 |
 |
|
 |
|
 |
|
 |
|
Legislative Reports - Bill Status Producer HB 4040 Mulligan Creates the Illinois Covenants Not to Compete Act. Establishes criteria for enforceability of covenants not to compete. Creates certain rebuttable presumptions as to the enforceability of covenants not to compete. Establishes remedies and procedures for enforcing covenants not to compete. Effective January 1, 2010. SB 1647 Haine (J.Watson) Amends the Illinois Insurance Code. Provides that the definition for "financial institution" includes any farm credit lending institution, including, but not limited to, a farm credit bank, farm credit association, or production credit association, whether operating under the authority of the federal Farm Credit Administration or any similar federal or State authority, and any subsidiary of that farm credit lending institution. Provides that no discount on or return of any portion of a premium or commission, whether in the form of a rebate or as part of any dividend or other financial consideration offered to a customer of any financial institution, may be offered or paid if that discount or return would provide an incentive for the customer to purchase an insurance policy, to purchase additional insurance coverage, or to obtain credit from or through a particular financial institution. Effective immediately. HB 1115 Osmond (Haine) Amends the Department of Insurance Law of the Civil Administrative Code of Illinois. Provides that Executive Order No. 2004-6 is superseded by the Act. Abolishes the Division of Insurance within the Department of Financial and Professional Regulation and creates the Department of Insurance. Transfers all the powers, duties, rights, and responsibilities of the Division of Insurance within the Department of Financial and Professional Regulation to the Department of Insurance. Effective July 1, 2009. SB 258 Noland Amends the Illinois Insurance Code. Creates a new Article establishing the Insurance Consumer Advocate Law. Provides that the Lieutenant Governor shall serve as the Insurance Public Advocate. Provides that if the position of Lieutenant Governor is vacant, a competent individual appointed by the Governor for the duration of the unexpired term shall fill the Insurance Public Advocate position. Sets forth the powers and duties of the Insurance Public Advocate. Provides that the Insurance Public Advocate may hire professional and non-professional employees as he or she finds necessary for the full and efficient discharge of the powers and duties of the Office. Provides that the Insurance Public Advocate shall, prior to beginning the discharge of duties of that office, take a Constitutional oath of office and give bond. Provides that the Insurance Public Advocate shall have access to all files, records, and documents of the Division of Insurance as outlined within the Act. Effective immediately. Life & Benefits HB 174 Burke (Bond) Amends the Illinois Income Tax Act. Requires an addition modification to base income of an amount equal to the contribution component of any nonqualified withdrawal or refund from a tuition savings program that was previously deducted from base income and that did not result from the death or disability of the beneficiary. Effective immediately. HB 300 Mathias Amends the Illinois Income Tax Act. Creates a deduction for individual taxpayers who are 62 years of age or older in an amount equal to the amount the individual pays for Medicare Part B benefits during the taxable year. Provides that the deduction is available in taxable years ending on or after December 31, 2009. Exempts the deduction from the sunset provisions. Effective immediately. HB 533 Jefferson Amends the Illinois Banking Act. Provides that a financial institution governed under the Act must fully disclose (1) to current customers, (2) to prospective customers, and (3) before any State business transaction whether the financial institution has received any federal financial assistance. Provides that the disclosure may be made through written communication, electronic mail, or on any form that may be filled out during the course of business. HB 695 Beiser Amends the Illinois Insurance Code. Provides that a policy or rider of long-term care insurance issued in this State shall disclose annually in writing to the applicant (1) an explanation of whether or the extent to which the maximum lifetime benefits shall automatically increase in keeping with overall inflation as calculated by the U.S Department of Labor Consumer Price Index and whether or the extent to which any costs associated with such increase will impact the amount of premium; and (2) the types of long-term care services that are covered by the policy or rider and any limitations or conditions that apply to the policy or rider. In the provisions concerning outline of coverage and disclosure in certificate, requires that the outline or disclosure specify the types of long-term care benefits that are covered by the policy. Provides that the policy summary and benefit report shall be delivered annually to the applicant. HB 2404 Lang Creates the Insurable Interests Act. Provides that any individual of lawful age may take out an insurance contract upon himself for the benefit of any person. Provides that no person shall knowingly procure or cause to be procured any insurance contract upon another individual unless the benefits under the contract are payable to (i) the insured or his personal representative; or (ii) a person having an insurable interest in the insured at the time when the contract was made. With respect to trusts, the Act applies to trusts existing before, on, or after the Act's effective date. Contains other provisions. Effective immediately. HB 4319 Osmond Amends the Illinois Income Tax Act. Allows a deduction for individual taxpayers in an amount equal to contributions made by the taxpayer to a qualified out-of-state tuition program under Section 529 of the Internal Revenue Code if moneys contributed to a qualified Illinois tuition program would be excluded from gross income in that State. Effective immediately. SB 2091 Haine (Fritchey) SB 2091 represents a major initiative of the life insurance industry to enact statutory provision regulating viatical settlement transactions and prohibiting Stranger Originated Life Insurance Transactions (STOLI). The bill was largely based on both the NAIC and NCOIL model bills. Health & Benefits HB 152 Mendoza (Frerichs) Organ Transplant Medication Notification Act. Requires health plans to provide notice to health plan members (and their prescribing physicians) at least 60 days prior to making any formulary change that alters the terms of coverages or discontinues coverage for a prescribed immunosuppressant drug being taken. HB 213 Smith Amends the State Employees Group Insurance Act of 1971, the Counties Code, the Illinois Municipal Code, the School Code, the Illinois Insurance Code, the Health Maintenance Organization Act, the Voluntary Health Services Plans Act, and the Public Aid Code to provide coverage for diagnostic testing for cardiovascular disease if the diagnostic testing is ordered by a physician licensed pursuant to the Medical Practice Act of 1987. Effective immediately. HB 311 Flowers Healthy Illinois Act HB 362 Holbrook Amends the Fair Patient Billing Act. Provides that upon a patient's request, a hospital must submit a copy of the patient's bill to any health care plan or plans designated by the patient. Provides that if a hospital has agreed to accept payment from a particular health care plan for inpatient and outpatient services provided in the hospital, the hospital may not refuse to submit any patient's bill to that health care plan upon the patient's request. HB 378 Sacia Amends the State Employees Group Insurance Act of 1971, Counties Code, Illinois Municipal Code, School Code, Health Maintenance Organization Act, and Illinois Insurance Code to add provisions concerning prescription drugs and cancer treatment. Provides that if a policy of accident and health or managed care plan amended, delivered, issued, or renewed in