97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB3278

 

Introduced 2/24/2011, by Rep. Jil Tracy - Chris Nybo - Dwight Kay

 

SYNOPSIS AS INTRODUCED:
 
New Act
305 ILCS 5/11-22  from Ch. 23, par. 11-22
305 ILCS 5/11-22a  from Ch. 23, par. 11-22a
305 ILCS 5/11-22b  from Ch. 23, par. 11-22b
305 ILCS 5/11-22c  from Ch. 23, par. 11-22c
330 ILCS 126/Act rep.

    Creates the Military Emergency Direct Insurance Contingency Act. Creates the Military Emergency Direct Insurance Contingency Program under the Act. Provides for administration of the program by the Department of Healthcare and Family Services. Sets forth eligibility requirements for veterans. Requires the Department to purchase or provide health care benefits for eligible veterans that are identical to the benefits provided to adults under the State's Medicaid program, except for nursing facility services and non-emergency transportation. Includes provisions for co-payments and monthly premiums for health care services. Gives the Department a charge upon claims and causes of action and a right of subrogation, and gives the Department the right to recover the reasonable value of benefits provided. Requires an annual report to the General Assembly by January 1 of each year beginning in 2012. Amends the Illinois Public Aid Code to add cross-references to the Military Emergency Direct Insurance Contingency Act. Repeals the Veterans' Health Insurance Program Act of 2008. Repeals the Military Emergency Direct Insurance Contingency Act on January 1, 2015. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the
5Military Emergency Direct Insurance Contingency Act.
 
6    Section 3. Legislative intent. The General Assembly finds
7that those who have served their country honorably in military
8service and who are residing in this State deserve access to
9affordable, comprehensive health insurance. Many veterans are
10uninsured and unable to afford healthcare. This lack of
11healthcare, including preventative care, often exacerbates
12health conditions. The effects of lack of insurance negatively
13impact those residents of the State who are insured because the
14cost of paying for care to the uninsured is often shifted to
15those who have insurance in the form of higher health insurance
16premiums. It is, therefore, the intent of this legislation to
17provide access to affordable health insurance for veterans
18residing in Illinois who are unable to afford such coverage.
19However, the State has only a limited amount of resources, and
20the General Assembly therefore declares that while it intends
21to cover as many such veterans as possible, the State may not
22be able to cover every eligible person who qualifies for this
23Program as a matter of entitlement due to limited funding.
 

 

 

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1    Section 5. Definitions. The following words have the
2following meanings:
3    "Department" means the Department of Healthcare and Family
4Services, or any successor agency.
5    "Director" means the Director of Healthcare and Family
6Services, or any successor agency.
7    "Medical assistance" means health care benefits provided
8under Article V of the Illinois Public Aid Code.
9    "Program" means the Military Emergency Direct Insurance
10Contingency Program.
11    "Resident" means an individual who has an Illinois
12residence, as provided in Section 5-3 of the Illinois Public
13Aid Code.
14    "Veteran" means any person who has served in a branch of
15the United States military for greater than 180 consecutive
16days after initial training.
17    "Veterans Affairs" or "VA" means the United States
18Department of Veterans Affairs.
 
19    Section 10. Operation of the Program.
20    (a) The Military Emergency Direct Insurance Contingency
21Program is created. This Program is not an entitlement.
22Enrollment is based on the availability of funds, and
23enrollment may be capped based on funds appropriated for the
24Program. As soon as practical after the effective date of this

 

 

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1Act, coverage for this Program shall begin. The Program shall
2be administered by the Department of Healthcare and Family
3Services in collaboration with the Department of Veterans'
4Affairs. The Department shall have the same powers and
5authority to administer the Program as are provided to the
6Department in connection with the Department's administration
7of the Illinois Public Aid Code. The Department shall
8coordinate the Program with other health programs operated by
9the Department and other State and federal agencies.
10    (b) The Department shall operate the Program in a manner so
11that the estimated cost of the Program during the fiscal year
12will not exceed the total appropriation for the Program. The
13Department may take any appropriate action to limit spending or
14enrollment into the Program, including, but not limited to,
15ceasing to accept or process applications, reviewing
16eligibility more frequently than annually, adjusting
17cost-sharing, or reducing the income threshold for eligibility
18as necessary to control expenditures for the Program.
 
