State of Illinois
90th General Assembly
Legislation

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[ Introduced ]

90_HB2285ham001

                                           LRB9001851JSgcam01
 1                    AMENDMENT TO HOUSE BILL 2285
 2        AMENDMENT NO.     .  Amend House Bill 2285  by  replacing
 3    the title with the following:
 4        "AN ACT concerning managed care arrangements."; and
 5    by  replacing  everything  after the enacting clause with the
 6    following:
 7        "Section 1. Short title. This Act may  be  cited  as  the
 8    Managed Care Responsibility to Members Act.
 9        Section 5. Purpose. This Act addresses changes in managed
10    care  practice  and operations in Illinois. This Act enhances
11    quality, affordable, and accessible health care coverage  for
12    Illinois  citizens,  families,  and  businesses.  Through the
13    provisions of this Act, health  care  plan  members  will  be
14    provided:
15        (1)  Detailed  information  about  health care plans, the
16    scope of coverage available, and the physicians' professional
17    qualifications so that they can make  informed choices  about
18    their health care.
19        (2)  Notification   of   termination  or  change  in  any
20    benefits, services, or service  delivery.   This  includes  a
21    provision  allowing  enrollees  to continue with a nonnetwork
                            -2-            LRB9001581JSgcam01
 1    physician under certain specific circumstances.
 2        (3)  Detailed grievance procedures and medical  necessity
 3    appeals   procedures,   which  include  an  expedited  appeal
 4    process.   This   Act   also   ensures   health   care   plan
 5    accountability for accessible hospital and physician services
 6    and reimbursement for covered emergency services.
 7        Section 10. Definitions. As used in this Act:
 8        "Basic health care services" means  emergency  care,  and
 9    inpatient  hospital  and  physician  care, outpatient medical
10    services, mental health services and  care  for  alcohol  and
11    drug   abuse,   including   any  reasonable  deductibles  and
12    copayments, all of which are subject to such  limitations  as
13    are determined by the Director.
14        "Department" means the Department of Insurance.
15        "Director" means the Director of Insurance.
16        "Emergency  services" means the provision of care for the
17    sudden and,  at  the  time,  unexpected  onset  of  a  health
18    condition  which  would  lead a prudent lay person to believe
19    that failure to receive  immediate  medical  attention  would
20    result   in  serious  impairment  to bodily function, serious
21    dysfunction to any bodily organ or part, or would  place  the
22    person's health in serious jeopardy.
23        "Enrollee"  means an individual enrolled in a health care
24    plan.
25        "Governing  body"  means  the  board  of   trustees,   or
26    directors,   or   if   otherwise   designated  in  the  basic
27    organizational document bylaws, those individuals vested with
28    the ultimate responsibility for the management of the  health
29    care plan.
30        "Grievance"  means any written complaint submitted to the
31    health care plan by or on behalf of an enrollee regarding any
32    aspect of the plan relative to the enrollee,  but  shall  not
33    include a complaint by or on behalf of a provider.
                            -3-            LRB9001581JSgcam01
 1        "Grievance  committee"  means  individuals  who have been
 2    appointed by the health care plan to  respond  to  grievances
 3    which  have  been  filed on appeal from the plan's simplified
 4    complaint process.  At least 50% of the individuals  on  this
 5    committee  shall  be composed of enrollees who are consumers.
 6    A grievance may not be heard or voted upon  unless  at  least
 7    50%  of  the  voting individuals at the committee hearing are
 8    enrollees.
 9        "Health care  plan"  means  any  arrangement  whereby  an
10    organization undertakes to provide or arrange for and pay for
11    or  reimburse  the  cost  of  basic health care services from
12    providers selected by the plan and the  arrangement  consists
13    of arranging for or the provision of health care services, as
14    distinguished  from  mere indemnification against the cost of
15    those services,  on  a  per  capita  prepaid  basis,  through
16    insurance or otherwise.