this State has an annual dollar limit for prescription drug coverage, that policy or plan may not discontinue or deny coverage for prescription drugs for the treatment of cancer, including leukemia, when an insured reaches the annual dollar limit for prescription drugs if the insured has started treatment for cancer. Provides that in such case, the policy shall continue to cover the prescription drugs for the treatment of cancer for that year of coverage. Renumbers a provision concerning shingles vaccine. Makes other changes. HB 439 Crespo Amends the Illinois Insurance Code. In the Section concerning post-mastectomy care, requires insurance companies to provide coverage for (1) a minimum of 24 hours of inpatient care following a lymph node dissection for the treatment of breast cancer or (2) a minimum of 48 hours of inpatient care following a mastectomy or breast conserving surgery for the treatment of breast cancer. Prohibits insurance companies from giving incentives or penalties to physicians or providers. Provides that insurance companies must provide notice of the required coverage to each participant and beneficiary. Makes other changes. HB 468 Hoffman Amends the Illinois Insurance Code. Provides that when a person presents a benefits information card, if the health care professional or health care provider has a participation contract with the insurer, health maintenance organization, or other entity identified on the card, then the health care professional or health care provider shall submit its claim for services covered under the policy within the time frame specified by the insurer or other entity, but not later than one year after the last date that services have been provided to the insured person. Provides that the health care professional or health care provider may not discriminate against the insured person based upon the cause of that person's sickness or accidental injury. If the health care professional or health care provider fails to submit its claim within the time frame provided for under the Act, the health care professional or health care provider may not seek remittance from the insured person. Effective immediately. HB 566 Gordon Amends the Illinois Income Tax Act. For taxable years ending on or after December 31, 2009, allows small businesses that provide health care insurance for their employees and their spouses and dependents to claim a tax credit in an amount equal to the cost of providing that insurance, but not to exceed: (i) $500 per employee who receives health care insurance; and (ii) $250 for each spouse and dependent of an employee who receives health care insurance. Provides that the taxpayer may not carry the credit forward or back and that the credit may not reduce a taxpayer's liability to less than zero. Exempts the credit from the Act's sunset provisions. Effective immediately. HB 626 Flowers Amends the State Employees Group Insurance Act of 1971, the Counties Code, the Illinois Municipal Code, the School Code, the Illinois Insurance Code, the Health Maintenance Organization Act, and the Voluntary Health Services Plans Act. Provides that an individual or group policy of accident and health insurance or managed care plan must provide coverage for intravenous feeding, prescription nutritional supplements, and physician prescribed or ordered pain medication. Amends the State Mandates Act to require implementation without reimbursement by the State. HB 631 Mautino / SB 240 Haine (Mautino) Amends the Illinois Insurance Code. In the provisions concerning the classification of insurance and insurance businesses, provides that the insurance laws of this State, including the Act, do not apply to a religious organization or members of the organization when the organization adheres to specified provisions. Sets forth the verbatim written disclaimer that all such organizations shall provide on all applications for membership or participation. Effective immediately. HB 650 Lang (Munoz) Amends the Illinois Insurance Code. Changes the definition of "retirement or disability period" to include the period when the disabled or retired fireman, if not enrolled in the municipal group insurance plan at the time of disability or retirement, may elect to enroll in the municipal group insurance plan during an open enrollment period. Makes corresponding changes in the provision. Effective immediately. HB 731 Mautino Amends the Illinois Insurance Code. In the provisions regarding recoupments, removes the requirement that a remittance advice be provided to a health care provider. Provides that except in cases of fraud, all claims paid by an insurer or other specified organization shall be considered final unless adjustments are made pursuant to the Act. Provides that if an insurer or other specified organization determines that it has made an overpayment to a provider, the insurer must give the provider a written statement specifying the basis for the claim of overpayment. Sets forth recoupment provisions for situations where (i) there is a contract between the provider and the insurer and (ii) there is no contract between the provider and the insurer. Provides that an insurer or other specified organization shall not seek recoupment for payment of a claim based on any claimed lack of medical necessity if the insurer has received the provider's treatment records. Provides that an insurer or other specified organization shall not offset payment for claims for services to a patient against claims for the provider's services to any other patient. Makes other changes. HB 812 Mautino (Haine) Amends the Illinois Insurance Code. Provides that certain Sections of the Illinois Insurance Code do not apply to short-term travel, disability income, long-term care, accident only, or limited or specified disease policies. HB 927 Mautino (Kotowski) / SB 1877 Kotowski (Mathias) Wellness Incentives. Allows health care plans to provide a reward; a health spending account contribution; a reduction in premiums; reduced medical, prescription drug or equipment copayments, coinsurance; deductibles; or a combination of these incentives as part of its wellness program. “Wellness Coverage” is defined as health care coverage for the primary purpose to engage and motivate the insured or enrollee through: incentives; provision of health education, counseling, and self-management skills; identification of modifiable health risks; and other activities to influence health behavior changes. The bill also sets forth requirements concerning (1) opportunities for participants to qualify for incentives, (2) alternatives for participants to satisfy applicable wellness program standards in which it is unreasonably difficult due to the participant’s medical condition, and (3) the ratio of the total incentive monetary amount to the cost of employee-only coverage. Effective January 1, 2010. HB 1081 Ryg Creates the Illinois Family and Employers Health Care Act. Creates the Illinois Guaranteed Option Act to make health insurance plans and HMOs affordable and accessible. Creates the Illinois Guaranteed Option Premium Assistance Program Act to provide for health insurance premium assistance. Amends the Illinois Insurance Code and other Acts; creates the Office of Patient Protection within the Division of Insurance of the Department of Financial and Professional Regulation. Creates the Comprehensive Healthcare Workforce Planning Act to provide an ongoing assessment of health care workforce trends and other matters. Amends the Loan Repayment Assistance for Physicians Act; changes the short title to the Loan Repayment Assistance for Physicians, Dentists, and Allied Health Professionals Act and adds provisions to cover dentists and allied health professionals. Creates the Community Health Provider Targeted Expansion Act to establish a program of grants for community health providers. Creates the Illinois Efficiency, Quality and Cost Containment Initiative Act to develop a 5-year strategic plan in connection with health care services for chronic conditions. Creates the Illinois Shared Responsibility and Shared Opportunity