Bill Text: IL HB0465 | 2019-2020 | 101st General Assembly | Engrossed
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Reinserts the provisions of House Amendment No. 1, but with the following changes: Further amends the Illinois Insurance Code. In a provision concerning contracts between health insurers and pharmacy benefit managers, provides that such contracts must require pharmacy benefit managers to: (1) update maximum allowable cost pricing information at least every 7 calendar days; (2) provide access to its maximum allowable cost list to each pharmacy or pharmacy services administrative organization, as defined, subject to the maximum allowable cost list; (4) provide a process by which a contracted pharmacy can appeal the provider's reimbursement for a drug subject to maximum allowable cost pricing; and other matters. Regarding a drug on the maximum allowable cost list, requires pharmacy benefits managers to ensure that: (i) if a drug is a generically equivalent drug, it is listed as therapeutically equivalent and pharmaceutically equivalent to certain rating standards; (ii) the drug is available for purchase by each pharmacy in the State from national or regional wholesalers operating in Illinois; and (ii) the drug is not obsolete (rather than requiring a drug to have at least 3 or more nationally available, therapeutically equivalent, multiple source generic drugs with a significant cost difference and be available for purchase without limitations by all pharmacies in the State from national or regional wholesalers). Permits the Director of Insurance to examine a pharmacy benefit manager's designee, representative, or other specified persons (rather than any individual) about the business of the pharmacy benefit manager. Contains provisions concerning the denial of a pharmacy benefits manager's registration application or the suspension or revocation of a pharmacy benefits manager's registration. Defines terms. Further amends the Managed Care Reform and Patient Rights Act. Makes changes to the definition of "emergency medical condition". Removes changes made to a provision concerning the denial of coverage and payment for emergency services provided without prior authorization or an approved plan. Further amends the Illinois Public Aid Code. Makes changes to certain reporting requirements imposed on the Director of Healthcare and Family Services. Requires a pharmacy benefit manager to make certain disclosures to the Department of Healthcare and Family Services upon request. Requires a pharmacy benefit manager to make certain written disclosures to a pharmacy provider or pharmacy services administrative organization. Defines "pharmacy services administrative organization." Requires the Department to adopt rules establishing reasonable dispensing fees for fee-for-service payments in accordance with guidance or guidelines from the federal Centers for Medicare and Medicaid Services.
Spectrum: Slight Partisan Bill (Democrat 34-17)
Status: (Passed) 2019-08-23 - Public Act . . . . . . . . . 101-0452 [HB0465 Detail]
Download: Illinois-2019-HB0465-Engrossed.html
Bill Title: Reinserts the provisions of House Amendment No. 1, but with the following changes: Further amends the Illinois Insurance Code. In a provision concerning contracts between health insurers and pharmacy benefit managers, provides that such contracts must require pharmacy benefit managers to: (1) update maximum allowable cost pricing information at least every 7 calendar days; (2) provide access to its maximum allowable cost list to each pharmacy or pharmacy services administrative organization, as defined, subject to the maximum allowable cost list; (4) provide a process by which a contracted pharmacy can appeal the provider's reimbursement for a drug subject to maximum allowable cost pricing; and other matters. Regarding a drug on the maximum allowable cost list, requires pharmacy benefits managers to ensure that: (i) if a drug is a generically equivalent drug, it is listed as therapeutically equivalent and pharmaceutically equivalent to certain rating standards; (ii) the drug is available for purchase by each pharmacy in the State from national or regional wholesalers operating in Illinois; and (ii) the drug is not obsolete (rather than requiring a drug to have at least 3 or more nationally available, therapeutically equivalent, multiple source generic drugs with a significant cost difference and be available for purchase without limitations by all pharmacies in the State from national or regional wholesalers). Permits the Director of Insurance to examine a pharmacy benefit manager's designee, representative, or other specified persons (rather than any individual) about the business of the pharmacy benefit manager. Contains provisions concerning the denial of a pharmacy benefits manager's registration application or the suspension or revocation of a pharmacy benefits manager's registration. Defines terms. Further amends the Managed Care Reform and Patient Rights Act. Makes changes to the definition of "emergency medical condition". Removes changes made to a provision concerning the denial of coverage and payment for emergency services provided without prior authorization or an approved plan. Further amends the Illinois Public Aid Code. Makes changes to certain reporting requirements imposed on the Director of Healthcare and Family Services. Requires a pharmacy benefit manager to make certain disclosures to the Department of Healthcare and Family Services upon request. Requires a pharmacy benefit manager to make certain written disclosures to a pharmacy provider or pharmacy services administrative organization. Defines "pharmacy services administrative organization." Requires the Department to adopt rules establishing reasonable dispensing fees for fee-for-service payments in accordance with guidance or guidelines from the federal Centers for Medicare and Medicaid Services.
Spectrum: Slight Partisan Bill (Democrat 34-17)
Status: (Passed) 2019-08-23 - Public Act . . . . . . . . . 101-0452 [HB0465 Detail]
Download: Illinois-2019-HB0465-Engrossed.html
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1 | AN ACT concerning regulation.
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2 | Be it enacted by the People of the State of Illinois, | ||||||
3 | represented in the General Assembly:
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4 | Section 1. The Freedom of Information Act is amended by | ||||||
5 | changing Sections 7 and 7.5 as follows:
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6 | (5 ILCS 140/7) (from Ch. 116, par. 207) | ||||||
7 | Sec. 7. Exemptions.
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8 | (1) When a request is made to inspect or copy a public | ||||||
9 | record that contains information that is exempt from disclosure | ||||||
10 | under this Section, but also contains information that is not | ||||||
11 | exempt from disclosure, the public body may elect to redact the | ||||||
12 | information that is exempt. The public body shall make the | ||||||
13 | remaining information available for inspection and copying. | ||||||
14 | Subject to this requirement, the following shall be exempt from | ||||||
15 | inspection and copying:
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16 | (a) Information specifically prohibited from | ||||||
17 | disclosure by federal or
State law or rules and regulations | ||||||
18 | implementing federal or State law.
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19 | (b) Private information, unless disclosure is required | ||||||
20 | by another provision of this Act, a State or federal law or | ||||||
21 | a court order. | ||||||
22 | (b-5) Files, documents, and other data or databases | ||||||
23 | maintained by one or more law enforcement agencies and |
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1 | specifically designed to provide information to one or more | ||||||
2 | law enforcement agencies regarding the physical or mental | ||||||
3 | status of one or more individual subjects. | ||||||
4 | (c) Personal information contained within public | ||||||
5 | records, the disclosure of which would constitute a clearly
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6 | unwarranted invasion of personal privacy, unless the | ||||||
7 | disclosure is
consented to in writing by the individual | ||||||
8 | subjects of the information. "Unwarranted invasion of | ||||||
9 | personal privacy" means the disclosure of information that | ||||||
10 | is highly personal or objectionable to a reasonable person | ||||||
11 | and in which the subject's right to privacy outweighs any | ||||||
12 | legitimate public interest in obtaining the information. | ||||||
13 | The
disclosure of information that bears on the public | ||||||
14 | duties of public
employees and officials shall not be | ||||||
15 | considered an invasion of personal
privacy.
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16 | (d) Records in the possession of any public body | ||||||
17 | created in the course of administrative enforcement
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18 | proceedings, and any law enforcement or correctional | ||||||
19 | agency for
law enforcement purposes,
but only to the extent | ||||||
20 | that disclosure would:
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21 | (i) interfere with pending or actually and | ||||||
22 | reasonably contemplated
law enforcement proceedings | ||||||
23 | conducted by any law enforcement or correctional
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24 | agency that is the recipient of the request;
| ||||||
25 | (ii) interfere with active administrative | ||||||
26 | enforcement proceedings
conducted by the public body |
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1 | that is the recipient of the request;
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2 | (iii) create a substantial likelihood that a | ||||||
3 | person will be deprived of a fair trial or an impartial | ||||||
4 | hearing;
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5 | (iv) unavoidably disclose the identity of a | ||||||
6 | confidential source, confidential information | ||||||
7 | furnished only by the confidential source, or persons | ||||||
8 | who file complaints with or provide information to | ||||||
9 | administrative, investigative, law enforcement, or | ||||||
10 | penal agencies; except that the identities of | ||||||
11 | witnesses to traffic accidents, traffic accident | ||||||
12 | reports, and rescue reports shall be provided by | ||||||
13 | agencies of local government, except when disclosure | ||||||
14 | would interfere with an active criminal investigation | ||||||
15 | conducted by the agency that is the recipient of the | ||||||
16 | request;
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17 | (v) disclose unique or specialized investigative | ||||||
18 | techniques other than
those generally used and known or | ||||||
19 | disclose internal documents of
correctional agencies | ||||||
20 | related to detection, observation or investigation of
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21 | incidents of crime or misconduct, and disclosure would | ||||||
22 | result in demonstrable harm to the agency or public | ||||||
23 | body that is the recipient of the request;
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24 | (vi) endanger the life or physical safety of law | ||||||
25 | enforcement personnel
or any other person; or
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26 | (vii) obstruct an ongoing criminal investigation |
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1 | by the agency that is the recipient of the request.
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2 | (d-5) A law enforcement record created for law | ||||||
3 | enforcement purposes and contained in a shared electronic | ||||||
4 | record management system if the law enforcement agency that | ||||||
5 | is the recipient of the request did not create the record, | ||||||
6 | did not participate in or have a role in any of the events | ||||||
7 | which are the subject of the record, and only has access to | ||||||
8 | the record through the shared electronic record management | ||||||
9 | system. | ||||||
10 | (e) Records that relate to or affect the security of | ||||||
11 | correctional
institutions and detention facilities.