19    Section 15. Eligibility.
20    (a) To be eligible for the Program, a person must:
21        (1) be a veteran who is not on active duty and who has
22    not been dishonorably discharged from service;
23        (2) be a resident of the State of Illinois;
24        (3) be at least 19 years of age and no older than 64
25    years of age;

 

 

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1        (4) be uninsured, as defined by the Department by rule,
2    for a period of time established by the Department by rule,
3    which shall be no less than 6 months;
4        (5) not be eligible for medical assistance under the
5    Illinois Public Aid Code;
6        (6) not be eligible for medical benefits through the
7    Veterans Health Administration; except that if he or she is
8    eligible for services provided at a VA facility but resides
9    60 miles or more from such a facility, he or she is
10    eligible for the Program; and
11        (7) have a household income no greater than the sum of
12    (i) an amount equal to 25% of the federal poverty level
13    plus (ii) an amount equal to the Veterans Administration
14    means test income threshold at the initiation of the
15    Program; depending on the availability of funds, this level
16    may be increased to an amount equal to the sum of (iii) an
17    amount equal to 50% of the federal poverty level plus (iv)
18    an amount equal to the Veterans Administration means test
19    income threshold. This means test income threshold is
20    subject to alteration by the Department as set forth in
21    subsection (b) of Section 10.
22    (b) A veteran who is determined eligible for the Program
23shall remain eligible for 12 months, provided the veteran
24remains a resident of the State and is not excluded under
25subsection (c) of this Section and provided the Department has
26not limited the enrollment period as set forth in subsection

 

 

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1(b) of Section 10.
2    (b-5) If a veteran was enrolled in the program operated
3under the Veterans' Health Insurance Program Act of 2008 on the
4effective date of this Act, he or she shall be enrolled in the
5Program operated under this Act on that date, notwithstanding
6any other provision of this Act.
7    (c) A veteran is not eligible for coverage under the
8Program if:
9        (1) the premium required under Section 35 of this Act
10    has not been timely paid; if the required premiums are not
11    paid, the liability of the Program shall be limited to
12    benefits incurred under the Program for the time period for
13    which premiums have been paid and for grace periods as
14    established under subsection (d); if the required monthly
15    premium is not paid, the veteran is ineligible for
16    re-enrollment for a minimum period of 3 months; or
17        (2) the veteran is a resident of a nursing facility or
18    an inmate of a public institution, as defined by 42 CFR
19    435.1009.
20    (d) The Department shall adopt rules for the Program,
21including, but not limited to, rules relating to eligibility,
22re-enrollment, grace periods, notice requirements, hearing
23procedures, cost-sharing, covered services, and provider
24requirements.
 
25    Section 20. Notice of decisions to terminate eligibility.

 

 

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1Whenever the Department decides to either deny or terminate
2eligibility under this Act, the veteran shall have a right to
3notice and a hearing, as provided by the Department by rule.
 
4    Section 25. Illinois Department of Veterans' Affairs. The
5Department shall coordinate with the Illinois Department of
6Veterans' Affairs and the Veterans Assistance Commissions to
7allow State Veterans' Affairs service officers and the Veterans
8Assistance Commissions to assist veterans to apply for the
9Program. All applicants must be reviewed for Veterans Health
10Administration eligibility or other existing health benefits
11prior to consideration for the Program.
 
