Bill Text: IL HB2391 | 2023-2024 | 103rd General Assembly | Introduced


Bill Title: Amends the Accident and Health Article of the Illinois Insurance Code. Provides that ground ambulance services are subject to provisions concerning billing for emergency services and nonparticipating providers. Changes the definition of "health care provider" to include ground ambulance services. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2023-02-15 - Referred to Rules Committee [HB2391 Detail]

Download: Illinois-2023-HB2391-Introduced.html


103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB2391

Introduced , by Rep. Sue Scherer

SYNOPSIS AS INTRODUCED:
215 ILCS 5/356z.3a

Amends the Accident and Health Article of the Illinois Insurance Code. Provides that ground ambulance services are subject to provisions concerning billing for emergency services and nonparticipating providers. Changes the definition of "health care provider" to include ground ambulance services. Effective immediately.
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A BILL FOR

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1 AN ACT concerning regulation.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Illinois Insurance Code is amended by
5changing Section 356z.3a as follows:
6 (215 ILCS 5/356z.3a)
7 Sec. 356z.3a. Billing; emergency services;
8nonparticipating providers.
9 (a) As used in this Section:
10 "Ancillary services" means:
11 (1) items and services related to emergency medicine,
12 anesthesiology, pathology, radiology, and neonatology that
13 are provided by any health care provider;
14 (2) items and services provided by assistant surgeons,
15 hospitalists, and intensivists;
16 (3) diagnostic services, including radiology and
17 laboratory services, except for advanced diagnostic
18 laboratory tests identified on the most current list
19 published by the United States Secretary of Health and
20 Human Services under 42 U.S.C. 300gg-132(b)(3);
21 (4) items and services provided by other specialty
22 practitioners as the United States Secretary of Health and
23 Human Services specifies through rulemaking under 42

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1 U.S.C. 300gg-132(b)(3);
2 (5) items and services provided by a nonparticipating
3 provider if there is no participating provider who can
4 furnish the item or service at the facility; and
5 (6) items and services provided by a nonparticipating
6 provider if there is no participating provider who will
7 furnish the item or service because a participating
8 provider has asserted the participating provider's rights
9 under the Health Care Right of Conscience Act.
10 "Cost sharing" means the amount an insured, beneficiary,
11or enrollee is responsible for paying for a covered item or
12service under the terms of the policy or certificate. "Cost
13sharing" includes copayments, coinsurance, and amounts paid
14toward deductibles, but does not include amounts paid towards
15premiums, balance billing by out-of-network providers, or the
16cost of items or services that are not covered under the policy
17or certificate.
18 "Emergency department of a hospital" means any hospital
19department that provides emergency services, including a
20hospital outpatient department.
21 "Emergency medical condition" has the meaning ascribed to
22that term in Section 10 of the Managed Care Reform and Patient
23Rights Act.
24 "Emergency medical screening examination" has the meaning
25ascribed to that term in Section 10 of the Managed Care Reform
26and Patient Rights Act.

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1 "Emergency services" means, with respect to an emergency
2medical condition:
3 (1) in general, an emergency medical screening
4 examination, including ancillary services routinely
5 available to the emergency department to evaluate such
6 emergency medical condition, and such further medical
7 examination and treatment as would be required to
8 stabilize the patient regardless of the department of the
9 hospital or other facility in which such further
10 examination or treatment is furnished; or
11 (2) additional items and services for which benefits
12 are provided or covered under the coverage and that are
13 furnished by a nonparticipating provider or
14 nonparticipating emergency facility regardless of the
15 department of the hospital or other facility in which such
16 items are furnished after the insured, beneficiary, or
17 enrollee is stabilized and as part of outpatient
18 observation or an inpatient or outpatient stay with
19 respect to the visit in which the services described in
20 paragraph (1) are furnished. Services after stabilization
21 cease to be emergency services only when all the
22 conditions of 42 U.S.C. 300gg-111(a)(3)(C)(ii)(II) and
23 regulations thereunder are met.
24 "Freestanding Emergency Center" means a facility licensed
25under Section 32.5 of the Emergency Medical Services (EMS)
26Systems Act.

