State of Illinois
90th General Assembly
Legislation

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90_HB0107ham002

                                             LRB9000924JSccam
 1                     AMENDMENT TO HOUSE BILL 107
 2        AMENDMENT NO.     .  Amend House Bill 107 on  page  3  by
 3    replacing lines 23 through 33 with the following:
 4        "(c)  An  issuer  of  an  individual  or  group policy of
 5    accident and health insurance or managed care  plan  may  not
 6    (i)  engage in any activities or provide incentives (monetary
 7    or  otherwise)  to   hospitals,   insureds,   enrollees,   or
 8    physicians  to  induce the provision of care to an individual
 9    insured or  enrollee  in  a  manner  inconsistent  with  this
10    Section  or  (ii)  restrict  benefits  for  any portions of a
11    period within  a  hospital  length  of  stay  required  under
12    subsection  (a)  in  a manner that is less favorable than the
13    benefits provided for any preceding portion of the stay.
14        Nothing  in  this  subsection  shall  be   construed   as
15    preventing  a  plan  or  issuer  from  imposing  deductibles,
16    coinsurance,  or  other  cost-sharing in relation to benefits
17    for hospital lengths of stay in connection with surgical care
18    for a person under  the  policy  or  plan,  except  that  the
19    coinsurance or other cost-sharing for any portion of a period
20    within  a  hospital  length of stay required under subsection
21    (a) may not be greater than the coinsurance  or  cost-sharing
22    for any preceding portion of the stay.
23        (d)  For the purposes of this Section the following terms
24    are defined:
                            -2-              LRB9000924JSccam
 1             (1)  "Attending   physician"   means   a   physician
 2        licensed   to  practice  medicine  in  all  its  branches
 3        providing care to the patient.
 4             (2)  "Managed  care  plan"   means   a   plan   that
 5        establishes,  operates,  or maintains a network of health
 6        care providers that have entered into agreements with the
 7        plan to provide health care services to  enrollees  where
 8        the   plan   has  the  ultimate  and  direct  contractual
 9        obligation to the enrollee to arrange for  the  provision
10        of or pay for services through:
11                  (A)  organizational  arrangements  for  ongoing
12             quality  assurance,  utilization review programs, or
13             dispute resolution; or
14                  (B)  financial incentives for persons  enrolled
15             in  the  plan to use the participating providers and
16             procedures covered by the plan.
17             A managed care plan may be established  or  operated
18        by  any  entity  including  a licensed insurance company,
19        hospital or  medical  service  plan,  health  maintenance
20        organization,   limited   health   service  organization,
21        preferred    provider    organization,    third     party
22        administrator, or an employer or employee organization.
23        (e)  The  insurer  or  plan  shall inform all insureds or
24    enrollees in writing of the right to  this  minimum  coverage
25    under this Section as part of the insurer's or plan's regular
26    notice  of  coverage to insureds or enrollees and at the time
27    the insured  or  enrollee  is  admitted  to  a  hospital  for
28    procedures subject to this Section."; and
29    by deleting all of page 4; and
30    on page 5 by deleting lines 1 through 20; and
31    on   page  6  by  inserting  immediately  below  line  2  the
32    following:
                            -3-              LRB9000924JSccam
 1        "Section 42.  The Limited Health Service Organization Act
 2    is amended by changing Section 4003 as follows:
 3        (215 ILCS 130/4003) (from Ch. 73, par. 1504-3)
 4        Sec. 4003.  Illinois Insurance Code provisions.   Limited
 5    health   service   organizations  shall  be  subject  to  the
 6    provisions of Sections 133,  134,  137,  140,  141.1,  141.2,
 7    141.3,  143,  143c, 147, 148, 149, 151, 152, 153, 154, 154.5,
 8    154.6, 154.7, 154.8, 155.04, 355.2, 356t,  401,  401.1,  402,
 9    403,  403A,  408, 408.2, and 412, and Articles VIII 1/2, XII,
10    XII 1/2, XIII, XIII 1/2, and XXVI of the  Illinois  Insurance
11    Code.   For  purposes  of the Illinois Insurance Code, except
12    for Articles  XIII  and  XIII  1/2,  limited  health  service
13    organizations  in  the  following categories are deemed to be
14    domestic companies:
15             (1)  a corporation under the laws of this State; or
16             (2)  a  corporation  organized  under  the  laws  of
17        another state, 30% of more of the enrollees of which  are
18        residents  of this State, except a corporation subject to
19        substantially the  same  requirements  in  its  state  of
20        organization  as is a domestic company under Article VIII
21        1/2 of the Illinois Insurance Code.
22    (Source: P.A. 86-600; 87-587; 87-1090.)".

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