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Illinois General Assembly· SB 175Governor Approved

INS CD-KLINEFELTER SYNDROME, the official text

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SB0175 Enrolled                      LRB104 06566 BAB 16602 b

1  AN ACT concerning regulation.

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

3 represented in the General Assembly:

4  Section 5. The State Employees Group Insurance Act of 1971

5 is amended by changing Section 6.11 as follows:

6  (5 ILCS 375/6.11)

7  Sec. 6.11. Required health benefits; Illinois Insurance

8 Code requirements. The program of health benefits shall

9 provide the post-mastectomy care benefits required to be

10 covered by a policy of accident and health insurance under

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

12 health benefits shall provide the coverage required under

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

14 356w, 356x, 356z.2, 356z.4, 356z.4a, 356z.5, 356z.6, 356z.8,

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

16 356z.17, 356z.22, 356z.25, 356z.26, 356z.29, 356z.30, 356z.32,

17 356z.33, 356z.36, 356z.40, 356z.41, 356z.45, 356z.46, 356z.47,

18 356z.51, 356z.53, 356z.54, 356z.55, 356z.56, 356z.57, 356z.59,

19 356z.60, 356z.61, 356z.62, 356z.64, 356z.67, 356z.68, and

20 356z.70, and 356z.71, 356z.74, 356z.76, 356z.77, and 356z.80

21 of the Illinois Insurance Code. The program of health benefits

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

23 370c, and 370c.1 and Article XXXIIB of the Illinois Insurance
    SB0175 Enrolled  -2-              LRB104 06566 BAB 16602 b

1 Code. The program of health benefits shall provide the

2 coverage required under Section 356m of the Illinois Insurance

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

4 Insurance Program only, the coverage as also provided in

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

6 enforce the requirements of this Section with respect to

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

8 other requirements of this Section shall be enforced by the

9 Department of Central Management Services.

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

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

12 with all provisions of the Illinois Administrative Procedure

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

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

15 whatever reason, is unauthorized.

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

17 102-203, eff. 1-1-22; 102-306, eff. 1-1-22; 102-642, eff.

18 1-1-22; 102-665, eff. 10-8-21; 102-731, eff. 1-1-23; 102-768,

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

20 102-816, eff. 1-1-23; 102-860, eff. 1-1-23; 102-1093, eff.

21 1-1-23; 102-1117, eff. 1-13-23; 103-8, eff. 1-1-24; 103-84,

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

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

24 8-11-23; 103-605, eff. 7-1-24; 103-718, eff. 7-19-24; 103-751,

25 eff. 8-2-24; 103-870, eff. 1-1-25; 103-914, eff. 1-1-25;

26 103-918, eff. 1-1-25; 103-951, eff. 1-1-25; 103-1024, eff.
   SB0175 Enrolled              -3-  LRB104 06566 BAB 16602 b

1 1-1-25; revised 11-26-24.)

2  Section 10. The Counties Code is amended by changing

3 Section 5-1069.3 as follows:

4  (55 ILCS 5/5-1069.3)

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

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

7 of providing health insurance coverage for its employees, the

8 coverage shall include coverage for the post-mastectomy care

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

10 health insurance under Section 356t and the coverage required

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

12 356u.10, 356w, 356x, 356z.4, 356z.4a, 356z.6, 356z.8, 356z.9,

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

14 356z.25, 356z.26, 356z.29, 356z.30, 356z.32, 356z.33, 356z.36,

15 356z.40, 356z.41, 356z.45, 356z.46, 356z.47, 356z.48, 356z.51,

16 356z.53, 356z.54, 356z.56, 356z.57, 356z.59, 356z.60, 356z.61,

17 356z.62, 356z.64, 356z.67, 356z.68, and 356z.70, and 356z.71,

18 356z.74, 356z.77, and 356z.80 of the Illinois Insurance Code.