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1 "Health care facility" means, in the context of
2non-emergency services, any of the following:
3 (1) a hospital as defined in 42 U.S.C. 1395x(e);
4 (2) a hospital outpatient department;
5 (3) a critical access hospital certified under 42
6 U.S.C. 1395i-4(e);
7 (4) an ambulatory surgical treatment center as defined
8 in the Ambulatory Surgical Treatment Center Act; or
9 (5) any recipient of a license under the Hospital
10 Licensing Act that is not otherwise described in this
11 definition.
12 "Health care provider" means a provider as defined in
13subsection (d) of Section 370g. "Health care provider" does
14not include a provider of air ambulance or ground ambulance
15services.
16 "Health care services" has the meaning ascribed to that
17term in subsection (a) of Section 370g.
18 "Health insurance issuer" has the meaning ascribed to that
19term in Section 5 of the Illinois Health Insurance Portability
20and Accountability Act.
21 "Nonparticipating emergency facility" means, with respect
22to the furnishing of an item or service under a policy of group
23or individual health insurance coverage, any of the following
24facilities that does not have a contractual relationship
25directly or indirectly with a health insurance issuer in
26relation to the coverage:

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1 (1) an emergency department of a hospital;
2 (2) a Freestanding Emergency Center;
3 (3) an ambulatory surgical treatment center as defined
4 in the Ambulatory Surgical Treatment Center Act; or
5 (4) with respect to emergency services described in
6 paragraph (2) of the definition of "emergency services", a
7 hospital.
8 "Nonparticipating provider" means, with respect to the
9furnishing of an item or service under a policy of group or
10individual health insurance coverage, any health care provider
11who does not have a contractual relationship directly or
12indirectly with a health insurance issuer in relation to the
13coverage.
14 "Participating emergency facility" means any of the
15following facilities that has a contractual relationship
16directly or indirectly with a health insurance issuer offering
17group or individual health insurance coverage setting forth
18the terms and conditions on which a relevant health care
19service is provided to an insured, beneficiary, or enrollee
20under the coverage:
21 (1) an emergency department of a hospital;
22 (2) a Freestanding Emergency Center;
23 (3) an ambulatory surgical treatment center as defined
24 in the Ambulatory Surgical Treatment Center Act; or
25 (4) with respect to emergency services described in
26 paragraph (2) of the definition of "emergency services", a

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1 hospital.
2 For purposes of this definition, a single case agreement
3between an emergency facility and an issuer that is used to
4address unique situations in which an insured, beneficiary, or
5enrollee requires services that typically occur out-of-network
6constitutes a contractual relationship and is limited to the
7parties to the agreement.
8 "Participating health care facility" means any health care
9facility that has a contractual relationship directly or
10indirectly with a health insurance issuer offering group or
11individual health insurance coverage setting forth the terms
12and conditions on which a relevant health care service is
13provided to an insured, beneficiary, or enrollee under the
14coverage. A single case agreement between an emergency
15facility and an issuer that is used to address unique
16situations in which an insured, beneficiary, or enrollee
17requires services that typically occur out-of-network
18constitutes a contractual relationship for purposes of this
19definition and is limited to the parties to the agreement.
20 "Participating provider" means any health care provider
21that has a contractual relationship directly or indirectly
22with a health insurance issuer offering group or individual
23health insurance coverage setting forth the terms and
24conditions on which a relevant health care service is provided
25to an insured, beneficiary, or enrollee under the coverage.
26 "Qualifying payment amount" has the meaning given to that

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1term in 42 U.S.C. 300gg-111(a)(3)(E) and the regulations
2promulgated thereunder.
3 "Recognized amount" means the lesser of the amount
4initially billed by the provider or the qualifying payment
5amount.
6 "Stabilize" means "stabilization" as defined in Section 10
7of the Managed Care Reform and Patient Rights Act.
8 "Treating provider" means a health care provider who has
9evaluated the individual.
10 "Visit" means, with respect to health care services
11furnished to an individual at a health care facility, health
12care services furnished by a provider at the facility, as well
13as equipment, devices, telehealth services, imaging services,
14laboratory services, and preoperative and postoperative
15services regardless of whether the provider furnishing such
16services is at the facility.
17 (b) Emergency services. When a beneficiary, insured, or
18enrollee receives emergency services from a nonparticipating
19provider or a nonparticipating emergency facility, the health
20insurance issuer shall ensure that the beneficiary, insured,
21or enrollee shall incur no greater out-of-pocket costs than
22the beneficiary, insured, or enrollee would have incurred with
23a participating provider or a participating emergency
24facility. Any cost-sharing requirements shall be applied as
25though the emergency services had been received from a
26participating provider or a participating facility. Cost

