and (ii) identified as

20 medically necessary. "Complex rehabilitation technology"

21 includes a complex wheelchair.

22  "Complex wheelchair" means a complex manual wheelchair or

23 a complex power wheelchair.
    HB3677 Enrolled           -2-  LRB104 09531 BAB 19594 b

1   "Qualified       complex    rehabilitation    technology

2 professional" means an individual who is certified as an

3 assistive technology professional (ATP) by the Rehabilitation

4 Engineering and Assistive Technology Society of North America

5 (RESNA).

6   Section 10. Requirements for suppliers of complex

7 wheelchairs. A person who sells or offers for sale complex

8 rehabilitation technology in this State shall:

9   (1) be accredited by a recognized accrediting

10  organization as a supplier of complex rehabilitation

11  technology;

12  (2) employ at least one employee to whom the person

13  furnishes an IRS W-2 form and who is a qualified complex

14  rehabilitation technology professional, in order to

15  analyze the needs and capacities of the complex needs of

16  consumers in consultation with qualified health care

17  professionals, participate in the selection of an

18  appropriate complex rehabilitation technology for those

19  needs and capacities of the complex needs consumer, and

20  provide training in the proper use of the complex

21  rehabilitation technology;

22  (3) require a qualified complex rehabilitation

23  technology professional to be physically present for the

24  evaluation and determination of appropriate complex

25  rehabilitation technology for a complex needs consumer;
    HB3677 Enrolled             -3-     LRB104 09531 BAB 19594 b

1   (4) be capable of providing service and repair by

2   trained technicians for all complex rehabilitation

3   technology it sells; and

4   (5) provide written information at the time of

5   delivery of the complex wheelchair to the complex needs

6   consumer stating how the complex needs consumer may

7   receive service and repair for the complex rehabilitation

8   technology.

9   Section 15. Repair services. A supplier of complex

10 wheelchairs shall offer service and repairs to the consumer of

11 the complex wheelchair for the useful life expectancy of the

12 complex wheelchair, unless:

13  (1) the consumer has moved outside of the original

14  supplier's service area;

15  (2) the damage that requires repair is the result of

16  consumer abuse or misuse of the equipment that restricts

17  coverage by the client's health plan, and the client

18  refuses to pay for the repairs; or

19  (3) the consumer or the consumer's representative

20  poses a potential threat to the health and safety of the

21  supplier or is otherwise abusive.

22  Section 25. Enforcement. A violation of any of the

23 provisions of this Act is an unlawful practice under the

24 Consumer Fraud and Deceptive Business Practices Act. All
   HB3677 Enrolled    -4-  LRB104 09531 BAB 19594 b

1 remedies, penalties, and authority granted by that Act shall
2 be available for the enforcement of this Act.

3  Section 30. Applicability. This Act applies with respect

4 to complex wheelchairs sold or in use on or after the effective

5 date of this Act.

6  Section 900. The State Employees Group Insurance Act of

7 1971 is amended by changing Section 6.11 as follows:

8  (5 ILCS 375/6.11)

9  Sec. 6.11. Required health benefits; Illinois Insurance

10 Code requirements. The program of health benefits shall

11 provide the post-mastectomy care benefits required to be

12 covered by a policy of accident and health insurance under

13 Section 356t of the Illinois Insurance Code. The program of

14 health benefits shall provide the coverage required under

15 Sections 356g, 356g.5, 356g.5-1, 356m, 356q, 356u, 356u.10,

16 356w, 356x, 356z.2, 356z.4, 356z.4a, 356z.5, 356z.6, 356z.8,

17 356z.9, 356z.10, 356z.11, 356z.12, 356z.13, 356z.14, 356z.15,

18 356z.17, 356z.22, 356z.25, 356z.26, 356z.29, 356z.30, 356z.32,

19 356z.33, 356z.36, 356z.40, 356z.41, 356z.45, 356z.46, 356z.47,

20 356z.51, 356z.53, 356z.54, 356z.55, 356z.56, 356z.57, 356z.59,

21 356z.60, 356z.61, 356z.62, 356z.64, 356z.67, 356z.68, and

22 356z.70, and 356z.71, 356z.74, 356z.76, 356z.77, and 356z.80

23 of the Illinois Insurance Code. The program of health benefits
    HB3677 Enrolled  -5-              LRB104 09531 BAB 19594 b

1 must comply with Sections 155.22a, 155.37, 355b, 356z.19,

2 370c, and 370c.1 and Article XXXIIB of the Illinois Insurance

3 Code. The program of health benefits shall provide the

4 coverage required under Section 356m of the Illinois Insurance

5 Code and, for the employees of the State Employee Group

6 Insurance Program only, the coverage as also provided in

7 Section 6.11B of this Act. The Department of Insurance shall

8 enforce the requirements of this Section with respect to

9 Sections 370c and 370c.1 of the Illinois Insurance Code; all

10 other requirements of this Section shall be enforced by the

11 Department of Central Management Services.

12  Rulemaking authority to implement Public Act 95-1045, if

13 any, is conditioned on the rules being adopted in accordance

14 with all provisions of the Illinois Administrative Procedure

15 Act and all rules and procedures of the Joint Committee on

16 Administrative Rules; any purported rule not so adopted, for

17 whatever reason, is unauthorized.

18 (Source: P.A. 102-30, eff. 1-1-22; 102-103, eff. 1-1-22;

19 102-203, eff. 1-1-22; 102-306, eff. 1-1-22; 102-642, eff.

20 1-1-22; 102-665, eff. 10-8-21; 102-731, eff. 1-1-23; 102-768,

21 eff. 1-1-24; 102-804, eff. 1-1-23; 102-813, eff. 5-13-22;

22 102-816, eff. 1-1-23; 102-860, eff. 1-1-23; 102-1093, eff.

23 1-1-23; 102-1117, eff. 1-13-23; 103-8, eff. 1-1-24; 103-84,

24 eff. 1-1-24; 103-91, eff. 1-1-24; 103-420, eff. 1-1-24;

25 103-445, eff. 1-1-24; 103-535, eff. 8-11-23; 103-551, eff.

