2006 Insurance Legislative Summary
HOUSE BILLS
House Bill 4125 INS-AUTISM COVERAGE
PA94-0906 – Effective 1-1-07
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 coverage for the treatment of pervasive developmental disorders. Amends the Illinois Insurance Code to provide that certain mental health coverages apply to health maintenance organizations and individual policies of accident and health insurance.
HB 4137 ST PROCUREMENT-FLEX FUEL AUTOS
PA94-1079 – Effective 6-1-07
Amends the Illinois Procurement Code. Requires all automobiles purchased from State funds to be flexible fuel vehicles. Defines "flexible fuel vehicles" as automobiles or light trucks with the ability to operate on both gasoline and alternative fuels such as E-85. Authorizes the Chief Procurement Officer to exempt certain vehicle classes from this requirement based on intended use or other reasonable considerations.
HB 4202 INS-MENTAL HEALTH-OUTPT TRTMNT
PA94-0921 – Effective 6-26-06
Amends the Illinois Insurance Code. Provides that a group health benefit plan shall provide coverage for 60 (now 35) visits for outpatient treatment of mental illness. Effective immediately. House Bill 4202 will not have a fiscal impact on the Illinois Department of Financial and Professional Regulation.
HB 4238 ANIMAL CONTROL-DOG AT LARGE
PA94-0819 – Effective 5-31-06
Amends the Animal Control Act. Provides that the owner of an intact dog is guilty of a Class 4 felony if the owner allows the dog to run at large in violation of the Act and the dog inflicts serious physical injury to a person.
HB 4302 SENIORS/DISABLD DRUGS-HIV/AIDS
PA94-0909 – Effective 6-23-06
Amends the Senior Citizens and Disabled Persons Property Tax Relief and Pharmaceutical Assistance Act. In provisions concerning the Illinois Seniors and Disabled Drug Coverage Program of pharmaceutical assistance to the aged and disabled, provides that for program beneficiaries who are not eligible for Medicare Part D coverage and who are (i) disabled and under age 65, or (ii) age 65 or older with incomes over 200% of the federal poverty level, or (iii) age 65 or older, with incomes at or below 200% of the Federal Poverty Level, and not eligible for federally funded means-tested benefits due to immigration status, "covered prescription drug" includes any prescription drug for the treatment of HIV/AIDS or related conditions included in the formulary of the Illinois AIDS Drug Assistance Program operated by the Department of Public Health.
HB 4306 PERINATAL HIV PREV-REPORTING
PA94-0910 – Effective 6-23-06
Amends the Perinatal HIV Prevention Act. Requires HIV testing of newborns when the HIV status of the mother is unknown (now, testing is voluntary). Requires counseling to include the voluntary nature of the HIV test for a pregnant woman. Requires the reporting of a positive HIV test for a newborn infant to an electronic surveillance system established by the Department of Public Health. Requires the Department to adopt rules specifying the information required in the report. Provides that the confidentiality provisions of the AIDS Confidentiality Act apply to the reports. Requires the Department or its authorized representative to provide case management services to ensure access to proper care. Provides that hospitals, laboratories, other facilities, and physicians will not be held liable for the release of information or confidential data in accordance with the Act. Requires all HIV exposed newborns to be treated to prevent HIV infection within 24 hours after birth and until 6 weeks after birth.
HB 4317 PEN CD-FIREFIGHTING CREDIT
PA94-0856 – Effective 6-15-06
Amends the Illinois Pension Code. Allows a firefighter for a participating municipality who was employed as an active firefighter providing fire protection for a village or incorporated town with a population of greater than 10,000 but less that 11,000 located in a county with a population of greater than 600,000 and less than 700,000, as estimated by the United States Census on July 1, 2004, to elect to establish creditable service for periods of that employment in which the firefighter provided fire protection services for the participating municipality. Provides for calculation of creditable service for service as a part-time firefighter for such a village or incorporated town. Amends the State Mandates Act to require implementation without reimbursement.
HB 4383 PARENTAGE ACT-MED INSURANCE
PA94-0923 – Effective 1-1-07
Amends the Illinois Marriage and Dissolution of Marriage Act. Provides that the court shall order the obligor to reimburse the obligee for 50% of the premium for placing the child on his or her health insurance policy if: (i) a health insurance plan is not available to the obligor through an employer or labor union or trade union and the court does not order the obligor to cover the child as a beneficiary of any health insurance plan that is available to the obligor on a group basis or as a beneficiary of an independent health insurance plan to be obtained by the obligor; or (ii) the obligor does not obtain medical insurance for the child within 90 days of the date of the court order requiring the obligor to obtain insurance for the child. Permits the court to order the obligor to reimburse the obligee for 100% of the premium for placing the child on his or her health insurance policy. Amends the Illinois Parentage Act of 1984. Instructs the court to use the guidelines in the listed Sections of the Illinois Marriage and Dissolution of Marriage Act for purposes of child health insurance coverage.
