Illinois 97th Regular Session Status: Passed House 3 D cosponsors

HB 3236 — HEALTH BENEFIT PURCHASING COOP

Last action — Session Sine Die

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. 3
    Passed House
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 97th Regular Session. It reached “Passed House” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Summary

Amends the Co-operative Act. Provides that health benefit purchasing cooperatives may be organized by one or more persons in geographic areas designated by the Director of the Department of Insurance. Provides guidance for the design of a health benefit purchasing cooperative. Provides guidance for establishing member criteria and requires a cooperative to file the criteria and other reports with the Director of the Department of Insurance. Provides that each health benefit purchasing cooperative shall be organized on a membership basis with no capital stock. Provides that the contract between the health benefit purchasing cooperative and an insurer shall be for a term of 3 years. Effective immediately.

Bill Text

What changed in the latest version

182 added · 134 removed

Plain-language change summary

The updated version of HB 3236 now includes a specific section on "Health care cooperatives," which outlines new requirements for companies wanting to organize as such. These cooperatives must operate as nonprofit member corporations, focus only on health care plans for individuals and small groups, and adhere to ethical standards defined by federal law. This change is significant because it clarifies the structure and governance of health care cooperatives, ensuring they operate transparently and in the best interest of their members.

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*LRB09709331AEK49466b* HB3236 97TH GENERAL ASSEMBLY State of Illinois and 2012 HB3236 Introduced 2/24/2011, by Rep.
HB3236 Engrossed LRB097 09331 AEK 49466 b AN ACT concerning business.
Karen May SYNOPSIS AS INTRODUCED:
ILCS 310/30 new Amends the Co-operative Act.
Provides that health benefit purchasing cooperatives may be organized by one or more persons in geographic areas designated by the Director of the Department of Insurance.
Provides guidance for the design of a health benefit purchasing cooperative.
Provides guidance for establishing member criteria and requires a cooperative to file the criteria and other reports with the Director of the Department of Insurance.
Provides that each health benefit purchasing cooperative shall be organized on a membership basis with no capital stock.
Provides that the contract between the health benefit purchasing cooperative and an insurer shall be for a term of 3 years.
Effective immediately.
LRB097 09331 AEK 49466 b FISCAL NOTE ACT MAY APPLY A BILL FOR HB3236 LRB097 09331 AEK 49466 b AN ACT concerning business.
The Co-operative Act is amended by adding Section 30 as follows:
The Illinois Insurance Code is amended by adding Section 44.1 as follows:
(805 ILCS 310/30 new) Sec.
(215 ILCS 5/44.1 new) Sec.
44.1.
Health care cooperatives.
(a) In addition to all other provisions of this Article not in conflict with this Section, a company seeking to organize under this Article as a health care cooperative shall meet all of the following requirements:
(1) The company shall comply with all provisions applicable to domestic mutual insurance companies under this Code.
(2) The articles of incorporation of the company shall demonstrate that the company is to be organized as a nonprofit member corporation and that the governance of the company shall be subject to a majority vote of all members.
(3) The activities of the company shall be limited to the issuance of health care plans in the individual and small group markets.
(4) Either the articles of incorporation or the bylaws of the company shall incorporate ethics and conflict of HB3236 Engrossed - 2 - LRB097 09331 AEK 49466 b interest standards and the governance requirements set forth in Section 1322(c)(3)(C) of the federal Patient Protection and Affordable Care Act.
(5) The company or a related entity or any predecessor of either shall not have been a health insurance issuer on July 16, 2009.
(6) The company shall not be sponsored by a State or local government, any political subdivision thereof, or any instrumentality of such government or political subdivision.
(7) Excess surplus shall be used to lower premiums, to improve benefits, or for other programs intended to improve the quality of health care delivered to its members.
(8) No representative of a federal, State, or local government, or any political instrumentality thereof, and no representative of a company described in paragraph (5) of subsection (a) of this Section may serve on the board of directors of the company.
(b) Notwithstanding Section 37 of this Article, the corporate name of any organization seeking to organize under this Article as a health care cooperative need not contain the word "Mutual" but shall contain the phrase "Health Care Cooperative".
The corporate name shall not be the same as, or deceptively similar to, the name of any domestic organization or of any foreign or alien organization authorized to transact business in this State.
