2023 Illinois Compiled Statutes › Chapter 215 - INSURANCE › 215 ILCS 165/ - Voluntary Health Services Plans Act.

(215 ILCS 165/1) (from Ch. 32, par. 595)
Sec. 1. 
		
		This Act may be cited as the
Voluntary Health Services Plans Act.
(Source: P.A. 86-1475.)
(215 ILCS 165/2) (from Ch. 32, par. 596)
Sec. 2. For the purposes of this Act, the following terms have the respective
meanings set forth in this section, unless different meanings are plainly
indicated by the context:
(a) "Health Services Plan Corporation" means a corporation organized under
the terms of this Act for the purpose of establishing and operating a voluntary
health services plan and providing other medically related services.
(b) "Voluntary health services plan" means either a plan or system under which
medical, hospital, nursing and relating health services may
be rendered to a subscriber or beneficiary at the expense of a health
services plan corporation, or any contractual arrangement to provide,
either directly or through arrangements with others, dental care services
to subscribers and beneficiaries.
(c) "Subscriber" means a natural person to whom a subscription certificate
has been issued by a health services plan corporation.  Persons eligible
under Section 5-2 of the Illinois Public Aid Code may be subscribers if
a written agreement exists, as specified in Section 25 of this Act, between
the Health Services Plan Corporation and the Department of Healthcare and Family Services.
A subscription certificate may be issued to such persons at no cost.
(d) "Beneficiary" means a person designated in a subscription certificate
as one entitled to receive health services.
(e) "Health services" means those services ordinarily rendered by physicians
licensed in Illinois to practice medicine in all of its branches, by podiatric physicians 
licensed in Illinois to practice podiatric medicine, by dentists and dental
surgeons licensed to practice in Illinois, by nurses registered in Illinois,
by dental hygienists licensed to practice in Illinois, and by assistants
and technicians acting under professional supervision; it likewise means
hospital services as usually and customarily rendered in Illinois, and the
compounding and dispensing of drugs and medicines by pharmacists and assistant
pharmacists registered in Illinois.
(f) "Subscription certificate" means a certificate issued to a subscriber
by a health services plan corporation, setting forth the terms and conditions
upon which health services shall be rendered to a subscriber or a beneficiary.
(g) "Physician rendering service for a plan" means a physician licensed
in Illinois to practice medicine in all of its branches who has undertaken
or agreed, upon terms and conditions acceptable both to himself and to the
health services plan corporation involved, to furnish medical service to
the plan's subscribers and beneficiaries.
(h) "Dentist or dental surgeon rendering service for a plan" means a dentist
or dental surgeon licensed in Illinois to practice dentistry or dental surgery
who has undertaken or agreed, upon terms and conditions acceptable both
to himself and to the health services plan corporation involved, to furnish
dental or dental surgical services to the plan's subscribers and beneficiaries.
(i) "Director" means the Director of Insurance of the State of Illinois.
(j) "Person" means any of the following:  a natural person, corporation,
partnership or unincorporated association.
(k) "Podiatric physician or podiatric surgeon rendering service for a plan" means
any podiatric physician or podiatric surgeon licensed in Illinois to practice podiatry,
who has undertaken or agreed, upon terms and conditions acceptable both
to himself and to the health services plan corporation involved, to furnish
podiatric or podiatric surgical services to the plan's subscribers and beneficiaries.
(Source: P.A. 98-214, eff. 8-9-13.)
(215 ILCS 165/3) (from Ch. 32, par. 597)
Sec. 3. 
		
		It shall be unlawful for any person, except a health services
plan corporation, incorporated under this Act, to establish, maintain or
operate a voluntary health services plan. This prohibition, however,
shall not be construed as preventing a person from furnishing health services to his employees or
from furnishing such medical services as are required under the
workers' compensation laws and related legislation, when the employees
are not charged for such services; nor shall it be construed to prohibit
an insurance company, or other corporation or society, which is subject
to the supervision of the Director from operating in accordance with the
laws governing insurance companies or such corporations or societies;
nor shall it be construed to prohibit the continued operation of any
medical or health service plan in existence and functioning at the
effective date of this Act.
(Source: P.A. 88-364.)
(215 ILCS 165/3.1) (from Ch. 32, par. 597.1)
Sec. 3.1. 
		No new plans may be chartered. 
		No voluntary health services
plan shall be issued a charter for the purpose of doing business under this
Act after the effective date of this Amendatory Act of 1989.
(Source: P.A. 86-600.)
(215 ILCS 165/4) (from Ch. 32, par. 598)
Sec. 4. 
		
		Five or more persons of legal age all of whom are residents of
Illinois and citizens of the United States may incorporate under the
provisions of this Act a health services plan corporation for the purpose
of establishing and operating a voluntary health services plan. Such
corporation shall be subject to regulation and supervision by the Director
as hereinafter provided, but shall not be subject to the laws of this state
with respect to insurance corporations except as provided in this Act.
(Source: Laws 1951, p. 569.)
(215 ILCS 165/5) (from Ch. 32, par. 599)
Sec. 5. 
		
		The business and affairs of a health services plan
corporation shall be managed by a board of trustees, which shall have
the power to adopt, and to amend from time to time, by-laws governing
the conduct of the corporation's business. The board of trustees shall
consist of not less than seven persons, all of whom shall have the same
general qualifications as the incorporators, and at least 30% of whom
shall, in addition, be physicians or dentists, licensed in Illinois to practice
medicine in all of its branches or dentistry, respectively; provided, however,
that if in computing
the required number of physicians or dentists on the board of trustees, the amount
of 30% does not coincide with a whole number, but lies between whole
numbers, the smaller whole number shall be controlling as to the number
of physicians or dentists. The original board of trustees shall be appointed by the
incorporators. Trustees shall serve for a term of three years, except
that as to the original appointed board, not more than one-third of the
members thereof shall be appointed for three years, not more than
one-third thereof for two years and the balance thereof for one year. As
the terms of the members of the board of trustees expire, they shall be
replaced, from time to time, by election by the health services plan
subscribers who are members of the health services plan corporation. If
the corporation furnishes medical services to the plan's subscribers and
beneficiaries and these services are rendered by physicians licensed in
Illinois to practice medicine in all of its branches, the
board of trustees shall appoint a Medical Director who shall be a
physician licensed in Illinois to practice medicine in all of its
branches. The Medical Director may participate in all deliberations of
the board of trustees but shall not vote in any decisions or
determinations made by the board of trustees. The Medical Director,
under the board of trustees, shall have complete charge of and
responsibility for the medical and medically related scientific aspects
of the business of
the corporation.
(Source: P.A. 81-1203.)
(215 ILCS 165/6) (from Ch. 32, par. 600)
Sec. 6. 
		