Assessment Act; imposes on employers a tax on the wages paid to Illinois employees; makes the tax applicable to wages paid on or after January 1, 2010, and requires payment of the tax beginning July 1, 2011. HB 1082 Gordon Amends the State Employees Group Insurance Act of 1971, the Counties Code, the Illinois Municipal Code, the School Code, the Illinois Insurance Code, the Health Maintenance Organization Act, the Voluntary Health Services Plans Act, and the Illinois Public Aid Code to require an insurer, upon request of an insured intended parent, to provide maternity coverage for a gestational surrogate as a dependent for a term that extends throughout the duration of the expected pregnancy and for 8 weeks after the birth of the child. Effective immediately. HB 2325 May (Garrett) Illinois Continuation Extension and American Recovery and Reinvestment Act (ARRA) special enrollment election: HB 2325 extends the period under Illinois law that an individual is eligible for continuation coverage to 12 months from nine months. The new law also requires an employer to notify and employee/member of continuation coverage within 10 days after the employee’s/member’s termination or reduction in hours below the minimum required under a group plan. The law also requires an employer to send a copy of the notice to the insurer. An employee/member must now request continuation coverage within 30 days (previously 10 days) of the date of termination or the date when notice of the right to continuation is given to the employee/member. Under the ARRA, those who formerly worked at companies with 20 or more employees are eligible for a subsidy that reduces by 65% the cost of COBRA health care coverage. PA 06-013, signed by Governor Quinn, provides a 65% health insurance payment subsidy to those who worked for companies with fewer than 20 employees. For employees who lost their jobs after September 1, 2009 and who declined COBRA because of its high costs, the bill gives them a second chance to enter the program. Under this plan, those former workers can continue their health insurance coverage and receive a 65% premium reduction. Also under this new law, insurers are prohibited from denying an employee/member the right to continuation coverage due to the failure of the employer to provide notice. Insurers must provide an employee/member an explanation of the rights to continuation if the employer fails to provide notification. HB 2408 May Amends the State Employees Group Insurance Act of 1971. Provides that small businesses may be provided group health coverage under the Act. Limits small businesses to those with 50 or fewer employees. Specifically allows for payment for coverage by the employees. Provides that employees that have other coverage do not have to enroll in the coverage. Authorizes the use of State funds, pursuant to appropriation, in operating the plan. Provides for the utilization of insurance producers in the marketing of the plans. Makes other changes concerning domestic violence shelters and services. Amends the State Finance Act to provide for payments made on behalf of the small business employees to be deposited into the Small Employers Health Insurance Reserve Fund. HB 2419 Jakobsson Amends the Illinois Insurance Code, the Health Care Purchasing Group Act, the Health Maintenance Organization Act, the Limited Health Services Organization Act, and the Voluntary Health Services Plans Act by adding a definition of "summary health information" and requiring that a group health plan disclose summary health information to the plan sponsor with 50 or more employees if the sponsor requests the information for the purpose of (i) obtaining premium bids from health plans for providing health insurance coverage under the plan or (ii) modifying, amending, or terminating the plan. Provides that the group health plan documents must be amended to incorporate certain provisions, including provisions that establish the permitted and required uses of disclosed information by the plan sponsor. Contains a nonacceleration clause. Makes other changes. HB 2482 Hernandez Amends the Comprehensive Health Insurance Plan Act. Adds a provision requiring that the Plan provide coverage for mammograms and prosthetic devices or reconstructive surgery incident to a mastectomy, Pap tests, prostate-specific antigen tests, colorectal cancer examination and screening, and contraceptives as required under certain Sections of the Illinois Insurance Code. Provides that any expense or charge for routine physical examinations or tests related to certain covered benefits are not excluded from coverage under the Plan. Deletes a provision excluding any expense or charge for oral contraceptives used for birth control or any other temporary birth control measures from coverage under the Plan. HB 2532 Dugan Amends the Illinois Insurance Code in relation to reimbursement rates. Provides that a health insurer that bases payment for benefits upon a usual or customary charge or other similar reimbursement methodology must disclose certain information. Replaces references to "customary fee" with "customary charge or other similar methodology" throughout the provision. Provides that under no circumstances shall rates paid by Medicaid or Medicare, or rates negotiated or set by the insurer or any other insurer in conjunction with their contracted providers, be used to determine usual and customary charges. Makes other changes. Effective January 1, 2010. HB 2652 Joyce (Munoz) Amends the Illinois Insurance Code, Health Maintenance Organization Act, and Voluntary Health Services Plans Act to provide coverage for prosthetic and customized orthotic devices that are no less favorable than the terms and conditions applicable to substantially all medical and surgical benefits provided under the plan or coverage. Provides that a policy or plan may require prior authorization. Provides that repairs and replacements of prosthetic and orthotic devices are also covered. Provides that a policy or plan may require that, if coverage is provided through a managed care plan, the benefits mandated pursuant to the Act shall be covered only if the prosthetic or orthotic devices are provided by a licensed provider employed by a provider service who contracts with or is designated by the carrier. Sets forth provisions concerning (i) patient access and (ii) in-network and out of network standards. Makes other changes. Contains a nonacceleration clause. Effective immediately. HB 2687 Leitch (Risinger) Amends the Illinois Insurance Code to provide that if an insurer's cancellation provision provides that the insured may cancel the policy by the nonpayment of premium, then the insured may give written notification of cancellation of a group health insurance policy up to the last day of the policy year or the policy may lapse for nonpayment of premium. Provides that if any benefits are paid with a date of service after the preceding policy lapse date, then the responsibility to pay shall be by the succeeding carrier, the employer, or by a combination of the parties pursuant to the terms of the new policy in force HB 3639 May Amends the Illinois Insurance Code. Makes changes in the Section concerning the "time of payment of claims" provision required in each accident and health policy. With respect to the requirement that all claims and indemnities payable under the terms of a policy of accident and health insurance be paid within 30 days following receipt by the insurer of due proof of loss, provides that the policy of accident and health insurance includes both individual and group insurance against disablement or loss of time. Makes a change concerning application to a group policy of dental insurance. In the Section concerning a delay in payment of claims, provides that periodic payments of accrued indemnities for disablement or for loss-of-time coverage under both individual and group accident and health policies, as well as payment of accrued indemnity under any individual or group life or accidental death policy (instead of periodic payments of accrued indemnities