17        "Health care services" means any services included in the
18    furnishing  to  any individual of medical or dental care, the
19    hospitalization incident to the furnishing of such care,  and
20    the  furnishing  to  any person of any and all other services
21    for  the  purpose  of  preventing,  alleviating,  curing,  or
22    healing human illness or injury.
23        "Insurance  company"  means  companies  in   this   State
24    authorized  to  transact  the  kind  or  kinds  of   business
25    enumerated in Class 1(a), Class 1(b) or Class 2(a) of Section
26    4 of the Illinois Insurance Code.
27        "Insured" means an individual  entitled  to  coverage  of
28    expenses  of  health  care  services under a policy issued or
29    administered by an insurance company.
30        "Life threatening condition" means any condition, illness
31    or injury which (i) may directly lead to a  patient's  death,
32    (ii)   results  in  a  period  of  unconsciousness  which  is
33    indeterminate at the present, or (iii) imposes severe pain or
34    an inhumane burden on the patient.
                            -4-            LRB9001581JSgcam01
 1        "Medical director" means a physician licensed to practice
 2    medicine in all its branches in Illinois who is  employed  by
 3    or  contracted  with  a  health  care  plan  and who shall be
 4    responsible  for  final  review  when  questions  of  medical
 5    practice arise in the health care plan in order to assure the
 6    quality of health care services provided.
 7        "Patient"  means  any  person  who  has  received  or  is
 8    receiving  medical  care,  treatment,  or  services  from  an
 9    individual or institution licensed to provide medical care or
10    treatment in this State.
11        "Primary  care  physician"  means  a  provider  who   has
12    contracted  with  a  health care plan to provide primary care
13    services as  defined  by  the  contract  and  who  is  (1)  a
14    physician  licensed  to  practice  medicine  in  all  of  its
15    branches  who  spends  a majority of clinical time engaged in
16    general practice or in the  practice  of  internal  medicine,
17    pediatrics, gynecology, obstetrics, or family practice or (2)
18    a  chiropractic  physician  licensed  to treat human ailments
19    without the use of drugs or operative  surgery.
20        "Provider" means any  physician,  hospital  facility,  or
21    other  person  which  is  licensed or otherwise authorized to
22    furnish health care services  and  also  includes  any  other
23    entity that arranges for the delivery or furnishing of health
24    care services.
25        "Stabilization"  means the provision of medical treatment
26    to assure  within  reasonable  medical  probability  that  no
27    material  deterioration  of the condition is likely to result
28    from the transfer of the individual from a facility.
29        "Utilization   review"   means   the   study    of    the
30    appropriateness  of  the  use  of particular services and the
31    appropriateness of the volume of services used.
32        "Utilization review program" means an  entity  performing
33    utilization   review,   except   an  agency  of  the  federal
34    government or its agent, but only to the extent that agent is
                            -5-            LRB9001581JSgcam01
 1    providing services to the federal government.
 2        Section 15. Patient  rights.  The  following  rights  are
 3    hereby established:
 4        (1)  The  right  of  each  patient  to  be  provided with
 5    information about the health  care  plan  and  the  providers
 6    rendering  care.   For health care plans this right calls for
 7    compliance with Section 20 of this Act.
 8        (2)  The right of each patient to a  full  disclosure  of
 9    the  patient costs, benefits, risks, and alternatives related
10    to the treatment options and care, including health care plan
11    requirements, coverage, exclusions, or limitations that could
12    affect  the  enrollee's  access  to  coverage  or   treatment
13    options.    For  health  care  plans  this  right  calls  for
14    compliance with Section 25 of this Act.  Insurance  companies
15    and  health  care  plans  are  prohibited from terminating or
16    suspending  a  provider  from  its  network  for   advocating
17    appropriate   health   care  services  because  the  provider
18    advocated for what he or she  considered  to  be  appropriate
19    health care.