26 8-11-23; 103-605, eff. 7-1-24; 103-718, eff. 7-19-24; 103-751,
   HB3677 Enrolled              -6-  LRB104 09531 BAB 19594 b

1 eff. 8-2-24; 103-870, eff. 1-1-25; 103-914, eff. 1-1-25;
2 103-918, eff. 1-1-25; 103-951, eff. 1-1-25; 103-1024, eff.
3 1-1-25; revised 11-26-24.)

4  Section 905. The Counties Code is amended by changing

5 Section 5-1069.3 as follows:

6  (55 ILCS 5/5-1069.3)

7  Sec. 5-1069.3. Required health benefits. If a county,

8 including a home rule county, is a self-insurer for purposes

9 of providing health insurance coverage for its employees, the

10 coverage shall include coverage for the post-mastectomy care

11 benefits required to be covered by a policy of accident and

12 health insurance under Section 356t and the coverage required

13 under Sections 356g, 356g.5, 356g.5-1, 356m, 356q, 356u,

14 356u.10, 356w, 356x, 356z.4, 356z.4a, 356z.6, 356z.8, 356z.9,

15 356z.10, 356z.11, 356z.12, 356z.13, 356z.14, 356z.15, 356z.22,

16 356z.25, 356z.26, 356z.29, 356z.30, 356z.32, 356z.33, 356z.36,

17 356z.40, 356z.41, 356z.45, 356z.46, 356z.47, 356z.48, 356z.51,

18 356z.53, 356z.54, 356z.56, 356z.57, 356z.59, 356z.60, 356z.61,

19 356z.62, 356z.64, 356z.67, 356z.68, and 356z.70, and 356z.71,

20 356z.74, 356z.77, and 356z.80 of the Illinois Insurance Code.

21 The coverage shall comply with Sections 155.22a, 355b,

22 356z.19, and 370c of the Illinois Insurance Code. The

23 Department of Insurance shall enforce the requirements of this

24 Section. The requirement that health benefits be covered as
    HB3677 Enrolled    -7-                LRB104 09531 BAB 19594 b

1 provided in this Section is an exclusive power and function of

2 the State and is a denial and limitation under Article VII,

3 Section 6, subsection (h) of the Illinois Constitution. A home

4 rule county to which this Section applies must comply with

5 every provision of this Section.

6   Rulemaking authority to implement Public Act 95-1045, if

7 any, is conditioned on the rules being adopted in accordance

8 with all provisions of the Illinois Administrative Procedure

9 Act and all rules and procedures of the Joint Committee on

10 Administrative Rules; any purported rule not so adopted, for

11 whatever reason, is unauthorized.

12 (Source: P.A. 102-30, eff. 1-1-22; 102-103, eff. 1-1-22;

13 102-203, eff. 1-1-22; 102-306, eff. 1-1-22; 102-443, eff.

14 1-1-22; 102-642, eff. 1-1-22; 102-665, eff. 10-8-21; 102-731,

15 eff. 1-1-23; 102-804, eff. 1-1-23; 102-813, eff. 5-13-22;

16 102-816, eff. 1-1-23; 102-860, eff. 1-1-23; 102-1093, eff.

17 1-1-23; 102-1117, eff. 1-13-23; 103-84, eff. 1-1-24; 103-91,

18 eff. 1-1-24; 103-420, eff. 1-1-24; 103-445, eff. 1-1-24;

19 103-535, eff. 8-11-23; 103-551, eff. 8-11-23; 103-605, eff.

20 7-1-24; 103-718, eff. 7-19-24; 103-751, eff. 8-2-24; 103-914,

21 eff. 1-1-25; 103-918, eff. 1-1-25; 103-1024, eff. 1-1-25;

22 revised 11-26-24.)

23  Section 910. The Illinois Municipal Code is amended by

24 changing Section 10-4-2.3 as follows:
    HB3677 Enrolled       -8-  LRB104 09531 BAB 19594 b

1   (65 ILCS 5/10-4-2.3)

2   Sec. 10-4-2.3. Required health benefits. If a

3 municipality, including a home rule municipality, is a

4 self-insurer for purposes of providing health insurance

5 coverage for its employees, the coverage shall include

6 coverage for the post-mastectomy care benefits required to be

7 covered by a policy of accident and health insurance under

8 Section 356t and the coverage required under Sections 356g,

9 356g.5, 356g.5-1, 356m, 356q, 356u, 356u.10, 356w, 356x,

10 356z.4, 356z.4a, 356z.6, 356z.8, 356z.9, 356z.10, 356z.11,

11 356z.12, 356z.13, 356z.14, 356z.15, 356z.22, 356z.25, 356z.26,

12 356z.29, 356z.30, 356z.32, 356z.33, 356z.36, 356z.40, 356z.41,

13 356z.45, 356z.46, 356z.47, 356z.48, 356z.51, 356z.53, 356z.54,

14 356z.56, 356z.57, 356z.59, 356z.60, 356z.61, 356z.62, 356z.64,

15 356z.67, 356z.68, and 356z.70, and 356z.71, 356z.74, 356z.77,

16 and 356z.80 of the Illinois Insurance Code. The coverage shall

17 comply with Sections 155.22a, 355b, 356z.19, and 370c of the

18 Illinois Insurance Code. The Department of Insurance shall

19 enforce the requirements of this Section. The requirement that

20 health benefits be covered as provided in this is an exclusive

21 power and function of the State and is a denial and limitation

22 under Article VII, Section 6, subsection (h) of the Illinois

23 Constitution. A home rule municipality to which this Section

24 applies must comply with every provision of this Section.