for loss-of-time coverage under accident and health policies), shall commence not later than 30 days after the receipt by the company of the required written proof of loss. HB 3650 Flowers (Brady) Amends the State Employees Group Insurance Act of 1971, the Counties Code, the Illinois Municipal Code, the School Code, the Illinois Insurance Code, the Health Maintenance Organization Act, the Limited Health Service Organization Act, and the Voluntary Health Services Plans Act. Provides that a policy of accident or health insurance or managed care plan shall establish and maintain an appeals procedure related to the denial of health care benefits. Sets forth guidelines for maintaining an appeals procedure, including an expedited process for an enrollee with (1) an ongoing course of treatment ordered by a health care provider, the denial of which could significantly increase the risk to an enrollee's health, (2) a treatment referral, service, procedure, or other health care service, the denial of which could significantly increase the risk to an enrollee's health, or (3) nonrenewal or termination of a plan. Provides that if an initial appeal is denied by the policy or plan, an enrollee is entitled to seek external independent review of the decision made by the policy or plan. Sets forth guidelines and requirements for the external independent review process. Provides that nothing in the provision shall be construed to require a policy or plan to pay for a health care service not covered under the enrollee's certificate of coverage or policy. Provides that a policy or plan shall provide each enrollee, prospective enrollee, and enrollee representative with written notification of the policy's or plan's appeal processes. Amends the Managed Care Reform and Patient Rights Act to provide that when an appeal concerns a decision or action by a health care plan, its employees, or its subcontractors that relates to the nonrenewal or termination of a plan, the health care plan must allow for the filing of an appeal either orally or in writing. Makes other changes. HB 3748 Flowers Amends the Illinois Insurance Code. In the provisions concerning remittance advice and procedures and recoupment, provides that no recoupment or offset may be requested or withheld from future payments 60 or more days after the original payment was made. Provides that the provisions concerning administration and enforcement are deemed incorporated into health care professional and health care provider service contracts entered into on or before the effective date of the amendatory Act. Provides that the Director may require an insurance company that issues a policy in wilful violation of the Act to pay a penalty in a sum not exceeding $5,000 (instead of $1,000). Makes other changes. HB 3749 Flowers Amends the Illinois Insurance Code. Provides that an insured may be entitled to interest at the rate of 10% (instead of 9%) if an insurer fails to pay a claim within a specified time frame. Provides that an insurer may not (1) reduce the amount of a claim or (2) recoup or offset any amount of a claim unless that reduction or recoupment or offset results from an arbitration process that has been authorized by the Director of Insurance. Provides that no policy or plan may deny, discontinue, or alter coverage of a treatment method that follows a prescribed standard of care for any illness, condition, injury, disease, or disability during a benefit period if the illness, condition, injury, disease, or disability was covered at any time during the benefit period or if a claim regarding the treatment method is paid during the benefit period. Provides that insurers may not change certain fee calculations more frequently than once each year. Grants the Director of Insurance specific authority to issue a cease and desist order against, fine, or otherwise penalize any company that violates the provisions concerning coverage and rates. Makes other changes. Effective immediately. HB 3754 May Creates the Individual Health Insurance Fairness Law. Provides that no insurer authorized to transact the class of business set forth in Class 1 and Class 2 (accident and health) of the Insurance Code and issuing small group coverage may deny coverage to applicants based on health status. Creates the Health Insurance Financial Transparency Law. Provides that all insurers authorized to transact the class of business set forth in Class 1 and Class 2 (accident and health) of the Insurance Code shall maintain a minimum medical loss ratio of 85% or above for all companies in the individual and small group markets. Provides that such companies may average total costs across all plans. Creates the Small Group and Self-Employed Health Insurance Fairness Law. Provides that all insurers, as defined in the Law, shall offer one or more health insurance choice policies to employees of eligible employers in this State and to self-employed persons. Provides that an insurer offering a policy under the Law may not base insurance ratings on the health status or claims experience in the employer-based small group market. Creates the Health Insurer Accountability and Patient Protection Law. Provides that in cases of an adverse determination by an insurer or health carrier, the insurer or health carrier shall provide for external independent reviews of claim denials or adverse determinations. Sets forth provisions concerning denials of treatment for mental and emotional disorders. Creates the Illinois Affordable Health Insurance Law. Contains a short title provision only. Makes other changes. HB 3773 Bellock Creates the Affordable Health Insurance Act. Provides that insurers that include and operate wellness and health promotion programs, disease and condition management programs, health risk appraisal programs, and similar provisions in their high deductible health policies in keeping with federal requirements shall not be considered to be engaging in unfair trade practices under the Uniform Deceptive Trade Practices Act. Sets forth requirements for preferred provider and nonpreferred provider plan reimbursements for Health Savings Account-eligible, high-deductible plans using nonpreferred provider reimbursements. Provides that Health Reimbursement Arrangement-only plans that are not sold in connection with or packaged with individual health insurance policies shall not be considered insurance under the laws of this State. Provides that individual health insurance policies offered or funded through Health Reimbursement Arrangement-only plans shall not be considered employer sponsored or group coverage under the laws of this State. Amends the Uniform Deceptive Trade Practices Act to provide that the Act does not apply to insurers that operate programs in keeping with federal requirements and the Affordable Health Insurance Act. Makes other changes. HB 3814 Davis Creates the Public Health Advocates Act. Establishes the Public Health Advocates as a nonprofit membership corporation to effectively represent and protect the interests of Illinois health care consumers on certain matters and provides that members of the Corporation are Illinois residents who have contributed money to the Corporation. Provides duties and powers for the Corporation. Sets forth requirements for the board of directors of the Corporation, including qualifications for candidates, elections, appointment of officers, meetings, and duties. Permits the Corporation to prepare and furnish enclosures to State agencies to be included in agency mailings. Prohibits the Corporation and its directors, officers, and employees from accepting anything of monetary value above $100 from certain persons. Provides that the Act shall not be construed to limit the right of any person to participate in a regulatory proceeding or court action or to relieve any regulatory agency or court of any obligation to permit participation in a proceeding or action. Amends the Citizens Utility Board Act to comply with the mailing provisions of the Public Health Advocates Act. Effective immediately. HB 3861 Franks Amends the Illinois Insurance