		A health services plan corporation may, in the discretion of its
board of trustees, through its by-laws, limit or define the classes of
persons who shall be eligible to become subscribers or beneficiaries, limit
and define the benefits which it will furnish, and may divide such benefits
as it undertakes to furnish into classes or kinds.
(Source: Laws 1951, p. 569.)
(215 ILCS 165/7) (from Ch. 32, par. 601)
Sec. 7. 
Every physician licensed in Illinois to practice medicine in
all of its branches, every podiatric physician licensed to practice podiatric medicine
in Illinois,  and every dentist and dental surgeon licensed to
practice in Illinois may be eligible to render medical, podiatric or dental
services respectively, upon such terms and conditions as may be mutually
acceptable to such physician, podiatric physician, dentist or dental surgeon and to the
health services plan corporation involved. Such a corporation shall
impose no restrictions on the physicians, podiatric physicians, dentists or dental surgeons
who treat its subscribers as to methods of diagnosis or treatment. The
private physician-patient relationship shall be maintained, and
subscribers shall at all times have free choice of any physician, podiatric physician, dentist or dental surgeon who is rendering service on behalf of the
corporation. All of the records, charts, files and other data of a
health services plan corporation pertaining to the condition of health
of its subscribers and beneficiaries shall be and remain confidential,
and no disclosure of the contents thereof shall be made by the
corporation to any person, except upon the prior written authorization
of the particular subscriber or beneficiary concerned.
(Source: P.A. 98-214, eff. 8-9-13.)
(215 ILCS 165/8) (from Ch. 32, par. 602)
Sec. 8. 
		
		Except as otherwise provided by Section 3 of this Act, no
person shall offer to the public any voluntary health service plan or
otherwise engage in the business of a health service plan corporation
without having first received a charter from the Director. No charter
under this Act shall be approved by the Director for any organization
seeking to provide medical or hospital services unless the organization
files a concomitant application for a certificate of authority, and is
approved by the Director, as a health maintenance organization pursuant to
the requirements of the Health Maintenance Organization Act.  Application
therefor shall be made to the Director upon forms prescribed by him and
shall include the following information:
(a) The names, places of residence, occupations, and qualifications
of the incorporators;
(b) The location of the corporation's registered office, and the
name and address of its registered agent;
(c) A detailed financial statement, including the amount of original
capital to be contributed to the corporation before it shall commence
doing business, as well as the name of each contributor, and the amount
by him contributed and the terms of such contribution;
(d) A copy of the by-laws to be adopted by the board of trustees
upon the issuance of a charter;
(e) Specimen copies of all subscription certificates which it is
proposed the corporation shall issue to subscribers, which certificates
shall set forth in detail the rates to be charged subscribers and the
nature and extent of the services which the subscriber or other
beneficiary shall be entitled to receive;
(f) A detailed statement as to the health services plan or plans
which the corporation proposes to offer, including the rates to be
charged, the benefits to be provided and the names of the counties in
which it is proposed the corporation shall have authority to engage in
business;
(g) A copy of the proposed charter under which the corporation
intends to operate.
(h) Specimen copies of all agreements to be entered into between the
corporation and hospitals, physicians, dentists, pharmacists and nurses,
which agreements shall set forth in detail the terms and conditions upon
which each shall be obliged to render service to subscribers of the
corporations.
After consideration of the statements and documents submitted to him
and such additional investigation as he deems necessary, the Director
shall issue a charter to the applicant corporation if he finds:
(1) The corporation has complied with the requirements of this Act,
(2) The subscription certificates to be offered by the corporation
and its methods of operation would not work a fraud on the subscriber,
(3) The rates to be charged and the benefits to be provided are fair
and reasonable to both the subscriber and to the corporation,
(4) The amount of money actually available for original capital is
sufficient to carry all acquisition costs and operating expenses for a
reasonable period of time from the issuance of the charter and is not
less than the minimum requirements set forth in subsection (5) of
Section 8 of this Act.
(5) The amounts contributed as original capital of the corporation shall
aggregate not less than
$100,000 at the start of business.
(6) Adequate and reasonable reserves are provided to insure the
contracts; and
(7) The corporation has contracts or agreements with hospitals,
physicians, dentists, pharmacists, nurses and dental hygienists
sufficient in number to carry out the terms of the contracts to be
issued to these subscribers.
Amendments to a charter shall be made by application to the Director
in the same manner as on original application.
(Source: P.A. 85-1246.)
(215 ILCS 165/9) (from Ch. 32, par. 603)
Sec. 9. 
		