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12 | (e-5) Records requested by persons committed to the | ||||||
13 | Department of Corrections, Department of Human Services | ||||||
14 | Division of Mental Health, or a county jail if those | ||||||
15 | materials are available in the library of the correctional | ||||||
16 | institution or facility or jail where the inmate is | ||||||
17 | confined. | ||||||
18 | (e-6) Records requested by persons committed to the | ||||||
19 | Department of Corrections, Department of Human Services | ||||||
20 | Division of Mental Health, or a county jail if those | ||||||
21 | materials include records from staff members' personnel | ||||||
22 | files, staff rosters, or other staffing assignment | ||||||
23 | information. | ||||||
24 | (e-7) Records requested by persons committed to the | ||||||
25 | Department of Corrections or Department of Human Services | ||||||
26 | Division of Mental Health if those materials are available |
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1 | through an administrative request to the Department of | ||||||
2 | Corrections or Department of Human Services Division of | ||||||
3 | Mental Health. | ||||||
4 | (e-8) Records requested by a person committed to the | ||||||
5 | Department of Corrections, Department of Human Services | ||||||
6 | Division of Mental Health, or a county jail, the disclosure | ||||||
7 | of which would result in the risk of harm to any person or | ||||||
8 | the risk of an escape from a jail or correctional | ||||||
9 | institution or facility. | ||||||
10 | (e-9) Records requested by a person in a county jail or | ||||||
11 | committed to the Department of Corrections or Department of | ||||||
12 | Human Services Division of Mental Health, containing | ||||||
13 | personal information pertaining to the person's victim or | ||||||
14 | the victim's family, including, but not limited to, a | ||||||
15 | victim's home address, home telephone number, work or | ||||||
16 | school address, work telephone number, social security | ||||||
17 | number, or any other identifying information, except as may | ||||||
18 | be relevant to a requester's current or potential case or | ||||||
19 | claim. | ||||||
20 | (e-10) Law enforcement records of other persons | ||||||
21 | requested by a person committed to the Department of | ||||||
22 | Corrections, Department of Human Services Division of | ||||||
23 | Mental Health, or a county jail, including, but not limited | ||||||
24 | to, arrest and booking records, mug shots, and crime scene | ||||||
25 | photographs, except as these records may be relevant to the | ||||||
26 | requester's current or potential case or claim. |
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1 | (f) Preliminary drafts, notes, recommendations, | ||||||
2 | memoranda and other
records in which opinions are | ||||||
3 | expressed, or policies or actions are
formulated, except | ||||||
4 | that a specific record or relevant portion of a
record | ||||||
5 | shall not be exempt when the record is publicly cited
and | ||||||
6 | identified by the head of the public body. The exemption | ||||||
7 | provided in
this paragraph (f) extends to all those records | ||||||
8 | of officers and agencies
of the General Assembly that | ||||||
9 | pertain to the preparation of legislative
documents.
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10 | (g) Trade secrets and commercial or financial | ||||||
11 | information obtained from
a person or business where the | ||||||
12 | trade secrets or commercial or financial information are | ||||||
13 | furnished under a claim that they are
proprietary, | ||||||
14 | privileged or confidential, and that disclosure of the | ||||||
15 | trade
secrets or commercial or financial information would | ||||||
16 | cause competitive harm to the person or business, and only | ||||||
17 | insofar as the claim directly applies to the records | ||||||
18 | requested. | ||||||
19 | The information included under this exemption includes | ||||||
20 | all trade secrets and commercial or financial information | ||||||
21 | obtained by a public body, including a public pension fund, | ||||||
22 | from a private equity fund or a privately held company | ||||||
23 | within the investment portfolio of a private equity fund as | ||||||
24 | a result of either investing or evaluating a potential | ||||||
25 | investment of public funds in a private equity fund. The | ||||||
26 | exemption contained in this item does not apply to the |
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1 | aggregate financial performance information of a private | ||||||
2 | equity fund, nor to the identity of the fund's managers or | ||||||
3 | general partners. The exemption contained in this item does | ||||||
4 | not apply to the identity of a privately held company | ||||||
5 | within the investment portfolio of a private equity fund, | ||||||
6 | unless the disclosure of the identity of a privately held | ||||||
7 | company may cause competitive harm. | ||||||
8 | Nothing contained in this
paragraph (g) shall be | ||||||
9 | construed to prevent a person or business from
consenting | ||||||
10 | to disclosure.
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11 | (h) Proposals and bids for any contract, grant, or | ||||||
12 | agreement, including
information which if it were | ||||||
13 | disclosed would frustrate procurement or give
an advantage | ||||||
14 | to any person proposing to enter into a contractor | ||||||
15 | agreement
with the body, until an award or final selection | ||||||
16 | is made. Information
prepared by or for the body in | ||||||
17 | preparation of a bid solicitation shall be
exempt until an | ||||||
18 | award or final selection is made.
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19 | (i) Valuable formulae,
computer geographic systems,
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20 | designs, drawings and research data obtained or
produced by | ||||||
21 | any public body when disclosure could reasonably be | ||||||
22 | expected to
produce private gain or public loss.
The | ||||||
23 | exemption for "computer geographic systems" provided in | ||||||
24 | this paragraph
(i) does not extend to requests made by news | ||||||
25 | media as defined in Section 2 of
this Act when the | ||||||
26 | requested information is not otherwise exempt and the only
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1 | purpose of the request is to access and disseminate | ||||||
2 | information regarding the
health, safety, welfare, or | ||||||
3 | legal rights of the general public.
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4 | (j) The following information pertaining to | ||||||
5 | educational matters: | ||||||
6 | (i) test questions, scoring keys and other | ||||||
7 | examination data used to
administer an academic | ||||||
8 | examination;
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9 | (ii) information received by a primary or | ||||||
10 | secondary school, college, or university under its | ||||||
11 | procedures for the evaluation of faculty members by | ||||||
12 | their academic peers; | ||||||
13 | (iii) information concerning a school or | ||||||
14 | university's adjudication of student disciplinary | ||||||
15 | cases, but only to the extent that disclosure would | ||||||
16 | unavoidably reveal the identity of the student; and | ||||||
17 | (iv) course materials or research materials used | ||||||
18 | by faculty members. | ||||||
19 | (k) Architects' plans, engineers' technical | ||||||
20 | submissions, and
other
construction related technical | ||||||
21 | documents for
projects not constructed or developed in | ||||||
22 | whole or in part with public funds
and the same for | ||||||
23 | projects constructed or developed with public funds, | ||||||
24 | including but not limited to power generating and | ||||||
25 | distribution stations and other transmission and | ||||||
26 | distribution facilities, water treatment facilities, |
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1 | airport facilities, sport stadiums, convention centers, | ||||||
2 | and all government owned, operated, or occupied buildings, | ||||||
3 | but
only to the extent
that disclosure would compromise | ||||||
4 | security.
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5 | (l) Minutes of meetings of public bodies closed to the
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6 | public as provided in the Open Meetings Act until the | ||||||
7 | public body
makes the minutes available to the public under | ||||||
8 | Section 2.06 of the Open
Meetings Act.
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9 | (m) Communications between a public body and an | ||||||
10 | attorney or auditor
representing the public body that would | ||||||
11 | not be subject to discovery in
litigation, and materials | ||||||
12 | prepared or compiled by or for a public body in
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13 | anticipation of a criminal, civil or administrative | ||||||
14 | proceeding upon the
request of an attorney advising the | ||||||
15 | public body, and materials prepared or
compiled with | ||||||
16 | respect to internal audits of public bodies.
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17 | (n) Records relating to a public body's adjudication of | ||||||
18 | employee grievances or disciplinary cases; however, this | ||||||
19 | exemption shall not extend to the final outcome of cases in | ||||||
20 | which discipline is imposed.
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21 | (o) Administrative or technical information associated | ||||||
22 | with automated
data processing operations, including but | ||||||
23 | not limited to software,
operating protocols, computer | ||||||
24 | program abstracts, file layouts, source
listings, object | ||||||
25 | modules, load modules, user guides, documentation
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26 | pertaining to all logical and physical design of |
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1 | computerized systems,
employee manuals, and any other | ||||||
2 | information that, if disclosed, would
jeopardize the | ||||||
3 | security of the system or its data or the security of
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4 | materials exempt under this Section.
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5 | (p) Records relating to collective negotiating matters
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6 | between public bodies and their employees or | ||||||
7 | representatives, except that
any final contract or | ||||||
8 | agreement shall be subject to inspection and copying.
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9 | (q) Test questions, scoring keys, and other | ||||||
10 | examination data used to determine the qualifications of an | ||||||
11 | applicant for a license or employment.
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12 | (r) The records, documents, and information relating | ||||||
13 | to real estate
purchase negotiations until those | ||||||
14 | negotiations have been completed or
otherwise terminated. | ||||||
15 | With regard to a parcel involved in a pending or
actually | ||||||
16 | and reasonably contemplated eminent domain proceeding | ||||||
17 | under the Eminent Domain Act, records, documents and
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18 | information relating to that parcel shall be exempt except | ||||||
19 | as may be
allowed under discovery rules adopted by the | ||||||
20 | Illinois Supreme Court. The
records, documents and | ||||||
21 | information relating to a real estate sale shall be
exempt | ||||||
22 | until a sale is consummated.
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23 | (s) Any and all proprietary information and records | ||||||
24 | related to the
operation of an intergovernmental risk | ||||||
25 | management association or
self-insurance pool or jointly | ||||||
26 | self-administered health and accident
cooperative or pool.
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1 | Insurance or self insurance (including any | ||||||
2 | intergovernmental risk management association or self | ||||||
3 | insurance pool) claims, loss or risk management | ||||||
4 | information, records, data, advice or communications.
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5 | (t) Information contained in or related to | ||||||
6 | examination, operating, or
condition reports prepared by, | ||||||
7 | on behalf of, or for the use of a public
body responsible | ||||||
8 | for the regulation or supervision of financial
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9 | institutions , or insurance companies, or pharmacy benefit | ||||||
10 | managers, unless disclosure is otherwise
required by State | ||||||
11 | law.
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12 | (u) Information that would disclose
or might lead to | ||||||
13 | the disclosure of
secret or confidential information, | ||||||
14 | codes, algorithms, programs, or private
keys intended to be | ||||||
15 | used to create electronic or digital signatures under the
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16 | Electronic Commerce Security Act.
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17 | (v) Vulnerability assessments, security measures, and | ||||||
18 | response policies
or plans that are designed to identify, | ||||||
19 | prevent, or respond to potential
attacks upon a community's | ||||||
20 | population or systems, facilities, or installations,
the | ||||||
21 | destruction or contamination of which would constitute a | ||||||
22 | clear and present
danger to the health or safety of the | ||||||
23 | community, but only to the extent that
disclosure could | ||||||
24 | reasonably be expected to jeopardize the effectiveness of | ||||||
25 | the
measures or the safety of the personnel who implement | ||||||
26 | them or the public.
Information exempt under this item may |
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1 | include such things as details
pertaining to the | ||||||
2 | mobilization or deployment of personnel or equipment, to | ||||||
3 | the
operation of communication systems or protocols, or to | ||||||
4 | tactical operations.
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5 | (w) (Blank). | ||||||
6 | (x) Maps and other records regarding the location or | ||||||
7 | security of generation, transmission, distribution, | ||||||
8 | storage, gathering,
treatment, or switching facilities | ||||||
9 | owned by a utility, by a power generator, or by the | ||||||
10 | Illinois Power Agency.