Code. Provides that a physician or other health care professional who provides services through a hospital that is a member of a preferred provider organization to an insured person who is admitted to the hospital and participates in the preferred provider organization may not use any fee schedule other than that set forth by the insurer for the preferred provider organization. HB 3923 Harris (Steans) Insurance Reforms. IIA of IL and many other industry groups negotiated this bill along with consumer advocacy groups, the bill sponsors, the director of the Department of Insurance, business and labor representatives and others. In its current form, HB 3923 requires: Mandatory standard applications for individual and small groups; Mandatory second level external independent review – with accelerated turnaround times – of an adverse determination on an appeal when requested by a member (standard appeal turnaround time is 15 days and urgent appeal is no more than two business days); Bi-annual reporting to the DOI by line of business (individual, 2-25, 26-50, 51+) of all administrative expenses (broken down by category) and premiums collected, medical loss, membership numbers, discounts, taxes, etc. Information will be made public by the DOI on its website. HB 4042 Mulligan Amends the Illinois Insurance Code, the Health Maintenance Organization Act, and the Voluntary Health Services Plans Act to require coverage for an operation to implant cochlear implants and post-treatment services for children identified within one year of birth as being deaf or hearing impaired. HB 4043 Mulligan Amends the Illinois Insurance Code, the Health Maintenance Organization Act, and the Voluntary Health Services Plans Act. Provides that group and individual policies of accident and health insurance and managed care plans must provide coverage for (1) operations to implant cochlear implants and post-treatment services for children identified within one year of birth as being deaf or hearing impaired and (2) audiological services and hearing aids for children up to 18 years of age. Makes other changes. HB 4045 Bellock Creates the Health Savings Account Act and amends the Illinois Income Tax Act. Provides that, beginning in taxable year 2010, a resident of Illinois or an employer may deposit contributions, subject to certain limitations, into a health savings account. Provides that the principal contributed to and the interest earned on a health savings account and money reimbursed to an eligible individual or an employee for qualified medical expenses is exempt from the Illinois income tax. Sets forth restriction on the use of funds held in a health savings account. Provides that an eligible individual may withdraw money from his or her health savings account for any purpose, but provides that certain withdrawals are not tax exempt. Repeals the Health Savings Account Act on January 1, 2021. Effective July 1, 2009. HB 4193 Wait Amends the Illinois Insurance Code. Provides that an individual that purchases a policy of accident and health insurance that is a high deductible health plan with a health savings account may waive coverage for any or all insurance coverage mandates required by the Code. Provides that the Division of Insurance may give assistance to individuals regarding the waiving of mandated coverage. Requires the Division to recognize the waiver as a waiver of coverage required under the Illinois Insurance Code. Makes other changes. Effective immediately. HB 4331 Mell Amends the Illinois Insurance Code. Provides that no group policy of accident and health insurance providing coverage for more than 25 employees that provides pregnancy related benefits shall contain a provision that covers the diagnosis and treatment of infertility only if the individual was covered under the policy for at least one year. Deletes a definition for "infertility". SB 68 Silverstein Amends the Illinois Insurance Code, the Voluntary Health Services Plans Act, and the Voluntary Health Services Plans Act to require coverage for hearing instruments and related services for all individuals when a hearing care professional prescribes a hearing instrument. Provides that an insurer shall provide coverage for up to $2,500 per hearing aid per insured's hearing impaired ear subject to certain restrictions. Provides that an insurer shall not be required to pay a claim if the insured filed such a claim 36 months prior to the date of filing the claim with the insurer and the claim was paid by any insurer. Effective immediately. SB 136 Clayborne Amends the Illinois Insurance Code. Provides that when a person presents a benefits information card, if the health care professional or health care provider has a participation contract with the insurer, health maintenance organization, or other entity identified on the card, then the health care professional or health care provider shall submit its claim for services covered under the policy within the time frame specified by the insurer or other entity, but not later than one year after the last date that services have been provided to the insured person. Provides that the health care professional or health care provider may not discriminate against the insured person based upon the cause of that person's sickness or accidental injury. If the health care professional or health care provider fails to submit its claim within the time frame provided for under the Act, the health care professional or health care provider may not seek remittance from the insured person. Effective immediately. SB 301 Brady Creates the Stopgap Health Insurance Act. Contains the short title provision only. SB 1331 Koehler Creates the Illinois Family and Employers Health Care Act (contains only a short title). SB 1506 Collins (Mautino) Creates the Health Carrier External Review Act. Sets forth standards for independent external review procedures for adverse determinations by a health carrier against a covered person. Provides that the Act applies to an entity subject to the insurance laws and regulations of this State or subject to the jurisdiction of the Director and that contracts or offers to contract concerning any costs of health care. Requires health carriers to notify covered persons and their health care providers in writing of the covered person's right to request an external review as provided by the Act. Sets forth notice requirements. Provides that a request for an external review shall not be made until the covered person has exhausted the health carrier's internal grievance process. Sets forth requirements for standard external reviews and expedited external reviews. Provides that an external review decision is binding on the health carrier and binding on the covered person except to the extent the covered person has other remedies available. Sets forth minimum qualifications for independent review organizations and provides that the Director shall approve independent review organizations eligible to be assigned to conduct external reviews. Provides that each health carrier shall maintain written records of external review requests for each calendar year and submit a report to the Director by March 1 of each year. Provides that the health carrier shall be solely responsible for paying the cost of external reviews. Sets forth disclosure requirements. Amends the Managed Care Reform and Patient Rights Act to provide that an enrollee may appeal adverse decisions in accordance with the Health Carrier External Review Act. Deletes a provision concerning external independent review. Makes other changes. Contains a severability clause. Effective January 1, 2010. SB 1646 Collins Creates the Health Carrier External Review Act. Sets forth the purpose of the Act. Amends the Illinois Insurance Code. Makes technical changes in a Section concerning the short title. SB 1683 Demuzio (Osmond) Amends the State Employees Group Insurance Act of 1971, Illinois Insurance Code, and Health Maintenance Organization Act to set forth certain reference compendia and other authoritative compendia, as identified by the Federal Secretary of