12    Section 30. Health care benefits.
13    (a) For veterans eligible and enrolled, the Department
14shall purchase or provide health care benefits for eligible
15veterans that are identical to the benefits provided to adults
16under the State's approved plan under Title XIX of the Social
17Security Act, except for nursing facility services and
18non-emergency transportation.
19    (b) Providers shall be subject to approval by the
20Department to provide health care under the Illinois Public Aid
21Code and shall be reimbursed at the same rates as providers
22reimbursed under the State's approved plan under Title XIX of
23the Social Security Act.
24    (c) As an alternative to the benefits set forth in

 

 

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1subsection (a) of this Section, and when cost-effective, the
2Department may offer veterans subsidies toward the cost of
3privately sponsored health insurance, including
4employer-sponsored health insurance.
 
5    Section 35. Cost-sharing. The Department, by rule, shall
6set forth requirements concerning co-payments and monthly
7premiums for health care services. This cost-sharing shall be
8based on household income, as defined by the Department by
9rule, and is subject to alteration by the Department as set
10forth in subsection (b) of Section 10.
 
11    Section 40. Charge upon claims and causes of action; right
12of subrogation; recoveries. Sections 11-22, 11-22a, 11-22b,
13and 11-22c of the Illinois Public Aid Code apply to health
14benefits provided to veterans under this Act, as provided in
15those Sections.
 
16    Section 45. Reporting. The Department shall prepare an
17annual report for submission to the General Assembly. The
18report shall be due to the General Assembly by January 1 of
19each year beginning in 2012. This report shall include
20information regarding implementation of the Program, including
21the number of veterans enrolled and any available information
22regarding other benefits derived from the Program, including
23screening for and acquisition of other veterans' benefits

 

 

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1through the Veterans' Service Officers and the Veterans'
2Assistance Commissions. This report may also include
3recommendations regarding improvements that may be made to the
4Program and regarding the extension of the repeal date set
5forth in Section 85 of this Act.
 
6    Section 50. Emergency rulemaking. The Department may adopt
7rules necessary to establish and implement this Act through the
8use of emergency rulemaking in accordance with Section 5-45 of
9the Illinois Administrative Procedure Act. For the purposes of
10that Act, the General Assembly finds that the adoption of rules
11to implement this Act is deemed an emergency and necessary for
12the public interest, safety, and welfare.
 
13    Section 85. Repeal. This Act is repealed on January 1,
142015.
 
15    Section 90. The Illinois Public Aid Code is amended by
16changing Sections 11-22, 11-22a, 11-22b, and 11-22c as follows:
 
17    (305 ILCS 5/11-22)  (from Ch. 23, par. 11-22)
18    Sec. 11-22. Charge upon claims and causes of action for
19injuries. The Illinois Department shall have a charge upon all
20claims, demands and causes of action for injuries to an
21applicant for or recipient of (i) financial aid under Articles
22III, IV, and V, (ii) health care benefits provided under the

 

 

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1Covering ALL KIDS Health Insurance Act, or (iii) health care
2benefits provided under the Veterans' Health Insurance Program
3Act, or the Veterans' Health Insurance Program Act of 2008, or
4the Military Emergency Direct Insurance Contingency Act for the
5total amount of medical assistance provided the recipient from
6the time of injury to the date of recovery upon such claim,
7demand or cause of action. In addition, if the applicant or
8recipient was employable, as defined by the Department, at the
9time of the injury, the Department shall also have a charge
10upon any such claims, demands and causes of action for the
11total amount of aid provided to the recipient and his
12dependents, including all cash assistance and medical
13assistance only to the extent includable in the claimant's
14action, from the time of injury to the date of recovery upon
15such claim, demand or cause of action. Any definition of
16"employable" adopted by the Department shall apply only to
17persons above the age of compulsory school attendance.
18    If the injured person was employable at the time of the
19injury and is provided aid under Articles III, IV, or V and any
20dependent or member of his family is provided aid under Article
21VI, or vice versa, both the Illinois Department and the local
22governmental unit shall have a charge upon such claims, demands
23and causes of action for the aid provided to the injured person
24and any dependent member of his family, including all cash
25assistance, medical assistance and food stamps, from the time
26of the injury to the date of recovery.