HB 4438 CRIM CD-PERSONAL INFO
PA94-0969 – Effective 1-1-07
Amends the Criminal Code of 1961. Creates the offense of facilitating identity theft. Provides that a person commits the offense when he or she is an employee of the State of Illinois who in the course of his or her official duties has access to personal identifying information of another person, whether written, recorded, or on computer disk and disposes of that written, recorded, or computerized information in any receptacle, trash can, or other container that the public could gain access to without shredding that information, destroying the recording, or wiping the computer disk so that the information is either unintelligible or destroyed. Provides for civil remedies. Provides that such violation is official misconduct. Provides that a violation is a Class 3 felony.
HB 4449 CONSUMER FRAUD-SECURITY BREACH
PA94-0947 – Effective 6-27-06
Amends the Personal Information Protection Act. Provides that any State agency that collects personal data and has had a breach of security of the system data or written material shall submit an annual report to the General Assembly listing the breaches and outlining any corrective measures that have been taken to prevent future breaches of the security of the system data or written material. Provides that any State agency that collects personal data that is no longer needed or stored at the agency shall dispose of the personal data or written material it has collected in such a manner as to ensure the security and confidentiality of the material.
HB 4703 MILITARY PERSONNEL-CIVL RELIEF
PA94-0802 – Effective 5-26-06
Amends the Illinois Municipal Code; provides that a municipality that violates provisions prohibiting the stoppage of gas or electricity in connection with a service member who is on active duty is subject to a civil penalty of $10,000. Amends the Illinois Insurance Code; provides that an insurance company that violates provisions prohibiting the lapse or forfeiture of a life insurance policy insuring the life of a service member who is on active duty is subject to a civil penalty of $10,000. Amends the Public Utilities Act; provides that a gas or electric company or electric cooperative that violates provisions prohibiting the stoppage of gas or electricity in connection with a service member who is on active duty is subject to a civil penalty of $10,000. Amends the Interest Act; provides that a creditor who violates provisions limiting the interest rate that may be imposed on a service member who is on active duty is subject to a civil penalty of $10,000. Amends the Military Personnel Cellular Phone Contract Termination Act; provides that a cellular telephone company that violates provisions authorizing termination of a cellular phone contract in the case of a service member who is on active duty is subject to a civil penalty of $10,000. Amends the Motor Vehicle Leasing Act; provides that a lessor who violates provisions authorizing termination of a lease in the case of a service member who is on active duty is subject to a civil penalty of $10,000. In each case, authorizes the Attorney General to impose the civil penalty after an administrative hearing and to enforce collection of any civil penalty imposed. Provides that the proceeds from the collection of any such civil penalty shall be deposited into the Illinois Military Family Relief Fund.
HB 4999 HOSPITAL FAIR BILLING ACT
PA94-0885 – Effective 1-1-07
Creates the Hospital Fair Billing and Collection Practices Act. Requires a hospital's governing body to adopt policies: (i) prohibiting abusive, harassing, oppressive, false, deceptive, or misleading language or collection conduct by any collection agency or attorney retained by the hospital for the collection of medical debt, any agent or employee of a collection agency or attorney, or any hospital employee who participates in the collection of medical debt from patients; (ii) establishing the procedures to be utilized by every collection agency retained by the hospital for the collection of medical debt; (iii) establishing the procedures to be utilized by the hospital's employees who participate in the collection of debt; and (iv) establishing procedures for ensuring the timely and accurate submission of claims to third party payors. Prohibits a hospital from selling any debt owed to it by a patient for medical or hospital services, except to a collection agency. Establishes required billing practices for a hospital. Requires a hospital to enter into a written contract with any collection agency or attorney that it retains to collect medical debts from patients and outlines the contract requirements. Provides for civil penalties and injunctive relief. Preempts home rule. Creates the Hospital Fair Billing and Collection Practices Act Enforcement Fund. Provides that the monies in the Fund shall be used by the Attorney General for the enforcement of the Act. Amends the State Finance Act to create the Hospital Fair Billing and Collection Practices Act Enforcement Fund. Amends the University of Illinois Hospital Act to make the collection of hospital service charges by the University subject to the Hospital Fair Billing and Collection Practices Act. Amends the Hospital Licensing Act. Provides that the Director may deny, suspend, or revoke a hospital's license for failure to comply with the provisions of the Hospital Fair Billing and Collection Practices Act.