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

20 356z.19, and 370c of the Illinois Insurance Code. The

21 Department of Insurance shall enforce the requirements of this

22 Section. The requirement that health benefits be covered as

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

24 the State and is a denial and limitation under Article VII,
    SB0175 Enrolled       -4-             LRB104 06566 BAB 16602 b

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

2 rule county to which this Section applies must comply with

3 every provision of this Section.

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

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

6 with all provisions of the Illinois Administrative Procedure

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

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

9 whatever reason, is unauthorized.

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

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

12 1-1-22; 102-642, eff. 1-1-22; 102-665, eff. 10-8-21; 102-731,

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

14 102-816, eff. 1-1-23; 102-860, eff. 1-1-23; 102-1093, eff.

15 1-1-23; 102-1117, eff. 1-13-23; 103-84, eff. 1-1-24; 103-91,

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

17 103-535, eff. 8-11-23; 103-551, eff. 8-11-23; 103-605, eff.

18 7-1-24; 103-718, eff. 7-19-24; 103-751, eff. 8-2-24; 103-914,

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

20 revised 11-26-24.)

21  Section 15. The Illinois Municipal Code is amended by

22 changing Section 10-4-2.3 as follows:

23  (65 ILCS 5/10-4-2.3)

24  Sec. 10-4-2.3. Required health benefits. If a
    SB0175 Enrolled  -5-  LRB104 06566 BAB 16602 b

1 municipality, including a home rule municipality, is a

2 self-insurer for purposes of providing health insurance

3 coverage for its employees, the coverage shall include

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

5 covered by a policy of accident and health insurance under

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

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

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

9 356z.12, 356z.13, 356z.14, 356z.15, 356z.22, 356z.25, 356z.26,

10 356z.29, 356z.30, 356z.32, 356z.33, 356z.36, 356z.40, 356z.41,

11 356z.45, 356z.46, 356z.47, 356z.48, 356z.51, 356z.53, 356z.54,

12 356z.56, 356z.57, 356z.59, 356z.60, 356z.61, 356z.62, 356z.64,

13 356z.67, 356z.68, and 356z.70, and 356z.71, 356z.74, 356z.77,

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

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

16 Illinois Insurance Code. The Department of Insurance shall

17 enforce the requirements of this Section. The requirement that

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

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

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

21 Constitution. A home rule municipality to which this Section

22 applies must comply with every provision of this Section.

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

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

25 with all provisions of the Illinois Administrative Procedure

26 Act and all rules and procedures of the Joint Committee on
    SB0175 Enrolled        -6-  LRB104 06566 BAB 16602 b

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

14  Section 20. The School Code is amended by changing Section

15 10-22.3f as follows:

16  (105 ILCS 5/10-22.3f)

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

18 protection and benefits for employees shall provide the

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

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

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

22 356m, 356q, 356u, 356u.10, 356w, 356x, 356z.4, 356z.4a,

23 356z.6, 356z.8, 356z.9, 356z.11, 356z.12, 356z.13, 356z.14,

24 356z.15, 356z.22, 356z.25, 356z.26, 356z.29, 356z.30, 356z.32,
    SB0175 Enrolled  -7-              LRB104 06566 BAB 16602 b

1 356z.33, 356z.36, 356z.40, 356z.41, 356z.45, 356z.46, 356z.47,

2 356z.51, 356z.53, 356z.54, 356z.56, 356z.57, 356z.59, 356z.60,

3 356z.61, 356z.62, 356z.64, 356z.67, 356z.68, and 356z.70, and

4 356z.71, 356z.74, 356z.77, and 356z.80 of the Illinois

5 Insurance Code. Insurance policies shall comply with Section

6 356z.19 of the Illinois Insurance Code. The coverage shall

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

8 Insurance Code. The Department of Insurance shall enforce the

9 requirements of this Section.

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

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

12 with all provisions of the Illinois Administrative Procedure

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

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

15 whatever reason, is unauthorized.