25  Rulemaking authority to implement Public Act 95-1045, if

26 any, is conditioned on the rules being adopted in accordance
    HB3677 Enrolled              -9-  LRB104 09531 BAB 19594 b

 1 with all provisions of the Illinois Administrative Procedure
 2 Act and all rules and procedures of the Joint Committee on
 3 Administrative Rules; any purported rule not so adopted, for
 4 whatever reason, is unauthorized.
 5 (Source: P.A. 102-30, eff. 1-1-22; 102-103, eff. 1-1-22;
 6 102-203, eff. 1-1-22; 102-306, eff. 1-1-22; 102-443, eff.
 7 1-1-22; 102-642, eff. 1-1-22; 102-665, eff. 10-8-21; 102-731,
 8 eff. 1-1-23; 102-804, eff. 1-1-23; 102-813, eff. 5-13-22;
 9 102-816, eff. 1-1-23; 102-860, eff. 1-1-23; 102-1093, eff.
10 1-1-23; 102-1117, eff. 1-13-23; 103-84, eff. 1-1-24; 103-91,
11 eff. 1-1-24; 103-420, eff. 1-1-24; 103-445, eff. 1-1-24;
12 103-535, eff. 8-11-23; 103-551, eff. 8-11-23; 103-605, eff.
13 7-1-24; 103-718, eff. 7-19-24; 103-751, eff. 8-2-24; 103-914,
14 eff. 1-1-25; 103-918, eff. 1-1-25; 103-1024, eff. 1-1-25;
15 revised 11-26-24.)

16  Section 915. The School Code is amended by changing

17 Section 10-22.3f as follows:

18  (105 ILCS 5/10-22.3f)

19  Sec. 10-22.3f. Required health benefits. Insurance

20 protection and benefits for employees shall provide the

21 post-mastectomy care benefits required to be covered by a

22 policy of accident and health insurance under Section 356t and

23 the coverage required under Sections 356g, 356g.5, 356g.5-1,

24 356m, 356q, 356u, 356u.10, 356w, 356x, 356z.4, 356z.4a,
    HB3677 Enrolled  - 10 - LRB104 09531 BAB 19594 b

1 356z.6, 356z.8, 356z.9, 356z.11, 356z.12, 356z.13, 356z.14,

2 356z.15, 356z.22, 356z.25, 356z.26, 356z.29, 356z.30, 356z.32,

3 356z.33, 356z.36, 356z.40, 356z.41, 356z.45, 356z.46, 356z.47,

4 356z.51, 356z.53, 356z.54, 356z.56, 356z.57, 356z.59, 356z.60,

5 356z.61, 356z.62, 356z.64, 356z.67, 356z.68, and 356z.70, and

6 356z.71, 356z.74, 356z.77, and 356z.80 of the Illinois

7 Insurance Code. Insurance policies shall comply with Section

8 356z.19 of the Illinois Insurance Code. The coverage shall

9 comply with Sections 155.22a, 355b, and 370c of the Illinois

10 Insurance Code. The Department of Insurance shall enforce the

11 requirements of this Section.

12  Rulemaking authority to implement Public Act 95-1045, if

13 any, is conditioned on the rules being adopted in accordance

14 with all provisions of the Illinois Administrative Procedure

15 Act and all rules and procedures of the Joint Committee on

16 Administrative Rules; any purported rule not so adopted, for

17 whatever reason, is unauthorized.

18 (Source: P.A. 102-30, eff. 1-1-22; 102-103, eff. 1-1-22;

19 102-203, eff. 1-1-22; 102-306, eff. 1-1-22; 102-642, eff.

20 1-1-22; 102-665, eff. 10-8-21; 102-731, eff. 1-1-23; 102-804,

21 eff. 1-1-23; 102-813, eff. 5-13-22; 102-816, eff. 1-1-23;

22 102-860, eff. 1-1-23; 102-1093, eff. 1-1-23; 102-1117, eff.

23 1-13-23; 103-84, eff. 1-1-24; 103-91, eff. 1-1-24; 103-420,

24 eff. 1-1-24; 103-445, eff. 1-1-24; 103-535, eff. 8-11-23;

25 103-551, eff. 8-11-23; 103-605, eff. 7-1-24; 103-718, eff.

26 7-19-24; 103-751, eff. 8-2-24; 103-914, eff. 1-1-25; 103-918,
    HB3677 Enrolled             - 11 - LRB104 09531 BAB 19594 b

1 eff. 1-1-25; 103-1024, eff. 1-1-25; revised 11-26-24.)

2   Section 920. The Illinois Insurance Code is amended by

3 adding Section 356z.80 as follows:

4   (215 ILCS 5/356z.80 new)

5   Sec. 356z.80. Coverage for complex wheelchair service and

6 repair.

7 (a) As used in this Section:

8   "Complex rehabilitation technology" means a medically

9 necessary complex wheelchair and associated accessories that

10 is individually configured for an individual to meet specific

11 and unique medical, physical, and functional needs and

12 capacities for basic activities of daily living and

13 instrumental activities of daily living.

14  "Complex wheelchair" has the meaning given in the Complex

15 Rehabilitation Technology Act.

16  "Qualified complex rehabilitation technology supplier"

17 means a person who meets the requirements of Section 10 of the

18 Complex Rehabilitation Technology Act.

19  "Repair" means the repair or replacement of a deficient,

20 broken, or otherwise malfunctioning part, component, hardware,

21 or software, when the deficient, broken, or otherwise

22 malfunctioning state of such part, component, hardware, or

23 software results in the incapacity of or otherwise diminished

24 capacity for use of a complex rehabilitation technology.
    HB3677 Enrolled  - 12 - LRB104 09531 BAB 19594 b

1   (b) A group or individual policy of accident and health

2 insurance or a managed care plan that is amended, delivered,

3 issued, or renewed on or after January 1, 2027 and that

4 provides coverage for complex rehabilitation technology shall

5 not require prior authorization, medical documentation, or

6 proof of continued need to complete medically necessary

7 repairs for consumer-owned complex rehabilitation technology

8 unless:

9          (1) the repairs are covered under a manufacturer's

10  warranty;

11         (2) the cumulative cost of the repairs exceeds 75% of

12  the cost to replace the complex rehabilitation technology;

13  or

14         (3) the complex rehabilitation technology in need of

15  repair is subject to replacement because the age of the

16  complex rehabilitation technology exceeds or is within one

17  year of the expiration of the 5-year reasonable useful

18  life of the complex rehabilitation technology.

19  (c) Notwithstanding subsection (b), a Medicaid managed

20 care plan amended, delivered, issued, or renewed on or after

21 January 1, 2027 and that provides coverage for complex

22 rehabilitation technology shall not require prior

23 authorization, medical documentation, or proof of continued

24 need to complete medically necessary repairs for

25 consumer-owned complex rehabilitation technology under the

26 total value of $1,500. Acceptance or denial of repairs of
    HB3677 Enrolled      - 13 - LRB104 09531 BAB 19594 b

1 $1,500 or more must be made within 7 days of request of

2 preauthorization.