Health and Human Services or the insurance commissioner, in which a drug must be recognized for the treatment of the specific type of cancer for which the drug has been prescribed. Effective immediately. SB 1699 Syverson Amends the State Employees Group Insurance Act of 1971, the Counties Code, the Illinois Municipal Code, and the School Code to provide that beginning on the effective date of the Act and continuing until January 1, 2011, neither the State nor any political subdivision thereof shall impose a new health care mandate with respect to the provisions concerning required health benefits. Preempts home rule powers. Amends the State Mandates Act to exempt from State reimbursement. Effective immediately SB 1893 Haine Creates the Health Insurance Choice Law. Amends the Illinois Insurance Code. Makes technical changes in a Section concerning the short title. SB 2019 Frerichs Creates the Continuity of Patient Care for Immunosuppressant Drugs Act. Provides that a health insurance policy or health care service plan contract that covers immunosuppressant drugs may not limit, reduce, or deny coverage of immunosuppressant drugs if prior to the limitation, reduction, or denial of coverage the insured was using the drug and was covered under the policy or contract and the drug was covered under the policy or contract. Provides that nothing in the Act shall prohibit an insurer from making changes in its benefit design that applies to all covered drugs or from increasing cost-sharing obligations due to a percentage coinsurance payment that necessarily increases with an increase in the underlying drug prices. SB 2287 Haine Amends the Illinois Insurance Code. Provides that no insurer or administrator may require a health care provider to agree to a written contract or policy containing any language that directly or indirectly limits the ability of that provider to seek legal redress in any court of law. Provides that an insurer must give direct written notice of any amendment or modification to a provider contract and that no amendment may take effect until the provider agrees to it in writing. Provides that the Department of Insurance shall enforce the provisions of the Act. Makes other changes. Tort HB 8 Tracy Amends the Code of Civil Procedure. Provides that, if none of the parties joined in good faith as defendants in a civil case are residents of this State, an action against those defendants may be commenced in the State only in the county in which the transaction out of which the cause of action arose, or some part of that transaction, occurred. Provides that a corporation organized under the laws of or authorized to do business in this State is a resident only of any county in which it has its registered office or other office (rather than being a resident of any county in which it does business). Makes similar changes regarding partnerships and voluntary unincorporated associations. Deletes language providing that an insurance company incorporated under the laws of, or doing business in this State may be sued in any county in which the plaintiff or one of the plaintiffs reside. Provides that, if none of the defendants in a civil action are residents of this State, and no part of the transaction out of which the action arose occurred in this State, the action must be dismissed for lack of proper venue. Makes other changes. Provides that the changes apply to causes of action filed on or after the effective date of the Act. Effective immediately. HB 53 Reis Amends the Code of Civil Procedure. Provides that in any case in which the plaintiff makes a claim based upon exposure to asbestos, the following issues are relevant to the determination of liability and damages, the court shall allow the parties to present evidence concerning these issues, and the trier of fact shall determine liability and damages based on these issues, together with any other relevant issues: (1) whether the plaintiff had exposure to any asbestos manufactured by, processed by, or otherwise associated with any entity other than the defendant; (2) whether the plaintiff's exposure to asbestos was to asbestos exclusively manufactured by, processed by, or otherwise associated with the defendant; and (3) whether there is a causal relationship between the plaintiff's alleged injuries and the asbestos manufactured by, processed by, or otherwise associated with the defendant. Effective immediately SB 184 Haine Provides that prejudgment interest must be awarded in an action at law or in arbitration from the date the party from whom damages are sought is given written notice of the claim for money damages or the action or arbitration is filed, whichever is earlier, until the award or judgment is entered. Provides that the notice must refer to the statute and be tendered by personal service by the sheriff or a private process server; certified mail, return receipt requested; or any documented method considered an accepted business practice. The notice may be sent by the party seeking money damages or his or her attorney to the party from whom money damages are sought, that party's attorney, or that party's liability insurer. Provides that the monthly prejudgment interest rate shall be calculated by the Comptroller and published on his or her website each month. Provides that the monthly prejudgment interest rate shall be calculated by adding 2% to the interest rate of the one-year Treasury constant maturity stated in the last H15 report of the previous month, published by the Federal Reserve System. Provides that a defendant may avoid paying prejudgment interest by making a written offer of settlement to the plaintiff any time after that defendant files an answer, but no later than 120 days after filing an answer. Provides that if the plaintiff does not accept that offer of settlement in writing within 30 days of receipt, and the plaintiff's award or judgment against that defendant is less than or equal to that offer of settlement, no prejudgment interest may be awarded against that defendant. The parties may agree in writing to extend the 120-day period. Provides that these provisions do not apply to: (1) A unit of local government, school district, community college district, or other governmental entity. (2) An action in small claims. (3) A claim for punitive damages. (4) If the action is governed by a more specific State statute, including but not limited to the Interest Act, or preemptive federal law. Provides that these provisions apply only to causes of action accruing on or after the effective date. Effective January 1, 2010. Property & Casualty HB 274 Acevedo Amends the Illinois Insurance Code. Creates the Public Adjusters Law. Repeals the Article of the Illinois Insurance Code concerning Public Insurance Adjusters and Registered Firms. Provides that a person shall not act or hold himself out as a public adjuster in this State unless licensed as a public adjuster. Sets forth the specific residency requirements for a public adjuster licensee. Provides that an individual applying for a public adjuster license must pass a written examination unless exempt pursuant to certain provisions. Provides for the creation of an optional apprentice public adjuster license. Provides that the Director of Insurance may place on probation, suspend, revoke, or refuse to issue or renew a public adjuster's license or may levy a civil penalty or any combination of actions against a public adjuster licensee who violates the Act. Provides that an individual who holds a public adjuster license shall satisfactorily complete a minimum of 24 hours of continuing education courses. Sets forth certain standards of conduct for public adjusters. Provides that a public adjuster shall report to the Director any administrative action taken against the public adjuster in another jurisdiction or by another governmental agency in this State within 30 days of the final disposition of the matter. Amends the Freedom of Information Act to exempt from disclosure certain documents required under the Public Adjusters Law of the Illinois Insurance Code. Contains other