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

17 102-203, eff. 1-1-22; 102-306, eff. 1-1-22; 102-642, eff.

18 1-1-22; 102-665, eff. 10-8-21; 102-731, eff. 1-1-23; 102-804,

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

20 102-860, eff. 1-1-23; 102-1093, eff. 1-1-23; 102-1117, eff.

21 1-13-23; 103-84, eff. 1-1-24; 103-91, eff. 1-1-24; 103-420,

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

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

24 7-19-24; 103-751, eff. 8-2-24; 103-914, eff. 1-1-25; 103-918,

25 eff. 1-1-25; 103-1024, eff. 1-1-25; revised 11-26-24.)
    SB0175 Enrolled           -8-     LRB104 06566 BAB 16602 b

1   Section 25. The Illinois Insurance Code is amended by

2 adding Section 356z.80 as follows:

3   (215 ILCS 5/356z.80 new)

4   Sec. 356z.80. Coverage for testing for Klinefelter

5 syndrome. A group or individual policy of accident and health

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

7 issued, or renewed on or after January 1, 2027 shall provide

8 coverage for a karyotype test or related hormone testing to

9 diagnose Klinefelter syndrome.

10  Section 30. The Health Maintenance Organization Act is

11 amended by changing Section 5-3 as follows:

12  (215 ILCS 125/5-3) (from Ch. 111 1/2, par. 1411.2)

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

14  Sec. 5-3. Insurance Code provisions.

15  (a) Health Maintenance Organizations shall be subject to

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

17 141.1, 141.2, 141.3, 143, 143.31, 143c, 147, 148, 149, 151,

18 152, 153, 154, 154.5, 154.6, 154.7, 154.8, 155.04, 155.22a,

19 155.49, 352c, 355.2, 355.3, 355.6, 355b, 355c, 356f, 356g.5-1,

20 356m, 356q, 356u.10, 356v, 356w, 356x, 356z.2, 356z.3a,

21 356z.4, 356z.4a, 356z.5, 356z.6, 356z.8, 356z.9, 356z.10,

22 356z.11, 356z.12, 356z.13, 356z.14, 356z.15, 356z.17, 356z.18,

23 356z.19, 356z.20, 356z.21, 356z.22, 356z.23, 356z.24, 356z.25,
    SB0175 Enrolled          -9-           LRB104 06566 BAB 16602 b

1 356z.26, 356z.28, 356z.29, 356z.30, 356z.31, 356z.32, 356z.33,

2 356z.34, 356z.35, 356z.36, 356z.37, 356z.38, 356z.39, 356z.40,

3 356z.40a, 356z.41, 356z.44, 356z.45, 356z.46, 356z.47,

4 356z.48, 356z.49, 356z.50, 356z.51, 356z.53, 356z.54, 356z.55,

5 356z.56, 356z.57, 356z.58, 356z.59, 356z.60, 356z.61, 356z.62,

6 356z.63, 356z.64, 356z.65, 356z.66, 356z.67, 356z.68, 356z.69,

7 356z.70, 356z.71, 356z.72, 356z.73, 356z.74, 356z.75, 356z.77,

8 356z.80, 364, 364.01, 364.3, 367.2, 367.2-5, 367i, 368a, 368b,

9 368c, 368d, 368e, 370c, 370c.1, 401, 401.1, 402, 403, 403A,

10 408, 408.2, 409, 412, 444, and 444.1, paragraph (c) of

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

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

13 Illinois Insurance Code.

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

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

16 Health Maintenance Organizations in the following categories

17 are deemed to be "domestic companies":

18  (1) a corporation authorized under the Dental Service

19  Plan Act or the Voluntary Health Services Plans Act;

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

21  State; or

22  (3) 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
    SB0175 Enrolled         - 10 - LRB104 06566 BAB 16602 b

1   1/2 of the Illinois Insurance Code.