20        (3)  The  right  of each patient to care, consistent with
21    nursing and medical practices, to be informed of the name  of
22    the  physician  responsible for coordinating his or her care,
23    to receive information from his or her  physician  concerning
24    his  or  her  condition and proposed treatment, to refuse any
25    treatment to the extent permitted by law,  and to privacy and
26    confidentiality of records except as  otherwise  provided  by
27    law.
28        (4)  The  right  of each patient, regardless of source of
29    payment, to examine and receive a reasonable  explanation  of
30    his  or  her  total  bill  for  services where such a bill is
31    rendered by his or her physician  or  health  care  provider,
32    including   the   itemized   charges  for  specific  services
33    received. Each provider shall be responsible for a reasonable
                            -6-            LRB9001581JSgcam01
 1    explanation of  those  specific  services  provided  by  such
 2    physician or health care provider.
 3        (5)  In  the  event  an  insurance company or health care
 4    plan cancels or refuses to  renew  an  individual  policy  or
 5    plan,  the  insured  or enrollee shall be entitled to timely,
 6    prior notice of the termination of such policy or plan.
 7        An insurance company or health care  plan  that  requires
 8    any  insured,  enrollee,  or  applicant  for new or continued
 9    insurance or coverage to be tested for infection with HIV  or
10    any  other  identified causative agent of AIDS shall (i) give
11    the  patient  or  applicant  prior  written  notice  of  such
12    requirement, (ii) proceed with such  testing  only  upon  the
13    written authorization of the insured, enrollee, or applicant,
14    and  (iii)  keep  the  results  of such testing confidential.
15    Notice of an adverse underwriting or coverage decision may be
16    given  to  any  appropriately  interested  party,   but   the
17    insurance  company  or health care plan may only disclose the
18    test result itself to a physician designated by the  insured,
19    enrollee  or applicant, and any such disclosure shall be in a
20    manner that assures confidentiality.
21        (6)  At the time of renewal, the right of each patient to
22    notification  of  termination  or  change  in  any  benefits,
23    services, or service delivery location.
24        (7)  The  right  of   each   patient   to   privacy   and
25    confidentiality  in health care.  Each physician, health care
26    provider, health care plan and insurance  company  shall  not
27    disclose  the  nature  or  details  of  services  provided to
28    insureds and enrollees, except that such information  may  be
29    disclosed   to   the  patient,  the  party  making  treatment
30    decisions if the patient is  incapable  of  making  decisions
31    regarding   the   health  services  provided,  those  parties
32    directly involved with providing treatment to the patient  or
33    processing  the  payment  for  that  treatment, those parties
34    responsible for  peer review, utilization review and  quality
                            -7-            LRB9001581JSgcam01
 1    assurance,  and  those  parties required to be notified under
 2    the Abused and Neglected Child Reporting  Act,  the  Illinois
 3    Sexually Transmissible Disease Control Act or where otherwise
 4    authorized  or  required by law.  This right may be waived in
 5    writing by the patient  or  the  patient's  guardian,  but  a
 6    physician or other health care provider may not condition the
 7    provision   of   services  on  the  patient's  or  guardian's
 8    agreement to sign such a waiver.
 9        Section 20. Provision of information.
10        (a)  A health care plan  shall  provide  to  enrollees  a
11    description  of  the  terms and conditions of the evidence of
12    coverage.  The form shall provide a description of all of the
13    following:
14             (1)  The service area.
15             (2)  Covered benefits, exclusions or limitations.
16             (3)  Precertification and other  utilization  review
17        procedures requirements.
18             (4)  A list of primary care physicians in the health
19        care  plan's  service  area  and  a  description  of  the
20        limitations to access specialists.
21             (5)  Emergency coverage and benefits.
22             (6)  Out-of-area coverages and benefits.
23             (7)  The  enrollee's  financial  responsibility  for
24        copayments,  deductibles,  and  any  other  out-of-pocket
25        expenses.