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11 | (y) Information contained in or related to proposals, | ||||||
12 | bids, or negotiations related to electric power | ||||||
13 | procurement under Section 1-75 of the Illinois Power Agency | ||||||
14 | Act and Section 16-111.5 of the Public Utilities Act that | ||||||
15 | is determined to be confidential and proprietary by the | ||||||
16 | Illinois Power Agency or by the Illinois Commerce | ||||||
17 | Commission.
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18 | (z) Information about students exempted from | ||||||
19 | disclosure under Sections 10-20.38 or 34-18.29 of the | ||||||
20 | School Code, and information about undergraduate students | ||||||
21 | enrolled at an institution of higher education exempted | ||||||
22 | from disclosure under Section 25 of the Illinois Credit | ||||||
23 | Card Marketing Act of 2009. | ||||||
24 | (aa) Information the disclosure of which is
exempted | ||||||
25 | under the Viatical Settlements Act of 2009.
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26 | (bb) Records and information provided to a mortality |
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1 | review team and records maintained by a mortality review | ||||||
2 | team appointed under the Department of Juvenile Justice | ||||||
3 | Mortality Review Team Act. | ||||||
4 | (cc) Information regarding interments, entombments, or | ||||||
5 | inurnments of human remains that are submitted to the | ||||||
6 | Cemetery Oversight Database under the Cemetery Care Act or | ||||||
7 | the Cemetery Oversight Act, whichever is applicable. | ||||||
8 | (dd) Correspondence and records (i) that may not be | ||||||
9 | disclosed under Section 11-9 of the Illinois Public Aid | ||||||
10 | Code or (ii) that pertain to appeals under Section 11-8 of | ||||||
11 | the Illinois Public Aid Code. | ||||||
12 | (ee) The names, addresses, or other personal | ||||||
13 | information of persons who are minors and are also | ||||||
14 | participants and registrants in programs of park | ||||||
15 | districts, forest preserve districts, conservation | ||||||
16 | districts, recreation agencies, and special recreation | ||||||
17 | associations. | ||||||
18 | (ff) The names, addresses, or other personal | ||||||
19 | information of participants and registrants in programs of | ||||||
20 | park districts, forest preserve districts, conservation | ||||||
21 | districts, recreation agencies, and special recreation | ||||||
22 | associations where such programs are targeted primarily to | ||||||
23 | minors. | ||||||
24 | (gg) Confidential information described in Section | ||||||
25 | 1-100 of the Illinois Independent Tax Tribunal Act of 2012. | ||||||
26 | (hh) The report submitted to the State Board of |
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1 | Education by the School Security and Standards Task Force | ||||||
2 | under item (8) of subsection (d) of Section 2-3.160 of the | ||||||
3 | School Code and any information contained in that report. | ||||||
4 | (ii) Records requested by persons committed to or | ||||||
5 | detained by the Department of Human Services under the | ||||||
6 | Sexually Violent Persons Commitment Act or committed to the | ||||||
7 | Department of Corrections under the Sexually Dangerous | ||||||
8 | Persons Act if those materials: (i) are available in the | ||||||
9 | library of the facility where the individual is confined; | ||||||
10 | (ii) include records from staff members' personnel files, | ||||||
11 | staff rosters, or other staffing assignment information; | ||||||
12 | or (iii) are available through an administrative request to | ||||||
13 | the Department of Human Services or the Department of | ||||||
14 | Corrections. | ||||||
15 | (jj) Confidential information described in Section | ||||||
16 | 5-535 of the Civil Administrative Code of Illinois. | ||||||
17 | (1.5) Any information exempt from disclosure under the | ||||||
18 | Judicial Privacy Act shall be redacted from public records | ||||||
19 | prior to disclosure under this Act. | ||||||
20 | (2) A public record that is not in the possession of a | ||||||
21 | public body but is in the possession of a party with whom the | ||||||
22 | agency has contracted to perform a governmental function on | ||||||
23 | behalf of the public body, and that directly relates to the | ||||||
24 | governmental function and is not otherwise exempt under this | ||||||
25 | Act, shall be considered a public record of the public body, | ||||||
26 | for purposes of this Act. |
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1 | (3) This Section does not authorize withholding of | ||||||
2 | information or limit the
availability of records to the public, | ||||||
3 | except as stated in this Section or
otherwise provided in this | ||||||
4 | Act.
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5 | (Source: P.A. 99-298, eff. 8-6-15; 99-346, eff. 1-1-16; 99-642, | ||||||
6 | eff. 7-28-16; 100-26, eff. 8-4-17; 100-201, eff. 8-18-17; | ||||||
7 | 100-732, eff. 8-3-18.)
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8 | (5 ILCS 140/7.5) | ||||||
9 | Sec. 7.5. Statutory exemptions. To the extent provided for | ||||||
10 | by the statutes referenced below, the following shall be exempt | ||||||
11 | from inspection and copying: | ||||||
12 | (a) All information determined to be confidential | ||||||
13 | under Section 4002 of the Technology Advancement and | ||||||
14 | Development Act. | ||||||
15 | (b) Library circulation and order records identifying | ||||||
16 | library users with specific materials under the Library | ||||||
17 | Records Confidentiality Act. | ||||||
18 | (c) Applications, related documents, and medical | ||||||
19 | records received by the Experimental Organ Transplantation | ||||||
20 | Procedures Board and any and all documents or other records | ||||||
21 | prepared by the Experimental Organ Transplantation | ||||||
22 | Procedures Board or its staff relating to applications it | ||||||
23 | has received. | ||||||
24 | (d) Information and records held by the Department of | ||||||
25 | Public Health and its authorized representatives relating |
| |||||||
| |||||||
1 | to known or suspected cases of sexually transmissible | ||||||
2 | disease or any information the disclosure of which is | ||||||
3 | restricted under the Illinois Sexually Transmissible | ||||||
4 | Disease Control Act. | ||||||
5 | (e) Information the disclosure of which is exempted | ||||||
6 | under Section 30 of the Radon Industry Licensing Act. | ||||||
7 | (f) Firm performance evaluations under Section 55 of | ||||||
8 | the Architectural, Engineering, and Land Surveying | ||||||
9 | Qualifications Based Selection Act. | ||||||
10 | (g) Information the disclosure of which is restricted | ||||||
11 | and exempted under Section 50 of the Illinois Prepaid | ||||||
12 | Tuition Act. | ||||||
13 | (h) Information the disclosure of which is exempted | ||||||
14 | under the State Officials and Employees Ethics Act, and | ||||||
15 | records of any lawfully created State or local inspector | ||||||
16 | general's office that would be exempt if created or | ||||||
17 | obtained by an Executive Inspector General's office under | ||||||
18 | that Act. | ||||||
19 | (i) Information contained in a local emergency energy | ||||||
20 | plan submitted to a municipality in accordance with a local | ||||||
21 | emergency energy plan ordinance that is adopted under | ||||||
22 | Section 11-21.5-5 of the Illinois Municipal Code. | ||||||
23 | (j) Information and data concerning the distribution | ||||||
24 | of surcharge moneys collected and remitted by carriers | ||||||
25 | under the Emergency Telephone System Act. | ||||||
26 | (k) Law enforcement officer identification information |
| |||||||
| |||||||
1 | or driver identification information compiled by a law | ||||||
2 | enforcement agency or the Department of Transportation | ||||||
3 | under Section 11-212 of the Illinois Vehicle Code. | ||||||
4 | (l) Records and information provided to a residential | ||||||
5 | health care facility resident sexual assault and death | ||||||
6 | review team or the Executive Council under the Abuse | ||||||
7 | Prevention Review Team Act. | ||||||
8 | (m) Information provided to the predatory lending | ||||||
9 | database created pursuant to Article 3 of the Residential | ||||||
10 | Real Property Disclosure Act, except to the extent | ||||||
11 | authorized under that Article. | ||||||
12 | (n) Defense budgets and petitions for certification of | ||||||
13 | compensation and expenses for court appointed trial | ||||||
14 | counsel as provided under Sections 10 and 15 of the Capital | ||||||
15 | Crimes Litigation Act. This subsection (n) shall apply | ||||||
16 | until the conclusion of the trial of the case, even if the | ||||||
17 | prosecution chooses not to pursue the death penalty prior | ||||||
18 | to trial or sentencing. | ||||||
19 | (o) Information that is prohibited from being | ||||||
20 | disclosed under Section 4 of the Illinois Health and | ||||||
21 | Hazardous Substances Registry Act. | ||||||
22 | (p) Security portions of system safety program plans, | ||||||
23 | investigation reports, surveys, schedules, lists, data, or | ||||||
24 | information compiled, collected, or prepared by or for the | ||||||
25 | Regional Transportation Authority under Section 2.11 of | ||||||
26 | the Regional Transportation Authority Act or the St. Clair |
| |||||||
| |||||||
1 | County Transit District under the Bi-State Transit Safety | ||||||
2 | Act. | ||||||
3 | (q) Information prohibited from being disclosed by the | ||||||
4 | Personnel Record Records Review Act. | ||||||
5 | (r) Information prohibited from being disclosed by the | ||||||
6 | Illinois School Student Records Act. | ||||||
7 | (s) Information the disclosure of which is restricted | ||||||
8 | under Section 5-108 of the Public Utilities Act.
