Bill Text: IL SB2235 | 2015-2016 | 99th General Assembly | Introduced

---

Bill Title: Amends the State Employees Group Insurance Act of 1971. Provides that the failure of the State to make any payment to a provider for a period of 6 months may be considered by the provider to be a material breach of the contract by the State. Provides that a provider who has entered into a contract to provide services under the Act and who has not received any payment for services for a period of 6 months (1) may consider the contract null and void; (2) may opt out of the obligation to provide services under the terms and conditions of the contract; and (3) shall, upon providing notice to the State department, be deemed an out-of-network provider. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2016-04-08 - Senate Committee Amendment No. 1 Rule 3-9(a) / Re-referred to Assignments [SB2235 Detail]

Download: Illinois-2015-SB2235-Introduced.html

---

99TH GENERAL ASSEMBLY State of Illinois 2015 and 2016 SB2235 Introduced 1/13/2016, by Sen. William R. Haine SYNOPSIS AS INTRODUCED:
5 ILCS 375/6.12a new
Amends the State Employees Group Insurance Act of 1971. Provides that the failure of the State to make any payment to a provider for a period of 6 months may be considered by the provider to be a material breach of the contract by the State. Provides that a provider who has entered into a contract to provide services under the Act and who has not received any payment for services for a period of 6 months (1) may consider the contract null and void; (2) may opt out of the obligation to provide services under the terms and conditions of the contract; and (3) shall, upon providing notice to the State department, be deemed an out-of-network provider. Effective immediately.
LRB099 16134 MLM 40459 b
FISCAL NOTE ACT MAY APPLY
A BILL FOR
SB2235 LRB099 16134 MLM 40459 b
AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The State Employees Group Insurance Act of 1971
is amended by adding Section 6.12a as follows:
(5 ILCS 375/6.12a new)
Sec. 6.12a. Nullification of in-network provider
contracts. The failure of the State of Illinois to make any
payment to a provider for a period of 6 months may be
considered by the provider to be a material breach of the
contract by the State. Notwithstanding the provisions of
Section 6.12, a provider who has entered into a contract to
provide services under this Act and who has not received any
payment for services for a period of 6 months: (1) may consider
the contract null and void; (2) may opt out of the obligation
to provide services under the terms and conditions of the
contract; and (3) shall, upon providing notice to the
Department, be deemed an out-of-network provider.
Section 99. Effective date. This Act takes effect upon
becoming law.