26             (8)  Provisions  for  continuity of treatment in the
27        event a provider's participation  terminates  during  the
28        course  of  an  insured's or enrollee's treatment by that
29        provider.
30             (9)  The grievance process, including the  telephone
31        number   to   call   to  receive  information  concerning
32        grievance procedures.
33        (b)  Upon written  request,  a  health  care  plan  shall
                            -8-            LRB9001581JSgcam01
 1    provide  to  applicants  and  enrollees  a description of the
 2    financial relationships between the health care plan and  any
 3    provider,  except  that no health care plan shall be required
 4    to disclose specific reimbursement to  providers.
 5        (c)  A participating provider shall provide  all  of  the
 6    following to enrollees upon request:
 7             (1)  Information   related   to   the   health  care
 8        professional's   educational   background,    experience,
 9        training,   specialty,   and   board   certification,  if
10        applicable.
11             (2)  The  names  of  licensed  facilities   on   the
12        provider  panel  where the health  professional presently
13        has privileges for the treatment, illness,  or  procedure
14        that is the subject of the request.
15             (3)  Information    regarding    the   health   care
16        professional's  participation  in  continuing   education
17        programs    and    compliance    with    any   licensure,
18        certification,   or   registration    requirements,    if
19        applicable.
20        Section   25.  Prohibited  restraints  on  communication.
21    Nothing in a physician's contract with  a  health  care  plan
22    shall  be  construed  to  impair  the physician's ethical and
23    legal duty to  provide  full  informed  consent  and  medical
24    counsel to enrollees, including full discussion of the costs,
25    benefits,  risks,  and alternatives related to the enrollee's
26    treatment options and care  and  health  care  plan  policies
27    related   to   those  options,  including  health  care  plan
28    requirements, coverage,  exclusions,  or  other  policies  or
29    practices  that  affect  enrollees'  access  to  coverage  or
30    treatment options.
31        Section 30. Access to personnel and facilities.
32        (a)  A health care plan shall include a sufficient number
                            -9-            LRB9001581JSgcam01
 1    and  type  of  primary  care    physicians  and  specialists,
 2    throughout  the  service area, to meet the needs of enrollees
 3    and to provide meaningful choice.  A health care  plan  shall
 4    offer:
 5             (1)  accessible acute care hospital services, within
 6        a reasonable distance or travel  time;
 7             (2)  primary  care  physicians,  within a reasonable
 8        distance or travel time; and
 9             (3)  specialists within  a  reasonable  distance  or
10        travel time.
11        When  the  type  of medical service needed for a specific
12    condition is not represented in  the  provider  network,  the
13    health  care  plan  shall  arrange  for  the enrollee to have
14    access   to   qualified    nonparticipating    health    care
15    professionals as authorized by the primary care physician.
16        (b)  A health care plan shall provide telephone access to
17    the  health  care  plan  for  sufficient time during business
18    hours to assure enrollee access for routine care, and 24 hour
19    telephone access to the health care plan or, if so  delegated
20    by  the  health care plan, a participating physician or group
21    for emergency care or authorization for care.
22        (c)  A  health  care  plan  shall  establish   reasonable
23    standards for waiting times to obtain appointments, except as
24    provided below for emergency services.
25        Such   standards  shall  include  appointment  scheduling
26    guidelines  used  for  each  type  of  health  care  service,
27    including prenatal care appointments, well-child  visits  and
28    immunizations,  routine physicals, follow-up appointments for
29    chronic conditions, and urgent care.
30        (d)  A health care plan shall provide for  continuity  of
31    care for its enrollees as follows:
32             (1)  If  an  enrollee's  physician leaves the health
33        care plan's network of providers for reasons  other  than
34        termination  with  cause and the physician remains within
                            -10-           LRB9001581JSgcam01
 1        the health care plan's service area, the health care plan
 2        shall permit the enrollee to continue an  ongoing  course
 3        of  treatment  with  that physician during a transitional
 4        period of:
 5                  (A)  up to 60 days from the date of the  notice
 6             of physician's termination from the health care plan
 7             network   to   the   enrollee   of  the  physician's
 8             disaffiliation from the health care  plan's  network
 9             if  the  enrollee  has a life threatening disease or
10             condition; or
11                  (B)  if the  enrollee  has  entered  the  third
12             trimester   of   pregnancy   at   the  time  of  the
13             physician's  disaffiliation,  for   a   transitional
14             period  that  includes  the provision of post-partum
15             care directly related to the delivery.