| ||||||
9 | (t) All identified or deidentified health information | ||||||
10 | in the form of health data or medical records contained in, | ||||||
11 | stored in, submitted to, transferred by, or released from | ||||||
12 | the Illinois Health Information Exchange, and identified | ||||||
13 | or deidentified health information in the form of health | ||||||
14 | data and medical records of the Illinois Health Information | ||||||
15 | Exchange in the possession of the Illinois Health | ||||||
16 | Information Exchange Authority due to its administration | ||||||
17 | of the Illinois Health Information Exchange. The terms | ||||||
18 | "identified" and "deidentified" shall be given the same | ||||||
19 | meaning as in the Health Insurance Portability and | ||||||
20 | Accountability Act of 1996, Public Law 104-191, or any | ||||||
21 | subsequent amendments thereto, and any regulations | ||||||
22 | promulgated thereunder. | ||||||
23 | (u) Records and information provided to an independent | ||||||
24 | team of experts under the Developmental Disability and | ||||||
25 | Mental Health Safety Act (also known as Brian's Law ) . | ||||||
26 | (v) Names and information of people who have applied |
| |||||||
| |||||||
1 | for or received Firearm Owner's Identification Cards under | ||||||
2 | the Firearm Owners Identification Card Act or applied for | ||||||
3 | or received a concealed carry license under the Firearm | ||||||
4 | Concealed Carry Act, unless otherwise authorized by the | ||||||
5 | Firearm Concealed Carry Act; and databases under the | ||||||
6 | Firearm Concealed Carry Act, records of the Concealed Carry | ||||||
7 | Licensing Review Board under the Firearm Concealed Carry | ||||||
8 | Act, and law enforcement agency objections under the | ||||||
9 | Firearm Concealed Carry Act. | ||||||
10 | (w) Personally identifiable information which is | ||||||
11 | exempted from disclosure under subsection (g) of Section | ||||||
12 | 19.1 of the Toll Highway Act. | ||||||
13 | (x) Information which is exempted from disclosure | ||||||
14 | under Section 5-1014.3 of the Counties Code or Section | ||||||
15 | 8-11-21 of the Illinois Municipal Code. | ||||||
16 | (y) Confidential information under the Adult | ||||||
17 | Protective Services Act and its predecessor enabling | ||||||
18 | statute, the Elder Abuse and Neglect Act, including | ||||||
19 | information about the identity and administrative finding | ||||||
20 | against any caregiver of a verified and substantiated | ||||||
21 | decision of abuse, neglect, or financial exploitation of an | ||||||
22 | eligible adult maintained in the Registry established | ||||||
23 | under Section 7.5 of the Adult Protective Services Act. | ||||||
24 | (z) Records and information provided to a fatality | ||||||
25 | review team or the Illinois Fatality Review Team Advisory | ||||||
26 | Council under Section 15 of the Adult Protective Services |
| |||||||
| |||||||
1 | Act. | ||||||
2 | (aa) Information which is exempted from disclosure | ||||||
3 | under Section 2.37 of the Wildlife Code. | ||||||
4 | (bb) Information which is or was prohibited from | ||||||
5 | disclosure by the Juvenile Court Act of 1987. | ||||||
6 | (cc) Recordings made under the Law Enforcement | ||||||
7 | Officer-Worn Body Camera Act, except to the extent | ||||||
8 | authorized under that Act. | ||||||
9 | (dd) Information that is prohibited from being | ||||||
10 | disclosed under Section 45 of the Condominium and Common | ||||||
11 | Interest Community Ombudsperson Act. | ||||||
12 | (ee) Information that is exempted from disclosure | ||||||
13 | under Section 30.1 of the Pharmacy Practice Act. | ||||||
14 | (ff) Information that is exempted from disclosure | ||||||
15 | under the Revised Uniform Unclaimed Property Act. | ||||||
16 | (gg) Information that is prohibited from being | ||||||
17 | disclosed under Section 7-603.5 of the Illinois Vehicle | ||||||
18 | Code. | ||||||
19 | (hh) Records that are exempt from disclosure under | ||||||
20 | Section 1A-16.7 of the Election Code. | ||||||
21 | (ii) Information which is exempted from disclosure | ||||||
22 | under Section 2505-800 of the Department of Revenue Law of | ||||||
23 | the Civil Administrative Code of Illinois. | ||||||
24 | (jj) Information and reports that are required to be | ||||||
25 | submitted to the Department of Labor by registering day and | ||||||
26 | temporary labor service agencies but are exempt from |
| |||||||
| |||||||
1 | disclosure under subsection (a-1) of Section 45 of the Day | ||||||
2 | and Temporary Labor Services Act. | ||||||
3 | (kk) Information prohibited from disclosure under the | ||||||
4 | Seizure and Forfeiture Reporting Act. | ||||||
5 | (ll) Information the disclosure of which is restricted | ||||||
6 | and exempted under Section 5-30.8 of the Illinois Public | ||||||
7 | Aid Code. | ||||||
8 | (mm) (ll) Records that are exempt from disclosure under | ||||||
9 | Section 4.2 of the Crime Victims Compensation Act. | ||||||
10 | (nn) (ll) Information that is exempt from disclosure | ||||||
11 | under Section 70 of the Higher Education Student Assistance | ||||||
12 | Act. | ||||||
13 | (oo) Information that is exempt from disclosure under | ||||||
14 | subsections (f) and (j) of Section 5-36 of the Illinois | ||||||
15 | Public Aid Code. | ||||||
16 | (Source: P.A. 99-78, eff. 7-20-15; 99-298, eff. 8-6-15; 99-352, | ||||||
17 | eff. 1-1-16; 99-642, eff. 7-28-16; 99-776, eff. 8-12-16; | ||||||
18 | 99-863, eff. 8-19-16; 100-20, eff. 7-1-17; 100-22, eff. 1-1-18; | ||||||
19 | 100-201, eff. 8-18-17; 100-373, eff. 1-1-18; 100-464, eff. | ||||||
20 | 8-28-17; 100-465, eff. 8-31-17; 100-512, eff. 7-1-18; 100-517, | ||||||
21 | eff. 6-1-18; 100-646, eff. 7-27-18; 100-690, eff. 1-1-19; | ||||||
22 | 100-863, eff. 8-14-18; 100-887, eff. 8-14-18; revised | ||||||
23 | 10-12-18.)
| ||||||
24 | Section 5. The State Employees Group Insurance Act of 1971 | ||||||
25 | is amended by changing Section 6.11 as follows:
|
| |||||||
| |||||||
1 | (5 ILCS 375/6.11)
| ||||||
2 | (Text of Section after amendment by P.A. 100-1170 ) | ||||||
3 | Sec. 6.11. Required health benefits; Illinois Insurance | ||||||
4 | Code
requirements. The program of health
benefits shall provide | ||||||
5 | the post-mastectomy care benefits required to be covered
by a | ||||||
6 | policy of accident and health insurance under Section 356t of | ||||||
7 | the Illinois
Insurance Code. The program of health benefits | ||||||
8 | shall provide the coverage
required under Sections 356g, | ||||||
9 | 356g.5, 356g.5-1, 356m,
356u, 356w, 356x, 356z.2, 356z.4, | ||||||
10 | 356z.6, 356z.8, 356z.9, 356z.10, 356z.11, 356z.12, 356z.13, | ||||||
11 | 356z.14, 356z.15, 356z.17, 356z.22, 356z.25, 356z.26, 356z.29, | ||||||
12 | and 356z.32 of the
Illinois Insurance Code.
The program of | ||||||
13 | health benefits must comply with Sections 155.22a, 155.37, | ||||||
14 | 355b, 356z.19, 370c, and 370c.1 , and Article XXXIIB of the
| ||||||
15 | Illinois Insurance Code. The Department of Insurance shall | ||||||
16 | enforce the requirements of this Section with respect to | ||||||
17 | Sections 370c and 370c.1 of the Illinois Insurance Code; all | ||||||
18 | other requirements of this Section shall be enforced by the | ||||||
19 | Department of Central Management Services.
| ||||||
20 | Rulemaking authority to implement Public Act 95-1045, if | ||||||
21 | any, is conditioned on the rules being adopted in accordance | ||||||
22 | with all provisions of the Illinois Administrative Procedure | ||||||
23 | Act and all rules and procedures of the Joint Committee on | ||||||
24 | Administrative Rules; any purported rule not so adopted, for | ||||||
25 | whatever reason, is unauthorized. |
| |||||||
| |||||||
1 | (Source: P.A. 99-480, eff. 9-9-15; 100-24, eff. 7-18-17; | ||||||
2 | 100-138, eff. 8-18-17; 100-863, eff. 8-14-18; 100-1024, eff. | ||||||
3 | 1-1-19; 100-1057, eff. 1-1-19; 100-1102, eff. 1-1-19; | ||||||
4 | 100-1170, eff. 6-1-19.)
| ||||||
5 | Section 10. The Illinois Insurance Code is amended by | ||||||
6 | adding Article XXXIIB as follows:
| ||||||
7 | (215 ILCS 5/Art. XXXIIB heading new) | ||||||
8 | ARTICLE XXXIIB. PHARMACY BENEFIT MANAGERS | ||||||
9 | (215 ILCS 5/513b1 new) | ||||||
10 | Sec. 513b1. Pharmacy benefit manager contracts. | ||||||
11 | (a) As used in this Section: | ||||||
12 | "Biological product" has the meaning ascribed to that term | ||||||
13 | in Section 19.5 of the Pharmacy Practice Act. | ||||||
14 | "Maximum allowable cost" means the maximum amount that a | ||||||
15 | pharmacy benefit manager will reimburse a pharmacy for the cost | ||||||
16 | of a drug. | ||||||
17 | "Maximum allowable cost list" means a list of drugs for | ||||||
18 | which a maximum allowable cost has been established by a | ||||||
19 | pharmacy benefit manager. | ||||||
20 | "Pharmacy benefit manager" means a person, business, or | ||||||
21 | entity, including a wholly or partially owned or controlled | ||||||
22 | subsidiary of a pharmacy benefit manager, that provides claims | ||||||
23 | processing services or other prescription drug or device |
| |||||||
| |||||||
1 | services, or both, for health benefit plans. | ||||||
2 | "Retail price" means the price an individual without | ||||||
3 | prescription drug coverage would pay at a retail pharmacy, not | ||||||
4 | including a pharmacist dispensing fee. | ||||||
5 | (b) A contract between a health insurer and a pharmacy | ||||||
6 | benefit manager must require that the pharmacy benefit manager: | ||||||
7 | (1) Update maximum allowable cost pricing information | ||||||
8 | at least every 7 calendar days. | ||||||
9 | (2) Maintain a process that will, in a timely manner, | ||||||
10 | eliminate drugs from maximum allowable cost lists or modify | ||||||
11 | drug prices to remain consistent with changes in pricing | ||||||
12 | data used in formulating maximum allowable cost prices and | ||||||
13 | product availability. | ||||||
14 | (3) Provide access to its maximum allowable cost list | ||||||
15 | to each pharmacy or pharmacy services administrative | ||||||
16 | organization subject to the maximum allowable cost list. | ||||||
17 | Access may include a real-time pharmacy website portal to | ||||||
18 | be able to view the maximum allowable cost list. As used in | ||||||
19 | this Section, "pharmacy services administrative | ||||||
20 | organization" means an entity operating within the State | ||||||
21 | that contracts with independent pharmacies to conduct | ||||||
22 | business on their behalf with third-party payers. A | ||||||
23 | pharmacy services administrative organization may provide | ||||||
24 | administrative services to pharmacies and negotiate and | ||||||
25 | enter into contracts with third-party payers or pharmacy | ||||||
26 | benefit managers on behalf of pharmacies. |
| |||||||
| |||||||
1 | (4) Provide a process by which a contracted pharmacy | ||||||
2 | can appeal the provider's reimbursement for a drug subject | ||||||
3 | to maximum allowable cost pricing. The appeals process | ||||||
4 | must, at a minimum, include the following: | ||||||
5 | (A) A requirement that a contracted pharmacy has 14 | ||||||
6 | calendar days after the applicable fill date to appeal | ||||||
7 | a maximum allowable cost if the reimbursement for the | ||||||
8 | drug is less than the net amount that the network | ||||||
9 | provider paid to the supplier of the drug. | ||||||
10 | (B) A requirement that a pharmacy benefit manager | ||||||
11 | must respond to a challenge within 14 calendar days of | ||||||