		After the issuance of a charter, the Director as he deems in the
public interest may authorize or require a health services plan corporation
to charge rates or to utilize soliciting methods different from those on
which the charter was based, provided that such contracts and practices are
in compliance with provisions of this Act and are not violative of other
laws of this State.
The Director may revoke or amend, after reasonable notice and hearing,
any charter, certificates, order, authority or consent made by him to a
health services plan corporation on having found (1) that the further
solicitation of subscribers or further continuance of the practices in
question will work a fraud on subscribers, or (2) that the rates charged or
the benefits provided are not fair and reasonable to both the subscriber
and the corporation.
(Source: Laws 1951, p. 569.)
(215 ILCS 165/10) (from Ch. 32, par. 604)
(Text of Section from P.A. 103-84)
Sec. 10. Application of Insurance Code provisions. Health services
plan corporations and all persons interested therein or dealing therewith
shall be subject to the provisions of Articles IIA and XII 1/2 and Sections
3.1, 133, 136, 139, 140, 143, 143c, 149, 155.22a, 155.37, 354, 355.2, 355.3, 355b, 356g, 356g.5, 356g.5-1, 356q, 356r, 356t, 356u, 356v,
356w, 356x, 356y, 356z.1, 356z.2, 356z.3a, 356z.4, 356z.4a, 356z.5, 356z.6, 356z.8, 356z.9,
356z.10, 356z.11, 356z.12, 356z.13, 356z.14, 356z.15, 356z.18, 356z.19, 356z.21, 356z.22, 356z.25, 356z.26, 356z.29, 356z.30, 356z.30a, 356z.32, 356z.33, 356z.40, 356z.41, 356z.46, 356z.47, 356z.51, 356z.53, 356z.54, 356z.56, 356z.57, 356z.59, 356z.60, 356z.61, 364.01, 364.3, 367.2, 368a, 401, 401.1,
402,
403, 403A, 408,
408.2, and 412, and paragraphs (7) and (15) of Section 367 of the Illinois
Insurance Code.
Rulemaking authority to implement Public Act 95-1045, if any, is conditioned on the rules being adopted in accordance with all provisions of the Illinois Administrative Procedure Act and all rules and procedures of the Joint Committee on Administrative Rules; any purported rule not so adopted, for whatever reason, is unauthorized.
(Source: P.A. 102-30, eff. 1-1-22; 102-203, eff. 1-1-22; 102-306, eff. 1-1-22; 102-642, eff. 1-1-22; 102-665, eff. 10-8-21; 102-731, eff. 1-1-23; 102-775, eff. 5-13-22; 102-804, eff. 1-1-23; 102-813, eff. 5-13-22; 102-816, eff. 1-1-23; 102-860, eff. 1-1-23; 102-901, eff. 7-1-22; 102-1093, eff. 1-1-23; 102-1117, eff. 1-13-23; 103-84, eff. 1-1-24.)
(Text of Section from P.A. 103-91)
Sec. 10. Application of Insurance Code provisions. Health services
plan corporations and all persons interested therein or dealing therewith
shall be subject to the provisions of Articles IIA and XII 1/2 and Sections
3.1, 133, 136, 139, 140, 143, 143c, 149, 155.22a, 155.37, 354, 355.2, 355.3, 355b, 356g, 356g.5, 356g.5-1, 356q, 356r, 356t, 356u, 356v,
356w, 356x, 356y, 356z.1, 356z.2, 356z.3a, 356z.4, 356z.4a, 356z.5, 356z.6, 356z.8, 356z.9,
356z.10, 356z.11, 356z.12, 356z.13, 356z.14, 356z.15, 356z.18, 356z.19, 356z.21, 356z.22, 356z.25, 356z.26, 356z.29, 356z.30, 356z.30a, 356z.32, 356z.33, 356z.40, 356z.41, 356z.46, 356z.47, 356z.51, 356z.53, 356z.54, 356z.56, 356z.57, 356z.59, 356z.60, 356z.61, 364.01, 364.3, 367.2, 368a, 401, 401.1,
402,
403, 403A, 408,
408.2, and 412, and paragraphs (7) and (15) of Section 367 of the Illinois
Insurance Code.
Rulemaking authority to implement Public Act 95-1045, if any, is conditioned on the rules being adopted in accordance with all provisions of the Illinois Administrative Procedure Act and all rules and procedures of the Joint Committee on Administrative Rules; any purported rule not so adopted, for whatever reason, is unauthorized.
(Source: P.A. 102-30, eff. 1-1-22; 102-203, eff. 1-1-22; 102-306, eff. 1-1-22; 102-642, eff. 1-1-22; 102-665, eff. 10-8-21; 102-731, eff. 1-1-23; 102-775, eff. 5-13-22; 102-804, eff. 1-1-23; 102-813, eff. 5-13-22; 102-816, eff. 1-1-23; 102-860, eff. 1-1-23; 102-901, eff. 7-1-22; 102-1093, eff. 1-1-23; 102-1117, eff. 1-13-23; 103-91, eff. 1-1-24.)
(Text of Section from P.A. 103-420)
Sec. 10. Application of Insurance Code provisions. Health services
plan corporations and all persons interested therein or dealing therewith
shall be subject to the provisions of Articles IIA and XII 1/2 and Sections
3.1, 133, 136, 139, 140, 143, 143c, 149, 155.22a, 155.37, 354, 355.2, 355.3, 355b, 356g, 356g.5, 356g.5-1, 356q, 356r, 356t, 356u, 356v,
356w, 356x, 356y, 356z.1, 356z.2, 356z.3a, 356z.4, 356z.4a, 356z.5, 356z.6, 356z.8, 356z.9,
356z.10, 356z.11, 356z.12, 356z.13, 356z.14, 356z.15, 356z.18, 356z.19, 356z.21, 356z.22, 356z.25, 356z.26, 356z.29, 356z.30, 356z.30a, 356z.32, 356z.33, 356z.40, 356z.41, 356z.46, 356z.47, 356z.51, 356z.53, 356z.54, 356z.56, 356z.57, 356z.59, 356z.60, 356z.61, 364.01, 364.3, 367.2, 368a, 401, 401.1,
402,
403, 403A, 408,
408.2, and 412, and paragraphs (7) and (15) of Section 367 of the Illinois
Insurance Code.
Rulemaking authority to implement Public Act 95-1045, if any, is conditioned on the rules being adopted in accordance with all provisions of the Illinois Administrative Procedure Act and all rules and procedures of the Joint Committee on Administrative Rules; any purported rule not so adopted, for whatever reason, is unauthorized.
(Source: P.A. 102-30, eff. 1-1-22; 102-203, eff. 1-1-22; 102-306, eff. 1-1-22; 102-642, eff. 1-1-22; 102-665, eff. 10-8-21; 102-731, eff. 1-1-23; 102-775, eff. 5-13-22; 102-804, eff. 1-1-23; 102-813, eff. 5-13-22; 102-816, eff. 1-1-23; 102-860, eff. 1-1-23; 102-901, eff. 7-1-22; 102-1093, eff. 1-1-23; 102-1117, eff. 1-13-23; 103-420, eff. 1-1-24.)
(Text of Section from P.A. 103-445)
Sec. 10. Application of Insurance Code provisions. Health services
plan corporations and all persons interested therein or dealing therewith
shall be subject to the provisions of Articles IIA and XII 1/2 and Sections
3.1, 133, 136, 139, 140, 143, 143c, 149, 155.22a, 155.37, 354, 355.2, 355.3, 355b, 356g, 356g.5, 356g.5-1, 356q, 356r, 356t, 356u, 356v,
356w, 356x, 356y, 356z.1, 356z.2, 356z.3a, 356z.4, 356z.4a, 356z.5, 356z.6, 356z.8, 356z.9,
356z.10, 356z.11, 356z.12, 356z.13, 356z.14, 356z.15, 356z.18, 356z.19, 356z.21, 356z.22, 356z.25, 356z.26, 356z.29, 356z.30, 356z.30a, 356z.32, 356z.33, 356z.40, 356z.41, 356z.46, 356z.47, 356z.51, 356z.53, 356z.54, 356z.56, 356z.57, 356z.59, 356z.60, 356z.61, 364.01, 364.3, 367.2, 368a, 401, 401.1,
402,
403, 403A, 408,
408.2, and 412, and paragraphs (7) and (15) of Section 367 of the Illinois
Insurance Code.
Rulemaking authority to implement Public Act 95-1045, if any, is conditioned on the rules being adopted in accordance with all provisions of the Illinois Administrative Procedure Act and all rules and procedures of the Joint Committee on Administrative Rules; any purported rule not so adopted, for whatever reason, is unauthorized.
(Source: P.A. 102-30, eff. 1-1-22; 102-203, eff. 1-1-22; 102-306, eff. 1-1-22; 102-642, eff. 1-1-22; 102-665, eff. 10-8-21; 102-731, eff. 1-1-23; 102-775, eff. 5-13-22; 102-804, eff. 1-1-23; 102-813, eff. 5-13-22; 102-816, eff. 1-1-23; 102-860, eff. 1-1-23; 102-901, eff. 7-1-22; 102-1093, eff. 1-1-23; 102-1117, eff. 1-13-23; 103-445, eff. 1-1-24.)
(Text of Section from P.A. 103-551)
Sec. 10. Application of Insurance Code provisions. Health services
plan corporations and all persons interested therein or dealing therewith
shall be subject to the provisions of Articles IIA and XII 1/2 and Sections
3.1, 133, 136, 139, 140, 143, 143c, 149, 155.22a, 155.37, 354, 355.2, 355.3, 355b, 356g, 356g.5, 356g.5-1, 356q, 356r, 356t, 356u, 356v,
356w, 356x, 356y, 356z.1, 356z.2, 356z.3a, 356z.4, 356z.4a, 356z.5, 356z.6, 356z.8, 356z.9,
356z.10, 356z.11, 356z.12, 356z.13, 356z.14, 356z.15, 356z.18, 356z.19, 356z.21, 356z.22, 356z.25, 356z.26, 356z.29, 356z.30, 356z.30a, 356z.32, 356z.33, 356z.40, 356z.41, 356z.46, 356z.47, 356z.51, 356z.53, 356z.54, 356z.56, 356z.57, 356z.59, 356z.60, 356z.62, 364.01, 364.3, 367.2, 368a, 401, 401.1,
402,
403, 403A, 408,
408.2, and 412, and paragraphs (7) and (15) of Section 367 of the Illinois
Insurance Code.
Rulemaking authority to implement Public Act 95-1045, if any, is conditioned on the rules being adopted in accordance with all provisions of the Illinois Administrative Procedure Act and all rules and procedures of the Joint Committee on Administrative Rules; any purported rule not so adopted, for whatever reason, is unauthorized.
(Source: P.A. 102-30, eff. 1-1-22; 102-203, eff. 1-1-22; 102-306, eff. 1-1-22; 102-642, eff. 1-1-22; 102-665, eff. 10-8-21; 102-731, eff. 1-1-23; 102-775, eff. 5-13-22; 102-804, eff. 1-1-23; 102-813, eff. 5-13-22; 102-816, eff. 1-1-23; 102-860, eff. 1-1-23; 102-901, eff. 7-1-22; 102-1093, eff. 1-1-23; 102-1117, eff. 1-13-23; 103-551, eff. 8-11-23.)
(215 ILCS 165/11) (from Ch. 32, par. 605)
Sec. 11. 
		Examination of corporations. 
		The Director shall have with
respect to health services plan
corporations the powers of examination conferred upon him relative to
insurance companies by Sections 132 through 132.7 of the
Illinois Insurance Code. The
cost of any examination shall be paid by the corporation examined.
(Source: P.A. 89-97, eff. 7-7-95.)
(215 ILCS 165/12) (from Ch. 32, par. 606)
Sec. 12. 
		