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1sharing shall be calculated based on the recognized amount for
2the emergency services. If the cost sharing for the same item
3or service furnished by a participating provider would have
4been a flat-dollar copayment, that amount shall be the
5cost-sharing amount unless the provider has billed a lesser
6total amount. In no event shall the beneficiary, insured,
7enrollee, or any group policyholder or plan sponsor be liable
8to or billed by the health insurance issuer, the
9nonparticipating provider, or the nonparticipating emergency
10facility for any amount beyond the cost sharing calculated in
11accordance with this subsection with respect to the emergency
12services delivered. Administrative requirements or limitations
13shall be no greater than those applicable to emergency
14services received from a participating provider or a
15participating emergency facility.
16 (b-5) Non-emergency services at participating health care
17facilities.
18 (1) When a beneficiary, insured, or enrollee utilizes
19 a participating health care facility and, due to any
20 reason, covered ancillary services are provided by a
21 nonparticipating provider during or resulting from the
22 visit, the health insurance issuer shall ensure that the
23 beneficiary, insured, or enrollee shall incur no greater
24 out-of-pocket costs than the beneficiary, insured, or
25 enrollee would have incurred with a participating provider
26 for the ancillary services. Any cost-sharing requirements

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1 shall be applied as though the ancillary services had been
2 received from a participating provider. Cost sharing shall
3 be calculated based on the recognized amount for the
4 ancillary services. If the cost sharing for the same item
5 or service furnished by a participating provider would
6 have been a flat-dollar copayment, that amount shall be
7 the cost-sharing amount unless the provider has billed a
8 lesser total amount. In no event shall the beneficiary,
9 insured, enrollee, or any group policyholder or plan
10 sponsor be liable to or billed by the health insurance
11 issuer, the nonparticipating provider, or the
12 participating health care facility for any amount beyond
13 the cost sharing calculated in accordance with this
14 subsection with respect to the ancillary services
15 delivered. In addition to ancillary services, the
16 requirements of this paragraph shall also apply with
17 respect to covered items or services furnished as a result
18 of unforeseen, urgent medical needs that arise at the time
19 an item or service is furnished, regardless of whether the
20 nonparticipating provider satisfied the notice and consent
21 criteria under paragraph (2) of this subsection.
22 (2) When a beneficiary, insured, or enrollee utilizes
23 a participating health care facility and receives
24 non-emergency covered health care services other than
25 those described in paragraph (1) of this subsection from a
26 nonparticipating provider during or resulting from the

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1 visit, the health insurance issuer shall ensure that the
2 beneficiary, insured, or enrollee incurs no greater
3 out-of-pocket costs than the beneficiary, insured, or
4 enrollee would have incurred with a participating provider
5 unless the nonparticipating provider or the participating
6 health care facility on behalf of the nonparticipating
7 provider satisfies the notice and consent criteria
8 provided in 42 U.S.C. 300gg-132 and regulations
9 promulgated thereunder. If the notice and consent criteria
10 are not satisfied, then:
11 (A) any cost-sharing requirements shall be applied
12 as though the health care services had been received
13 from a participating provider;
14 (B) cost sharing shall be calculated based on the
15 recognized amount for the health care services; and
16 (C) in no event shall the beneficiary, insured,
17 enrollee, or any group policyholder or plan sponsor be
18 liable to or billed by the health insurance issuer,
19 the nonparticipating provider, or the participating
20 health care facility for any amount beyond the cost
21 sharing calculated in accordance with this subsection
22 with respect to the health care services delivered.
23 (c) Notwithstanding any other provision of this Code,
24except when the notice and consent criteria are satisfied for
25the situation in paragraph (2) of subsection (b-5), any
26benefits a beneficiary, insured, or enrollee receives for

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1services under the situations in subsection (b) or (b-5) are
2assigned to the nonparticipating providers or the facility
3acting on their behalf. Upon receipt of the provider's bill or
4facility's bill, the health insurance issuer shall provide the
5nonparticipating provider or the facility with a written
6explanation of benefits that specifies the proposed
7reimbursement and the applicable deductible, copayment, or
8coinsurance amounts owed by the insured, beneficiary, or
9enrollee. The health insurance issuer shall pay any
10reimbursement subject to this Section directly to the
11nonparticipating provider or the facility.
12 (d) For bills assigned under subsection (c), the
13nonparticipating provider or the facility may bill the health
14insurance issuer for the services rendered, and the health
15insurance issuer may pay the billed amount or attempt to
16negotiate reimbursement with the nonparticipating provider or
17the facility. Within 30 calendar days after the provider or
18facility transmits the bill to the health insurance issuer,
19the issuer shall send an initial payment or notice of denial of
20payment with the written explanation of benefits to the
21provider or facility. If attempts to negotiate reimbursement
22for services provided by a nonparticipating provider do not
23result in a resolution of the payment dispute within 30 days
24after receipt of written explanation of benefits by the health
25insurance issuer, then the health insurance issuer or
26nonparticipating provider or the facility may initiate binding