12 | the contracted pharmacy making the claim for which the | ||||||
13 | appeal has been submitted. | ||||||
14 | (C) A telephone number and e-mail address or | ||||||
15 | website to network providers, at which the provider can | ||||||
16 | contact the pharmacy benefit manager to process and | ||||||
17 | submit an appeal. | ||||||
18 | (D) A requirement that, if an appeal is denied, the | ||||||
19 | pharmacy benefit manager must provide the reason for | ||||||
20 | the denial and the name and the national drug code | ||||||
21 | number from national or regional wholesalers. | ||||||
22 | (E) A requirement that, if an appeal is sustained, | ||||||
23 | the pharmacy benefit manager must make an adjustment in | ||||||
24 | the drug price effective the date the challenge is | ||||||
25 | resolved and make the adjustment applicable to all | ||||||
26 | similarly situated network pharmacy providers, as |
| |||||||
| |||||||
1 | determined by the managed care organization or | ||||||
2 | pharmacy benefit manager. | ||||||
3 | (5) Allow a plan sponsor contracting with a pharmacy | ||||||
4 | benefit manager an annual right to audit compliance with | ||||||
5 | the terms of the contract by the pharmacy benefit manager, | ||||||
6 | including, but not limited to, full disclosure of any and | ||||||
7 | all rebate amounts secured, whether product specific or | ||||||
8 | generalized rebates, that were provided to the pharmacy | ||||||
9 | benefit manager by a pharmaceutical manufacturer. | ||||||
10 | (6) Allow a plan sponsor contracting with a pharmacy | ||||||
11 | benefit manager to request that the pharmacy benefit | ||||||
12 | manager disclose the actual amounts paid by the pharmacy | ||||||
13 | benefit manager to the pharmacy. | ||||||
14 | (7) Provide notice to the party contracting with the | ||||||
15 | pharmacy benefit manager of any consideration that the | ||||||
16 | pharmacy benefit manager receives from the manufacturer | ||||||
17 | for dispense as written prescriptions once a generic or | ||||||
18 | biologically similar product becomes available. | ||||||
19 | (c) In order to place a particular prescription drug on a | ||||||
20 | maximum allowable cost list, the pharmacy benefit manager must, | ||||||
21 | at a minimum, ensure that: | ||||||
22 | (1) if the drug is a generically equivalent drug, it is | ||||||
23 | listed as therapeutically equivalent and pharmaceutically | ||||||
24 | equivalent "A" or "B" rated in the United States Food and | ||||||
25 | Drug Administration's most recent version of the "Orange | ||||||
26 | Book" or have an NR or NA rating by Medi-Span, Gold |
| |||||||
| |||||||
1 | Standard, or a similar rating by a nationally recognized | ||||||
2 | reference; | ||||||
3 | (2) the drug is available for purchase by each pharmacy | ||||||
4 | in the State from national or regional wholesalers | ||||||
5 | operating in Illinois; and | ||||||
6 | (3) the drug is not obsolete. | ||||||
7 | (d) A pharmacy benefit manager is prohibited from limiting | ||||||
8 | a pharmacist's ability to disclose whether the cost-sharing | ||||||
9 | obligation exceeds the retail price for a covered prescription | ||||||
10 | drug, and the availability of a more affordable alternative | ||||||
11 | drug, if one is available in accordance with Section 42 of the | ||||||
12 | Pharmacy Practice Act. | ||||||
13 | (e) A health insurer or pharmacy benefit manager shall not | ||||||
14 | require an insured to make a payment for a prescription drug at | ||||||
15 | the point of sale in an amount that exceeds the lesser of: | ||||||
16 | (1) the applicable cost-sharing amount; or | ||||||
17 | (2) the retail price of the drug in the absence of | ||||||
18 | prescription drug coverage. | ||||||
19 | (f) This Section applies to contracts entered into or | ||||||
20 | renewed on or after July 1, 2020. | ||||||
21 | (g) This Section applies to any group or individual policy | ||||||
22 | of accident and health insurance or managed care plan that | ||||||
23 | provides coverage for prescription drugs and that is amended, | ||||||
24 | delivered, issued, or renewed on or after July 1, 2020.
| ||||||
25 | (215 ILCS 5/513b2 new) |
| |||||||
| |||||||
1 | Sec. 513b2. Licensure requirements. | ||||||
2 | (a) Beginning on July 1, 2020, to conduct business in this | ||||||
3 | State, a pharmacy benefit manager must register with the | ||||||
4 | Director. To initially register or renew a registration, a | ||||||
5 | pharmacy benefit manager shall submit: | ||||||
6 | (1) A nonrefundable fee not to exceed $500. | ||||||
7 | (2) A copy of the registrant's corporate charter, | ||||||
8 | articles of incorporation, or other charter document. | ||||||
9 | (3) A completed registration form adopted by the | ||||||
10 | Director containing: | ||||||
11 | (A) The name and address of the registrant. | ||||||
12 | (B) The name, address, and official position of | ||||||
13 | each officer and director of the registrant. | ||||||
14 | (b) The registrant shall report any change in information | ||||||
15 | required under this Section to the Director in writing within | ||||||
16 | 60 days after the change occurs. | ||||||
17 | (c) Upon receipt of a completed registration form, the | ||||||
18 | required documents, and the registration fee, the Director | ||||||
19 | shall issue a registration certificate. The certificate may be | ||||||
20 | in paper or electronic form, and shall clearly indicate the | ||||||
21 | expiration date of the registration. Registration certificates | ||||||
22 | are nontransferable. | ||||||
23 | (d) A registration certificate is valid for 2 years after | ||||||
24 | its date of issue. The Director shall adopt by rule an initial | ||||||
25 | registration fee not to exceed $500 and a registration renewal | ||||||
26 | fee not to exceed $500, both of which shall be nonrefundable. |
| |||||||
| |||||||
1 | Total fees may not exceed the cost of administering this | ||||||
2 | Section. | ||||||
3 | (e) The Department shall adopt any rules necessary to | ||||||
4 | implement this Section.
| ||||||
5 | (215 ILCS 5/513b3 new) | ||||||
6 | Sec. 513b3. Examination. | ||||||
7 | (a) The Director, or his or her designee, may examine a | ||||||
8 | registered pharmacy benefit manager. | ||||||
9 | (b) Any pharmacy benefit manager being examined shall | ||||||
10 | provide to the Director, or his or her designee, convenient and | ||||||
11 | free access to all books, records, documents, and other papers | ||||||
12 | relating to such pharmacy benefit manager's business affairs at | ||||||
13 | all reasonable hours at its offices. | ||||||
14 | (c) The Director, or his or her designee, may administer | ||||||
15 | oaths and thereafter examine the pharmacy benefit manager's | ||||||
16 | designee, representative, or any officer or senior manager as | ||||||
17 | listed on the license or registration certificate about the | ||||||
18 | business of the pharmacy benefit manager. | ||||||
19 | (d) The examiners designated by the Director under this | ||||||
20 | Section may make reports to the Director. Any report alleging | ||||||
21 | substantive violations of this Article, any applicable | ||||||
22 | provisions of this Code, or any applicable Part of Title 50 of | ||||||
23 | the Illinois Administrative Code shall be in writing and be | ||||||
24 | based upon facts obtained by the examiners. The report shall be | ||||||
25 | verified by the examiners. |
| |||||||
| |||||||
1 | (e) If a report is made, the Director shall either deliver | ||||||
2 | a duplicate report to the pharmacy benefit manager being | ||||||
3 | examined or send such duplicate by certified or registered mail | ||||||
4 | to the pharmacy benefit manager's address specified in the | ||||||
5 | records of the Department. The Director shall afford the | ||||||
6 | pharmacy benefit manager an opportunity to request a hearing to | ||||||
7 | object to the report. The pharmacy benefit manager may request | ||||||
8 | a hearing within 30 days after receipt of the duplicate report | ||||||
9 | by giving the Director written notice of such request together | ||||||
10 | with written objections to the report. Any hearing shall be | ||||||
11 | conducted in accordance with Sections 402 and 403 of this Code. | ||||||
12 | The right to a hearing is waived if the delivery of the report | ||||||
13 | is refused or the report is otherwise undeliverable or the | ||||||
14 | pharmacy benefit manager does not timely request a hearing. | ||||||
15 | After the hearing or upon expiration of the time period during | ||||||
16 | which a pharmacy benefit manager may request a hearing, if the | ||||||
17 | examination reveals that the pharmacy benefit manager is | ||||||
18 | operating in violation of any applicable provision of this | ||||||
19 | Code, any applicable Part of Title 50 of the Illinois | ||||||
20 | Administrative Code, a provision of this Article, or prior | ||||||
21 | order, the Director, in the written order, may require the | ||||||
22 | pharmacy benefit manager to take any action the Director | ||||||
23 | considers necessary or appropriate in accordance with the | ||||||
24 | report or examination hearing. If the Director issues an order, | ||||||
25 | it shall be issued within 90 days after the report is filed, or | ||||||
26 | if there is a hearing, within 90 days after the conclusion of |
| |||||||
| |||||||
1 | the hearing. The order is subject to review under the | ||||||
2 | Administrative Review Law.
| ||||||
3 | (215 ILCS 5/513b4 new) | ||||||
4 | Sec. 513b4. Denial, revocation, or suspension of | ||||||
5 | registration; administrative fines. | ||||||
6 | (a) Denial of an application or suspension or revocation of | ||||||
7 | a registration in accordance with this Section shall be by | ||||||
8 | written order sent to the applicant or registrant by certified | ||||||
9 | or registered mail at the address specified in the records of | ||||||
10 | the Department. The written order shall state the grounds, | ||||||
11 | charges, or conduct on which denial, suspension, or revocation | ||||||
12 | is based. The applicant or registrant may in writing request a | ||||||
13 | hearing within 30 days from the date of mailing. Upon receipt | ||||||
14 | of a written request, the Director shall issue an order | ||||||
15 | setting: (i) a specific time for the hearing, which may not be | ||||||
16 | less than 20 nor more than 30 days after receipt of the | ||||||
17 | request; and (ii) a specific place for the hearing, which may | ||||||
18 | be in either the city of Springfield or in the county in | ||||||
19 | Illinois where the applicant's or registrant's principal place | ||||||
20 | of business is located. If no written request is received by | ||||||
21 | the Director, such order shall be final upon the expiration of | ||||||
22 | said 30 days. | ||||||
23 | (b) If the Director finds that one or more grounds exist | ||||||
24 | for the revocation or suspension of a registration issued under | ||||||
25 | this Article, the Director may, in lieu of or in addition to |
| |||||||
| |||||||
1 | such suspension or revocation, impose a fine upon the pharmacy | ||||||
2 | benefit manager as provided under subsection (c). | ||||||
3 | (c) With respect to any knowing and willful violation of a | ||||||
4 | lawful order of the Director, any applicable portion of this | ||||||
5 | Code, Part of Title 50 of the Illinois Administrative Code, or | ||||||
6 | provision of this Article, the Director may impose a fine upon | ||||||
7 | the pharmacy benefit manager in an amount not to exceed $50,000 | ||||||
8 | for each violation.
