Illinois Compiled Statutes
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305 ILCS 5/5-11
(305 ILCS 5/5-11)
(from Ch. 23, par. 5-11)
Co-operative arrangements; contracts with other State
agencies, health care and rehabilitation organizations, and fiscal
(a) The Illinois Department may enter into co-operative arrangements
State agencies responsible for administering or supervising the
administration of health services and vocational rehabilitation services to
the end that there may be maximum utilization of such services in the
provision of medical assistance.
The Illinois Department shall, not later than June 30, 1993, enter into
one or more co-operative arrangements with the Department of Mental Health
and Developmental Disabilities providing that the Department of Mental
Health and Developmental Disabilities will be responsible for administering
or supervising all programs for services to persons in community care
facilities for persons with developmental disabilities, including but not
limited to intermediate care facilities, that are supported by State funds or
by funding under Title XIX of the federal Social Security Act. The
responsibilities of the Department of Mental Health and Developmental
Disabilities under these agreements are transferred to the Department of
Human Services as provided in the Department of Human Services Act.
The Department may also contract with such State health and
rehabilitation agencies and other public or private health care and
rehabilitation organizations to act for it in supplying designated medical
services to persons eligible therefor under this Article. Any contracts
with health services or health maintenance organizations shall be
restricted to organizations which have been certified as being in
compliance with standards promulgated pursuant to the laws of this State
governing the establishment and operation of health services or health
maintenance organizations. The Department shall renegotiate the contracts with health maintenance organizations and managed care community
networks that took effect August 1, 2003, so as to produce $70,000,000 savings to the Department net of resulting increases to the fee-for-service program for State fiscal year 2006. The Department may also contract with insurance
companies or other corporate entities serving as fiscal intermediaries in
this State for the Federal Government in respect to Medicare payments under
Title XVIII of the Federal Social Security Act to act for the Department in
paying medical care suppliers. The provisions of Section 9 of "An Act in
relation to State finance", approved June 10, 1919, as amended,
notwithstanding, such contracts with State agencies, other health care and
rehabilitation organizations, or fiscal intermediaries may provide for
(b) For purposes of this subsection (b), "managed care community
network" means an entity, other than a health maintenance organization, that
is owned, operated, or governed by providers of health care services within
this State and that provides or arranges primary, secondary, and tertiary
managed health care services under contract with the Illinois Department
exclusively to persons participating in programs administered by the Illinois
The Illinois Department may certify managed care community
networks, including managed care community networks owned, operated, managed,
governed by State-funded medical schools, as risk-bearing entities eligible to
contract with the Illinois Department as Medicaid managed care
organizations. The Illinois Department may contract with those managed
care community networks to furnish health care services to or arrange those
services for individuals participating in programs administered by the Illinois
Department. The rates for those provider-sponsored organizations may be
determined on a prepaid, capitated basis. A managed care community
network may choose to contract with the Illinois Department to provide only
health care services.
Illinois Department shall by rule adopt the criteria, standards, and procedures
which a managed care community network may be permitted to contract with
the Illinois Department and shall consult with the Department of Insurance in
adopting these rules.
A county provider as defined in Section 15-1 of this Code may
contract with the Illinois Department to provide primary, secondary, or
tertiary managed health care services as a managed care
community network without the need to establish a separate entity and shall
be deemed a managed care community network for purposes of this Code
only to the extent it provides services to participating individuals. A county
provider is entitled to contract with the Illinois Department with respect to
any contracting region located in whole or in part within the county. A
county provider is not required to accept enrollees who do not reside within
to (i) accelerate and facilitate the development of integrated health care in
contracting areas outside counties with populations in excess of 3,000,000 and
counties adjacent to those counties and (ii) maintain and sustain the high
quality of education and residency programs coordinated and associated with
local area hospitals, the Illinois Department may develop and implement a
demonstration program from managed care community networks owned, operated,
governed by State-funded medical schools. The Illinois Department shall
prescribe by rule the criteria, standards, and procedures for effecting this
A managed care community network that
contracts with the Illinois Department to furnish health care services to or
arrange those services for enrollees participating in programs administered by
the Illinois Department shall do all of the following:
(1) Provide that any provider affiliated with the
managed care community network may also provide services on a fee-for-service basis to Illinois Department clients not enrolled in such managed care entities.