 

 

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1    "Recipient", as used herein, means (i) in the case of
2financial aid provided under this Code, the grantee of record
3and any persons whose needs are included in the financial aid
4provided to the grantee of record or otherwise met by grants
5under the appropriate Article of this Code for which such
6person is eligible, (ii) in the case of health care benefits
7provided under the Covering ALL KIDS Health Insurance Act, the
8child to whom those benefits are provided, and (iii) in the
9case of health care benefits provided under the Veterans'
10Health Insurance Program Act, or the Veterans' Health Insurance
11Program Act of 2008, or the Military Emergency Direct Insurance
12Contingency Act, the veteran to whom benefits are provided.
13    In each case, the notice shall be served by certified mail
14or registered mail, upon the party or parties against whom the
15applicant or recipient has a claim, demand or cause of action.
16The notice shall claim the charge and describe the interest the
17Illinois Department, the local governmental unit, or the
18county, has in the claim, demand, or cause of action. The
19charge shall attach to any verdict or judgment entered and to
20any money or property which may be recovered on account of such
21claim, demand, cause of action or suit from and after the time
22of the service of the notice.
23    On petition filed by the Illinois Department, or by the
24local governmental unit or county if either is claiming a
25charge, or by the recipient, or by the defendant, the court, on
26written notice to all interested parties, may adjudicate the

 

 

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1rights of the parties and enforce the charge. The court may
2approve the settlement of any claim, demand or cause of action
3either before or after a verdict, and nothing in this Section
4shall be construed as requiring the actual trial or final
5adjudication of any claim, demand or cause of action upon which
6the Illinois Department, the local governmental unit or county
7has charge. The court may determine what portion of the
8recovery shall be paid to the injured person and what portion
9shall be paid to the Illinois Department, the local
10governmental unit or county having a charge against the
11recovery. In making this determination, the court shall conduct
12an evidentiary hearing and shall consider competent evidence
13pertaining to the following matters:
14        (1) the amount of the charge sought to be enforced
15    against the recovery when expressed as a percentage of the
16    gross amount of the recovery; the amount of the charge
17    sought to be enforced against the recovery when expressed
18    as a percentage of the amount obtained by subtracting from
19    the gross amount of the recovery the total attorney's fees
20    and other costs incurred by the recipient incident to the
21    recovery; and whether the Department, unit of local
22    government or county seeking to enforce the charge against
23    the recovery should as a matter of fairness and equity bear
24    its proportionate share of the fees and costs incurred to
25    generate the recovery from which the charge is sought to be
26    satisfied;

 

 

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1        (2) the amount, if any, of the attorney's fees and
2    other costs incurred by the recipient incident to the
3    recovery and paid by the recipient up to the time of
4    recovery, and the amount of such fees and costs remaining
5    unpaid at the time of recovery;
6        (3) the total hospital, doctor and other medical
7    expenses incurred for care and treatment of the injury to
8    the date of recovery therefor, the portion of such expenses
9    theretofore paid by the recipient, by insurance provided by
10    the recipient, and by the Department, unit of local
11    government and county seeking to enforce a charge against
12    the recovery, and the amount of such previously incurred
13    expenses which remain unpaid at the time of recovery and by
14    whom such incurred, unpaid expenses are to be paid;
15        (4) whether the recovery represents less than
16    substantially full recompense for the injury and the
17    hospital, doctor and other medical expenses incurred to the
18    date of recovery for the care and treatment of the injury,
19    so that reduction of the charge sought to be enforced
20    against the recovery would not likely result in a double
21    recovery or unjust enrichment to the recipient;
22        (5) the age of the recipient and of persons dependent
23    for support upon the recipient, the nature and permanency
24    of the recipient's injuries as they affect not only the
25    future employability and education of the recipient but
26    also the reasonably necessary and foreseeable future