		All rates or formula base for experience rate subscriber contracts
shall be submitted to the Director prior to use.  The Director may disapprove
rates or formula base for rates for specific reason and must do so within
45 days of receipt of supporting information or rates will be deemed approved.
(Source: P.A. 81-1203.)
(215 ILCS 165/13) (from Ch. 32, par. 607)
Sec. 13. 
		
		No subscription certificate shall be issued by any health services
plan corporation until the form thereof has been filed with and approved
by the Director, together with all applications, riders and endorsements
for use in connection with the issuance or renewal thereof.  It shall be
the duty of the Director of Insurance to withhold approval of any contract
form filed with him if it violates any provisions of this Act, or if it
violates or is contrary to any provisions of Sections 143, 355, and 355a
of the "Illinois Insurance Code", approved June 29, 1937, as amended, which
are not inconsistent or in conflict with provisions of this Act.
(Source: P.A. 79-681.)
(215 ILCS 165/14) (from Ch. 32, par. 608)
Sec. 14. 
		
		Every subscription certificate issued by a health services plan
corporation shall provide for the rendering of health services as therein
specified for a period of 12 months from the date of issuance of the
subscription certificate subject to compliance with the by-laws and rules
and regulations of the corporation by the subscriber. Any such certificate
may provide that it shall ordinarily be renewed from year to year unless
there has been one month's written notice of termination either by the
subscriber or by the corporation. During the first contract year the
provisions of the contract may provide that the coverage by the contract
may be deferred for not more than two months from date of issue of the
contract and may exclude treatment for illness or other conditions
requiring service existing at the time of executing the contract.
(Source: Laws 1951, p. 569.)
(215 ILCS 165/15) (from Ch. 32, par. 609)
Sec. 15. 
		