3   Documentation of any repairs completed for consumer-owned

4 complex rehabilitation technology shall be maintained by the

5 qualified complex rehabilitation technology supplier

6 conducting the repairs and must be made available to the

7 insurer upon request.

8   (d) A group or individual policy of accident and health

9 insurance or a managed care plan that is amended, delivered,

10 issued, or renewed on or after January 1, 2027 and that

11 provides coverage for a complex rehabilitation technology

12 shall provide coverage for rented complex rehabilitation

13 technology during the time the primary complex rehabilitation

14 technology is under repair consistent with the provisions for

15 consumer-owned complex rehabilitation technology in subsection

16 (b).

17  (e) If, after a post-service review for medical necessity,

18 an insurer finds that any repair of an item not covered at

19 initial issue of the complex wheelchair was not medically

20 necessary, the insurer and owner shall be held harmless for

21 the cost of the repair and the qualified complex

22 rehabilitation technology supplier that conducted the repair

23 shall be liable for the cost of repair.

24  Section 925. The Health Maintenance Organization Act is

25 amended by changing Section 5-3 as follows:
   HB3677 Enrolled           - 14 - LRB104 09531 BAB 19594 b

1  (215 ILCS 125/5-3) (from Ch. 111 1/2, par. 1411.2)

2  (Text of Section before amendment by P.A. 103-808)

3  Sec. 5-3. Insurance Code provisions.

4  (a) Health Maintenance Organizations shall be subject to

5 the provisions of Sections 133, 134, 136, 137, 139, 140,

6 141.1, 141.2, 141.3, 143, 143.31, 143c, 147, 148, 149, 151,

7 152, 153, 154, 154.5, 154.6, 154.7, 154.8, 155.04, 155.22a,

8 155.49, 352c, 355.2, 355.3, 355.6, 355b, 355c, 356f, 356g.5-1,

9 356m, 356q, 356u.10, 356v, 356w, 356x, 356z.2, 356z.3a,

10 356z.4, 356z.4a, 356z.5, 356z.6, 356z.8, 356z.9, 356z.10,

11 356z.11, 356z.12, 356z.13, 356z.14, 356z.15, 356z.17, 356z.18,

12 356z.19, 356z.20, 356z.21, 356z.22, 356z.23, 356z.24, 356z.25,

13 356z.26, 356z.28, 356z.29, 356z.30, 356z.31, 356z.32, 356z.33,

14 356z.34, 356z.35, 356z.36, 356z.37, 356z.38, 356z.39, 356z.40,

15 356z.40a, 356z.41, 356z.44, 356z.45, 356z.46, 356z.47,

16 356z.48, 356z.49, 356z.50, 356z.51, 356z.53, 356z.54, 356z.55,

17 356z.56, 356z.57, 356z.58, 356z.59, 356z.60, 356z.61, 356z.62,

18 356z.63, 356z.64, 356z.65, 356z.66, 356z.67, 356z.68, 356z.69,

19 356z.70, 356z.71, 356z.72, 356z.73, 356z.74, 356z.75, 356z.77,

20 356z.80, 364, 364.01, 364.3, 367.2, 367.2-5, 367i, 368a, 368b,

21 368c, 368d, 368e, 370c, 370c.1, 401, 401.1, 402, 403, 403A,

22 408, 408.2, 409, 412, 444, and 444.1, paragraph (c) of

23 subsection (2) of Section 367, and Articles IIA, VIII 1/2,

24 XII, XII 1/2, XIII, XIII 1/2, XXV, XXVI, and XXXIIB of the

25 Illinois Insurance Code.
    HB3677 Enrolled  - 15 - LRB104 09531 BAB 19594 b

1   (b) For purposes of the Illinois Insurance Code, except

2 for Sections 444 and 444.1 and Articles XIII and XIII 1/2,

3 Health Maintenance Organizations in the following categories

4 are deemed to be "domestic companies":

5   (1) a corporation authorized under the Dental Service

6   Plan Act or the Voluntary Health Services Plans Act;

7   (2) a corporation organized under the laws of this

8   State; or

9   (3) a corporation organized under the laws of another

10  state, 30% or more of the enrollees of which are residents

11  of this State, except a corporation subject to

12  substantially the same requirements in its state of

13  organization as is a "domestic company" under Article VIII

14  1/2 of the Illinois Insurance Code.

15  (c) In considering the merger, consolidation, or other

16 acquisition of control of a Health Maintenance Organization

17 pursuant to Article VIII 1/2 of the Illinois Insurance Code,

18  (1) the Director shall give primary consideration to

19  the continuation of benefits to enrollees and the

20  financial conditions of the acquired Health Maintenance

21  Organization after the merger, consolidation, or other

22  acquisition of control takes effect;

23  (2)(i) the criteria specified in subsection (1)(b) of

24  Section 131.8 of the Illinois Insurance Code shall not

25  apply and (ii) the Director, in making his determination

26  with respect to the merger, consolidation, or other
    HB3677 Enrolled         - 16 - LRB104 09531 BAB 19594 b

1   acquisition of control, need not take into account the

2   effect on competition of the merger, consolidation, or

3   other acquisition of control;

4   (3) the Director shall have the power to require the

5   following information:

6   (A) certification by an independent actuary of the

7   adequacy of the reserves of the Health Maintenance

8   Organization sought to be acquired;

9   (B) pro forma financial statements reflecting the

10  combined balance sheets of the acquiring company and

11  the Health Maintenance Organization sought to be

12  acquired as of the end of the preceding year and as of

13  a date 90 days prior to the acquisition, as well as pro

14  forma financial statements reflecting projected

15  combined operation for a period of 2 years;

16  (C) a pro forma business plan detailing an

17  acquiring party's plans with respect to the operation

18  of the Health Maintenance Organization sought to be

19  acquired for a period of not less than 3 years; and

20  (D) such other information as the Director shall

21  require.

