INS-ELECTRONIC PAYMENT FEES

Session: 103rd General Assembly
Year: 2024
Bill #: SB2735
Category: Labor, Personnel and Pensions
Position: No position
Mandate?
Revenue Loss?
Authority Preemption?

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Summary as Introduced

Amends the Illinois Insurance Code. Provides that no insurer, health maintenance organization, managed care plan, health care plan, preferred provider organization, or third-party administrator, or bank or payment processing company under contract with one of those entities, shall charge a provider a fee, fine, or cost for using an electronic funds transfer process, including, but not limited to, direct deposit, virtual or digital checks, or virtual credit cards, to receive payment for health care services provided to an insured. Amends the Health Maintenance Organization Act to make a conforming change. Effective immediately.

Staff Analysis

Amends the Illinois Insurance Code. Provides that any group or individual policy of accident and health insurance or managed care plan amended, delivered, issued, or renewed on or after January 1, 2026 shall offer all reasonably available methods of payment from the insurer or managed care plan, or its contracted vendor, to the contracted health care provider. Provides that an insurer or managed care plan shall not mandate payment by credit card. Provides that if one of the available payment methods has a fee associated with it, the insurer or managed care plan, or its contracted vendor, shall notify the health care provider of certain information and provide the health care provider with instructions on how to select each method. Provides that if a health care provider requests a change in the available payment method, the insurer or managed care plan, or its contracted vendor, shall implement the change to the payment method selected by the health care provider within 30 business days, subject to federal and State verification measures to prevent fraud and abuse. Provides that an insurer or managed care plan shall not use a health care provider's preferred method of payment as a factor when deciding whether to provide credentials to a health care provider. Defines terms. Amends the Health Maintenance Organization Act to make a conforming change.



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