		
		Every contract entered into by a health services plan corporation and a
subscriber shall be in writing and a certificate stating the terms and
conditions thereof shall be furnished the subscriber. No such subscription
certificate shall be issued unless it contains the following provisions:
(a) A statement of the nature of the health services     to be provided and the period during which the certificate shall be effective; and if there are any types of services to be excepted, a detailed statement of such exceptions printed as hereinafter specified;
(b) A statement of the terms or conditions, if any,     upon which the certificate may be cancelled or otherwise terminated at the option of either party;
(c) A statement that the subscription certificate     constitutes the entire contract between the corporation and the subscriber and includes any endorsements attached;
(d) A statement that no statement by the subscriber     in his application for a certificate shall void the contract or be used in any legal proceeding thereunder, unless such application or an exact copy thereof is included in or attached to the certificate, and that no agent or representative of such corporation other than an officer or officers designated in the certificate, are authorized to change the contract or waive any of its provisions;
(e) A statement that if the subscriber defaults in     making any payment under the certificate, the subsequent acceptance of a payment by the corporation or by one of its duly authorized agents shall reinstate the certificate, but with respect to sickness and injury may cover only such sickness or injury as may be first manifested more than a specified number of days, not exceeding ten, after the date of such acceptance;
(f) A statement of the period of grace which will be     allowed the subscriber for making any payment due under the contract. Such period shall not be less than ten days;
(g) A statement that indemnity in the form of cash     will not be paid to any subscriber except in reimbursement for payments made by the subscriber to a physician, dentist or dental surgeon for which the subscriber had received express authorization by the corporation and for which the corporation was liable at the time of such payment.
(h) Every voluntary health services plan and each     subscription certificate issued by a health services plan corporation and providing coverage for hospital treatment shall provide coverage for treatment of alcoholism in a hospital licensed under the Hospital Licensing Act approved July 1, 1953 as amended or an approved public or private alcoholism treatment facility meeting the standards prescribed in Section 9 (1) of the Uniform Alcoholism and Intoxication Treatment Act enacted by the 78th General Assembly and approved under Section 9 (3) of the Uniform Alcoholism and Intoxication Treatment Act enacted by the 78th General Assembly.
(Source: P.A. 78-767.)
(215 ILCS 165/15.1) (from Ch. 32, par. 609.1)
Sec. 15.1. 
		
		
		No contract issued by a voluntary health services plan shall contain any
exception or exclusion from coverage which would preclude the payment of
expenses incurred for the processing and administration of blood and its
components.
(Source: P.A. 77-2724.)
(215 ILCS 165/15.2) (from Ch. 32, par. 609.2)
Sec. 15.2. 
		
		
		No claim shall be denied, under a contract issued or renewed by a
voluntary health services plan after the effective date of this amendatory
Act, for treatment or services for mental illness rendered in a hospital
solely because such hospital lacks surgical facilities.
(Source: P.A. 78-708.)
(215 ILCS 165/15.3) (from Ch. 32, par. 609.3)
Sec. 15.3. 
		
		(1)  No service plan contract of a health service plan
corporation which in addition to covering the subscriber, also covers
members of the subscriber's immediate family, shall contain any disclaimer,
waiver, or other limitation of coverage relative to the health service
benefits for or insurability of newborn infants of the subscriber from and
after the moment of birth.
(2) Each such contract shall contain a provision stating that the health
service benefits applicable for children shall be granted immediately with
respect to a newly born child from the moment of birth.  The coverage for
newly born children shall include coverage of illness, injury, congenital
defects, birth abnormalities and premature birth.
(3) If payment of a specific subscription fee is required to provide
coverage for a child, the contract may require that notification of birth of
a newly born child must be furnished to the corporation within 31 days after
the date of birth in order to have the coverage continue beyond such 31 day
period and may require payment of the appropriate fee.
(4) The requirements of this Section shall apply to all contracts delivered,
issued for delivery, renewed, or amended on or after the sixtieth day
following the effective date of this Section.
(Source: P.A. 79-74.)
(215 ILCS 165/15.4) (from Ch. 32, par. 609.4)
Sec. 15.4. 
		
		(1) No service plan contract of a health service plan
corporation which in addition to covering the subscriber, also covers
the subscriber's spouse shall contain a provision for termination of
coverage for a spouse covered under the service plan contract solely as
a result of a break in the marital relationship except by reason of an
entry of a valid judgment of dissolution of marriage
between the parties.
(2) Every such service plan contract, other than a contract whose
continuance is contingent upon continued employment or membership, which
contains a provision for termination of coverage of the spouse upon
dissolution of marriage shall contain a provision to the effect that upon the entry of a
valid judgment of dissolution of marriage between the covered parties the
spouse whose marriage was dissolved shall be entitled to have issued to
her or him, without evidence of
insurability, and upon application made to the corporation within 60
days following the entry of such judgment, upon the payment of the
appropriate subscription fee, an individual service plan contract.  Such
contract shall provide the coverage then being issued by the corporation
which is most nearly similar to, but not greater than, such terminated
coverage.  Any and all probationary or waiting periods set forth in
the conversion contract shall be considered as being met to the extent
coverage was in force under the prior contract.
(3) The requirements of this Section shall apply to all contracts
delivered, issued for delivery, renewed, or amended on or after the 60th
day following the effective date of this Section.
(Source: P.A. 81-230.)
(215 ILCS 165/15.5) (from Ch. 32, par. 609.5)
Sec. 15.5. 
		Conversion Privilege-Group Type Contracts.
(1) Every service plan contract of a health service plan corporation which
provides that the continued coverage of a beneficiary is contingent upon
the continued employment or membership of the subscriber with a particular
employer, union, or association shall further provide for the right of said
person to make application for an individual service plan contract under
the circumstances and in accordance with the requirements set forth in
Sections
367e and 367e.1 of the "Illinois Insurance Code".  The application of
Sections 367e and 367e.1 of the Code shall not be construed
in such a manner
as to require a health service plan corporation to furnish a service or
kind of benefit not customarily provided by such corporation and which is
inconsistent with the provision of this Act.
(2) The requirements of this Section shall apply to all such contracts
delivered, issued for delivery, renewed or amended on or after 180 days
following the effective date of this Section.
(Source: P.A. 93-477, eff. 1-1-04.)
(215 ILCS 165/15.6-1) (from Ch. 32, par. 609.6-1)
Sec. 15.6-1. Continuance privilege; group type contracts.
(1) Every
service plan contract of a health service plan corporation which
provides that the continued coverage of a beneficiary is contingent upon
the continued employment of the subscriber with a particular employer shall
further provide for the continuance of such contract in accordance with
the requirements set forth in Section 367.2 of the Illinois Insurance Code.
(2) The requirements of this Section shall apply to all such contracts
delivered, issued for delivery, renewed or amended on or after December 1, 1985 (the effective
date of Public Act 84-556).
(Source: P.A. 102-558, eff. 8-20-21.)
(215 ILCS 165/15.7) (from Ch. 32, par. 609.7)
Sec. 15.7. 
		