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

3 acquisition of control of a Health Maintenance Organization

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

5   (1) the Director shall give primary consideration to

6   the continuation of benefits to enrollees and the

7   financial conditions of the acquired Health Maintenance

8   Organization after the merger, consolidation, or other

9   acquisition of control takes effect;

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

11  Section 131.8 of the Illinois Insurance Code shall not

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

13  with respect to the merger, consolidation, or other

14  acquisition of control, need not take into account the

15  effect on competition of the merger, consolidation, or

16  other acquisition of control;

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

18  following information:

19  (A) certification by an independent actuary of the

20  adequacy of the reserves of the Health Maintenance

21  Organization sought to be acquired;

22  (B) pro forma financial statements reflecting the

23  combined balance sheets of the acquiring company and

24  the Health Maintenance Organization sought to be

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

26  a date 90 days prior to the acquisition, as well as pro
    SB0175 Enrolled           - 11 - LRB104 06566 BAB 16602 b

1   forma financial statements reflecting projected

2   combined operation for a period of 2 years;

3   (C) a pro forma business plan detailing an

4   acquiring party's plans with respect to the operation

5   of the Health Maintenance Organization sought to be

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

7   (D) such other information as the Director shall

8   require.

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

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

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

12 enrollee population (including, without limitation, the health

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

14 to its health care certificates).

15  (e) In considering any management contract or service

16 agreement subject to Section 141.1 of the Illinois Insurance

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

18 specified in Section 141.2 of the Illinois Insurance Code,

19 take into account the effect of the management contract or

20 service agreement on the continuation of benefits to enrollees

21 and the financial condition of the health maintenance

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

23 into account the effect of the management contract or service

24 agreement on competition.

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

26 Small Employer Rating, Renewability and Portability Health
    SB0175 Enrolled  - 12 - LRB104 06566 BAB 16602 b

1 Insurance Act and except for medicare supplement policies as

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

3 Health Maintenance Organization may by contract agree with a

4 group or other enrollment unit to effect refunds or charge

5 additional premiums under the following terms and conditions:

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

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

8   in the group or enrollment unit contract agreed in advance

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

10  additional premium is to be charged (which period shall

11  not be less than one year); and

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

13  shall not exceed 20% of the Health Maintenance

14  Organization's profitable or unprofitable experience with

15  respect to the group or other enrollment unit for the

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

17  premium, the profitable or unprofitable experience shall

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

19  Health Maintenance Organization's administrative and

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

21  made or additional premium to be paid pursuant to this

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

23  the group or enrollment unit may agree that the profitable

24  or unprofitable experience may be calculated taking into

25  account the refund period and the immediately preceding 2

26  plan years.
    SB0175 Enrolled  - 13 - LRB104 06566 BAB 16602 b

1   The Health Maintenance Organization shall include a

2 statement in the evidence of coverage issued to each enrollee

3 describing the possibility of a refund or additional premium,

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

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

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

7 profitable experience with respect to the group or enrollment

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

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

10 experience with respect to the group or enrollment unit and

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

12 enrollment unit.

13  In no event shall the Illinois Health Maintenance

14 Organization Guaranty Association be liable to pay any

15 contractual obligation of an insolvent organization to pay any

16 refund authorized under this Section.

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

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

19 accordance with all provisions of the Illinois Administrative

20 Procedure Act and all rules and procedures of the Joint

21 Committee on Administrative Rules; any purported rule not so

22 adopted, for whatever reason, is unauthorized.

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

24 102-203, eff. 1-1-22; 102-306, eff. 1-1-22; 102-443, eff.