16             (2)  Notwithstanding the provisions in item  (1)  of
17        this  subsection,  such  care  shall be authorized by the
18        health care plan during the transitional period  only  if
19        the physician agrees:
20                  (A)  to  continue  to accept reimbursement from
21             the health care plan at the rates  applicable  prior
22             to  the  start of the transitional period as payment
23             in full;
24                  (B)  to  adhere  to  the  health  care   plan's
25             quality assurance requirements and to provide to the
26             health   care  plan  necessary  medical  information
27             related to  such care; and
28                  (C)  to otherwise adhere to the  organization's
29             policies  and procedures,  including but not limited
30             to  procedures  regarding  referrals  and  obtaining
31             preauthorizations and a treatment plan  approved  by
32             the health care plan.
33        (e)  A  health  care plan shall provide for continuity of
34    care for new enrollees as follows:
                            -11-           LRB9001581JSgcam01
 1             (1)  If a new enrollee  whose  physician  is  not  a
 2        member of the health care plan's provider network, but is
 3        within  the  health  care plan's service area, enrolls in
 4        the health care plan, the health care plan  shall  permit
 5        the  enrollee  to continue an ongoing course of treatment
 6        with  the   enrollee's   current   physician   during   a
 7        transitional  period  of up to 60 days from the effective
 8        date of enrollment, if:
 9                  (A)  the  enrollee   has   a   life-threatening
10             disease or condition; or
11                  (B)  the   enrollee   has   entered  the  third
12             trimester of pregnancy  at  the  effective  date  of
13             enrollment,  in  which  case the transitional period
14             shall include  the  provision  of  post-partum  care
15             directly related to the delivery.
16             (2)  If  an  enrollee  elects to continue to receive
17        care from such physician pursuant to  item  (1)  of  this
18        subsection,  such  care shall be authorized by the health
19        care  plan  for  the  transitional  period  only  if  the
20        physician agrees:
21                  (A)  to accept reimbursement  from  the  health
22             care  plan  at  rates established by the health care
23             plan as payment in full, such rates shall be no more
24             than  the  level  of  reimbursement  applicable   to
25             similar  physicians  within  the  health care plan's
26             network for such services;
27                  (B)  to  adhere  to  the  health  care   plan's
28             quality   assurance  requirements  and    agrees  to
29             provide to the health care  plan  necessary  medical
30             information  related to such care; and
31                  (C)  to  otherwise  adhere  to  the health care
32             plan's policies and procedures  including,  but  not
33             limited   to   procedures  regarding  referrals  and
34             obtaining  preauthorization  and  a  treatment  plan
                            -12-           LRB9001581JSgcam01
 1             approved  by  the  health  care  plan.   In no event
 2             shall this section be construed to require a  health
 3             care  plan  to    provide  coverage for benefits not
 4             otherwise  covered  or  to  diminish  or      impair
 5             preexisting  condition  limitations contained in the
 6             subscriber's  contract.
 7        Section 35. Emergency services.
 8        (a)  Health care plans shall  provide  reimbursement  for
 9    covered  emergency  services  provided  at a participating or
10    nonparticipating emergency department  up  to  the  point  of
11    stabilization of an enrollee.
12        (b)  Once  the  enrollee  is  stabilized,  the  emergency
13    department shall contact the primary care physician or health
14    care  plan  as  specified  on the identification card to seek
15    prior authorization for any additional nonemergency  services
16    beyond stabilization.