		No claim shall be denied, under a contract issued or renewed
by a voluntary health services plan after the effective day of this
amendatory Act, for treatment or services for rehabilitation following
either a physical or mental illness, rendered in a hospital solely
because such hospital lacks surgical facilities.
(Source: P.A. 79-303; 79-1454.)
(215 ILCS 165/15.8) (from Ch. 32, par. 609.8)
Sec. 15.8. Sexual assault or abuse victims.
(1) Policies, contracts or subscription certificates issued
by a health services plan corporation, which provide benefits for hospital
or medical expenses based upon the actual expenses incurred, shall to the
full extent of coverage provided for any other emergency or accident care,
provide for the payment of actual expenses incurred, without offset or
reduction
for benefit deductibles or co-insurance amounts, in the examination and
testing of a victim of an offense defined in Sections 11-1.20 through 11-1.60 or 12-13 through 12-16
of the Criminal Code of 1961 or the Criminal Code of 2012, or attempt to
commit such offense, to establish
that sexual contact did occur or did not occur, and to establish the presence
or absence of sexually transmitted disease or infection, and
examination and treatment
of injuries and trauma sustained by a victim of such offense.
(2) For purposes of enabling the recovery of State Funds, any health
services
plan corporation subject to this Section shall upon reasonable demand
by the Department of Public Health disclose the names and identities of
its insureds or subscribers entitled to benefits under this provision to
the Department of Public Health whenever the Department of Public Health
has determined that it has paid, or is about to pay, hospital or medical
expenses for which a health care service corporation is liable under this
Section.  All information received by the Department of Public Health under
this provision shall be held on a confidential basis and shall not be subject
to subpoena and shall not be made public by the Department of Public Health
or used for any purpose other than that authorized by this Section.
(3) Whenever the Department of Public Health finds that it has paid all
or part of any hospital or medical expenses which a health services plan
corporation is obligated to pay under this Section, the Department of Public
Health shall be entitled to receive reimbursement for its payments from
such corporation provided that the Department of Public Health has notified
the corporation of its claims before the corporation has paid such benefits
to its subscribers or in behalf of its subscribers.
(Source: P.A. 96-1551, eff. 7-1-11; 97-1150, eff. 1-25-13.)
(215 ILCS 165/15.9) (from Ch. 32, par. 609.9)
Sec. 15.9. 
		Coverage of services for mental illness. 
		To the
extent not inconsistent with this Act every Health Service Corporation
shall be subject to the provisions of Section 370c of the "Illinois
Insurance Code", approved June 29, 1937, as amended.
(Source: P.A. 81-1509.)
(215 ILCS 165/15.9-1) (from Ch. 32, par. 609.9-1)
Sec. 15.9-1. 
		
		No service plan contract or any renewal thereof shall be
denied or cancelled by a health service plan corporation, nor shall any
such contract contain any exception or exclusion of benefits, solely because
the mother of a subscriber or his dependent has taken diethylstilbestrol,
commonly referred to as DES.
(Source: P.A. 81-656.)
(215 ILCS 165/15.10) (from Ch. 32, par. 609.10)
Sec. 15.10. 
		
		Every service plan contract of a health service plan corporation
issued after the effective date of this amendatory Act of 1979 which provides
coverage for services coming within the practice of
optometry as defined in the Illinois Optometric Practice Act of
1987,
as now or hereafter amended shall, upon issuance, be accompanied by a
written notice to the subscriber that such subscriber may elect for
optometric services received to be reimbursed to either a physician
licensed to practice medicine in all its branches or to an optometrist
licensed in this State.
(Source: P.A. 85-1440.)
(215 ILCS 165/15.11) (from Ch. 32, par. 609.11)
Sec. 15.11. 
		
		To the extent not inconsistent with this Act every health services
plan corporation shall be
subject to the provisions of Section 356g of the "Illinois Insurance Code",
approved June 29, 1937, as amended.
(Source: P.A. 81-1470.)
(215 ILCS 165/15.12) (from Ch. 32, par. 609.12)
Sec. 15.12. 
		Medical assistance; coverage of child.
(a) In this Section, "Medicaid" means medical assistance authorized under
Section 1902 of the Social Security Act.
(b) A
contract delivered, issued for delivery, renewed, or amended by a health
services plan corporation may not contain any
provision which
limits or excludes
payments of hospital or medical benefits coverage to or on behalf of the
subscriber because the subscriber
or any covered dependent is eligible for or receiving Medicaid
benefits in this or any other state.
(c) To the extent that payment for covered expenses has been made under
Article V, VI, or VII of the Illinois Public Aid Code for health care services
provided to an individual, if a third party has a legal liability to make
payments for those health care services, the State is considered to have
acquired the rights of the individual to payment.
(d) If a child is covered under a voluntary health services plan in which
the child's noncustodial parent is a beneficiary, the health services plan
corporation shall:
(1) Provide necessary information to the child's     custodial parent to enable the child to obtain benefits under that voluntary health services plan.
(2) Permit the child's custodial parent (or the     provider, with the custodial parent's approval) to submit claims for payment for covered services without the approval of the noncustodial parent.
(3) Make payments on claims submitted in accordance     with paragraph (2) directly to the custodial parent, the provider of health care services, or the state Medicaid agency.
(e) A health services plan corporation may not deny enrollment of a child
under a voluntary health services plan in which the child's parent is
a beneficiary on any of the following grounds:
(1) The child was born out of wedlock.
(2) The child is not claimed as a dependent on the     parent's federal income tax return.
(3) The child does not reside with the parent or in     the area covered by the plan.
(f) If a parent is required by a court or administrative order to provide
coverage for a child under a voluntary health services plan and has a plan
which offers coverage for
eligible dependents, the health services plan corporation,
upon receiving a copy of the order, shall:
(1) Upon application, permit the parent to enroll, as     a subscriber to the plan, a child who is otherwise eligible for that coverage, without regard to any enrollment season restrictions that might otherwise be applicable as to the time period within which a person may subscribe to the plan.
(2) Enroll the child as a subscriber to the plan upon     application of the child's other parent, the state agency administering the Medicaid program, or the state agency administering a program for enforcing child support and establishing paternity under 42 U.S.C. 651 through 669 (or another child support enforcement program), if the parent is a beneficiary to the plan but fails to apply for enrollment of the child.
(g) A health services plan corporation may not impose, on a state agency
that
has been assigned the rights of an individual who is a beneficiary to a
voluntary
health services plan who receives Medicaid benefits, requirements that are
different from requirements applicable to an assignee of any other individual
who is a beneficiary to that plan.
(h) Nothing in subsections (e) and (f) prevents a health services plan
corporation from denying any such application if the child is not eligible for
coverage according to the health services plan corporation's medical
underwriting standards.
(i) The health services plan corporation may not disenroll (or otherwise
eliminate coverage of)
the child from the plan unless the corporation is provided satisfactory written
evidence of either
of the following:
(1) The court or administrative order is no longer in     effect.
(2) The child is or will be enrolled in a comparable     health care plan obtained by the parent under such order and that enrollment is currently in effect or will take effect not later than the date the prior coverage is terminated.
(Source: P.A. 89-183, eff. 1-1-96.)
(215 ILCS 165/15.13) (from Ch. 32, par. 609.13)
Sec. 15.13. 
		(Repealed).
(Source: Repealed by P.A. 89-183, eff. 1-1-96.)
(215 ILCS 165/15.14) (from Ch. 32, par. 609.14)
Sec. 15.14. 
		Coverage for Organ Transplantation Procedures. 
		No voluntary
health services plan corporation providing coverage under this Act for hospital
or medical expenses shall deny reimbursement for an otherwise covered
expense incurred for any organ transplantation procedure solely on the basis
that such procedure is deemed experimental or investigational unless supported
by the determination of the Office of Health Care Technology Assessment
within the Agency for Health Care Policy and Research within the federal
Department of Health and Human Services that such procedure is either
experimental or investigational or that there is insufficient data or
experience to determine whether an organ transplantation procedure is
clinically acceptable.  If a voluntary health services plan corporation has
made written request, or had one made on its behalf by a national
organization, for determination by the Office of Health Care Technology
Assessment within the Agency for Health Care Policy and Research within the
federal Department of Health and Human Services as to whether a specific
organ transplantation procedure is clinically acceptable and said
organization fails to respond to such a request within a period of 90 days,
the failure to act may be deemed a determination that the procedure is
deemed to be experimental or investigational.
(Source: P.A. 87-218.)
(215 ILCS 165/15.15) (from Ch. 32, par. 609.15)
Sec. 15.15. 
		