| ||||||
9 | (215 ILCS 5/513b5 new) | ||||||
10 | Sec. 513b5. Failure to register. Any pharmacy benefit | ||||||
11 | manager that operates without a registration or fails to | ||||||
12 | register with the Director and pay the fee prescribed by this | ||||||
13 | Article is an unauthorized insurer as defined in Article VII of | ||||||
14 | this Code and shall be subject to all penalties provided for | ||||||
15 | therein.
| ||||||
16 | (215 ILCS 5/513b6 new) | ||||||
17 | Sec. 513b6. Insurance Producer Administration Fund. All | ||||||
18 | fees and fines paid to and collected by the Director under this | ||||||
19 | Article shall be paid promptly after receipt thereof, together | ||||||
20 | with a detailed statement of such fees, into the Insurance | ||||||
21 | Producer Administration Fund. The moneys deposited into the | ||||||
22 | Insurance Producer Administration Fund may be transferred to | ||||||
23 | the Professions Indirect Cost Fund, as authorized under Section | ||||||
24 | 2105-300 of the Department of Professional Regulation Law of |
| |||||||
| |||||||
1 | the Civil Administrative Code of Illinois.
| ||||||
2 | Section 15. The Health Maintenance Organization Act is | ||||||
3 | amended by changing Section 5-3 as follows:
| ||||||
4 | (215 ILCS 125/5-3) (from Ch. 111 1/2, par. 1411.2)
| ||||||
5 | Sec. 5-3. Insurance Code provisions.
| ||||||
6 | (a) Health Maintenance Organizations
shall be subject to | ||||||
7 | the provisions of Sections 133, 134, 136, 137, 139, 140, 141.1,
| ||||||
8 | 141.2, 141.3, 143, 143c, 147, 148, 149, 151,
152, 153, 154, | ||||||
9 | 154.5, 154.6,
154.7, 154.8, 155.04, 155.22a, 355.2, 355.3, | ||||||
10 | 355b, 356g.5-1, 356m, 356v, 356w, 356x, 356y,
356z.2, 356z.4, | ||||||
11 | 356z.5, 356z.6, 356z.8, 356z.9, 356z.10, 356z.11, 356z.12, | ||||||
12 | 356z.13, 356z.14, 356z.15, 356z.17, 356z.18, 356z.19, 356z.21, | ||||||
13 | 356z.22, 356z.25, 356z.26, 356z.29, 356z.30, 356z.32, 364, | ||||||
14 | 364.01, 367.2, 367.2-5, 367i, 368a, 368b, 368c, 368d, 368e, | ||||||
15 | 370c,
370c.1, 401, 401.1, 402, 403, 403A,
408, 408.2, 409, 412, | ||||||
16 | 444,
and
444.1,
paragraph (c) of subsection (2) of Section 367, | ||||||
17 | and Articles IIA, VIII 1/2,
XII,
XII 1/2, XIII, XIII 1/2, XXV, | ||||||
18 | and XXVI , and XXXIIB of the Illinois Insurance Code.
| ||||||
19 | (b) For purposes of the Illinois Insurance Code, except for | ||||||
20 | Sections 444
and 444.1 and Articles XIII and XIII 1/2, Health | ||||||
21 | Maintenance Organizations in
the following categories are | ||||||
22 | deemed to be "domestic companies":
| ||||||
23 | (1) a corporation authorized under the
Dental Service | ||||||
24 | Plan Act or the Voluntary Health Services Plans Act;
|
| |||||||
| |||||||
1 | (2) a corporation organized under the laws of this | ||||||
2 | State; or
| ||||||
3 | (3) a corporation organized under the laws of another | ||||||
4 | state, 30% or more
of the enrollees of which are residents | ||||||
5 | of this State, except a
corporation subject to | ||||||
6 | substantially the same requirements in its state of
| ||||||
7 | organization as is a "domestic company" under Article VIII | ||||||
8 | 1/2 of the
Illinois Insurance Code.
| ||||||
9 | (c) In considering the merger, consolidation, or other | ||||||
10 | acquisition of
control of a Health Maintenance Organization | ||||||
11 | pursuant to Article VIII 1/2
of the Illinois Insurance Code,
| ||||||
12 | (1) the Director shall give primary consideration to | ||||||
13 | the continuation of
benefits to enrollees and the financial | ||||||
14 | conditions of the acquired Health
Maintenance Organization | ||||||
15 | after the merger, consolidation, or other
acquisition of | ||||||
16 | control takes effect;
| ||||||
17 | (2)(i) the criteria specified in subsection (1)(b) of | ||||||
18 | Section 131.8 of
the Illinois Insurance Code shall not | ||||||
19 | apply and (ii) the Director, in making
his determination | ||||||
20 | with respect to the merger, consolidation, or other
| ||||||
21 | acquisition of control, need not take into account the | ||||||
22 | effect on
competition of the merger, consolidation, or | ||||||
23 | other acquisition of control;
| ||||||
24 | (3) the Director shall have the power to require the | ||||||
25 | following
information:
| ||||||
26 | (A) certification by an independent actuary of the |
| |||||||
| |||||||
1 | adequacy
of the reserves of the Health Maintenance | ||||||
2 | Organization sought to be acquired;
| ||||||
3 | (B) pro forma financial statements reflecting the | ||||||
4 | combined balance
sheets of the acquiring company and | ||||||
5 | the Health Maintenance Organization sought
to be | ||||||
6 | acquired as of the end of the preceding year and as of | ||||||
7 | a date 90 days
prior to the acquisition, as well as pro | ||||||
8 | forma financial statements
reflecting projected | ||||||
9 | combined operation for a period of 2 years;
| ||||||
10 | (C) a pro forma business plan detailing an | ||||||
11 | acquiring party's plans with
respect to the operation | ||||||
12 | of the Health Maintenance Organization sought to
be | ||||||
13 | acquired for a period of not less than 3 years; and
| ||||||
14 | (D) such other information as the Director shall | ||||||
15 | require.
| ||||||
16 | (d) The provisions of Article VIII 1/2 of the Illinois | ||||||
17 | Insurance Code
and this Section 5-3 shall apply to the sale by | ||||||
18 | any health maintenance
organization of greater than 10% of its
| ||||||
19 | enrollee population (including without limitation the health | ||||||
20 | maintenance
organization's right, title, and interest in and to | ||||||
21 | its health care
certificates).
| ||||||
22 | (e) In considering any management contract or service | ||||||
23 | agreement subject
to Section 141.1 of the Illinois Insurance | ||||||
24 | Code, the Director (i) shall, in
addition to the criteria | ||||||
25 | specified in Section 141.2 of the Illinois
Insurance Code, take | ||||||
26 | into account the effect of the management contract or
service |
| |||||||
| |||||||
1 | agreement on the continuation of benefits to enrollees and the
| ||||||
2 | financial condition of the health maintenance organization to | ||||||
3 | be managed or
serviced, and (ii) need not take into account the | ||||||
4 | effect of the management
contract or service agreement on | ||||||
5 | competition.
| ||||||
6 | (f) Except for small employer groups as defined in the | ||||||
7 | Small Employer
Rating, Renewability and Portability Health | ||||||
8 | Insurance Act and except for
medicare supplement policies as | ||||||
9 | defined in Section 363 of the Illinois
Insurance Code, a Health | ||||||
10 | Maintenance Organization may by contract agree with a
group or | ||||||
11 | other enrollment unit to effect refunds or charge additional | ||||||
12 | premiums
under the following terms and conditions:
| ||||||
13 | (i) the amount of, and other terms and conditions with | ||||||
14 | respect to, the
refund or additional premium are set forth | ||||||
15 | in the group or enrollment unit
contract agreed in advance | ||||||
16 | of the period for which a refund is to be paid or
| ||||||
17 | additional premium is to be charged (which period shall not | ||||||
18 | be less than one
year); and
| ||||||
19 | (ii) the amount of the refund or additional premium | ||||||
20 | shall not exceed 20%
of the Health Maintenance | ||||||
21 | Organization's profitable or unprofitable experience
with | ||||||
22 | respect to the group or other enrollment unit for the | ||||||
23 | period (and, for
purposes of a refund or additional | ||||||
24 | premium, the profitable or unprofitable
experience shall | ||||||
25 | be calculated taking into account a pro rata share of the
| ||||||
26 | Health Maintenance Organization's administrative and |
| |||||||
| |||||||
1 | marketing expenses, but
shall not include any refund to be | ||||||
2 | made or additional premium to be paid
pursuant to this | ||||||
3 | subsection (f)). The Health Maintenance Organization and | ||||||
4 | the
group or enrollment unit may agree that the profitable | ||||||
5 | or unprofitable
experience may be calculated taking into | ||||||
6 | account the refund period and the
immediately preceding 2 | ||||||
7 | plan years.
| ||||||
8 | The Health Maintenance Organization shall include a | ||||||
9 | statement in the
evidence of coverage issued to each enrollee | ||||||
10 | describing the possibility of a
refund or additional premium, | ||||||
11 | and upon request of any group or enrollment unit,
provide to | ||||||
12 | the group or enrollment unit a description of the method used | ||||||
13 | to
calculate (1) the Health Maintenance Organization's | ||||||
14 | profitable experience with
respect to the group or enrollment | ||||||
15 | unit and the resulting refund to the group
or enrollment unit | ||||||
16 | or (2) the Health Maintenance Organization's unprofitable
| ||||||
17 | experience with respect to the group or enrollment unit and the | ||||||
18 | resulting
additional premium to be paid by the group or | ||||||
19 | enrollment unit.
| ||||||
20 | In no event shall the Illinois Health Maintenance | ||||||
21 | Organization
Guaranty Association be liable to pay any | ||||||
22 | contractual obligation of an
insolvent organization to pay any | ||||||
23 | refund authorized under this Section.