17        (c)  With  any  claim  for  reimbursement,  the emergency
18    department shall provide the health  plan  with  the  medical
19    record documenting the presenting symptoms of the enrollee at
20    the  time  care  was sought and the objective findings of the
21    medical examination.
22        (d)  The   health   care   plan's   medical    director's
23    determination  of whether the enrollee meets the  standard of
24    emergency shall take into account the presenting symptoms  at
25    the time care was sought.
26        (e)  Health  care  plans may require an enrollee to pay a
27    copayment for emergency services.
28        (f)  Health  care  plans  shall  provide  enrollees  with
29    information on  procedures  for  the  coverage  of  emergency
30    services both inside and out of the plan service area.
31        Section 40. Grievance procedures.
32        (a)  Every   health   care  plan  shall  submit  for  the
                            -13-           LRB9001581JSgcam01
 1    Director's approval, and thereafter maintain,  a  system  for
 2    the  resolution  of  grievances  concerning  the provision of
 3    health care services or  other matters  concerning  operation
 4    of the health care plan as follows.  A health care plan shall
 5    do all of the following:
 6             (1)  Submit  to  the Director for prior approval any
 7        proposed changes to the system by which grievances may be
 8        filed and reviewed;
 9             (2)  Maintain records on each grievance  filed  with
10        the  health care plan until the grievance is resolved and
11        for a period of at least 3 years to include:
12                  (A)  a copy of the grievance and  the  date  of
13             its filing;
14                  (B)  the date and outcome of all consultations,
15             hearings and hearing findings;
16                  (C)  the  date  and  decisions  of  any  appeal
17             proceedings; and
18                  (D)  the date and proceeding of any litigation.
19             (3)  Submit  to the Director in a form prescribed by
20        the Director, a  report  by  March  1  for  the  previous
21        calendar year which shall include at least the following:
22                  (A)  the total number of grievances handled;
23                  (B)  a  compilation  of  causes  underlying the
24             grievances;
25                  (C)  the outcomes of the grievances;
26                  (D)  the  elapsed  time  from  receipt  of  the
27             grievance  by  the  health  care  plan   until   its
28             conclusion; and
29                  (E)  the number of malpractice claims filed and
30             if  such claims have been  completely adjudicated, a
31             compilation of causes, disposition, form, and amount
32             of any settlements.
33        (b)  A health care plan shall have a grievance  committee
34    which  shall  have  the  authority  to  hear  and  resolve by
                            -14-           LRB9001581JSgcam01
 1    majority vote grievances  submitted  to  it  as  provided  in
 2    subsection (a).
 3        Notwithstanding any other provisions of this Section, the
 4    grievance  committee  may,  but  is not required to, hear any
 5    grievance which alleges or  indicates  possible  professional
 6    liability, commonly known as "malpractice."
 7        The  committee  is not empowered to resolve grievances in
 8    any manner which, or  prescribe  any  actions,  that  are  in
 9    conflict  with  written  policies  of the health care  plan's
10    governing body, but the committee may  hear  such  grievances
11    for the  purpose of providing input to the governing body.
12        The  grievance committee shall meet at the main office of
13    the health care plan, or such other office designated by  the
14    health care plan where the main office is not within 50 miles
15    of the grievant's home address.  Consideration shall be given
16    to  the enrollee's request pertaining to the time and date of
17    such meeting.  The enrollee shall have the  right  to  attend
18    and  participate  in  the  formal grievance proceedings.  The
19    enrollee  shall  have  the  right  to  be  accompanied  by  a
20    designated representative of his or her choice.
21        The filing of a grievance shall not preclude the enrollee
22    from filing a complaint  with the  Department  nor  shall  it
23    preclude  the  Department  from  investigating  a   complaint
24    pursuant to its authority under Section  4-6  of  the  Health
25    Maintenance Organization Act.
26        (c)  The  grievance  procedures must be fully and clearly
27    communicated to all enrollees and information concerning such
28    procedures shall be readily available to the enrollee.