		All claims payable in the form of indemnities under the
terms of a service plan contract shall be paid within 30 days following
receipt by the corporation of due proof of loss.  Failure to pay within
such period shall entitle the subscriber to
interest at the rate of 9 per cent per annum from the 30th day
after receipt of such proof of loss to the date of late payment,
provided that interest amounting to less than one dollar need not be paid.
The requirements of this section shall apply to any service plan
contract delivered, issued for delivery, renewed or amended on or after 180
days following the effective date of this amendatory Act of 1985.
(Source: P.A. 84-280.)
(215 ILCS 165/15.20)
Sec. 15.20. 
		Post-parturition care. 
		A health service plan corporation is
subject to the provisions of Section 356s of the Illinois
Insurance Code.
(Source: P.A. 89-513, eff. 9-15-96; 90-14, eff. 7-1-97.)
(215 ILCS 165/15.25)
Sec. 15.25. 
		Illinois Health Insurance Portability and Accountability Act. 
		The provisions of this Act are subject to the Illinois Health Insurance
Portability and Accountability Act as provided in Section 15 of that Act.
(Source: P.A. 90-30, eff. 7-1-97.)
(215 ILCS 165/15.30)
Sec. 15.30. 
		Managed Care Reform and Patient Rights Act. 
		A health service
plan
corporation is subject to the provisions of the Managed Care Reform and Patient
Rights
Act.
(Source: P.A. 91-617, eff. 1-1-00.)
(215 ILCS 165/15a) (from Ch. 32, par. 609a)
Sec. 15a. Dependent Coverage Termination.
(a) The attainment of a limiting age under a voluntary health services
plan which provides that coverage of
a dependent of a subscriber terminates upon attainment of the limiting age
for dependent persons specified in the subscription certificate does not
operate to terminate
the coverage of a person who, because of a disabling condition
that occurred before attainment of the limiting age, is incapable of
self-sustaining employment and is dependent on his or her parents or other
care providers for lifetime care and supervision.
(b) For purposes of subsection (a), "dependent on other care providers" is
defined as requiring a Community Integrated Living Arrangement, group home,
supervised apartment, or other residential services licensed or certified by
the Department of Human Services (as successor to the Department of Mental
Health and Developmental Disabilities), the Department
of Public Health, or the Department of Healthcare and Family Services (formerly Department of Public Aid).
(c) The corporation may require, at reasonable intervals from the date
of the first claim filed on behalf of the person with a disability who is dependent or from
the date the corporation receives notice of a covered person's disability and
dependency, proof of the person's disability and dependency.
(d) This amendatory Act of 1969 is applicable to subscription
certificates
issued or renewed after October 27, 1969.
(Source: P.A. 99-143, eff. 7-27-15.)
(215 ILCS 165/16) (from Ch. 32, par. 610)
Sec. 16. 
		In every subscription certificate, referred to in Section 15:
(a) All printed portions shall be plainly printed in type of which the
face is not smaller than ten point;
(b) There shall be a brief description of the subscription certificate
on its first page, and there shall also be such a description on its filing
back in type of which the face is not smaller than fourteen point;
(c) The exceptions of the contract shall appear with the same prominence
in the certificate as the benefits to which they apply; and
(d) If the contract contains any provisions purporting to make any
portion of the charter or of the by-laws of the corporation a part of the
contract, such portions shall be set forth in full in the subscription
certificate.
(Source: Laws 1951, p. 569.)
(215 ILCS 165/17) (from Ch. 32, par. 611)
Sec. 17. 
A health services plan corporation may enter into agreements
with qualified physicians, podiatric physicians, dentists, dental surgeons, pharmacists,
hospitals, nurses, registered optometrists, dental hygienists and
assistants or technicians acting under professional supervision, and
with other organizations, state and Federal agencies, and corporations
in the field of voluntary health care.
(Source: P.A. 98-214, eff. 8-9-13.)
(215 ILCS 165/18) (from Ch. 32, par. 612)
Sec. 18. 
		