| ||||||
24 | (g) Rulemaking authority to implement Public Act 95-1045, | ||||||
25 | if any, is conditioned on the rules being adopted in accordance | ||||||
26 | with all provisions of the Illinois Administrative Procedure |
| |||||||
| |||||||
1 | Act and all rules and procedures of the Joint Committee on | ||||||
2 | Administrative Rules; any purported rule not so adopted, for | ||||||
3 | whatever reason, is unauthorized. | ||||||
4 | (Source: P.A. 99-761, eff. 1-1-18; 100-24, eff. 7-18-17; | ||||||
5 | 100-138, eff. 8-18-17; 100-863, eff. 8-14-18; 100-1026, eff. | ||||||
6 | 8-22-18; 100-1057, eff. 1-1-19; 100-1102, eff. 1-1-19; revised | ||||||
7 | 10-4-18.)
| ||||||
8 | Section 20. The Managed Care Reform and Patient Rights Act | ||||||
9 | is amended by changing Sections 10 and 30 as follows:
| ||||||
10 | (215 ILCS 134/10)
| ||||||
11 | Sec. 10. Definitions.
| ||||||
12 | "Adverse determination" means a determination by a health | ||||||
13 | care plan under
Section 45 or by a utilization review program | ||||||
14 | under Section
85 that
a health care service is not medically | ||||||
15 | necessary.
| ||||||
16 | "Clinical peer" means a health care professional who is in | ||||||
17 | the same
profession and the same or similar specialty as the | ||||||
18 | health care provider who
typically manages the medical | ||||||
19 | condition, procedures, or treatment under
review.
| ||||||
20 | "Department" means the Department of Insurance.
| ||||||
21 | "Emergency medical condition" means a medical condition | ||||||
22 | manifesting itself by
acute symptoms of sufficient severity , | ||||||
23 | regardless of the final diagnosis given, (including, but not | ||||||
24 | limited to, severe
pain) such that a prudent
layperson, who |
| |||||||
| |||||||
1 | possesses an average knowledge of health and medicine, could
| ||||||
2 | reasonably expect the absence of immediate medical attention to | ||||||
3 | result in:
| ||||||
4 | (1) placing the health of the individual (or, with | ||||||
5 | respect to a pregnant
woman, the
health of the woman or her | ||||||
6 | unborn child) in serious jeopardy;
| ||||||
7 | (2) serious
impairment to bodily functions; or
| ||||||
8 | (3) serious dysfunction of any bodily organ
or part ; .
| ||||||
9 | (4) inadequately controlled pain; or | ||||||
10 | (5) with respect to a pregnant woman who is having | ||||||
11 | contractions: | ||||||
12 | (A) inadequate time to complete a safe transfer to | ||||||
13 | another hospital before delivery; or | ||||||
14 | (B) a transfer to another hospital may pose a | ||||||
15 | threat to the health or safety of the woman or unborn | ||||||
16 | child. | ||||||
17 | "Emergency medical screening examination" means a medical | ||||||
18 | screening
examination and
evaluation by a physician licensed to | ||||||
19 | practice medicine in all its branches, or
to the extent | ||||||
20 | permitted
by applicable laws, by other appropriately licensed | ||||||
21 | personnel under the
supervision of or in
collaboration with a | ||||||
22 | physician licensed to practice medicine in all its
branches to | ||||||
23 | determine whether
the need for emergency services exists.
| ||||||
24 | "Emergency services" means, with respect to an enrollee of | ||||||
25 | a health care
plan,
transportation services, including but not | ||||||
26 | limited to ambulance services, and
covered inpatient and |
| |||||||
| |||||||
1 | outpatient hospital services
furnished by a provider
qualified | ||||||
2 | to furnish those services that are needed to evaluate or | ||||||
3 | stabilize an
emergency medical condition. "Emergency services" | ||||||
4 | does not
refer to post-stabilization medical services.
| ||||||
5 | "Enrollee" means any person and his or her dependents | ||||||
6 | enrolled in or covered
by a health care plan.
| ||||||
7 | "Health care plan" means a plan, including, but not limited | ||||||
8 | to, a health maintenance organization, a managed care community | ||||||
9 | network as defined in the Illinois Public Aid Code, or an | ||||||
10 | accountable care entity as defined in the Illinois Public Aid | ||||||
11 | Code that receives capitated payments to cover medical services | ||||||
12 | from the Department of Healthcare and Family Services, that | ||||||
13 | establishes, operates, or maintains a
network of health care | ||||||
14 | providers that has entered into an agreement with the
plan to | ||||||
15 | provide health care services to enrollees to whom the plan has | ||||||
16 | the
ultimate obligation to arrange for the provision of or | ||||||
17 | payment for services
through organizational arrangements for | ||||||
18 | ongoing quality assurance,
utilization review programs, or | ||||||
19 | dispute resolution.
Nothing in this definition shall be | ||||||
20 | construed to mean that an independent
practice association or a | ||||||
21 | physician hospital organization that subcontracts
with
a | ||||||
22 | health care plan is, for purposes of that subcontract, a health | ||||||
23 | care plan.
| ||||||
24 | For purposes of this definition, "health care plan" shall | ||||||
25 | not include the
following:
| ||||||
26 | (1) indemnity health insurance policies including |
| |||||||
| |||||||
1 | those using a contracted
provider network;
| ||||||
2 | (2) health care plans that offer only dental or only | ||||||
3 | vision coverage;
| ||||||
4 | (3) preferred provider administrators, as defined in | ||||||
5 | Section 370g(g) of
the
Illinois Insurance Code;
| ||||||
6 | (4) employee or employer self-insured health benefit | ||||||
7 | plans under the
federal Employee Retirement Income | ||||||
8 | Security Act of 1974;
| ||||||
9 | (5) health care provided pursuant to the Workers' | ||||||
10 | Compensation Act or the
Workers' Occupational Diseases | ||||||
11 | Act; and
| ||||||
12 | (6) not-for-profit voluntary health services plans | ||||||
13 | with health maintenance
organization
authority in | ||||||
14 | existence as of January 1, 1999 that are affiliated with a | ||||||
15 | union
and that
only extend coverage to union members and | ||||||
16 | their dependents.
| ||||||
17 | "Health care professional" means a physician, a registered | ||||||
18 | professional
nurse,
or other individual appropriately licensed | ||||||
19 | or registered
to provide health care services.
| ||||||
20 | "Health care provider" means any physician, hospital | ||||||
21 | facility, facility licensed under the Nursing Home Care Act, | ||||||
22 | long-term care facility as defined in Section 1-113 of the | ||||||
23 | Nursing Home Care Act, or other
person that is licensed or | ||||||
24 | otherwise authorized to deliver health care
services. Nothing | ||||||
25 | in this
Act shall be construed to define Independent Practice | ||||||
26 | Associations or
Physician-Hospital Organizations as health |
| |||||||
| |||||||
1 | care providers.
| ||||||
2 | "Health care services" means any services included in the | ||||||
3 | furnishing to any
individual of medical care, or the
| ||||||
4 | hospitalization incident to the furnishing of such care, as | ||||||
5 | well as the
furnishing to any person of
any and all other | ||||||
6 | services for the purpose of preventing,
alleviating, curing, or | ||||||
7 | healing human illness or injury including home health
and | ||||||
8 | pharmaceutical services and products.
| ||||||
9 | "Medical director" means a physician licensed in any state | ||||||
10 | to practice
medicine in all its
branches appointed by a health | ||||||
11 | care plan.
| ||||||
12 | "Person" means a corporation, association, partnership,
| ||||||
13 | limited liability company, sole proprietorship, or any other | ||||||
14 | legal entity.
| ||||||
15 | "Physician" means a person licensed under the Medical
| ||||||
16 | Practice Act of 1987.
| ||||||
17 | "Post-stabilization medical services" means health care | ||||||
18 | services
provided to an enrollee that are furnished in a | ||||||
19 | licensed hospital by a provider
that is qualified to furnish | ||||||
20 | such services, and determined to be medically
necessary and | ||||||
21 | directly related to the emergency medical condition following
| ||||||
22 | stabilization.
| ||||||
23 | "Stabilization" means, with respect to an emergency | ||||||
24 | medical condition, to
provide such medical treatment of the | ||||||
25 | condition as may be necessary to assure,
within reasonable | ||||||
26 | medical probability, that no material deterioration
of the |
| |||||||
| |||||||
1 | condition is likely to result.
| ||||||
2 | "Utilization review" means the evaluation of the medical | ||||||
3 | necessity,
appropriateness, and efficiency of the use of health | ||||||
4 | care services, procedures,
and facilities.
| ||||||
5 | "Utilization review program" means a program established | ||||||
6 | by a person to
perform utilization review.
| ||||||
7 | (Source: P.A. 98-651, eff. 6-16-14; 98-841, eff. 8-1-14; 99-78, | ||||||
8 | eff. 7-20-15.)
| ||||||
9 | (215 ILCS 134/30)
| ||||||
10 | Sec. 30. Prohibitions.
| ||||||
11 | (a) No health care plan or its subcontractors may prohibit | ||||||
12 | or discourage
health care providers
by contract or policy from
| ||||||
13 | discussing any health care services and health care providers, | ||||||
14 | utilization
review and quality assurance policies, terms and | ||||||
15 | conditions of plans and plan
policy with enrollees, prospective | ||||||
16 | enrollees, providers, or the public.
| ||||||
17 | (b) No health care plan by contract, written policy, or | ||||||
18 | procedure may
permit or allow an individual or entity to | ||||||
19 | dispense a different
drug in place of the drug or brand of drug | ||||||
20 | ordered or prescribed without the
express permission of the | ||||||
21 | person ordering or prescribing the drug, except as
provided | ||||||
22 | under Section 3.14 of the Illinois Food, Drug and Cosmetic Act.
| ||||||
23 | (c) No health care plan or its subcontractors may by | ||||||
24 | contract, written
policy, procedure, or otherwise mandate or | ||||||
25 | require an enrollee
to substitute his or her participating |
| |||||||
| |||||||
1 | primary care physician
under the plan during inpatient | ||||||
2 | hospitalization, such as with a hospitalist physician licensed | ||||||
3 | to practice medicine in all its branches,
without the agreement | ||||||
4 | of that enrollee's
participating primary care physician. | ||||||
5 | "Participating primary care
physician" for health care plans | ||||||
6 | and subcontractors that do not require
coordination of care by | ||||||
7 | a primary care physician means the participating
physician | ||||||
8 | treating the patient. All health care plans shall inform | ||||||
9 | enrollees
of any policies, recommendations, or guidelines | ||||||
10 | concerning the
substitution of the enrollee's primary care | ||||||
11 | physician when hospitalization is
necessary in the manner set | ||||||
12 | forth in subsections (d) and (e) of Section 15.