HB3236 Engrossed - 3 - LRB097 09331 AEK 49466 b (c) A company seeking to be organized as a health care cooperative shall submit an application to the Director according to procedures and meeting such requirements as the Director shall adopt by rule.
No company shall transact any business of insurance until it has received a certificate of authority as set forth in Section 51 of this Article.
Section 10.
The Co-operative Act is amended by changing Section 22 and by adding Section 30 as follows:
(805 ILCS 310/22) (from Ch.
32, par.
326) Sec.
22.
No corporation or association hereafter organized or doing business for profit in this State shall be entitled to use the term "Co-operative" as a part of its corporate or other business name or title unless it has complied with the provisions of this Act, except (1) a corporation organized under the Business Corporation Act of 1983 for the purpose of ownership or administration of residential property on a cooperative basis, or (2) a cooperative corporation organized under the General Not For Profit Corporation Act of 1986 or its predecessor or successor statutes, or (3) a domestic mutual insurance company licensed as a health care cooperative by the Director of Insurance under Article III of the Illinois Insurance Code.
Any corporation or association violating the provision of this Section may be enjoined from doing business under such name at the instance of any shareholder of any HB3236 Engrossed - 4 - LRB097 09331 AEK 49466 b association or corporation organized under this Act.
(Source:
P.A.
95-368, eff.
8-23-07.) (805 ILCS 310/30 new) Sec.
(b) The purpose of a health benefit purchasing cooperative is to provide health care benefits for the individuals specified in subsection (i) of this Section, under a single group health care policy or plan through a contract between the health benefit purchasing cooperative and an insurer authorized to do business in this State in one or more lines of insurance that includes health insurance.
(b) The purpose of a health benefit purchasing cooperative is to provide health care benefits for the individuals specified in subsection (i) of this Section, under a single group health care policy or plan through a contract between the health benefit purchasing cooperative and an insurer authorized to do health insurance business in this State.
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(2) All members receive their health care benefits HB3236 - 2 - LRB097 09331 AEK 49466 b under the group health care policy or plan negotiated under subsection (i) of this Section.
(2) All members receive their health care benefits under the group health care policy or plan negotiated under subsection (i) of this Section.
(4) The health insurance risk of all of the members is pooled.
(4) The health insurance risk of all of the members is HB3236 Engrossed - 5 - LRB097 09331 AEK 49466 b pooled.
(h) Each health benefit purchasing cooperative shall file HB3236 - 3 - LRB097 09331 AEK 49466 b its membership criteria, as well as any amendments to the criteria, with the Director.
(h) Each health benefit purchasing cooperative shall file its membership criteria, as well as any amendments to the criteria, with the Director.
The insurer must offer coverage under the group health care policy or plan to all of the following:
The HB3236 Engrossed - 6 - LRB097 09331 AEK 49466 b insurer must offer coverage under the group health care policy or plan to all of the following:
If a member withdraws from the health benefit purchasing cooperative before the end of the contract term, the health benefit purchasing cooperative may retain, as a penalty, an amount specified by the health benefit purchasing HB3236 - 4 - LRB097 09331 AEK 49466 b cooperative that is not less than the premium that the member paid for the 36th month of coverage.
If a member withdraws from the health benefit purchasing cooperative before the end of the contract term, the health benefit purchasing cooperative may retain, as a penalty, an amount specified by the health benefit purchasing cooperative that is not less than the premium that the member paid for the 36th month of coverage.
(1) Annually, no later than September 30, a report on the progress of the health benefit purchasing arrangement described in this Section and, to the extent possible, any significant findings in the criteria under subdivision (k)(2) of this Section.
(1) Annually, no later than September 30, a report on the progress of the health benefit purchasing arrangement HB3236 Engrossed - 7 - LRB097 09331 AEK 49466 b described in this Section and, to the extent possible, any significant findings in the criteria under subdivision (k)(2) of this Section.
(l) The Director shall designate, by order, the geographic HB3236 - 5 - LRB097 09331 AEK 49466 b areas of the State in which health benefit purchasing cooperatives may be organized.
(l) The Director shall designate, by order, the geographic areas of the State in which health benefit purchasing cooperatives may be organized.
This Act takes effect upon becoming law.
This Act takes effect upon HB3236 Engrossed - 8 - LRB097 09331 AEK 49466 b becoming law.
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Action History