 

 

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1    material, maintenance, medical, rehabilitative and
2    training needs of the recipient, the cost of such
3    reasonably necessary and foreseeable future needs, and the
4    resources available to meet such needs and pay such costs;
5        (6) the realistic ability of the recipient to repay in
6    whole or in part the charge sought to be enforced against
7    the recovery when judged in light of the factors enumerated
8    above.
9    The burden of producing evidence sufficient to support the
10exercise by the court of its discretion to reduce the amount of
11a proven charge sought to be enforced against the recovery
12shall rest with the party seeking such reduction.
13    The court may reduce and apportion the Illinois
14Department's lien proportionate to the recovery of the
15claimant. The court may consider the nature and extent of the
16injury, economic and noneconomic loss, settlement offers,
17comparative negligence as it applies to the case at hand,
18hospital costs, physician costs, and all other appropriate
19costs. The Illinois Department shall pay its pro rata share of
20the attorney fees based on the Illinois Department's lien as it
21compares to the total settlement agreed upon. This Section
22shall not affect the priority of an attorney's lien under the
23Attorneys Lien Act. The charges of the Illinois Department
24described in this Section, however, shall take priority over
25all other liens and charges existing under the laws of the
26State of Illinois with the exception of the attorney's lien

 

 

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1under said statute.
2    Whenever the Department or any unit of local government has
3a statutory charge under this Section against a recovery for
4damages incurred by a recipient because of its advancement of
5any assistance, such charge shall not be satisfied out of any
6recovery until the attorney's claim for fees is satisfied,
7irrespective of whether or not an action based on recipient's
8claim has been filed in court.
9    This Section shall be inapplicable to any claim, demand or
10cause of action arising under (a) the Workers' Compensation Act
11or the predecessor Workers' Compensation Act of June 28, 1913,
12(b) the Workers' Occupational Diseases Act or the predecessor
13Workers' Occupational Diseases Act of March 16, 1936; and (c)
14the Wrongful Death Act.
15(Source: P.A. 94-693, eff. 7-1-06; 94-816, eff. 5-30-06;
1695-755, eff. 7-25-08.)
 
17    (305 ILCS 5/11-22a)  (from Ch. 23, par. 11-22a)
18    Sec. 11-22a. Right of Subrogation. To the extent of the
19amount of (i) medical assistance provided by the Department to
20or on behalf of a recipient under Article V or VI, (ii) health
21care benefits provided for a child under the Covering ALL KIDS
22Health Insurance Act, or (iii) health care benefits provided to
23a veteran under the Veterans' Health Insurance Program Act, or
24the Veterans' Health Insurance Program Act of 2008, or the
25Military Emergency Direct Insurance Contingency Act, the

 

 

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1Department shall be subrogated to any right of recovery such
2recipient may have under the terms of any private or public
3health care coverage or casualty coverage, including coverage
4under the "Workers' Compensation Act", approved July 9, 1951,
5as amended, or the "Workers' Occupational Diseases Act",
6approved July 9, 1951, as amended, without the necessity of
7assignment of claim or other authorization to secure the right
8of recovery to the Department. To enforce its subrogation
9right, the Department may (i) intervene or join in an action or
10proceeding brought by the recipient, his or her guardian,
11personal representative, estate, dependents, or survivors
12against any person or public or private entity that may be
13liable; (ii) institute and prosecute legal proceedings against
14any person or public or private entity that may be liable for
15the cost of such services; or (iii) institute and prosecute
16legal proceedings, to the extent necessary to reimburse the
17Illinois Department for its costs, against any noncustodial
18parent who (A) is required by court or administrative order to
19provide insurance or other coverage of the cost of health care
20services for a child eligible for medical assistance under this
21Code and (B) has received payment from a third party for the
22costs of those services but has not used the payments to
23reimburse either the other parent or the guardian of the child
24or the provider of the services.
25(Source: P.A. 94-693, eff. 7-1-06; 94-816, eff. 5-30-06;
2695-755, eff. 7-25-08.)
 

