Page 13 - July2017

Department consumer notification when a medical provider is no government
The Department of Insurance initiated SB1723 (Munoz), longer “in network”. HB 311 was ultimately amended in
the Insurance Industry Innovation Act. The legislation, the Senate to reflect a full agreement between the health
as introduced, was considerably esoteric and granted an insurance carriers and the Medical Society. The legislation
individual Deputy Director of Innovation, a newly created passed the Senate unanimously by a vote of 53-0-0.
position within the Department, extensive powers to grant However, the House adjourned on May 31 prior to voting
an applicant immunity from laws or regulations. The to concur on the Senate agreement.
Coalition of Insurance Agents and Brokers was generally
supportive of creating an environment where Illinois would Several legislative measures to significantly regulate the
be a driver of innovative products and services. However, health insurance industry passed the House this week,
the Coalition maintained concerns about the broad including some extremely troubling mandates.
and vague powers granted under the specific language
contained in SB 1723. As the Department held meetings HB 2959 (Fine/Biss) imposes a state prohibition on
and phone calls with stakeholders, the legislation was refusing health insurance coverage based on pre-existing
ultimately held from consideration and was never voted conditions. The legislation passed the House by a vote
upon by the Senate Insurance Committee. of 75-33-0. The insurance industry was successful in
the Senate in getting the legislation amended to restrict
Agent the applicability of the mandate. Significant lobbying
Representative Laura Fine decided to hold HB 502 from efforts were focused on identifying that the legislation
a vote in the House after extensive conversations with went far beyond the Affordable Care Act and included
the industry. HB 502 would mandate that individuals supplemental, disability, and cancer policies. Agent/broker
that are “not actively working” would be automatically efforts to restrict the applicability of the legislation were
covered by a new policy should an employer change successful and a critical amendment was adopted in the
group life insurance while the individual is on leave, Senate. The amended legislation then passed the Senate by
including approved disability. The Coalition of Agents a vote of 46-5-0 and was concurred upon by the House by
and Brokers gathered a small working group on the issue a vote of 87-26-0. Governor Rauner is expected to sign the
that collectively submitted comments to Representative pre-existing condition mandate into law.
Fine. Those efforts and comments played a significant
role in Representative Fine’s decision to not advance HB 2624 (Fine) creates the Health Insurance Rate Review
the legislation. However, the Representative remains Act, including a quasi-government panel, independent
committed to working on the issue in the future. The of the Department of Insurance to review and approve
initiative was recommended by a constituent of the (or reject) health insurance rates in Illinois. Illinois is
Representative and an insurance agent. historically a “file and use” state; which creates an open
and competitive marketplace. The concept of “rate review”
Four different initiatives to remove barriers to professional is anathema to the insurance industry in Illinois. HB 2624
licenses for felons, including insurance producers, all passed the House by a vote of 65-49-0. HB 2624 was
failed to pass the House of Representatives. The different sponsored and held from consideration in the Senate by
proposals all addressed various professional licenses, while President Cullerton.
one, HB 2752, specifically and solely addressed licensing
for insurance producers. Other legislative measures Fortunately, HB 1796, legislation imposing a 1% tax on all
included a wide variety of licensed entities, including health insurance claims, was never called for a vote in the
insurance agents. House Appropriations – Human Services Committee.

HB 3244 was initiated by Representative Winger following HB 2436 (Flowers) creates the MediCare For All Health
a request from a constituent that owns a Premium Finance Care Act and was held from consideration before the full
Company. The legislation enables Premium Finance House after passing the Healthcare Availability & Access
Companies to send notifications to insured’s, including Committee on a 3-2 partisan roll call.
cancellations and notice of non-renewals, via electronic
document delivery. The legislation was modeled after Various other health insurance coverage mandates,
current law affecting insurers and ensures that the including treatment for Multiple Sclerosis, PANDAS/Pans
consumer must agree to receive notifications electronically, (HB2721) , eating disorders, abuse deterrent opioids, and
as well as protects that the Agent/Broker of record receives hearing aids were all either held or successfully negotiated.
notification. The legislation passed the House by a vote of
112-1-0 and passed the Senate unanimously, 50-0-0. Life
HB 302 (Martwick), legislation initiated by State Treasurer
Health Michael Frerichs, to mandate that life insurance companies
Illinois State Medical Society initiated legislation, HB pay out lapsed or terminated policies, retroactive to 1996,
311, to create the Network Adequacy and Transparency passed the House by a vote of 68-47-0 on a mostly partisan
Act passed the House by a vote of 110-2-1. The nearly roll call. Two Democrats did not vote on the legislation,
unanimous role call reflected significant progress in and 3 Republicans joined the Democrats in voting “Yes”.
negotiations between health insurers and medical providers HB 302 encountered intense opposition by the Senate
on a number of issues, including adequate and accurate
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july 2017 insight 13