State of Illinois
90th General Assembly
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90_HB2101

      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.
                                                     LRB9004650JSfg
                                               LRB9004650JSfg
 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 or
12    both, and their ancillary equipment, and such property as may
13    reasonably  be  required for its principal office or for such
14    other purposes as may be necessary in the transaction of  the
15    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  which  are  under contract with or employed by the
24    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-                LRB9004650JSfg
 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 of this
14    Act.
15        (h)  Any other business activity reasonably complementary
16    or  supplementary  to  its  health  maintenance  organization
17    business to the extent approved by the Director.
18    (Source: P.A. 89-183, eff. 1-1-96.)

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