 

 

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1    (305 ILCS 5/11-22b)  (from Ch. 23, par. 11-22b)
2    Sec. 11-22b. Recoveries.
3    (a) As used in this Section:
4        (1) "Carrier" means any insurer, including any private
5    company, corporation, mutual association, trust fund,
6    reciprocal or interinsurance exchange authorized under the
7    laws of this State to insure persons against liability or
8    injuries caused to another and any insurer providing
9    benefits under a policy of bodily injury liability
10    insurance covering liability arising out of the ownership,
11    maintenance or use of a motor vehicle which provides
12    uninsured motorist endorsement or coverage.
13        (2) "Beneficiary" means any person or their dependents
14    who has received benefits or will be provided benefits
15    under this Code, under the Covering ALL KIDS Health
16    Insurance Act, or under the Veterans' Health Insurance
17    Program Act, or the Veterans' Health Insurance Program Act
18    of 2008, or the Military Emergency Direct Insurance
19    Contingency Act because of an injury for which another
20    person may be liable. It includes such beneficiary's
21    guardian, conservator or other personal representative,
22    his estate or survivors.
23    (b)(1) When benefits are provided or will be provided to a
24beneficiary under this Code, under the Covering ALL KIDS Health
25Insurance Act, or under the Veterans' Health Insurance Program

 

 

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1Act, or the Veterans' Health Insurance Program Act of 2008, or
2the Military Emergency Direct Insurance Contingency Act
3because of an injury for which another person is liable, or for
4which a carrier is liable in accordance with the provisions of
5any policy of insurance issued pursuant to the Illinois
6Insurance Code, the Illinois Department shall have a right to
7recover from such person or carrier the reasonable value of
8benefits so provided. The Attorney General may, to enforce such
9right, institute and prosecute legal proceedings against the
10third person or carrier who may be liable for the injury in an
11appropriate court, either in the name of the Illinois
12Department or in the name of the injured person, his guardian,
13personal representative, estate, or survivors.
14    (2) The Department may:
15        (A) compromise or settle and release any such claim for
16    benefits provided under this Code, or
17        (B) waive any such claims for benefits provided under
18    this Code, in whole or in part, for the convenience of the
19    Department or if the Department determines that collection
20    would result in undue hardship upon the person who suffered
21    the injury or, in a wrongful death action, upon the heirs
22    of the deceased.
23    (3) No action taken on behalf of the Department pursuant to
24this Section or any judgment rendered in such action shall be a
25bar to any action upon the claim or cause of action of the
26beneficiary, his guardian, conservator, personal

 

 

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1representative, estate, dependents or survivors against the
2third person who may be liable for the injury, or shall operate
3to deny to the beneficiary the recovery for that portion of any
4damages not covered hereunder.
5    (c)(1) When an action is brought by the Department pursuant
6to subsection (b), it shall be commenced within the period
7prescribed by Article XIII of the Code of Civil Procedure.
8    However, the Department may not commence the action prior
9to 5 months before the end of the applicable period prescribed
10by Article XIII of the Code of Civil Procedure. Thirty days
11prior to commencing an action, the Department shall notify the
12beneficiary of the Department's intent to commence such an
13action.
14    (2) The death of the beneficiary does not abate any right
15of action established by subsection (b).
16    (3) When an action or claim is brought by persons entitled
17to bring such actions or assert such claims against a third
18person who may be liable for causing the death of a
19beneficiary, any settlement, judgment or award obtained is
20subject to the Department's claim for reimbursement of the
21benefits provided to the beneficiary under this Code, under the
22Covering ALL KIDS Health Insurance Act, or under the Veterans'
23Health Insurance Program Act, or the Veterans' Health Insurance
24Program Act of 2008, or the Military Emergency Direct Insurance
25Contingency Act.
26    (4) When the action or claim is brought by the beneficiary