HB 5260 PROMPT PAYMENT-STATE AGENCIES
PA94-0972 – Effective 7-1-07
Amends the State Prompt Payment Act to provide that notification to a vendor that a bill or invoice contains a defect must be given not later than 45 days after the bill was first submitted or not later than 30 days after the receipt of the goods or services, whichever is later. Sets forth that if the State official or agency whose approval is required for any invoice fails to approve or disapprove that invoice within this notification period, the interest for late payment of that invoice shall be computed from the date 60 days after the receipt of that invoice or the date 60 days after the goods or services are received, whichever is later. Provides that if the State fails to pay any invoice within 30 days of approval or fails to approve or disapprove the invoice within the period at which interest may accrue, plus an additional 30 days, the contractor and subcontractors not paid may suspend performance under the construction contract or subcontracts without penalty, until the overdue payment or payments are made. Authorizes contractors, subcontractors, and material suppliers to recover the interest payable under this Act in any action pursuant to Section 23 of the Mechanics Lien Act or pursuant to the Public Construction Bond Act.
HB 5331 PENCD-TRS-RETURN TO WORK
PA94-0914 – Effective 6-23-06
Amends the Downstate Teacher Article of the Illinois Pension Code. Extends to June 30, 2011 (from June 30, 2006) the period during which an annuitant receiving a retirement annuity other than a disability retirement annuity may accept employment as a teacher from a school board or other employer without impairing retirement status for 120 paid days or 600 paid hours in each school year (after June 20, 2011, will return to 100 paid days or 500 paid hours in any school year).
HB 5339 MGD CARE REFORM-PROHIBITIONS
PA94-0866 – Effective 6-16-06
Amends the Managed Care Reform and Patient Rights Act. Prohibits health care plans from requiring enrollees to substitute their participating primary care physician during inpatient hospitalization, such as with a hospitalist physician licensed to practice medicine in all its branches (now, provides no example), without the agreement of the participating primary care physician.
SENATE BILLS
SB 0585 GOVERNMENT-TECH
PA94-1058 – Effective 1-1-07
Amends the Open Meetings Act, if there is a quorum in the physical building, members of the board who attend by an electronic means may vote on material at hand.
SB 0624 STATE GOVERNMENT-TECH
PA94-1035 – Effective 7-1-07
Amends the Illinois Vehicle Code. Amends the Operation of uninsured motor vehicle - penalty. A person convicted of violating this Section shall
also have his or her driver's license, permit, or privileges
suspended for 3 months. After the expiration of the 3 months, the person's driver's license, permit, or privileges shall not be reinstated until he or she has paid a reinstatement fee of $100. If a person violates this Section while his or her $100. If a person violates this Section while his or her $100. If a person violates this Section while his or her driver's license, permit, or privileges are suspended under this subsection (c-1), his or her driver's license, permit, or privileges shall be suspended for an additional 6 months and until he or she pays the reinstatement fee.
SB 0627 STATE GOVERNMENT-TECH
PA94-0816 – Effective 5-30-06
An Act concerning State Government. Creates Veterans' Health Insurance Program Act
SB 0916 REGULATION-TECH
PA94-1037 – Effective 7-20-06
Amends the Children's Health Insurance Program Act. The Illinois Insurance Code is amended by adding Military Service Member Reinstatement No Illinois resident activated for military service and no spouse or dependent of the resident who becomes eligible for a federal government-sponsored health insurance program, including the TriCare program providing coverage for civilian dependents of military personnel, as a result of the activation shall be denied reinstatement into the same individual health insurance coverage with the health insurer that the resident lapsed as a result of activation or becoming covered by the federal government-sponsored health insurance program. The resident shall have the right to reinstatement in the same individual health insurance coverage without medical underwriting, subject to payment of the current premium charged to other persons of the same age and gender that are covered under the same individual health coverage. Except in the case of birth or adoption that occurs during the period of activation, reinstatement must be into the same coverage type as the resident held prior to lapsing the individual health insurance coverage and at the same or, at the option of the resident, higher deductible level. The reinstatement rights provided under this subsection (a) are not available to a resident or dependents if the activated person is discharged from the military under other than honorable conditions.