25 1-1-22; 102-589, eff. 1-1-22; 102-642, eff. 1-1-22; 102-665,

26 eff. 10-8-21; 102-731, eff. 1-1-23; 102-775, eff. 5-13-22;
    SB0175 Enrolled  - 14 - LRB104 06566 BAB 16602 b

 1 102-804, eff. 1-1-23; 102-813, eff. 5-13-22; 102-816, eff.
 2 1-1-23; 102-860, eff. 1-1-23; 102-901, eff. 7-1-22; 102-1093,
 3 eff. 1-1-23; 102-1117, eff. 1-13-23; 103-84, eff. 1-1-24;
 4 103-91, eff. 1-1-24; 103-123, eff. 1-1-24; 103-154, eff.
 5 6-30-23; 103-420, eff. 1-1-24; 103-426, eff. 8-4-23; 103-445,
 6 eff. 1-1-24; 103-551, eff. 8-11-23; 103-605, eff. 7-1-24;
 7 103-618, eff. 1-1-25; 103-649, eff. 1-1-25; 103-656, eff.
 8 1-1-25; 103-700, eff. 1-1-25; 103-718, eff. 7-19-24; 103-751,
 9 eff. 8-2-24; 103-753, eff. 8-2-24; 103-758, eff. 1-1-25;
10 103-777, eff. 8-2-24; 103-914, eff. 1-1-25; 103-918, eff.
11 1-1-25; 103-1024, eff. 1-1-25; revised 9-26-24.)

12  (Text of Section after amendment by P.A. 103-808)

13  Sec. 5-3. Insurance Code provisions.

14  (a) Health Maintenance Organizations shall be subject to

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

16 141.1, 141.2, 141.3, 143, 143.31, 143c, 147, 148, 149, 151,

17 152, 153, 154, 154.5, 154.6, 154.7, 154.8, 155.04, 155.22a,

18 155.49, 352c, 355.2, 355.3, 355.6, 355b, 355c, 356f, 356g,

19 356g.5-1, 356m, 356q, 356u.10, 356v, 356w, 356x, 356z.2,

20 356z.3a, 356z.4, 356z.4a, 356z.5, 356z.6, 356z.8, 356z.9,

21 356z.10, 356z.11, 356z.12, 356z.13, 356z.14, 356z.15, 356z.17,

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

23 356z.25, 356z.26, 356z.28, 356z.29, 356z.30, 356z.31, 356z.32,

24 356z.33, 356z.34, 356z.35, 356z.36, 356z.37, 356z.38, 356z.39,

25 356z.40, 356z.40a, 356z.41, 356z.44, 356z.45, 356z.46,
    SB0175 Enrolled          - 15 - LRB104 06566 BAB 16602 b

1 356z.47, 356z.48, 356z.49, 356z.50, 356z.51, 356z.53, 356z.54,

2 356z.55, 356z.56, 356z.57, 356z.58, 356z.59, 356z.60, 356z.61,

3 356z.62, 356z.63, 356z.64, 356z.65, 356z.66, 356z.67, 356z.68,

4 356z.69, 356z.70, 356z.71, 356z.72, 356z.73, 356z.74, 356z.75,

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

6 368a, 368b, 368c, 368d, 368e, 370c, 370c.1, 401, 401.1, 402,

7 403, 403A, 408, 408.2, 409, 412, 444, and 444.1, paragraph (c)

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

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

10 Illinois Insurance Code.

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

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

13 Health Maintenance Organizations in the following categories

14 are deemed to be "domestic companies":

15  (1) a corporation authorized under the Dental Service

16  Plan Act or the Voluntary Health Services Plans Act;

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

18  State; or

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

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

21  of this State, except a corporation subject to

22  substantially the same requirements in its state of

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

24  1/2 of the Illinois Insurance Code.