 

 

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1alone and the beneficiary incurs a personal liability to pay
2attorney's fees and costs of litigation, the Department's claim
3for reimbursement of the benefits provided to the beneficiary
4shall be the full amount of benefits paid on behalf of the
5beneficiary under this Code, under the Covering ALL KIDS Health
6Insurance Act, or under the Veterans' Health Insurance Program
7Act, or the Veterans' Health Insurance Program Act of 2008, or
8the Military Emergency Direct Insurance Contingency Act less a
9pro rata share which represents the Department's reasonable
10share of attorney's fees paid by the beneficiary and that
11portion of the cost of litigation expenses determined by
12multiplying by the ratio of the full amount of the expenditures
13of the full amount of the judgment, award or settlement.
14    (d)(1) If either the beneficiary or the Department brings
15an action or claim against such third party or carrier, the
16beneficiary or the Department shall within 30 days of filing
17the action give to the other written notice by personal service
18or registered mail of the action or claim and of the name of
19the court in which the action or claim is brought. Proof of
20such notice shall be filed in such action or claim. If an
21action or claim is brought by either the Department or the
22beneficiary, the other may, at any time before trial on the
23facts, become a party to such action or claim or shall
24consolidate his action or claim with the other if brought
25independently.
26    (2) If an action or claim is brought by the Department

 

 

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1pursuant to subsection (b)(1), written notice to the
2beneficiary, guardian, personal representative, estate or
3survivor given pursuant to this Section shall advise him of his
4right to intervene in the proceeding, his right to obtain a
5private attorney of his choice and the Department's right to
6recover the reasonable value of the benefits provided.
7    (e) In the event of judgment or award in a suit or claim
8against such third person or carrier:
9        (1) If the action or claim is prosecuted by the
10    beneficiary alone, the court shall first order paid from
11    any judgment or award the reasonable litigation expenses
12    incurred in preparation and prosecution of such action or
13    claim, together with reasonable attorney's fees, when an
14    attorney has been retained. After payment of such expenses
15    and attorney's fees the court shall, on the application of
16    the Department, allow as a first lien against the amount of
17    such judgment or award the amount of the Department's
18    expenditures for the benefit of the beneficiary under this
19    Code, under the Covering ALL KIDS Health Insurance Act, or
20    under the Veterans' Health Insurance Program Act, or the
21    Veterans' Health Insurance Program Act of 2008, or the
22    Military Emergency Direct Insurance Contingency Act, as
23    provided in subsection (c)(4).
24        (2) If the action or claim is prosecuted both by the
25    beneficiary and the Department, the court shall first order
26    paid from any judgment or award the reasonable litigation

 

 

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1    expenses incurred in preparation and prosecution of such
2    action or claim, together with reasonable attorney's fees
3    for plaintiffs attorneys based solely on the services
4    rendered for the benefit of the beneficiary. After payment
5    of such expenses and attorney's fees, the court shall apply
6    out of the balance of such judgment or award an amount
7    sufficient to reimburse the Department the full amount of
8    benefits paid on behalf of the beneficiary under this Code,
9    under the Covering ALL KIDS Health Insurance Act, or under
10    the Veterans' Health Insurance Program Act, or the
11    Veterans' Health Insurance Program Act of 2008, or the
12    Military Emergency Direct Insurance Contingency Act.
13    (f) The court shall, upon further application at any time
14before the judgment or award is satisfied, allow as a further
15lien the amount of any expenditures of the Department in
16payment of additional benefits arising out of the same cause of
17action or claim provided on behalf of the beneficiary under
18this Code, under the Covering ALL KIDS Health Insurance Act, or
19under the Veterans' Health Insurance Program Act, or the
20Veterans' Health Insurance Program Act of 2008, or the Military
21Emergency Direct Insurance Contingency Act, when such benefits
22were provided or became payable subsequent to the original
23order.
24    (g) No judgment, award, or settlement in any action or
25claim by a beneficiary to recover damages for injuries, when
26the Department has an interest, shall be satisfied without