22  (d) The provisions of Article VIII 1/2 of the Illinois

23 Insurance Code and this Section 5-3 shall apply to the sale by

24 any health maintenance organization of greater than 10% of its

25 enrollee population (including, without limitation, the health

26 maintenance organization's right, title, and interest in and
    HB3677 Enrolled           - 17 - LRB104 09531 BAB 19594 b

1 to its health care certificates).

2   (e) In considering any management contract or service

3 agreement subject to Section 141.1 of the Illinois Insurance

4 Code, the Director (i) shall, in addition to the criteria

5 specified in Section 141.2 of the Illinois Insurance Code,

6 take into account the effect of the management contract or

7 service agreement on the continuation of benefits to enrollees

8 and the financial condition of the health maintenance

9 organization to be managed or serviced, and (ii) need not take

10 into account the effect of the management contract or service

11 agreement on competition.

12  (f) Except for small employer groups as defined in the

13 Small Employer Rating, Renewability and Portability Health

14 Insurance Act and except for medicare supplement policies as

15 defined in Section 363 of the Illinois Insurance Code, a

16 Health Maintenance Organization may by contract agree with a

17 group or other enrollment unit to effect refunds or charge

18 additional premiums under the following terms and conditions:

19  (i) the amount of, and other terms and conditions with

20  respect to, the refund or additional premium are set forth

21  in the group or enrollment unit contract agreed in advance

22  of the period for which a refund is to be paid or

23  additional premium is to be charged (which period shall

24  not be less than one year); and

25  (ii) the amount of the refund or additional premium

26  shall not exceed 20% of the Health Maintenance
    HB3677 Enrolled  - 18 - LRB104 09531 BAB 19594 b

1   Organization's profitable or unprofitable experience with

2   respect to the group or other enrollment unit for the

3   period (and, for purposes of a refund or additional

4   premium, the profitable or unprofitable experience shall

5   be calculated taking into account a pro rata share of the

6   Health Maintenance Organization's administrative and

7   marketing expenses, but shall not include any refund to be

8   made or additional premium to be paid pursuant to this

9   subsection (f)). The Health Maintenance Organization and

10  the group or enrollment unit may agree that the profitable

11  or unprofitable experience may be calculated taking into

12  account the refund period and the immediately preceding 2

13  plan years.

14  The Health Maintenance Organization shall include a

15 statement in the evidence of coverage issued to each enrollee

16 describing the possibility of a refund or additional premium,

17 and upon request of any group or enrollment unit, provide to

18 the group or enrollment unit a description of the method used

19 to calculate (1) the Health Maintenance Organization's

20 profitable experience with respect to the group or enrollment

21 unit and the resulting refund to the group or enrollment unit

22 or (2) the Health Maintenance Organization's unprofitable

23 experience with respect to the group or enrollment unit and

24 the resulting additional premium to be paid by the group or

25 enrollment unit.

26  In no event shall the Illinois Health Maintenance
    HB3677 Enrolled  - 19 - LRB104 09531 BAB 19594 b

1 Organization Guaranty Association be liable to pay any

2 contractual obligation of an insolvent organization to pay any

3 refund authorized under this Section.

4   (g) Rulemaking authority to implement Public Act 95-1045,

5 if any, is conditioned on the rules being adopted in

6 accordance with all provisions of the Illinois Administrative

7 Procedure Act and all rules and procedures of the Joint

8 Committee on Administrative Rules; any purported rule not so

9 adopted, for whatever reason, is unauthorized.

10 (Source: P.A. 102-30, eff. 1-1-22; 102-34, eff. 6-25-21;

11 102-203, eff. 1-1-22; 102-306, eff. 1-1-22; 102-443, eff.

12 1-1-22; 102-589, eff. 1-1-22; 102-642, eff. 1-1-22; 102-665,

13 eff. 10-8-21; 102-731, eff. 1-1-23; 102-775, eff. 5-13-22;

14 102-804, eff. 1-1-23; 102-813, eff. 5-13-22; 102-816, eff.

15 1-1-23; 102-860, eff. 1-1-23; 102-901, eff. 7-1-22; 102-1093,

16 eff. 1-1-23; 102-1117, eff. 1-13-23; 103-84, eff. 1-1-24;

17 103-91, eff. 1-1-24; 103-123, eff. 1-1-24; 103-154, eff.

18 6-30-23; 103-420, eff. 1-1-24; 103-426, eff. 8-4-23; 103-445,

19 eff. 1-1-24; 103-551, eff. 8-11-23; 103-605, eff. 7-1-24;

20 103-618, eff. 1-1-25; 103-649, eff. 1-1-25; 103-656, eff.

21 1-1-25; 103-700, eff. 1-1-25; 103-718, eff. 7-19-24; 103-751,

22 eff. 8-2-24; 103-753, eff. 8-2-24; 103-758, eff. 1-1-25;

23 103-777, eff. 8-2-24; 103-914, eff. 1-1-25; 103-918, eff.

24 1-1-25; 103-1024, eff. 1-1-25; revised 9-26-24.)

25  (Text of Section after amendment by P.A. 103-808)
    HB3677 Enrolled          - 20 - LRB104 09531 BAB 19594 b

1   Sec. 5-3. Insurance Code provisions.

2   (a) Health Maintenance Organizations shall be subject to

3 the provisions of Sections 133, 134, 136, 137, 139, 140,

4 141.1, 141.2, 141.3, 143, 143.31, 143c, 147, 148, 149, 151,

5 152, 153, 154, 154.5, 154.6, 154.7, 154.8, 155.04, 155.22a,

6 155.49, 352c, 355.2, 355.3, 355.6, 355b, 355c, 356f, 356g,

7 356g.5-1, 356m, 356q, 356u.10, 356v, 356w, 356x, 356z.2,

8 356z.3a, 356z.4, 356z.4a, 356z.5, 356z.6, 356z.8, 356z.9,

9 356z.10, 356z.11, 356z.12, 356z.13, 356z.14, 356z.15, 356z.17,

10 356z.18, 356z.19, 356z.20, 356z.21, 356z.22, 356z.23, 356z.24,

11 356z.25, 356z.26, 356z.28, 356z.29, 356z.30, 356z.31, 356z.32,

12 356z.33, 356z.34, 356z.35, 356z.36, 356z.37, 356z.38, 356z.39,

13 356z.40, 356z.40a, 356z.41, 356z.44, 356z.45, 356z.46,

14 356z.47, 356z.48, 356z.49, 356z.50, 356z.51, 356z.53, 356z.54,

15 356z.55, 356z.56, 356z.57, 356z.58, 356z.59, 356z.60, 356z.61,

16 356z.62, 356z.63, 356z.64, 356z.65, 356z.66, 356z.67, 356z.68,

17 356z.69, 356z.70, 356z.71, 356z.72, 356z.73, 356z.74, 356z.75,

18 356z.77, 356z.80, 364, 364.01, 364.3, 367.2, 367.2-5, 367i,

19 368a, 368b, 368c, 368d, 368e, 370c, 370c.1, 401, 401.1, 402,

20 403, 403A, 408, 408.2, 409, 412, 444, and 444.1, paragraph (c)