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

26 acquisition of control of a Health Maintenance Organization
    SB0175 Enrolled         - 16 - LRB104 06566 BAB 16602 b

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

2   (1) the Director shall give primary consideration to

3   the continuation of benefits to enrollees and the

4   financial conditions of the acquired Health Maintenance

5   Organization after the merger, consolidation, or other

6   acquisition of control takes effect;

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

8   Section 131.8 of the Illinois Insurance Code shall not

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

10  with respect to the merger, consolidation, or other

11  acquisition of control, need not take into account the

12  effect on competition of the merger, consolidation, or

13  other acquisition of control;

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

15  following information:

16  (A) certification by an independent actuary of the

17  adequacy of the reserves of the Health Maintenance

18  Organization sought to be acquired;

19  (B) pro forma financial statements reflecting the

20  combined balance sheets of the acquiring company and

21  the Health Maintenance Organization sought to be

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

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

24  forma financial statements reflecting projected

25  combined operation for a period of 2 years;

26  (C) a pro forma business plan detailing an
    SB0175 Enrolled           - 17 - LRB104 06566 BAB 16602 b

1   acquiring party's plans with respect to the operation

2   of the Health Maintenance Organization sought to be

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

4   (D) such other information as the Director shall

5   require.

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

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

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

9 enrollee population (including, without limitation, the health

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

11 to its health care certificates).

12  (e) In considering any management contract or service

13 agreement subject to Section 141.1 of the Illinois Insurance

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

15 specified in Section 141.2 of the Illinois Insurance Code,

16 take into account the effect of the management contract or

17 service agreement on the continuation of benefits to enrollees

18 and the financial condition of the health maintenance

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

20 into account the effect of the management contract or service

21 agreement on competition.

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

23 Small Employer Rating, Renewability and Portability Health

24 Insurance Act and except for medicare supplement policies as

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

26 Health Maintenance Organization may by contract agree with a
    SB0175 Enrolled  - 18 - LRB104 06566 BAB 16602 b

1 group or other enrollment unit to effect refunds or charge

2 additional premiums under the following terms and conditions:

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

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

5   in the group or enrollment unit contract agreed in advance

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

7   additional premium is to be charged (which period shall

8   not be less than one year); and

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

10  shall not exceed 20% of the Health Maintenance

11  Organization's profitable or unprofitable experience with

12  respect to the group or other enrollment unit for the

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

14  premium, the profitable or unprofitable experience shall

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

16  Health Maintenance Organization's administrative and

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

18  made or additional premium to be paid pursuant to this

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

20  the group or enrollment unit may agree that the profitable

21  or unprofitable experience may be calculated taking into

22  account the refund period and the immediately preceding 2

23  plan years.

24  The Health Maintenance Organization shall include a

25 statement in the evidence of coverage issued to each enrollee

26 describing the possibility of a refund or additional premium,
    SB0175 Enrolled  - 19 - LRB104 06566 BAB 16602 b

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

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

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

4 profitable experience with respect to the group or enrollment

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

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

7 experience with respect to the group or enrollment unit and

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

9 enrollment unit.

10  In no event shall the Illinois Health Maintenance

11 Organization Guaranty Association be liable to pay any

12 contractual obligation of an insolvent organization to pay any

13 refund authorized under this Section.

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

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

16 accordance with all provisions of the Illinois Administrative

17 Procedure Act and all rules and procedures of the Joint

18 Committee on Administrative Rules; any purported rule not so

19 adopted, for whatever reason, is unauthorized.

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

21 102-203, eff. 1-1-22; 102-306, eff. 1-1-22; 102-443, eff.

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

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

24 102-804, eff. 1-1-23; 102-813, eff. 5-13-22; 102-816, eff.

25 1-1-23; 102-860, eff. 1-1-23; 102-901, eff. 7-1-22; 102-1093,

26 eff. 1-1-23; 102-1117, eff. 1-13-23; 103-84, eff. 1-1-24;
    SB0175 Enrolled  - 20 - LRB104 06566 BAB 16602 b

1 103-91, eff. 1-1-24; 103-123, eff. 1-1-24; 103-154, eff.
2 6-30-23; 103-420, eff. 1-1-24; 103-426, eff. 8-4-23; 103-445,
3 eff. 1-1-24; 103-551, eff. 8-11-23; 103-605, eff. 7-1-24;
4 103-618, eff. 1-1-25; 103-649, eff. 1-1-25; 103-656, eff.
5 1-1-25; 103-700, eff. 1-1-25; 103-718, eff. 7-19-24; 103-751,
6 eff. 8-2-24; 103-753, eff. 8-2-24; 103-758, eff. 1-1-25;
7 103-777, eff. 8-2-24; 103-808, eff. 1-1-26; 103-914, eff.
8 1-1-25; 103-918, eff. 1-1-25; 103-1024, eff. 1-1-25; revised
9 11-26-24.)