(2) Provide client education services as determined
and approved by the Illinois Department, including but not limited to (i) education regarding appropriate utilization of health care services in a managed care system, (ii) written disclosure of treatment policies and restrictions or limitations on health services, including, but not limited to, physical services, clinical laboratory tests, hospital and surgical procedures, prescription drugs and biologics, and radiological examinations, and (iii) written notice that the enrollee may receive from another provider those covered services that are not provided by the managed care community network.
(3) Provide that enrollees within the system may
choose the site for provision of services and the panel of health care providers.
(4) Not discriminate in enrollment or disenrollment
practices among recipients of medical services or enrollees based on health status.
(5) Provide a quality assurance and utilization
review program that meets the requirements established by the Illinois Department in rules that incorporate those standards set forth in the Health Maintenance Organization Act.
(6) Issue a managed care community network
identification card to each enrollee upon enrollment. The card must contain all of the following:
(A) The enrollee's health plan.
(B) The name and telephone number of the
enrollee's primary care physician or the site for receiving primary care services.
(C) A telephone number to be used to confirm
eligibility for benefits and authorization for services that is available 24 hours per day, 7 days per week.
(7) Ensure that every primary care physician and
pharmacy in the managed care community network meets the standards established by the Illinois Department for accessibility and quality of care. The Illinois Department shall arrange for and oversee an evaluation of the standards established under this paragraph (7) and may recommend any necessary changes to these standards.
(8) Provide a procedure for handling complaints that
meets the requirements established by the Illinois Department in rules that incorporate those standards set forth in the Health Maintenance Organization Act.
(9) Maintain, retain, and make available to the
Illinois Department records, data, and information, in a uniform manner determined by the Illinois Department, sufficient for the Illinois Department to monitor utilization, accessibility, and quality of care.
The Illinois Department shall contract with an entity or entities to provide
external peer-based quality assurance review for the managed health care
programs administered by the Illinois Department. The entity shall meet all federal requirements for an external quality review organization.
Each managed care community network must demonstrate its ability to
bear the financial risk of serving individuals under this program.
The Illinois Department shall by rule adopt standards for assessing the
solvency and financial soundness of each managed care community network.
Any solvency and financial standards adopted for managed care community
shall be no more restrictive than the solvency and financial standards adopted
Section 1856(a) of the Social Security Act for provider-sponsored
organizations under Part C of Title XVIII of the Social Security Act.
Department may implement the amendatory changes to this
Code made by this amendatory Act of 1998 through the use of emergency
rules in accordance with Section 5-45 of the Illinois Administrative Procedure
Act. For purposes of that Act, the adoption of rules to implement these
changes is deemed an emergency and necessary for the public interest,
safety, and welfare.
(c) Not later than June 30, 1996, the Illinois Department shall
enter into one or more cooperative arrangements with the Department of Public
Health for the purpose of developing a single survey for
nursing facilities, including but not limited to facilities funded under Title
XVIII or Title XIX of the federal Social Security Act or both, which shall be
administered and conducted solely by the Department of Public Health.
The Departments shall test the single survey process on a pilot basis, with
both the Departments of Public Aid and Public Health represented on the
consolidated survey team. The pilot will sunset June 30, 1997. After June 30,
1997, unless otherwise determined by the Governor, a single survey shall be
implemented by the Department of Public Health which would not preclude staff
from the Department of Healthcare and Family Services (formerly Department of Public Aid) from going on-site to nursing facilities to
perform necessary audits and reviews which shall not replicate the single State
agency survey required by this Act. This Section shall not apply to community
or intermediate care facilities for persons with developmental disabilities.
(d) Nothing in this Code in any way limits or otherwise impairs the
authority or power of the Illinois Department to enter into a negotiated
contract pursuant to this Section with a managed care community network or
a health maintenance organization, as defined in the Health Maintenance
Organization Act, that provides for
termination or nonrenewal of the contract without cause, upon notice as
provided in the contract, and without a hearing.
(Source: P.A. 95-331, eff. 8-21-07; 96-1501, eff. 1-25-11.)