provisions. HB 370 Bradley (Forby) Amends the Illinois Vehicle Code. Provides that a person commits the offense of operation of an insured motor vehicle causing bodily harm (a Class A misdemeanor) when the person (i) operates a motor vehicle in violation of the mandatory insurance provisions of the Illinois Vehicle Code requiring certain motor vehicles operated on public highways to be covered by a liability insurance policy, and (ii) causes bodily harm to another person as a proximate result of the driver's uninsured operation of the motor vehicle. HB 418 Davis (Haine) Amends the Use of Credit Information in Personal Insurance Act. Provides that if an insurer denies, cancels, or does not renew a policy of personal insurance based on credit information, it must provide the affected party with a notice as described in the provisions of the Act concerning adverse action notification and an opportunity for the affected party to explain its credit information under the procedures outlined in the provisions of the Act concerning extraordinary life events. Removes language concerning the use of personal credit information. Provides that an insurer that uses credit information to underwrite or rate risks shall, at annual renewal upon the request of an insured or an insured's agent, re-underwrite and re-rate the insured's personal insurance policy based on a current credit report or insurance score unless specified criteria are met Effective immediately. HB 420 Davis Amends the Illinois Insurance Code. Provides that no company issuing a policy of life or accident and health or personal insurance may use a consumer's credit information for the purpose of rating or underwriting any such policy. Repeals the Use of Credit Information in Personal Insurance Act. Makes other changes. HB 434 Ford Amends the Illinois Vehicle Code. Provides that each contract for the transportation of household goods by a common or contract carrier doing business in Illinois must contain an accurate estimate of the total value of the household goods being moved. Requires household goods common or contract carriers doing business in Illinois to provide, at a minimum, insurance or surety coverage equaling 2.5 times the estimated total value of the household goods being moved under the contract. Requires that the common or contract carrier must provide written proof of insurance or surety coverage in that amount to the person whose household goods are being moved. Effective immediately. HB 512 Eddy Amends the Illinois Insurance Code. In the provisions concerning definitions and interchangeable terms, provides that trustees of a group workers' compensation pool owe the same fiduciary duty to the pool and its members and be held to the same duty of care in the management and administration of the pool as directors of a stock corporation. In the provisions concerning pool administration, sets forth additional disclosure requirements for administrators. Provides that service companies for group workers' compensation pools are subject to supervision and examination in the same manner as the administrators for group workers compensation insurance pools. HB 536 Jefferson Amends the Illinois Insurance Code. Provides that any company issuing a policy of automobile insurance must print the amount of the insured's deductible on the insurer-provided insurance card. HB 687 Dunkin Amends the Firearm Owners Identification Card Act. Provides that any person who owns a firearm in this State shall maintain a policy of liability insurance in the amount of at least $1,000,000 specifically covering any damages resulting from negligent or willful acts involving the use of such firearm while it is owned by such person. Provides that a person shall be deemed the owner of a firearm after the firearm is lost or stolen until such loss or theft is reported to the police department or sheriff of the jurisdiction in which the owner resides. Provides that the Department of State Police shall revoke and seize a Firearm Owner's Identification Card previously issued under this Act if the Department finds that the person to whom such card was issued possesses or acquires a firearm and does not submit evidence to the Department of State Police that he or she has been issued in his or her name a liability insurance policy in the amount of at least $1,000,000 specifically covering any damages resulting from negligent or willful acts involving the use of such firearm while it is owned by such person. Effective January 1, 2010. HB 707 Joyce (Sandoval) Amends the Illinois Vehicle Code. Provides that, in addition to any other fine or penalty, a law enforcement official may impound the motor vehicle of any person operating that vehicle without insurance. Requires the Secretary of State to establish and maintain a database of all motor vehicles determined by the Secretary to be uninsured and requires that this database be available to federal, state, and local law-enforcement agencies. HB 988 Acevedo Amends the Illinois Vehicle Code and the State Finance Act. Provides for issuance of a driver's certificate that states that it may not be accepted by a federal agency for a federal identification or other official purpose and uses a unique design or color indicator that visually distinguishes it from driver's licenses and permits. Provides that an applicant for a driver's certificate must: be at least 18 years of age; provide a valid federal individual tax identification number or social security number; provide a valid passport and additional specified documents; file proof provided to the applicant by the Illinois State Police that a set of the applicant's fingerprints has been collected; and surrender all false driver's licenses or State identification cards in the applicant's possession. Contains provisions regarding: destruction of certain documents; exchanges of information by the Secretary of State and the Illinois Department of Revenue and the Illinois State Police; applicability of the Code to a driver's certificate holder or applicant; mandatory insurance; review of a denial of a driver's certificate; other licenses and identification; photographs; fees; revocation; and other matters. Creates the Secretary of State Driver's Certificate Fund as a special fund in the State treasury and provides that the Fund shall be used for the increase in costs associated with additional applicants for driver's certificates and costs associated with specialized verification procedures regarding those applicants. Makes other changes. Makes certain provisions inoperative 5 years after the effective date of the amendatory Act but provides that a document issued under those provisions remains valid until the date on the document. Effective January 1, 2010. HB 1076 Schmitz Amends the Public Construction Bond Act. Provides that refund of a cash bond is subject to satisfaction of the requirements of the bond. Provides that bonds, irrevocable letters of credit, surety bonds, and letters of commitment are deemed to contain undertakings set forth in the Act and persons furnishing material or performing labor have a right to sue thereon. HB 2238 Berrios Amends the Illinois Insurance Code. Provides that no policy of automobile insurance may be cancelled where the basis for such cancellation is the insured's lack of a valid drivers license or valid instruction permit if the insurer failed to ask the insured for proof of a valid drivers license or valid instruction permit at the time the insured applied for coverage. HB 2284 Ford (Sullivan) Amends the Personal Property Storage Act. Provides for administration of the Act by the Illinois Commerce Commission (instead of the Department of Agriculture). Makes changes concerning applications by limited liability companies, bond or insurance amounts, violation of the Commission's rules, fees set by rule, investigators, civil penalties, license revocation, subpoenas, and oaths. Effective January 1, 2010. HB 2377 Smith Creates the Local Government Construction Contract Bidders Act. Requires bidders on construction contracts with units of local government