Sen. William R. Haine
Filed: 3/12/2010
 
 

 




 

 		












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AMENDMENT TO SENATE BILL 3096 




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    AMENDMENT NO. ______. Amend Senate Bill 3096 by replacing 
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everything after the enacting clause with the following:
 
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    "Section 5. The Charitable Trust Act is amended by adding 
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Section 20 as follows:
 
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    (760 ILCS 55/20 new)
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    Sec. 20. Medical Sharing Trust Law.
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    (a) This Section may be referred to as the Medical Sharing 
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Trust Law. 
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    (b) For the purposes of this Section "Medical Sharing 
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Trust" means an organization that facilitates payment of the 
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medical expenses of its participants as provided in this 
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Section and complies with all provisions of this Act and the 
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Solicitation for Charity Act. 
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    (c) An organization complying with this Section as a 
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Medical Sharing Trust is not subject to the provisions of the 
 


 






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Illinois Insurance Code. A Medical Sharing Trust shall not 
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offer any services  that are regulated under any provision of 
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the Illinois Insurance
Code. 
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    (d) No Medical Sharing Trust shall be offered, issued, 
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sold, or solicited to participants in this State as exempt 
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under subsection (c) of this Section unless the Medical Sharing 
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Trust has complied with all requirements set forth in 
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subsections (b) and (e) of this Section.
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    (e) The following provisions shall apply concerning the 
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operation of a Medical Sharing Trust: 
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        (1) A Medical Sharing Trust shall facilitate payments 
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    directly between participants who have present medical 
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    needs and participants with the ability to pay for the 
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    benefit of those participants in need.  A Medical Sharing 
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    Trust is prohibited from assuming liability for or 
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    guaranteeing payment of any medical expenses and from 
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    comingling participants' funds.
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        (2) All participants shall execute a release stating 
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    that no other participants or the Medical Sharing Trust 
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    shall be legally obligated in any way to pay for a medical 
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    need.
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        (3) A Medical Sharing Trust shall facilitate the 
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    payments provided for in paragraph (1) of this subsection 
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    (e) through payments made directly from one participant to 
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    another without transferring funds to a third party or the 
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    Medical Sharing Trust.
 


 






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        (4) A Medical Sharing Trust may cancel the membership 
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    of a participant when that participant indicates their 
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    unwillingness to participate by failing to make a payment 
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    to another participant for a period in excess of 60 days.
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        (5) A Medical Sharing Trust may establish 
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    qualifications of participation relating to the health of 
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    the prospective participant.
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        (6) A Medical Sharing Trust may establish 
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    qualifications as to the participants' physical or medical 
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    needs necessary for eligibility for payment among the 
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    participants.
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        (7) A Medical Sharing Trust shall provide the following 
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    verbatim written disclaimer on all applications for 
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    membership or participation:
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            "WARNING:  This organization is not insurance or an 
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        insurance policy
nor is it offered through an insurance 
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        company.  Whether anyone chooses to assist you with your 
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        medical bills will be totally voluntary, as no other 
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        member will be compelled by law to contribute toward 
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        your medical bills.  As such, this organization should 
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        never be considered to be providing insurance.  Whether 
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        you receive any payments for medical expenses and 
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        whether or not this organization continues to operate, 
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        you are always personally responsible for the payment 
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        of your own medical bills.  This organization is not 
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        subject to the regulatory requirements of the Illinois 
 


 






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        Insurance Code.".
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        (8) A Medical Sharing Trust shall provide to its 
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    participants, within 30 days after enrollment, a complete 
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    set of its rules for the sharing of needs, appeals of 
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    decisions made by the Medical Sharing Trust, and the filing 
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    of complaints. The rules must be in the participant's 
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    native language if requested by the participant.
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        (9) A Medical Sharing Trust shall have a Certificate of 
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    Authority to do business in Illinois.
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        (10) A Medical Sharing Trust shall be controlled by a 
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    board of directors, the majority of which is elected by its 
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    members.".