State of Illinois
90th General Assembly
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90_HB1872

      215 ILCS 125/2-3          from Ch. 111 1/2, par. 1405
          Amends the Health Maintenance Organization Act.  Makes  a
      technical  change  in  a  Section  relating  to the powers of
      health maintenance organizations.
                                                     LRB9003975JSfg
                                               LRB9003975JSfg
 1        AN ACT to amend the Health Maintenance Organization Act.
 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:
 4        Section  5.   The  Health Maintenance Organization Act is
 5    amended by changing Section 2-3 as follows:
 6        (215 ILCS 125/2-3) (from Ch. 111 1/2, par. 1405)
 7        Sec. 2-3.  Powers of  Health  Maintenance  Organizations.
 8    The  powers of a Health Maintenance Organization include, but
 9    are not limited to, the following:
10        (a)  The  purchase,  lease,   construction,   renovation,
11    operation,  or  maintenance of hospitals, medical facilities,
12    or both, and their ancillary equipment, and such property  as
13    may  reasonably  be  required for its principal office or for
14    such other purposes as may be necessary in the transaction of
15    the business of the organization.
16        (b)  The  making  of  loans  to  a  medical  group  under
17    contract with it and in furtherance of  its  program  or  the
18    making  of  loans  to a corporation or corporations under its
19    control for the purpose of acquiring or constructing  medical
20    facilities  at  hospitals  or  in  furtherance  of  a program
21    providing health care services for enrollees.
22        (c)  The  furnishing  of  health  care  services  through
23    providers that which are under contract with or  employed  by
24    the Health Maintenance Organization.
25        (d)  The  contracting with any person for the performance
26    on  its  behalf  of  certain  functions  such  as  marketing,
27    enrollment and administration.
28        (e)  The contracting with an insurance  company  licensed
29    in this State, or with a hospital, medical, dental, vision or
30    pharmaceutical  service corporation authorized to do business
31    in this State, for the provision of insurance, indemnity,  or
                            -2-                LRB9003975JSfg
 1    reimbursement   against  the  cost  of  health  care  service
 2    provided by the Health Maintenance Organization.
 3        (f)  The offering,  in  addition  to  basic  health  care
 4    services, of (1) health care services, (2) indemnity benefits
 5    covering out of area or emergency services, and (3) indemnity
 6    benefits  provided  through  insurers  or  hospital, medical,
 7    dental, vision, or pharmaceutical service corporations.
 8        (g)  Rendering services related to the functions involved
 9    in the  operating  of  its  health  maintenance  organization
10    business  including  but  not  limited  to  providing  health
11    services, data processing, accounting, or claims.
12        (g-5)  Indemnification  for  services provided to a child
13    as required under subdivision (e)(3) of Section 4-2.
14        (h)  Any other business activity reasonably complementary
15    or  supplementary  to  its  health  maintenance  organization
16    business to the extent approved by the Director.
17    (Source: P.A. 89-183, eff. 1-1-96.)

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