 

 

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1first giving the Department notice and a reasonable opportunity
2to perfect and satisfy its lien.
3    (h) When the Department has perfected a lien upon a
4judgment or award in favor of a beneficiary against any third
5party for an injury for which the beneficiary has received
6benefits under this Code, under the Covering ALL KIDS Health
7Insurance Act, or under the Veterans' Health Insurance Program
8Act, or the Veterans' Health Insurance Program Act of 2008, or
9the Military Emergency Direct Insurance Contingency Act, the
10Department shall be entitled to a writ of execution as lien
11claimant to enforce payment of said lien against such third
12party with interest and other accruing costs as in the case of
13other executions. In the event the amount of such judgment or
14award so recovered has been paid to the beneficiary, the
15Department shall be entitled to a writ of execution against
16such beneficiary to the extent of the Department's lien, with
17interest and other accruing costs as in the case of other
18executions.
19    (i) Except as otherwise provided in this Section,
20notwithstanding any other provision of law, the entire amount
21of any settlement of the injured beneficiary's action or claim,
22with or without suit, is subject to the Department's claim for
23reimbursement of the benefits provided and any lien filed
24pursuant thereto to the same extent and subject to the same
25limitations as in Section 11-22 of this Code.
26(Source: P.A. 94-693, eff. 7-1-06; 94-816, eff. 5-30-06;

 

 

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195-755, eff. 7-25-08.)
 
2    (305 ILCS 5/11-22c)  (from Ch. 23, par. 11-22c)
3    Sec. 11-22c. Recovery of back wages.
4    (a) As used in this Section, "recipient" means any person
5receiving financial assistance under Article IV or Article VI
6of this Code, receiving health care benefits under the Covering
7ALL KIDS Health Insurance Act, or receiving health care
8benefits under the Veterans' Health Insurance Program Act, or
9the Veterans' Health Insurance Program Act of 2008, or the
10Military Emergency Direct Insurance Contingency Act.
11    (b) If a recipient maintains any suit, charge or other
12court or administrative action against an employer seeking back
13pay for a period during which the recipient received financial
14assistance under Article IV or Article VI of this Code, health
15care benefits under the Covering ALL KIDS Health Insurance Act,
16or health care benefits under the Veterans' Health Insurance
17Program Act, or the Veterans' Health Insurance Program Act of
182008, or the Military Emergency Direct Insurance Contingency
19Act, the recipient shall report such fact to the Department. To
20the extent of the amount of assistance provided to or on behalf
21of the recipient under Article IV or Article VI, health care
22benefits provided under the Covering ALL KIDS Health Insurance
23Act, or health care benefits provided under the Veterans'
24Health Insurance Program Act, or the Veterans' Health Insurance
25Program Act of 2008, or the Military Emergency Direct Insurance

 

 

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1Contingency Act, the Department may by intervention or
2otherwise without the necessity of assignment of claim, attach
3a lien on the recovery of back wages equal to the amount of
4assistance provided by the Department to the recipient under
5Article IV or Article VI, under the Covering ALL KIDS Health
6Insurance Act, or under the Veterans' Health Insurance Program
7Act, or the Veterans' Health Insurance Program Act of 2008, or
8the Military Emergency Direct Insurance Contingency Act.
9(Source: P.A. 94-693, eff. 7-1-06; 94-816, eff. 5-30-06;
1095-755, eff. 7-25-08.)
 
11    (330 ILCS 126/Act rep.)
12    Section 92. The Veterans' Health Insurance Program Act of
132008 is repealed.
 
14    Section 97. Severability. The provisions of this Act are
15severable under Section 1.31 of the Statute on Statutes.
 
16    Section 99. Effective date. This Act takes effect upon
17becoming law.