| ||||||
13 | (d) A health care plan shall apply any third-party | ||||||
14 | payments, financial assistance, discount, product vouchers, or | ||||||
15 | any other reduction in out-of-pocket expenses made by or on | ||||||
16 | behalf of such insured for prescription drugs toward a covered | ||||||
17 | individual's deductible, copay, or cost-sharing | ||||||
18 | responsibility, or out-of-pocket maximum associated with the | ||||||
19 | individual's health insurance. | ||||||
20 | (e) (d) Any violation of this Section shall be subject to | ||||||
21 | the
penalties under this Act.
| ||||||
22 | (Source: P.A. 94-866, eff. 6-16-06.)
| ||||||
23 | Section 25. The Pharmacy Practice Act is amended by adding | ||||||
24 | Section 42 as follows:
|
| |||||||
| |||||||
1 | (225 ILCS 85/42 new) | ||||||
2 | Sec. 42. Information disclosure. A pharmacist or her or his | ||||||
3 | authorized employee must inform customers of a less expensive, | ||||||
4 | generically equivalent drug product for her or his prescription | ||||||
5 | and whether the cost-sharing obligation to the customer exceeds | ||||||
6 | the retail price of the prescription in the absence of | ||||||
7 | prescription drug coverage.
| ||||||
8 | Section 30. The Illinois Public Aid Code is amended by | ||||||
9 | adding Section 5-36 as follows:
| ||||||
10 | (305 ILCS 5/5-36 new) | ||||||
11 | Sec. 5-36. Pharmacy benefits. | ||||||
12 | (a)(1) The Department may enter into a contract with a | ||||||
13 | third party on a fee-for-service reimbursement model for the | ||||||
14 | purpose of administering pharmacy benefits as provided in this | ||||||
15 | Section for members not enrolled in a Medicaid managed care | ||||||
16 | organization; however, these services shall be approved by the | ||||||
17 | Department. The Department shall ensure coordination of care | ||||||
18 | between the third-party administrator and managed care | ||||||
19 | organizations as a consideration in any contracts established | ||||||
20 | in accordance with this Section. Any managed care techniques, | ||||||
21 | principles, or administration of benefits utilized in | ||||||
22 | accordance with this subsection shall comply with State law. | ||||||
23 | (2) The following shall apply to contracts between entities | ||||||
24 | contracting relating to the Department's third-party |
| |||||||
| |||||||
1 | administrators and pharmacies: | ||||||
2 | (A) the Department shall approve any contract between a | ||||||
3 | third-party administrator and a pharmacy; | ||||||
4 | (B) the Department's third-party administrator shall | ||||||
5 | not change the terms of a contract between a third-party | ||||||
6 | administrator and a pharmacy without written approval by | ||||||
7 | the Department; and | ||||||
8 | (C) the Department's third-party administrator shall | ||||||
9 | not create, modify, implement, or indirectly establish any | ||||||
10 | fee on a pharmacy, pharmacist, or a recipient of medical | ||||||
11 | assistance without written approval by the Department. | ||||||
12 | (b) The provisions of this Section shall not apply to | ||||||
13 | outpatient pharmacy services provided by a health care facility | ||||||
14 | registered as a covered entity pursuant to 42 U.S.C. 256b or | ||||||
15 | any pharmacy owned by or contracted with the covered entity. A | ||||||
16 | Medicaid managed care organization shall, either directly or | ||||||
17 | through a pharmacy benefit manager, administer and reimburse | ||||||
18 | outpatient pharmacy claims submitted by a health care facility | ||||||
19 | registered as a covered entity pursuant to 42 U.S.C. 256b, its | ||||||
20 | owned pharmacies, and contracted pharmacies in accordance with | ||||||
21 | the contractual agreements the Medicaid managed care | ||||||
22 | organization or its pharmacy benefit manager has with such | ||||||
23 | facilities and pharmacies. Any pharmacy benefit manager that | ||||||
24 | contracts with a Medicaid managed care organization to | ||||||
25 | administer and reimburse pharmacy claims as provided in this | ||||||
26 | Section must be registered with the Director of Insurance in |
| |||||||
| |||||||
1 | accordance with Section 513b2 of the Illinois Insurance Code. | ||||||
2 | (c) On at least an annual basis, the Director of the | ||||||
3 | Department of Healthcare and Family Services shall submit a | ||||||
4 | report beginning no later than one year after the effective | ||||||
5 | date of this amendatory Act of the 101st General Assembly that | ||||||
6 | provides an update on any contract, contract issues, formulary, | ||||||
7 | dispensing fees, and maximum allowable cost concerns regarding | ||||||
8 | a third-party administrator and managed care. The requirement | ||||||
9 | for reporting to the General Assembly shall be satisfied by | ||||||
10 | filing copies of the report with the Speaker, the Minority | ||||||
11 | Leader, and the Clerk of the House of Representatives and with | ||||||
12 | the President, the Minority leader, and the Secretary of the | ||||||
13 | Senate. The Department shall take care that no proprietary | ||||||
14 | information is included in the report required under this | ||||||
15 | Section. | ||||||
16 | (d) A pharmacy benefit manager shall notify the Department | ||||||
17 | in writing of any activity, policy, or practice of the pharmacy | ||||||
18 | benefit manager that directly or indirectly presents a conflict | ||||||
19 | of interest that interferes with the discharge of the pharmacy | ||||||
20 | benefit manager's duty to a managed care organization to | ||||||
21 | exercise its contractual duties. "Conflict of interest" shall | ||||||
22 | be defined by rule by the Department. | ||||||
23 | (e) A pharmacy benefit manager shall, upon request, | ||||||
24 | disclose to the Department the following information: | ||||||
25 | (1) whether the pharmacy benefit manager has a | ||||||
26 | contract, agreement, or other arrangement with a |
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1 | pharmaceutical manufacturer to exclusively dispense or | ||||||
2 | provide a drug to a managed care organization's enrollees, | ||||||
3 | and the aggregate amounts of consideration of economic | ||||||
4 | benefits collected or received pursuant to that | ||||||
5 | arrangement; | ||||||
6 | (2) the percentage of claims payments made by the | ||||||
7 | pharmacy benefit manager to pharmacies owned, managed, or | ||||||
8 | controlled by the pharmacy benefit manager or any of the | ||||||
9 | pharmacy benefit manager's management companies, parent | ||||||
10 | companies, subsidiary companies, or jointly held | ||||||
11 | companies; | ||||||
12 | (3) the aggregate amount of the fees or assessments | ||||||
13 | imposed on, or collected from, pharmacy providers; and | ||||||
14 | (4) the average annualized percentage of revenue | ||||||
15 | collected by the pharmacy benefit manager as a result of | ||||||
16 | each contract it has executed with a managed care | ||||||
17 | organization contracted by the Department to provide | ||||||
18 | medical assistance benefits which is not paid by the | ||||||
19 | pharmacy benefit manager to pharmacy providers and | ||||||
20 | pharmaceutical manufacturers or labelers or in order to | ||||||
21 | perform administrative functions pursuant to its contracts | ||||||
22 | with managed care organizations. | ||||||
23 | (f) The information disclosed under subsection (e) shall | ||||||
24 | include all retail, mail order, specialty, and compounded | ||||||
25 | prescription products. All information made
available to the | ||||||
26 | Department under subsection (e) is confidential and not subject |
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1 | to disclosure under the Freedom of Information Act. All | ||||||
2 | information made available to the Department under subsection | ||||||
3 | (e) shall not be reported or distributed in any way that | ||||||
4 | compromises its competitive, proprietary, or financial value. | ||||||
5 | The information shall only be used by the Department to assess | ||||||
6 | the contract, agreement, or other arrangements made between a | ||||||
7 | pharmacy benefit manager and a pharmacy provider, | ||||||
8 | pharmaceutical manufacturer or labeler, managed care | ||||||
9 | organization, or other entity, as applicable. | ||||||
10 | (g) A pharmacy benefit manager shall disclose directly in | ||||||
11 | writing to a pharmacy provider or pharmacy services | ||||||
12 | administrative organization contracting with the pharmacy | ||||||
13 | benefit manager of any material change to a contract provision | ||||||
14 | that affects the terms of the reimbursement, the process for | ||||||
15 | verifying benefits and eligibility, dispute resolution, | ||||||
16 | procedures for verifying drugs included on the formulary, and | ||||||
17 | contract termination at least 30 days prior to the date of the | ||||||
18 | change to the provision. The terms of this subsection shall be | ||||||
19 | deemed met if the pharmacy benefit manager posts the | ||||||
20 | information on a website, viewable by the public. A pharmacy | ||||||
21 | service administration organization shall notify all contract | ||||||
22 | pharmacies of any material change, as described in this | ||||||
23 | subsection, within 2 days of notification. As used in this | ||||||
24 | Section, "pharmacy services administrative organization" means | ||||||
25 | an entity operating within the State that contracts with | ||||||
26 | independent pharmacies to conduct business on their behalf with |
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1 | third-party payers. A pharmacy services administrative | ||||||
2 | organization may provide administrative services to pharmacies | ||||||
3 | and negotiate and enter into contracts with third-party payers | ||||||
4 | or pharmacy benefit managers on behalf of pharmacies. | ||||||
5 | (h) A pharmacy benefit manager shall not include the | ||||||
6 | following in a contract with a pharmacy provider: | ||||||
7 | (1) a provision prohibiting the provider from | ||||||
8 | informing a patient of a less costly alternative to a | ||||||
9 | prescribed medication; or | ||||||
10 | (2) a provision that prohibits the provider from | ||||||
11 | dispensing a particular amount of a prescribed medication, | ||||||
12 | if the pharmacy benefit manager allows that amount to be | ||||||
13 | dispensed through a pharmacy owned or controlled by the | ||||||
14 | pharmacy benefit manager, unless the prescription drug is | ||||||
15 | subject to restricted distribution by the United States | ||||||
16 | Food and Drug Administration or requires special handling, | ||||||
17 | provider coordination, or patient education that cannot be | ||||||
18 | provided by a retail pharmacy. | ||||||
19 | (i) Nothing in this Section shall be construed to prohibit | ||||||
20 | a pharmacy benefit manager from requiring the same | ||||||
21 | reimbursement and terms and conditions for a pharmacy provider | ||||||
22 | as for a pharmacy owned, controlled, or otherwise associated | ||||||
23 | with the pharmacy benefit manager. | ||||||
24 | (j) A pharmacy benefit manager shall establish and | ||||||
25 | implement a process for the resolution of disputes arising out | ||||||
26 | of this Section, which shall be approved by the Department. |
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1 | (k) The Department shall adopt rules establishing | ||||||
2 | reasonable dispensing fees for fee-for-service payments in | ||||||
3 | accordance with guidance or guidelines from the federal Centers | ||||||
4 | for Medicare and Medicaid Services.
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