10  Section 35. The Limited Health Service Organization Act is

11 amended by changing Section 4003 as follows:

12  (215 ILCS 130/4003) (from Ch. 73, par. 1504-3)

13  Sec. 4003. Illinois Insurance Code provisions. Limited

14 health service organizations shall be subject to the

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

16 141.2, 141.3, 143, 143.31, 143c, 147, 148, 149, 151, 152, 153,

17 154, 154.5, 154.6, 154.7, 154.8, 155.04, 155.37, 155.49, 352c,

18 355.2, 355.3, 355b, 355d, 356m, 356q, 356v, 356z.4, 356z.4a,

19 356z.10, 356z.21, 356z.22, 356z.25, 356z.26, 356z.29, 356z.32,

20 356z.33, 356z.41, 356z.46, 356z.47, 356z.51, 356z.53, 356z.54,

21 356z.57, 356z.59, 356z.61, 356z.64, 356z.67, 356z.68, 356z.71,

22 356z.73, 356z.74, 356z.75, 356z.80, 364.3, 368a, 401, 401.1,

23 402, 403, 403A, 408, 408.2, 409, 412, 444, and 444.1 and

24 Articles IIA, VIII 1/2, XII, XII 1/2, XIII, XIII 1/2, XXV, and
    SB0175 Enrolled    - 21 - LRB104 06566 BAB 16602 b

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

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

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

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

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

6 organizations in the following categories are deemed to be

7 domestic companies:

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

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

16 102-306, eff. 1-1-22; 102-642, eff. 1-1-22; 102-731, eff.

17 1-1-23; 102-775, eff. 5-13-22; 102-813, eff. 5-13-22; 102-816,

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

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

20 1-1-24; 103-420, eff. 1-1-24; 103-426, eff. 8-4-23; 103-445,

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

22 103-656, eff. 1-1-25; 103-700, eff. 1-1-25; 103-718, eff.

23 7-19-24; 103-751, eff. 8-2-24; 103-758, eff. 1-1-25; 103-832,

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

25  Section 40. The Voluntary Health Services Plans Act is
    SB0175 Enrolled  - 22 - LRB104 06566 BAB 16602 b

1 amended by changing Section 10 as follows:

2   (215 ILCS 165/10) (from Ch. 32, par. 604)

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

4 services plan corporations and all persons interested therein

5 or dealing therewith shall be subject to the provisions of

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

7 143, 143.31, 143c, 149, 155.22a, 155.37, 354, 355.2, 355.3,

8 355b, 355d, 356g, 356g.5, 356g.5-1, 356m, 356q, 356r, 356t,

9 356u, 356u.10, 356v, 356w, 356x, 356y, 356z.1, 356z.2,

10 356z.3a, 356z.4, 356z.4a, 356z.5, 356z.6, 356z.8, 356z.9,

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

12 356z.19, 356z.21, 356z.22, 356z.25, 356z.26, 356z.29, 356z.30,

13 356z.32, 356z.32a, 356z.33, 356z.40, 356z.41, 356z.46,

14 356z.47, 356z.51, 356z.53, 356z.54, 356z.56, 356z.57, 356z.59,

15 356z.60, 356z.61, 356z.62, 356z.64, 356z.67, 356z.68, 356z.71,

16 356z.72, 356z.74, 356z.75, 356z.77, 356z.80, 364.01, 364.3,

17 367.2, 368a, 401, 401.1, 402, 403, 403A, 408, 408.2, and 412,

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

19 Insurance Code.

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

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

22 with all provisions of the Illinois Administrative Procedure

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

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

25 whatever reason, is unauthorized.
    SB0175 Enrolled      - 23 - LRB104 06566 BAB 16602 b