29        (d)  A health care plan shall have  simplified  procedure
30    for  resolving  complaints.   Such  procedures do not require
31    review of the complaint by the  grievance  committee,  but  a
32    log,  file,  or  other  similar records must be maintained to
33    identify the general nature of such  complaints.   Resolution
34    of such complaints shall not preclude the enrollees' rightful
                            -15-           LRB9001581JSgcam01
 1    access to review by the grievance committee of a grievance.
 2        (e)  The  health  care  plan  shall  institute procedures
 3    which would require grievances to have a  determination  made
 4    by  the  grievance committee within 60 days from the date the
 5    grievance is received by the health care plan.   A  grievance
 6    may  not  be  heard  or  voted  upon unless 50% of the voting
 7    individuals of the  committee  present  at  the  hearing  are
 8    enrollees.   The determination by the grievance committee may
 9    be extended for a period not to exceed 30 days in  the  event
10    of  delay in obtaining documents or records necessary for the
11    resolution of the grievance.  All requests for  documents  or
12    records  necessary  for the resolution of the grievance shall
13    be maintained in the health care plan's grievance file.
14        (f)  The grievance procedure shall provide  the  enrollee
15    with  a  written acknowledgment of  their grievance within 10
16    business days after receipt by the health care plan.
17        (g)  The enrollee shall be notified at the  time  of  the
18    hearing  of  the  name  and  affiliation  of  those grievance
19    committee members who are representatives of the health  care
20    plan.
21        (h)  The  health  care  plan  shall  institute procedures
22    whereby  any  document  furnished  to  the  members  of   the
23    grievance  committee  shall  also  be  made  available to the
24    enrollee not less than 5 business days prior to  the  hearing
25    of  their  grievance.  The health care plan shall not present
26    any evidence without  the  enrollee  having  been  given  the
27    opportunity to be present.
28        (i)  Notice  in  writing  of  the  determination  of  the
29    grievance committee shall be mailed to the  enrollee within 5
30    business   days   of   such  determination.   Notice  of  the
31    determination made at the final appeal  step  of  the  health
32    care  plan's  grievance process shall include a notice of the
33    availability of the Department to  receive  complaints  under
34    Section 4-6 of the Health Maintenance Organization Act.
                            -16-           LRB9001581JSgcam01
 1        (j)  Prior  to  the  resolution of a grievance filed by a
 2    subscriber or enrollee, coverage shall not be terminated  for
 3    any  reason  which  is  the subject of the written grievance,
 4    except where the health care plan has, in good faith, made  a
 5    reasonable  effort  to  resolve the written grievance through
 6    its grievance procedure and coverage is being terminated as a
 7    result of good cause.
 8        Section 45. Review of medical necessity.  A  health  care
 9    plan  shall  provide  a  mechanism for the timely review by a
10    physician holding the same class of license  as  the  primary
11    care  physician,  who  is unaffiliated with health care plan,
12    jointly selected by the patient (or the patient's next of kin
13    or legal representative if the patient is unable to  act  for
14    himself  or  herself),  primary care physician and the health
15    care plan in the event of a dispute between the primary  care
16    physician  and  the  health  care  plan regarding the medical
17    necessity of a covered service proposed by the  primary  care
18    physician.    In  the  event  that  the  reviewing  physician
19    determines the covered service to be medically necessary, the
20    health care plan shall provide the covered  service.   Future
21    contractual  or  employment  action  by the health  care plan
22    regarding the primary  care  physician  shall  not  be  based
23    solely on the physician's participation in this procedure.
24        Section 50. Expedited review of medical necessity.
25        (a)  A  health  care  plan shall have an expedited review
26    procedure  whereby  an  enrollee  with   a   life-threatening
27    condition,  or  physician  authorized  in  writing  to act on
28    behalf of the enrollee with a life-threatening condition, may
29    appeal a health care plan's decision of medical necessity  of
30    a covered service.
