Bill Text: IL HB2624 | 2017-2018 | 100th General Assembly | Enrolled


Bill Title: Creates the Health Insurance Rate Review Act. Creates the independent quasi-judicial Health Insurance Rate Review Board to ensure insurance rates are reasonable and justified. Sets forth duties and prohibited activities concerning the Board. Creates the Health Insurance Rate Review Board Nomination Panel to provide a list of nominees to the Governor for appointment to the Health Insurance Rate Review Board. Sets forth the procedures for nomination. Provides requirements and procedures for health carriers to file current and proposed rates and rate schedules with the Health Insurance Rate Review Board. Provides that the Board shall review and approve or disapprove all rates and rate schedules filed or used by a health carrier. Sets forth provisions concerning rate standards, public notice, hearings, and the disapproval and approval of rates and rate schedules.

Spectrum: Partisan Bill (Democrat 26-0)

Status: (Enrolled) 2018-06-29 - Sent to the Governor [HB2624 Detail]

Download: Illinois-2017-HB2624-Enrolled.html



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1 AN ACT concerning insurance.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 1. Short title. This Act may be cited as the
5Short-Term, Limited-Duration Health Insurance Coverage Act.
6 Section 5. Definitions. In this Act:
7 "Department" means the Department of Insurance.
8 "Health insurance coverage" has the meaning given to that
9term in the Illinois Health Insurance Portability and
10Accountability Act.
11 "Health insurance issuer" has the meaning given to that
12term in the Illinois Health Insurance Portability and
13Accountability Act.
14 "Fraud" means an intentional misrepresentation of a
15material fact in connection with the coverage.
16 "Short-term, limited-duration health insurance coverage"
17means health insurance coverage provided pursuant to a policy
18with an issuer, regardless of the situs of the delivery of the
19policy, that is less than 365 days after the effective date of
20the policy.
21 Section 10. Application; scope; duration of coverage.
22 (a) This Act applies to health insurance issuers that offer

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1short-term, limited-duration health insurance coverage to
2individuals in this State and to short-term, limited-duration
3health insurance coverage that is delivered or issued for
4delivery in this State, including coverage issued outside of
5this State that covers individuals in this State.
6 (b) A short-term, limited-duration health insurance
7coverage policy may not be issued or delivered to any person
8residing in this State unless the policy, when delivered or
9issued for delivery in this State, complies with the provisions
10of this Act.
11 (c) Any short-term, limited-duration health insurance
12coverage policy that is delivered or issued for delivery in
13this State must have an expiration date in the policy that is
14less than 181 days after the effective date and shall not be
15renewable or extendable within a period of 365 days after the
16individual's coverage under the policy ends, either at the
17option of the issuer or the individual. Renewal of a
18short-term, limited-duration health insurance coverage policy
19includes the issuance of a new short-term, limited-duration
20health insurance policy by an issuer to a policyholder within
2160 days after the expiration of a policy previously issued by
22the issuer to the policyholder.
23 (d) Any short-term, limited-duration health insurance
24coverage policy that is delivered or issued for delivery in
25this State may not be rescinded before the expiration date in
26the policy, except in cases of nonpayment of premiums, fraud,

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1or as provided in subsection (e).
2 (e) Any short-term, limited-duration health insurance
3coverage policy that is delivered or issued for delivery in
4this State shall contain an option for an individual to cancel
5coverage after any 30-day interval during the term of the plan.
6 Section 15. Disclosure requirements.
7 (a) A health insurance issuer that offers short-term,
8limited-duration health insurance coverage to be delivered or
9issued for delivery in this State shall, in addition to all
10other documents required, including, but not limited to, the
11policy, the certificate, the membership booklet, and a
12description of appeal and external review rights, deliver an
13outline of coverage to an applicant for or an enrollee in
14short-term, limited-duration health insurance coverage
15delivered or issued for delivery in this State.
16 (b) Any short-term, limited-duration health insurance
17coverage policy that is delivered or issued for delivery in the
18State shall display prominently in the policy, any application,
19sales, and marketing materials provided in connection with
20enrollment in such coverage, and the outline of coverage for
21such coverage, in at least 14-point, bold type, the following:
22"NOTICE: THE SHORT-TERM, LIMITED-DURATION INSURANCE BENEFITS
23UNDER THIS COVERAGE DO NOT MEET ALL FEDERAL REQUIREMENTS TO
24QUALIFY AS "MINIMUM ESSENTIAL COVERAGE" FOR HEALTH INSURANCE
25UNDER THE AFFORDABLE CARE ACT. THIS PLAN OF COVERAGE DOES NOT

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1INCLUDE ALL ESSENTIAL HEALTH BENEFITS AS REQUIRED BY THE
2AFFORDABLE CARE ACT. PREEXISTING CONDITIONS ARE NOT COVERED
3UNDER THIS PLAN OF COVERAGE. BE SURE TO CHECK YOUR POLICY
4CAREFULLY TO MAKE SURE YOU UNDERSTAND WHAT THE POLICY DOES AND
5DOES NOT COVER. IF THIS COVERAGE EXPIRES OR YOU LOSE
6ELIGIBILITY FOR THIS COVERAGE, YOU MIGHT HAVE TO WAIT UNTIL THE
7NEXT OPEN ENROLLMENT PERIOD TO GET OTHER HEALTH INSURANCE
8COVERAGE. YOU MAY BE ABLE TO GET LONGER TERM INSURANCE THAT
9QUALIFIES AS "MINIMUM ESSENTIAL COVERAGE" FOR HEALTH INSURANCE
10UNDER THE AFFORDABLE CARE ACT NOW AND HELP TO PAY FOR IT AT
11WWW.HEALTHCARE.GOV.".
12 (c) Any individual selling a short-term, limited-duration
13health insurance coverage policy in this State in face-to-face
14or telephonic sales interactions must read out loud the
15disclosure in subsection (b) to a prospective purchaser. An
16entity selling a short-term, limited-duration health insurance
17coverage policy in Illinois must display the disclosure in
18subsection (b) on the webpage where a prospective purchaser
19would purchase coverage.
20 (d) Nothing in this Section precludes an insurer from
21providing disclosures in addition to those required in
22subsections (b) and (c). Nothing in this Section precludes an
23insurer from providing disclosures intended to clarify those
24required in subsections (b) and (c) if approved by the
25Department.

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1 Section 20. Filing and approval.
2 (a) Coverage subject to this Act may not be delivered or
3issued for delivery in this State unless the policy evidencing
4such coverage has been filed with and been approved by the
5Department.
6 (b) A health insurance issuer who intends to deliver or
7issue for delivery a short-term, limited-duration health
8insurance coverage policy in this State shall file with the
9Department:
10 (1) all paperwork required for individual health
11 insurance coverage pursuant to 50 Ill. Adm. Code 916; and
12 (2) all sales and marketing materials provided in
13 connection with enrollment in such coverage for
14 informational purposes.
15 (c) The Department shall adopt any rules necessary to carry
16out the provisions of this Act.
17 Section 99. Effective date. This Act takes effect January
181, 2019.
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