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1arbitration to determine payment for services provided on a
2per-bill basis. The party requesting arbitration shall notify
3the other party arbitration has been initiated and state its
4final offer before arbitration. In response to this notice,
5the nonrequesting party shall inform the requesting party of
6its final offer before the arbitration occurs. Arbitration
7shall be initiated by filing a request with the Department of
8Insurance.
9 (e) The Department of Insurance shall publish a list of
10approved arbitrators or entities that shall provide binding
11arbitration. These arbitrators shall be American Arbitration
12Association or American Health Lawyers Association trained
13arbitrators. Both parties must agree on an arbitrator from the
14Department of Insurance's or its approved entity's list of
15arbitrators. If no agreement can be reached, then a list of 5
16arbitrators shall be provided by the Department of Insurance
17or the approved entity. From the list of 5 arbitrators, the
18health insurance issuer can veto 2 arbitrators and the
19provider or facility can veto 2 arbitrators. The remaining
20arbitrator shall be the chosen arbitrator. This arbitration
21shall consist of a review of the written submissions by both
22parties. The arbitrator shall not establish a rebuttable
23presumption that the qualifying payment amount should be the
24total amount owed to the provider or facility by the
25combination of the issuer and the insured, beneficiary, or
26enrollee. Binding arbitration shall provide for a written

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1decision within 45 days after the request is filed with the
2Department of Insurance. Both parties shall be bound by the
3arbitrator's decision. The arbitrator's expenses and fees,
4together with other expenses, not including attorney's fees,
5incurred in the conduct of the arbitration, shall be paid as
6provided in the decision.
7 (f) (Blank).
8 (g) Section 368a of this Act shall not apply during the
9pendency of a decision under subsection (d). Upon the issuance
10of the arbitrator's decision, Section 368a applies with
11respect to the amount, if any, by which the arbitrator's
12determination exceeds the issuer's initial payment under
13subsection (c), or the entire amount of the arbitrator's
14determination if initial payment was denied. Any interest
15required to be paid to a provider under Section 368a shall not
16accrue until after 30 days of an arbitrator's decision as
17provided in subsection (d), but in no circumstances longer
18than 150 days from the date the nonparticipating
19facility-based provider billed for services rendered.
20 (h) Nothing in this Section shall be interpreted to change
21the prudent layperson provisions with respect to emergency
22services under the Managed Care Reform and Patient Rights Act.
23 (i) Nothing in this Section shall preclude a health care
24provider from billing a beneficiary, insured, or enrollee for
25reasonable administrative fees, such as service fees for
26checks returned for nonsufficient funds and missed

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1appointments.
2 (j) Nothing in this Section shall preclude a beneficiary,
3insured, or enrollee from assigning benefits to a
4nonparticipating provider when the notice and consent criteria
5are satisfied under paragraph (2) of subsection (b-5) or in
6any other situation not described in subsection (b) or (b-5).
7 (k) Except when the notice and consent criteria are
8satisfied under paragraph (2) of subsection (b-5), if an
9individual receives health care services under the situations
10described in subsection (b) or (b-5), no referral requirement
11or any other provision contained in the policy or certificate
12of coverage shall deny coverage, reduce benefits, or otherwise
13defeat the requirements of this Section for services that
14would have been covered with a participating provider.
15However, this subsection shall not be construed to preclude a
16provider contract with a health insurance issuer, or with an
17administrator or similar entity acting on the issuer's behalf,
18from imposing requirements on the participating provider,
19participating emergency facility, or participating health care
20facility relating to the referral of covered individuals to
21nonparticipating providers.
22 (l) Except if the notice and consent criteria are
23satisfied under paragraph (2) of subsection (b-5),
24cost-sharing amounts calculated in conformity with this
25Section shall count toward any deductible or out-of-pocket
26maximum applicable to in-network coverage.

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1 (m) The Department has the authority to enforce the
2requirements of this Section in the situations described in
3subsections (b) and (b-5), and in any other situation for
4which 42 U.S.C. Chapter 6A, Subchapter XXV, Parts D or E and
5regulations promulgated thereunder would prohibit an
6individual from being billed or liable for emergency services
7furnished by a nonparticipating provider or nonparticipating
8emergency facility or for non-emergency health care services
9furnished by a nonparticipating provider at a participating
10health care facility.
11 (n) This Section does not apply with respect to air
12ambulance or ground ambulance services. This Section does not
13apply to any policy of excepted benefits or to short-term,
14limited-duration health insurance coverage.
15(Source: P.A. 102-901, eff. 7-1-22; 102-1117, eff. 1-13-23.)
16 Section 99. Effective date. This Act takes effect upon
17becoming law.
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