21 of subsection (2) of Section 367, and Articles IIA, VIII 1/2,

22 XII, XII 1/2, XIII, XIII 1/2, XXV, XXVI, and XXXIIB of the

23 Illinois Insurance Code.

24  (b) For purposes of the Illinois Insurance Code, except

25 for Sections 444 and 444.1 and Articles XIII and XIII 1/2,

26 Health Maintenance Organizations in the following categories
    HB3677 Enrolled  - 21 - LRB104 09531 BAB 19594 b

1 are deemed to be "domestic companies":

2   (1) a corporation authorized under the Dental Service

3   Plan Act or the Voluntary Health Services Plans Act;

4   (2) a corporation organized under the laws of this

5   State; or

6   (3) a corporation organized under the laws of another

7   state, 30% or more of the enrollees of which are residents

8   of this State, except a corporation subject to

9   substantially the same requirements in its state of

10  organization as is a "domestic company" under Article VIII

11  1/2 of the Illinois Insurance Code.

12  (c) In considering the merger, consolidation, or other

13 acquisition of control of a Health Maintenance Organization

14 pursuant to Article VIII 1/2 of the Illinois Insurance Code,

15  (1) the Director shall give primary consideration to

16  the continuation of benefits to enrollees and the

17  financial conditions of the acquired Health Maintenance

18  Organization after the merger, consolidation, or other

19  acquisition of control takes effect;

20  (2)(i) the criteria specified in subsection (1)(b) of

21  Section 131.8 of the Illinois Insurance Code shall not

22  apply and (ii) the Director, in making his determination

23  with respect to the merger, consolidation, or other

24  acquisition of control, need not take into account the

25  effect on competition of the merger, consolidation, or

26  other acquisition of control;
    HB3677 Enrolled         - 22 - LRB104 09531 BAB 19594 b

1   (3) the Director shall have the power to require the

2   following information:

3   (A) certification by an independent actuary of the

4   adequacy of the reserves of the Health Maintenance

5   Organization sought to be acquired;

6   (B) pro forma financial statements reflecting the

7   combined balance sheets of the acquiring company and

8   the Health Maintenance Organization sought to be

9   acquired as of the end of the preceding year and as of

10  a date 90 days prior to the acquisition, as well as pro

11  forma financial statements reflecting projected

12  combined operation for a period of 2 years;

13  (C) a pro forma business plan detailing an

14  acquiring party's plans with respect to the operation

15  of the Health Maintenance Organization sought to be

16  acquired for a period of not less than 3 years; and

17  (D) such other information as the Director shall

18  require.

19  (d) The provisions of Article VIII 1/2 of the Illinois

20 Insurance Code and this Section 5-3 shall apply to the sale by

21 any health maintenance organization of greater than 10% of its

22 enrollee population (including, without limitation, the health

23 maintenance organization's right, title, and interest in and

24 to its health care certificates).

25  (e) In considering any management contract or service

26 agreement subject to Section 141.1 of the Illinois Insurance
    HB3677 Enrolled          - 23 - LRB104 09531 BAB 19594 b

1 Code, the Director (i) shall, in addition to the criteria

2 specified in Section 141.2 of the Illinois Insurance Code,

3 take into account the effect of the management contract or

4 service agreement on the continuation of benefits to enrollees

5 and the financial condition of the health maintenance

6 organization to be managed or serviced, and (ii) need not take

7 into account the effect of the management contract or service

8 agreement on competition.

9   (f) Except for small employer groups as defined in the

10 Small Employer Rating, Renewability and Portability Health

11 Insurance Act and except for medicare supplement policies as

12 defined in Section 363 of the Illinois Insurance Code, a

13 Health Maintenance Organization may by contract agree with a

14 group or other enrollment unit to effect refunds or charge

15 additional premiums under the following terms and conditions:

16  (i) the amount of, and other terms and conditions with

17  respect to, the refund or additional premium are set forth

18  in the group or enrollment unit contract agreed in advance

19  of the period for which a refund is to be paid or

20  additional premium is to be charged (which period shall

21  not be less than one year); and

22  (ii) the amount of the refund or additional premium

23  shall not exceed 20% of the Health Maintenance

24  Organization's profitable or unprofitable experience with

25  respect to the group or other enrollment unit for the

26  period (and, for purposes of a refund or additional
    HB3677 Enrolled  - 24 - LRB104 09531 BAB 19594 b

1   premium, the profitable or unprofitable experience shall

2   be calculated taking into account a pro rata share of the

3   Health Maintenance Organization's administrative and

4   marketing expenses, but shall not include any refund to be

5   made or additional premium to be paid pursuant to this

6   subsection (f)). The Health Maintenance Organization and

7   the group or enrollment unit may agree that the profitable

8   or unprofitable experience may be calculated taking into

9   account the refund period and the immediately preceding 2

10  plan years.

11  The Health Maintenance Organization shall include a

12 statement in the evidence of coverage issued to each enrollee

13 describing the possibility of a refund or additional premium,

14 and upon request of any group or enrollment unit, provide to

15 the group or enrollment unit a description of the method used

16 to calculate (1) the Health Maintenance Organization's

17 profitable experience with respect to the group or enrollment

18 unit and the resulting refund to the group or enrollment unit

19 or (2) the Health Maintenance Organization's unprofitable

20 experience with respect to the group or enrollment unit and

21 the resulting additional premium to be paid by the group or

22 enrollment unit.

