HB0815ham002 101ST GENERAL ASSEMBLY

Rep. Bob Morgan

Filed: 3/21/2019

10100HB0815ham002 LRB101 05000 RAB 58220 a

AMENDMENT TO HOUSE BILL 815

AMENDMENT NO. ______. Amend House Bill 815 by replacing everything after the enacting clause with the following:

"Section 5. The Illinois Insurance Code is amended by changing Section 355 and by adding Section 351A-7.5 as follows:

(215 ILCS 5/351A-7.5 new)

Sec. 351A-7.5. Rate approval; rate transparency.

(a) All long-term care policies issued, amended, renewed, or delivered on or after the effective date of this amendatory Act of the 101st General Assembly must submit for Director approval of all proposed rate changes. Rate increases not found to be reasonable in relation to benefits under the policy provided shall be disapproved. Additionally, all rates are subject to all minimum loss ratio requirements as outlined in the Illinois Administrative Code pursuant to Section 351A-11 of this Code.

(b) The Department shall accept comments on all rates as defined in this Code and shall deliver an annual report to the General Assembly beginning on or after January 1, 2021, regarding long-term rate changes in the Illinois market.

(215 ILCS 5/355) (from Ch. 73, par. 967)

Sec. 355. Accident and health policies-Provisions.)

(a) No policy of insurance against loss or damage from the sickness, or from the bodily injury or death of the insured by accident shall be issued or delivered to any person in this State until a copy of the form thereof and of the classification of risks and the premium rates pertaining thereto have been filed with the Director; nor shall it be so issued or delivered until the Director shall have approved such policy pursuant to the provisions of Section 143. If the Director disapproves the policy form he shall make a written decision stating the respects in which such form does not comply with the requirements of law and shall deliver a copy thereof to the company and it shall be unlawful thereafter for any such company to issue any policy in such form.

(b) All individual and small group accident and health policies written in compliance with the Patient Protection and Affordable Care Act must file rates for approval. Rate increases not found to be reasonable in relation to benefits under the policy provided shall be disapproved. The Department shall provide a report to the General Assembly on or after January 1, 2021, regarding both on and off exchange individual and small group rates in the Illinois market.

(Source: P.A. 79-777.)

Section 10. The Health Maintenance Organization Act is amended by changing Section 4-12 as follows:

(215 ILCS 125/4-12) (from Ch. 111 1/2, par. 1409.5)

Sec. 4-12. Changes in Rate Methodology and Benefits, Material Modifications. A health maintenance organization shall file with the Director, prior to use, a notice of any change in rate methodology, or benefits and of any material modification of any matter or document furnished pursuant to Section 2-1, together with such supporting documents as are necessary to fully explain the change or modification.

(a) Contract modifications described in subsections (c)(5), (c)(6) and (c)(7) of Section 2-1 shall include all form agreements between the organization and enrollees, providers, administrators of services and insurers of health maintenance organizations.

(b) Material transactions or series of transactions other than those described in subsection (a) of this Section, the total annual value of which exceeds the greater of $100,000 or 5% of net earned subscription revenue for the most current twelve month period as determined from filed financial statements.

(c) Any agreement between the organization and an insurer shall be subject to the provisions of the laws of this State regarding reinsurance as provided in Article XI of the Illinois Insurance Code. All reinsurance agreements must be filed. Approval of the Director is required for all agreements except the following: individual stop loss, aggregate excess, hospitalization benefits or out-of-area of the participating providers unless 20% or more of the organization's total risk is reinsured, in which case all reinsurance agreements require approval.

(d) All individual and small group health plans written in compliance with the Patient Protection and Affordable Care Act must file rates for approval. Rate increases not found to be reasonable in relation to benefits under the policy provided shall be disapproved. The Department shall provide a report to the General Assembly on or after January 1, 2021, regarding both on and off exchange individual and small group rates in the Illinois market.

(Source: P.A. 86-620.)".