HB4293 94TH GENERAL ASSEMBLY

LRB094 16124 LJB 51364 b

94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB4293

Introduced 12/21/05, by Rep. Mark H. Beaubien, Jr.

SYNOPSIS AS INTRODUCED:

215 ILCS 125/2-3

from Ch. 111 1/2, par. 1405

Amends the Health Maintenance Organization Act. Provides that nothing in the powers granted to health maintenance organizations shall be construed to prohibit a health care plan that qualifies as a high deductible health plan under the Internal Revenue Code from requiring the application of deductibles to benefits provided under the plan. Effective immediately.

A BILL FOR

AN ACT concerning insurance.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Health Maintenance Organization Act is amended by changing Section 2-3 as follows:

(215 ILCS 125/2-3) (from Ch. 111 1/2, par. 1405)

Sec. 2-3. Powers of health maintenance organizations. The powers of a health maintenance organization include, but are not limited to the following:

(a) The purchase, lease, construction, renovation, operation, or maintenance of hospitals, medical facilities or both, and their ancillary equipment, and such property as may reasonably be required for its principal office or for such other purposes as may be necessary in the transaction of the business of the organization.

(b) The making of loans to a medical group under contract with it and in furtherance of its program or the making of loans to a corporation or corporations under its control for the purpose of acquiring or constructing medical facilities at hospitals or in furtherance of a program providing health care services for enrollees.

(c) The furnishing of health care services through providers which are under contract with or employed by the health maintenance organization.

(d) The contracting with any person for the performance on its behalf of certain functions such as marketing, enrollment and administration.

(e) The contracting with an insurance company licensed in this State, or with a hospital, medical, dental, vision or pharmaceutical service corporation authorized to do business in this State, for the provision of insurance, indemnity, or reimbursement against the cost of health care service provided by the health maintenance organization.

(f) The offering, in addition to basic health care services, of (1) health care services, (2) indemnity benefits covering out of area or emergency services, (3) indemnity benefits provided through insurers or hospital, medical, dental, vision, or pharmaceutical service corporations, and (4) health maintenance organization point-of-service benefits as authorized under Article 4.5.

(g) Rendering services related to the functions involved in the operating of its health maintenance organization business including but not limited to providing health services, data processing, accounting, or claims.

(g-5) Indemnification for services provided to a child as required under subdivision (e)(3) of Section 4-2.

(h) Any other business activity reasonably complementary or supplementary to its health maintenance organization business to the extent approved by the Director.

Nothing in this Section shall be construed or interpreted to prohibit or prevent a health care plan that qualifies as a high deductible health plan, as defined by Section 223 of the federal Internal Revenue Code, as now or hereafter amended, from requiring the application of deductibles to benefits provided under the plan.

(Source: P.A. 92-135, eff. 1-1-02.)

Section 99. Effective date. This Act takes effect upon becoming law.