and school districts to comply with applicable laws, comply with applicable provisions of the Prevailing Wage Act, comply with federal equal employment opportunities laws, have a valid FEIN or SSN, have valid insurance certificates, and participate in apprenticeship and training programs. Imposes monetary penalties for violation. HB 2500 Dunkin Amends the Public Construction Bond Act. Authorizes a public body to waive or lower the requirement of a surety bond for a public construction contract if the contractor is a small business enterprise. Defines a small business enterprise. HB 2529 Holbrook Amends the Illinois Insurance Code. Provides that no company authorized to transact the kinds of business related to Class 2 (casualty, fidelity, and surety) or Class 3 (fire and marine) insurance may issue an insurance contract or policy that contains a provision that allows a property claim and settlement offer to be calculated using a method other than actual cash value. Defines "actual cash value" as replacement cost less depreciation, considering the age and condition of the property. HB 3612 Osmond Amends the Illinois Insurance Code. Provides that insurers providing a commercial general liability policy that includes hired automobile and non-owned automobile liability are neither required to provide, nor are they prohibited from offering or making available uninsured and hit and run vehicle coverage. Provides that insurers providing a commercial automobile policy shall offer and provide such coverage as required by the Illinois Vehicle Code to contract carriers transporting employees in the course of their employment. Effective immediately. HB 3712 D’Amico Amends the Illinois Vehicle Code. Reorganizes the language of a provision concerning motor vehicle salvage titles by deleting and adding the same language in different locations. Provides that upon payment of damages on a total loss claim for theft of a vehicle, the Secretary of State may issue an unbranded certificate of title to an insurance company in the insurer's name if the insurer (i) has made a payment of damages on a total loss claim for the theft of a vehicle and (ii) has delivered or mailed the certificate of title along with proper application and fee to the Secretary of State within 20 days (rather than providing no affirmative requirement to apply to the Secretary of State). Provides that if the vehicle is later recovered and has incurred damage that initially would have caused the vehicle to be declared a total loss by the insurer, then a salvage title must be applied for by the insurance company within 20 days of the recovery of the vehicle (rather than providing no specified time requirement for application). Provides that when a vehicle of a self-insured company is to be sold in-State and has sustained damaged by collision, fire, theft, rust corrosion, or other means so that the self-insured company determines the vehicle to be a total loss, or if the cost of repairing the damage, including labor, would be greater than 33 1/3% (rather than 50%) of its fair market value without that damage, the vehicle shall be considered salvage. Effective January 1, 2010. HB 3931 May Amends the Illinois Insurance Code. Provides that if a company authorized to transact the kinds of business related to Class 2 (casualty, fidelity, and surety) or Class 3 (fire and marine) insurance offers a policy of homeowner's insurance that is issued together with a policy of personal property insurance, then such policy must include competitively priced personal property coverage, including coverage options that are less than 80% of the value of the home. HB 4022 Mautino Amends the Employee Leasing Company Act. Provides that any registration issued under the Act may be revoked or an application for registration may be denied if the Director of Insurance finds that the lessor, applicant, chief executive officer, partner, sole proprietor, or executive director (instead of lessor or applicant) meets certain conditions. HB 4114 Leitch Amends the Counties Code and the Illinois Insurance Code. Provides that when an insurer pays a claim to an insured for mine subsidence, the insurer must file notice of that claim with the recorder of the county where the insured's property is located. Provides that every recorder must accept notice of a payment of a claim for mine subsidence insurance and file this information in a way that allows it to be accessed in a title search of the property. HB 4135 Rose Amends the Sureties Act. Provides that the Act applies to sureties who share primary liabilities with their principals on promissory notes or performance or other contracts and whose primary liabilities originate from the contracts of their principals. Provides that the Act does not apply to guarantors of payment or guarantors of collection who undertake obligations to pay creditors of principal debtors, but whose obligations are not primary liabilities or are otherwise created by contracts that are separate from the contractual obligations of the principals. Effective immediately. SB 1268 Link (Washington) Amends the Illinois Vehicle Code. Raises a motor vehicle renter's maximum liability for actual and reasonable costs incurred by the loss due to theft of the rental motor vehicle up to its fair market value immediately before the loss occurred using a commonly and commercially accepted method to establish a fair market value (rather than $2,000); deletes provisions relating to a failure to exercise ordinary care. Provides that if the estimate of repair exceeds $3,500, then, prior to any repairs being initiated, the insurer of the renter or the renter shall be allowed 72 hours from the date of notice to inspect the damaged vehicle and obtain another estimate of repair on the damaged vehicle. Effective July 1, 2009. SB 1351 Trotter Amends the Illinois Vehicle Code to require every operator and passenger on a motorcycle, motor driven cycle, or motorized pedalcycle to wear a helmet that meets federal safety standards. Fire Protection Districts HB 665 Moffitt (Noland) Amends the Fire Protection District Act. Increases to 0.60% (now, 0.40%) the maximum allowable tax rate that the Board of Trustees of a fire protection district may levy upon all taxable property within the territorial limits of the district. Makes conforming changes. Effective immediately. HB 666 Smith (Koehler) Amends the Fire Protection District Act. Provides that, until January 1, 2010, the fee charged to persons and entities that are not residents of the fire protection district for the cost of providing services shall not exceed $250 per vehicle (now, $125) and shall not exceed $70 per hour per firefighter (now, $35 per hour per firefighter). Provides that those amounts shall be adjusted annually to reflect changes in the Consumer Price Index during the previous 12-month period. Effective immediately. HB 667 Chapa LaVia (Holmes) Amends the Fire Protection District Act. Provides that an elected board of trustees of a fire protection district may provide for the establishment of a 5-member board of trustees by adopting an ordinance to that effect. Sets forth the procedure for electing the additional trustees. Specifies the terms of the trustees. Provides that an elected board of trustees that has established a 5-member board of trustees by ordinance may provide for a return to a 3-member board of trustees by adopting an ordinance to that effect. Effective immediately HB 670 Mathias (Cullerton) Amends the Fire Protection District Act. Provides that trustees in a fire protection district with more than 30 full-time paid firefighters shall receive a salary not to exceed $4,000 per year (now, $2,000 per year). Effective immediately. HB 673 Black Amends the Fire Protection District Act. Deletes the requirement that a fire protection district publish in a specified newspaper or post copies of all ordinances making any appropriation. Provides that ordinances making appropriations shall take effect from and after their passage (now, 10 days after the ordinance is published or posted). Effective immediately.
|