(215 ILCS 125/4.5-1)
Point-of-service health service contracts.
(a) A health maintenance organization that offers a point-of-service contract:
(1) must include as in-plan covered services all
services required by law to be provided by a health maintenance organization;
(2) must provide incentives, which shall include
financial incentives, for enrollees to use in-plan covered services;
(3) may not offer services out-of-plan without
providing those services on an in-plan basis;
(4) may include annual out-of-pocket limits and
lifetime maximum benefits allowances for out-of-plan services that are separate from any limits or allowances applied to in-plan services;
(5) may not consider emergency services, authorized
referral services, or non-routine services obtained out of the service area to be point-of-service services;
(6) may treat as out-of-plan services those services
that an enrollee obtains from a participating provider, but for which the proper authorization was not given by the health maintenance organization; and
(7) after the effective date of this amendatory Act
of the 92nd General Assembly, must include the following disclosure on its point-of-service contracts and evidences of coverage: “WARNING, LIMITED BENEFITS WILL BE PAID WHEN NON-PARTICIPATING PROVIDERS ARE USED. You should be aware that when you elect to utilize the services of a non-participating provider for a covered service in non-emergency situations, benefit payments to such non-participating provider are not based upon the amount billed. The basis of your benefit payment will be determined according to your policy’s fee schedule, usual and customary charge (which is determined by comparing charges for similar services adjusted to the geographical area where the services are performed), or other method as defined by the policy. YOU CAN EXPECT TO PAY MORE THAN THE COINSURANCE AMOUNT DEFINED IN THE POLICY AFTER THE PLAN HAS PAID ITS REQUIRED PORTION. Non-participating providers may bill members for any amount up to the billed charge after the plan has paid its portion of the bill. Participating providers have agreed to accept discounted payments for services with no additional billing to the member other than co-insurance and deductible amounts. You may obtain further information about the participating status of professional providers and information on out-of-pocket expenses by calling the toll free telephone number on your identification card.”.
(b) A health maintenance organization offering a point-of-service contract is subject to all of the following limitations:
(1) The health maintenance organization may not
expend in any calendar quarter more than 20% of its total expenditures for all its members for out-of-plan covered services.
(2) If the amount specified in item (1) of this
subsection is exceeded by 2% in a quarter, the health maintenance organization must effect compliance with item (1) of this subsection by the end of the following quarter.
(3) If compliance with the amount specified in item
(1) of this subsection is not demonstrated in the health maintenance organization’s next quarterly report, the health maintenance organization may not offer the point-of-service contract to new groups or include the point-of-service option in the renewal of an existing group until compliance with the amount specified in item (1) of this subsection is demonstrated or until otherwise allowed by the Director.
(4) A health maintenance organization failing,
without just cause, to comply with the provisions of this subsection shall be required, after notice and hearing, to pay a penalty of $250 for each day out of compliance, to be recovered by the Director. Any penalty recovered shall be paid into the General Revenue Fund. The Director may reduce the penalty if the health maintenance organization demonstrates to the Director that the imposition of the penalty would constitute a financial hardship to the health maintenance organization.
(c) A health maintenance organization that offers a point-of-service product must do all of the following:
(1) File a quarterly financial statement detailing
compliance with the requirements of subsection (b).
(2) Track out-of-plan, point-of-service utilization
separately from in-plan or non-point-of-service, out-of-plan emergency care, referral care, and urgent care out of the service area utilization.
(3) Record out-of-plan utilization in a manner that
will permit such utilization and cost reporting as the Director may, by rule, require.
(4) Demonstrate to the Director’s satisfaction that
the health maintenance organization has the fiscal, administrative, and marketing capacity to control its point-of-service enrollment, utilization, and costs so as not to jeopardize the financial security of the health maintenance organization.
(5) Maintain, in addition to any other deposit
required under this Act, the deposit required by Section 2-6.
(6) Maintain cash and cash equivalents of sufficient
amount to fully liquidate 10 days’ average claim payments, subject to review by the Director.
(7) Maintain and file with the Director, reinsurance
coverage protecting against catastrophic losses on out of network point-of-service services. Deductibles may not exceed $100,000 per covered life per year, and the portion of risk retained by the health maintenance organization once deductibles have been satisfied may not exceed 20%. Reinsurance must be placed with licensed authorized reinsurers qualified to do business in this State.
(d) A health maintenance organization may not issue a point-of-service contract until it has filed and had approved by the Director a plan to comply with the provisions of this Section. The compliance plan must, at a minimum, include provisions demonstrating that the health maintenance organization will do all of the following:
(1) Design the benefit levels and conditions of
coverage for in-plan covered services and out-of-plan covered services as required by this Article.
(2) Provide or arrange for the provision of adequate
(A) process and pay claims for all out-of-plan
(B) meet the requirements for point-of-service
contracts set forth in this Section and any additional requirements that may be set forth by the Director; and
(C) generate accurate data and financial and
regulatory reports on a timely basis so that the Department of Insurance can evaluate the health maintenance organization’s experience with the point-of-service contract and monitor compliance with point-of-service contract provisions.
(3) Comply with the requirements of subsections (b)
(Source: P.A. 92-135, eff. 1-1-02; 92-579, eff. 1-1-03.)