 1 (Source: P.A. 102-30, eff. 1-1-22; 102-203, eff. 1-1-22;
 2 102-306, eff. 1-1-22; 102-642, eff. 1-1-22; 102-665, eff.
 3 10-8-21; 102-731, eff. 1-1-23; 102-775, eff. 5-13-22; 102-804,
 4 eff. 1-1-23; 102-813, eff. 5-13-22; 102-816, eff. 1-1-23;
 5 102-860, eff. 1-1-23; 102-901, eff. 7-1-22; 102-1093, eff.
 6 1-1-23; 102-1117, eff. 1-13-23; 103-84, eff. 1-1-24; 103-91,
 7 eff. 1-1-24; 103-420, eff. 1-1-24; 103-445, eff. 1-1-24;
 8 103-551, eff. 8-11-23; 103-605, eff. 7-1-24; 103-656, eff.
 9 1-1-25; 103-718, eff. 7-19-24; 103-751, eff. 8-2-24; 103-753,
10 eff. 8-2-24; 103-758, eff. 1-1-25; 103-832, eff. 1-1-25;
11 103-914, eff. 1-1-25; 103-918, eff. 1-1-25; 103-1024, eff.
12 1-1-25; revised 11-26-24.)

13  Section 45. The Illinois Public Aid Code is amended by

14 changing Section 5-16.8 as follows:

15  (305 ILCS 5/5-16.8)

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

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

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

19 health insurance under Section 356t and the coverage required

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

21 356z.26, 356z.29, 356z.32, 356z.33, 356z.34, 356z.35, 356z.46,

22 356z.47, 356z.51, 356z.53, 356z.59, 356z.60, 356z.61, 356z.64,

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

24 Insurance Code, (ii) be subject to the provisions of Sections
    SB0175 Enrolled    - 24 - LRB104 06566 BAB 16602 b

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

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

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

4 Adequacy and Transparency Act.

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

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

7 Code.

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

9 rate of reimbursement for services or other payments or alter

10 any methodologies authorized by this Code to reduce any rate

11 of reimbursement for services or other payments in accordance

12 with Section 5-5e.

13  To ensure full access to the benefits set forth in this

14 Section, on and after January 1, 2016, the Department shall

15 ensure that provider and hospital reimbursement for

16 post-mastectomy care benefits required under this Section are

17 no lower than the Medicare reimbursement rate.

18 (Source: P.A. 102-30, eff. 1-1-22; 102-144, eff. 1-1-22;

19 102-203, eff. 1-1-22; 102-306, eff. 1-1-22; 102-530, eff.

20 1-1-22; 102-642, eff. 1-1-22; 102-804, eff. 1-1-23; 102-813,

21 eff. 5-13-22; 102-816, eff. 1-1-23; 102-1093, eff. 1-1-23;

22 102-1117, eff. 1-13-23; 103-84, eff. 1-1-24; 103-91, eff.

23 1-1-24; 103-420, eff. 1-1-24; 103-605, eff. 7-1-24; 103-703,

24 eff. 1-1-25; 103-758, eff. 1-1-25; 103-1024, eff. 1-1-25;

25 revised 11-26-24.)
   SB0175 Enrolled  - 25 - LRB104 06566 BAB 16602 b

1  Section 95. No acceleration or delay. Where this Act makes

2 changes in a statute that is represented in this Act by text

3 that is not yet or no longer in effect (for example, a Section

4 represented by multiple versions), the use of that text does

5 not accelerate or delay the taking effect of (i) the changes

6 made by this Act or (ii) provisions derived from any other

7 Public Act.
Every fact on this page links to its source, starting with the official bill record.