23  In no event shall the Illinois Health Maintenance

24 Organization Guaranty Association be liable to pay any

25 contractual obligation of an insolvent organization to pay any

26 refund authorized under this Section.
    HB3677 Enrolled  - 25 - LRB104 09531 BAB 19594 b

1   (g) Rulemaking authority to implement Public Act 95-1045,

2 if any, is conditioned on the rules being adopted in

3 accordance with all provisions of the Illinois Administrative

4 Procedure Act and all rules and procedures of the Joint

5 Committee on Administrative Rules; any purported rule not so

6 adopted, for whatever reason, is unauthorized.

7 (Source: P.A. 102-30, eff. 1-1-22; 102-34, eff. 6-25-21;

8 102-203, eff. 1-1-22; 102-306, eff. 1-1-22; 102-443, eff.

9 1-1-22; 102-589, eff. 1-1-22; 102-642, eff. 1-1-22; 102-665,

10 eff. 10-8-21; 102-731, eff. 1-1-23; 102-775, eff. 5-13-22;

11 102-804, eff. 1-1-23; 102-813, eff. 5-13-22; 102-816, eff.

12 1-1-23; 102-860, eff. 1-1-23; 102-901, eff. 7-1-22; 102-1093,

13 eff. 1-1-23; 102-1117, eff. 1-13-23; 103-84, eff. 1-1-24;

14 103-91, eff. 1-1-24; 103-123, eff. 1-1-24; 103-154, eff.

15 6-30-23; 103-420, eff. 1-1-24; 103-426, eff. 8-4-23; 103-445,

16 eff. 1-1-24; 103-551, eff. 8-11-23; 103-605, eff. 7-1-24;

17 103-618, eff. 1-1-25; 103-649, eff. 1-1-25; 103-656, eff.

18 1-1-25; 103-700, eff. 1-1-25; 103-718, eff. 7-19-24; 103-751,

19 eff. 8-2-24; 103-753, eff. 8-2-24; 103-758, eff. 1-1-25;

20 103-777, eff. 8-2-24; 103-808, eff. 1-1-26; 103-914, eff.

21 1-1-25; 103-918, eff. 1-1-25; 103-1024, eff. 1-1-25; revised

22 11-26-24.)

23  Section 930. The Limited Health Service Organization Act

24 is amended by changing Section 4003 as follows:
    HB3677 Enrolled     - 26 - LRB104 09531 BAB 19594 b

1   (215 ILCS 130/4003) (from Ch. 73, par. 1504-3)

2   Sec. 4003. Illinois Insurance Code provisions. Limited

3 health service organizations shall be subject to the

4 provisions of Sections 133, 134, 136, 137, 139, 140, 141.1,

5 141.2, 141.3, 143, 143.31, 143c, 147, 148, 149, 151, 152, 153,

6 154, 154.5, 154.6, 154.7, 154.8, 155.04, 155.37, 155.49, 352c,

7 355.2, 355.3, 355b, 355d, 356m, 356q, 356v, 356z.4, 356z.4a,

8 356z.10, 356z.21, 356z.22, 356z.25, 356z.26, 356z.29, 356z.32,

9 356z.33, 356z.41, 356z.46, 356z.47, 356z.51, 356z.53, 356z.54,

10 356z.57, 356z.59, 356z.61, 356z.64, 356z.67, 356z.68, 356z.71,

11 356z.73, 356z.74, 356z.75, 356z.80, 364.3, 368a, 401, 401.1,

12 402, 403, 403A, 408, 408.2, 409, 412, 444, and 444.1 and

13 Articles IIA, VIII 1/2, XII, XII 1/2, XIII, XIII 1/2, XXV, and

14 XXVI of the Illinois Insurance Code. Nothing in this Section

15 shall require a limited health care plan to cover any service

16 that is not a limited health service. For purposes of the

17 Illinois Insurance Code, except for Sections 444 and 444.1 and

18 Articles XIII and XIII 1/2, limited health service

19 organizations in the following categories are deemed to be

20 domestic companies:

21  (1) a corporation under the laws of this State; or

22  (2) a corporation organized under the laws of another

23  state, 30% or more of the enrollees of which are residents

24  of this State, except a corporation subject to

25  substantially the same requirements in its state of

26  organization as is a domestic company under Article VIII
    HB3677 Enrolled  - 27 - LRB104 09531 BAB 19594 b

1   1/2 of the Illinois Insurance Code.

2 (Source: P.A. 102-30, eff. 1-1-22; 102-203, eff. 1-1-22;

3 102-306, eff. 1-1-22; 102-642, eff. 1-1-22; 102-731, eff.

4 1-1-23; 102-775, eff. 5-13-22; 102-813, eff. 5-13-22; 102-816,

5 eff. 1-1-23; 102-860, eff. 1-1-23; 102-1093, eff. 1-1-23;

6 102-1117, eff. 1-13-23; 103-84, eff. 1-1-24; 103-91, eff.

7 1-1-24; 103-420, eff. 1-1-24; 103-426, eff. 8-4-23; 103-445,

8 eff. 1-1-24; 103-605, eff. 7-1-24; 103-649, eff. 1-1-25;

9 103-656, eff. 1-1-25; 103-700, eff. 1-1-25; 103-718, eff.

10 7-19-24; 103-751, eff. 8-2-24; 103-758, eff. 1-1-25; 103-832,

11 eff. 1-1-25; 103-1024, eff. 1-1-25; revised 11-26-24.)