31        (b)  The expedited review procedure shall provide that an
32    initial  determination  of  the  review  will  be made by the
                            -17-           LRB9001581JSgcam01
 1    health care  plan  not  later  than  3  business  days  after
 2    receipt  of  all necessary information to complete the review
 3    process.
 4        (c)  After  the  initial  adverse  determination  by  the
 5    health care plan, the enrollee, or  physician  authorized  in
 6    writing to act on behalf of the enrollee, may request further
 7    review  by  the  health  care  plan.   If  further  review is
 8    requested, a final determination  by  the  health  care  plan
 9    shall  be  made  not  later than 30 days after receipt of all
10    necessary  information  to  complete  further  review.   Upon
11    notification to the enrollee of the health care plan's  final
12    determination  resulting  from  the expedited review process,
13    the  plan  shall  provide  the  enrollee  a  notice  of   the
14    availability  of  the  Department  to  receive  complaints as
15    provided  in  Section   4-6   of   the   Health   Maintenance
16    Organization Act.
17        (d)  A request for an expedited review under this Section
18    must  contain a statement  submitted by the physician, orally
19    or  in  writing,  substantiating  that  the  enrollee  has  a
20    life-threatening condition. This subsection does not apply to
21    a provider's complaint concerning claims  payment,  handling,
22    or reimbursement for health care services.
23        (e)  If  the expedited review process is invoked it shall
24    be in place of and not in  addition  to  the  regular  review
25    process.
26        Section 55. Registration of utilization review programs.
27        (a)  All   utilization  review  programs  shall  register
28    annually with the Department.
29        (b)  The utilization review program will  submit  all  of
30    the following:
31             (1)  The   name,   address   and  telephone  of  the
32        registrant.
33             (2)  The organization and governing structure of the
                            -18-           LRB9001581JSgcam01
 1        registrant.
 2             (3)  List of insurance  companies  and  health  care
 3        plans  for  which the utilization review program performs
 4        utilization review in this State and the number of  lives
 5        for which utilization review is conducted.
 6             (4)  Hours of operation.
 7             (5)  Description of the grievance process.
 8             (6)  Number  of  covered lives for which utilization
 9        review was conducted for the previous calendar year.
10             (7)  Written policies and procedures for  protecting
11        confidential  information  according  to applicable State
12        and federal laws.
13        (c)  If the Director determines that an insurance company
14    or health care plan licensed  by  the  Department  meets  the
15    provisions  of  the  requirements  of  this Section under its
16    certification process, he or she  may  exempt  the  insurance
17    company   or   health  care  plan  from  providing  duplicate
18    information.
19        Section  60.  Severability.  If  any  Section,  term   or
20    provision  of  this  Act  shall  be  adjudged invalid for any
21    reason, such judgment shall not affect, impair, or invalidate
22    any other Section, term, or provision of this  Act,  and  the
23    remaining Sections, terms, and provisions shall be and remain
24    in full force and effect.
25        Section  65.  Applicability  of  Act.  A health care plan
26    amended, delivered, issued, or renewed in  this  State  after
27    the  effective date of this Act must comply with the terms of
28    this Act.
29        Section 70.  Managed care  community  networks.   Managed
30    care  community  networks  providing or arranging health care
31    services under contract with the State exclusively to persons
                            -19-           LRB9001581JSgcam01
 1    who are  enrolled  in  the  integrated  health  care  program
 2    established  under  Section 5-16.3 of the Illinois Public Aid
 3    Code or a managed care community network owned, operated,  or
 4    governed  by  a county provider as defined in Section 15-1 of
 5    that Code are required to comply with Sections  15,  20,  25,
 6    and  65 of this Act and are exempt from all other Sections of
 7    this Act.  The Illinois Department of Public Aid shall  adopt
 8    rules to implement these provisions.
 9        Section  99.   Effective  date.   This  Act  takes effect
10    January 1, 1998.".

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