		No corporation subject to the provisions of this Act shall,
except under the approval of the Director, disburse during any one calendar
year more than 10% of the aggregate amount of payments received from
subscribers during that year as expenditures for the solicitation of
subscribers, except that during the first year after the issuance of a
charter such corporation may so disburse not more than 20% of such amount,
and during the second year not more than 15% thereof.
(Source: Laws 1951, p. 569.)
(215 ILCS 165/19) (from Ch. 32, par. 613)
Sec. 19. 
		
		No such corporation shall disburse as administrative expenses
during any one year, except upon approval of the Director, a sum greater
than 20% of payments received from subscribers during that year. The term
"administrative expenses" shall include all expenditures for non-health
services and, in general, all expenses not directly connected with the
payment for health services, but shall not include expenditures for
purchasing, acquiring, leasing or renting land, premises, facilities,
equipment, instruments or supplies needed or useful for the purpose of
rendering health services, and shall also not include expenses of
soliciting subscriptions.
(Source: Laws 1951, p. 569.)
(215 ILCS 165/20) (from Ch. 32, par. 614)
Sec. 20. 
		
		The funds of any health services plan corporation shall be
handled in accordance with the following rules:
(a) All loans made to original capital of the corporation may be
repayable only out of earned surplus.
(b) The funds of the corporation may be invested in accordance with
the requirements provided by law for the investment of funds of life
insurance companies and may also be invested in equipment of the
corporation provided such investment in equipment shall not exceed more
than 30% of the total admitted assets. The value of such equipment shall
be depreciated at a rate as rapidly as is provided under the Internal
Revenue Code.
(c) Every health services plan corporation, after its first fiscal
year of doing business, shall accumulate and maintain a special
contingent reserve over and above its reserves and liabilities at the
rate of 2% annually of its subscription income net of reinsurance so long
as the special contingent reserve does not exceed 8% of its annual net income
for the preceding 12 month period.
Additional accumulations shall no longer be required at such time that the
total special contingent reserve is equal to $1,500,000.
(Source: P.A. 90-794, eff. 8-14-98.)
(215 ILCS 165/21)
Sec. 21. (Repealed).
(Source: Laws 1951, p. 569. Repealed by P.A. 97-486, eff. 1-1-12.)
(215 ILCS 165/22)
Sec. 22. (Repealed).
(Source: Laws 1951, p. 569. Repealed by P.A. 97-486, eff. 1-1-12.)
(215 ILCS 165/23) (from Ch. 32, par. 617)
Sec. 23. 
		
		To the extent that the same are applicable and not inconsistent
with the provisions of this Act, all proceedings for the rehabilitation,
liquidation, conservation or dissolution of health services plan
corporations shall be subject to the provisions of Article XIII of the
"Illinois Insurance Code", approved June 29, 1937, as amended.
(Source: Laws 1951, p. 569.)
(215 ILCS 165/24) (from Ch. 32, par. 618)
Sec. 24. 
		
		Every health services plan corporation shall pay to the
Director the fees and charges set forth in Sections 408 and 408.2 of
the Illinois Insurance Code.
(Source: P.A. 84-989.)
(215 ILCS 165/25) (from Ch. 32, par. 619)
Sec. 25. A health services plan corporation may receive and accept
from governmental or private agencies or from other persons as defined
in this Act, payments covering all or part of the cost of subscriptions
to provide health services for needy and other individuals. However, all
contracts for health services concerning persons other than recipients of
public aid shall be between the corporation and the person to receive such
services.  No payments shall be made by the Department of Healthcare and Family Services to
any Health Services Plan Corporation except where the payment is made for
a covered service included in the Medical Assistance Program at the rate
established by the Department of Healthcare and Family Services, and where the service was rendered
to a public aid recipient, and where there was in full force and effect,
at the time the service was rendered, a written agreement governing such
provision of services between such Health Services Plan Corporation
and the Department.
(Source: P.A. 95-331, eff. 8-21-07.)
(215 ILCS 165/26) (from Ch. 32, par. 620)
Sec. 26. 
		
		A health services plan corporation incorporated prior to
January 1, 1965, operated on a not for profit basis, and neither owned or
controlled by a hospital shall not be liable for
injuries resulting from negligence, misfeasance, malfeasance, nonfeasance
or malpractice on the part of any officer or employee of the corporation,
or on the part of any person, organization, agency or corporation rendering
health services to the health services plan corporation's subscribers and
beneficiaries.
(Source: P.A. 85-1246.)
(215 ILCS 165/27) (from Ch. 32, par. 621)
Sec. 27. 
		
		Health services plan corporations organized under this Act shall be
operated and conducted not-for-profit and shall be governed by the
provisions of the "General Not for Profit Corporation Act", approved July
17, 1943, as amended, to such extent as the same may be applicable and not
inconsistent with this Act. Every corporation organized hereunder is
declared to be a charitable and benevolent corporation, and all of its
funds and property shall be exempt from every State, county, district,
municipal and school tax or assessment, and all other taxes and license
fees, from the payment of which charitable and benevolent corporations or
institutions are now or may hereafter be exempt.
This exemption shall not prevail against the fees and charges imposed by
Sections 408 and 408.2 of the "Illinois Insurance Code", approved
June 29, 1937, as amended.
(Source: P.A. 84-989.)
(215 ILCS 165/28) (from Ch. 32, par. 622)
Sec. 28. 
		
		Any person or any agent or officer of the corporation who violates
any provisions of this Act, or who makes any false statement with respect
to any report or statement required by this Act or required by the Director
under this Act is guilty of a Class A misdemeanor.
(Source: P.A. 77-2830.)
(215 ILCS 165/29) (from Ch. 32, par. 623)
Sec. 29. 
		
		The provisions of this Act shall be severable, and if any
provision of this Act is declared unconstitutional or the applicability
thereof to any person or circumstances is held invalid, the
constitutionality of the remainder of the Act and the applicability thereof
to other persons and circumstances shall not be affected thereby.
(Source: Laws 1951, p. 569.)
(215 ILCS 165/30) (from Ch. 32, par. 624)
Sec. 30. 
		
		Every final administrative decision of the Director shall be
subject to judicial review only under and in accordance with the Administrative
Review Law. The Administrative Review Law and all amendments and modifications
thereof, and the rules
adopted pursuant thereto, shall apply to and govern all proceedings for the
judicial review of final administrative decisions of the Director
hereunder. The term "administrative decision" is defined as in Section
3-101 of the Code of Civil Procedure. This Section shall apply to all proceedings
for judicial review.
(Source: P.A. 82-783.)