12  Section 935. The Voluntary Health Services Plans Act is

13 amended by changing Section 10 as follows:

14  (215 ILCS 165/10) (from Ch. 32, par. 604)

15  Sec. 10. Application of Insurance Code provisions. Health

16 services plan corporations and all persons interested therein

17 or dealing therewith shall be subject to the provisions of

18 Articles IIA and XII 1/2 and Sections 3.1, 133, 136, 139, 140,

19 143, 143.31, 143c, 149, 155.22a, 155.37, 354, 355.2, 355.3,

20 355b, 355d, 356g, 356g.5, 356g.5-1, 356m, 356q, 356r, 356t,

21 356u, 356u.10, 356v, 356w, 356x, 356y, 356z.1, 356z.2,

22 356z.3a, 356z.4, 356z.4a, 356z.5, 356z.6, 356z.8, 356z.9,

23 356z.10, 356z.11, 356z.12, 356z.13, 356z.14, 356z.15, 356z.18,

24 356z.19, 356z.21, 356z.22, 356z.25, 356z.26, 356z.29, 356z.30,
   HB3677 Enrolled             - 28 - LRB104 09531 BAB 19594 b

1 356z.32, 356z.32a, 356z.33, 356z.40, 356z.41, 356z.46,

2 356z.47, 356z.51, 356z.53, 356z.54, 356z.56, 356z.57, 356z.59,

3 356z.60, 356z.61, 356z.62, 356z.64, 356z.67, 356z.68, 356z.71,

4 356z.72, 356z.74, 356z.75, 356z.77, 356z.80, 364.01, 364.3,

5 367.2, 368a, 401, 401.1, 402, 403, 403A, 408, 408.2, and 412,

6 and paragraphs (7) and (15) of Section 367 of the Illinois

7 Insurance Code.

8  Rulemaking authority to implement Public Act 95-1045, if

9 any, is conditioned on the rules being adopted in accordance

10 with all provisions of the Illinois Administrative Procedure

11 Act and all rules and procedures of the Joint Committee on

12 Administrative Rules; any purported rule not so adopted, for

13 whatever reason, is unauthorized.

14 (Source: P.A. 102-30, eff. 1-1-22; 102-203, eff. 1-1-22;

15 102-306, eff. 1-1-22; 102-642, eff. 1-1-22; 102-665, eff.

16 10-8-21; 102-731, eff. 1-1-23; 102-775, eff. 5-13-22; 102-804,

17 eff. 1-1-23; 102-813, eff. 5-13-22; 102-816, eff. 1-1-23;

18 102-860, eff. 1-1-23; 102-901, eff. 7-1-22; 102-1093, eff.

19 1-1-23; 102-1117, eff. 1-13-23; 103-84, eff. 1-1-24; 103-91,

20 eff. 1-1-24; 103-420, eff. 1-1-24; 103-445, eff. 1-1-24;

21 103-551, eff. 8-11-23; 103-605, eff. 7-1-24; 103-656, eff.

22 1-1-25; 103-718, eff. 7-19-24; 103-751, eff. 8-2-24; 103-753,

23 eff. 8-2-24; 103-758, eff. 1-1-25; 103-832, eff. 1-1-25;

24 103-914, eff. 1-1-25; 103-918, eff. 1-1-25; 103-1024, eff.

25 1-1-25; revised 11-26-24.)
    HB3677 Enrolled      - 29 - LRB104 09531 BAB 19594 b

1   Section 940. The Illinois Public Aid Code is amended by

2 changing Section 5-16.8 as follows:

3   (305 ILCS 5/5-16.8)

4   Sec. 5-16.8. Required health benefits. The medical

5 assistance program shall (i) provide the post-mastectomy care

6 benefits required to be covered by a policy of accident and

7 health insurance under Section 356t and the coverage required

8 under Sections 356g.5, 356q, 356u, 356w, 356x, 356z.6,

9 356z.26, 356z.29, 356z.32, 356z.33, 356z.34, 356z.35, 356z.46,

10 356z.47, 356z.51, 356z.53, 356z.59, 356z.60, 356z.61, 356z.64,

11 and 356z.67, and 356z.71, 356z.75, and 356z.80 of the Illinois

12 Insurance Code, (ii) be subject to the provisions of Sections

13 356z.19, 356z.44, 356z.49, 364.01, 370c, and 370c.1 of the

14 Illinois Insurance Code, and (iii) be subject to the

15 provisions of subsection (d-5) of Section 10 of the Network

16 Adequacy and Transparency Act.

17  The Department, by rule, shall adopt a model similar to

18 the requirements of Section 356z.39 of the Illinois Insurance

19 Code.

20  On and after July 1, 2012, the Department shall reduce any

21 rate of reimbursement for services or other payments or alter

22 any methodologies authorized by this Code to reduce any rate

23 of reimbursement for services or other payments in accordance

24 with Section 5-5e.

25  To ensure full access to the benefits set forth in this
    HB3677 Enrolled           - 30 - LRB104 09531 BAB 19594 b

 1 Section, on and after January 1, 2016, the Department shall
 2 ensure that provider and hospital reimbursement for
 3 post-mastectomy care benefits required under this Section are
 4 no lower than the Medicare reimbursement rate.
 5 (Source: P.A. 102-30, eff. 1-1-22; 102-144, eff. 1-1-22;
 6 102-203, eff. 1-1-22; 102-306, eff. 1-1-22; 102-530, eff.
 7 1-1-22; 102-642, eff. 1-1-22; 102-804, eff. 1-1-23; 102-813,
 8 eff. 5-13-22; 102-816, eff. 1-1-23; 102-1093, eff. 1-1-23;
 9 102-1117, eff. 1-13-23; 103-84, eff. 1-1-24; 103-91, eff.
10 1-1-24; 103-420, eff. 1-1-24; 103-605, eff. 7-1-24; 103-703,
11 eff. 1-1-25; 103-758, eff. 1-1-25; 103-1024, eff. 1-1-25;
12 revised 11-26-24.)

13  Section 945. The Consumer Fraud and Deceptive Business

14 Practices Act is amended by adding Section 2HHHH as follows:

15  (815 ILCS 505/2HHHH new)

16  Sec. 2HHHH. Violations of the Complex Rehabilitation

17 Technology Act. A person who violates the Complex

18 Rehabilitation Technology Act commits an unlawful practice

19 within the meaning of this Act.

20  Section 995. No acceleration or delay. Where this Act

21 makes changes in a statute that is represented in this Act by

22 text that is not yet or no longer in effect (for example, a

23 Section represented by multiple versions), the use of that
   HB3677 Enrolled  - 31 - LRB104 09531 BAB 19594 b

1 text does not accelerate or delay the taking effect of (i) the
2 changes made by this Act or (ii) provisions derived from any
3 other Public Act.

4  Section 999. Effective date. This Act takes effect January

5 1, 2026.
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