  1. Session Sine Die

  2. Added as Alternate Co-Sponsor Sen. David Koehler

  3. Added as Alternate Co-Sponsor Sen. Emil Jones, III

  4. Sponsor Removed Sen. Pamela J. Althoff

  5. Added as Alternate Co-Sponsor Sen. Steven M. Landek

  6. Added as Alternate Co-Sponsor Sen. Antonio Muñoz

  7. Added as Alternate Co-Sponsor Sen. Pamela J. Althoff

  8. Added as Alternate Co-Sponsor Sen. Terry Link

  9. Added as Alternate Co-Sponsor Sen. Linda Holmes

  10. Added as Alternate Chief Co-Sponsor Sen. Jacqueline Y. Collins

  11. Added as Alternate Co-Sponsor Sen. John G. Mulroe

  12. Added as Alternate Co-Sponsor Sen. Dan Kotowski

  13. Added as Alternate Co-Sponsor Sen. Ira I. Silverstein

  14. Added as Alternate Co-Sponsor Sen. Martin A. Sandoval

  15. Added as Alternate Co-Sponsor Sen. Heather A. Steans

  16. Added as Alternate Co-Sponsor Sen. Michael Noland

  17. Added as Alternate Co-Sponsor Sen. Annazette R. Collins

  18. Pursuant to Senate Rule 3-9(b) / Referred to Assignments

  19. Postponed - Insurance

  20. Rule 2-10 Committee Deadline Established As May 31, 2011

  21. Postponed - Insurance

  22. Assigned to Insurance

  23. Added as Alternate Chief Co-Sponsor Sen. Susan Garrett

  24. Referred to Assignments

  25. First Reading

  26. Chief Senate Sponsor Sen. Jeffrey M. Schoenberg

  27. Placed on Calendar Order of First Reading

  28. Arrive in Senate

  29. Third Reading - Short Debate - Passed 100-005-000

  30. Added Co-Sponsor Rep. Sidney H. Mathias

  31. Added Co-Sponsor Rep. John D'Amico

  32. Added Co-Sponsor Rep. Michael W. Tryon

  33. Added Co-Sponsor Rep. Kelly Burke

  34. Added Co-Sponsor Rep. Anthony DeLuca

  35. Added Co-Sponsor Rep. Ann Williams

  36. Added Co-Sponsor Rep. Derrick Smith

  37. Added Co-Sponsor Rep. Arthur Turner

  38. Added Co-Sponsor Rep. Luis Arroyo

  39. Added Co-Sponsor Rep. Dwight Kay

  40. Added Co-Sponsor Rep. Jehan A. Gordon

  41. Added Co-Sponsor Rep. Brandon W. Phelps

  42. Added Co-Sponsor Rep. Patrick J. Verschoore

  43. Added Co-Sponsor Rep. Thomas Holbrook

  44. Added Co-Sponsor Rep. Sandy Cole

  45. Added Co-Sponsor Rep. Michael P. McAuliffe

  46. Added Co-Sponsor Rep. Michelle Mussman

  47. Added Co-Sponsor Rep. Roger L. Eddy

  48. Added Co-Sponsor Rep. Dennis M. Reboletti

  49. Added Co-Sponsor Rep. Chapin Rose

  50. Added Co-Sponsor Rep. Kay Hatcher

  51. Added Co-Sponsor Rep. Fred Crespo

  52. Added Co-Sponsor Rep. William Davis

  53. Added Co-Sponsor Rep. Kevin A. McCarthy

  54. Added Co-Sponsor Rep. Cynthia Soto

  55. Added Co-Sponsor Rep. Camille Y. Lilly

  56. Added Co-Sponsor Rep. Patricia R. Bellock

  57. Added Co-Sponsor Rep. John E. Bradley

  58. Added Co-Sponsor Rep. Elizabeth Hernandez

  59. Added Co-Sponsor Rep. Susana A. Mendoza

  60. Added Co-Sponsor Rep. William D. Burns

  61. Added Co-Sponsor Rep. Marlow H. Colvin

  62. Added Co-Sponsor Rep. Daniel Biss

  63. Added Co-Sponsor Rep. Emily McAsey

  64. Added Co-Sponsor Rep. Michael J. Zalewski

  65. Added Co-Sponsor Rep. Maria Antonia Berrios

  66. Added Co-Sponsor Rep. Dave Winters

  67. Added Co-Sponsor Rep. Lisa M. Dugan

  68. Added Co-Sponsor Rep. La Shawn K. Ford

  69. Added Co-Sponsor Rep. Rita Mayfield

  70. Added Co-Sponsor Rep. Constance A. Howard

  71. Added Co-Sponsor Rep. Lou Lang

  72. Added Co-Sponsor Rep. André M. Thapedi

  73. Added Co-Sponsor Rep. William Cunningham

  74. Added Co-Sponsor Rep. Harry Osterman

  75. Added Co-Sponsor Rep. Al Riley

  76. Added Co-Sponsor Rep. Robyn Gabel

  77. Added Co-Sponsor Rep. Dan Reitz

  78. Added Co-Sponsor Rep. Deborah Mell

  79. Added Co-Sponsor Rep. Franco Coladipietro

  80. Added Co-Sponsor Rep. Linda Chapa LaVia

  81. Added Co-Sponsor Rep. Keith Farnham

  82. Added Co-Sponsor Rep. Jack D. Franks

  83. Added Co-Sponsor Rep. Greg Harris

  84. Added Chief Co-Sponsor Rep. Barbara Flynn Currie

  85. Placed on Calendar Order of 3rd Reading - Short Debate

  86. Second Reading - Short Debate

  87. Added Co-Sponsor Rep. Elaine Nekritz

  88. Added Co-Sponsor Rep. Esther Golar

  89. Added Co-Sponsor Rep. Naomi D. Jakobsson

  90. Added Co-Sponsor Rep. Robert Rita

  91. Placed on Calendar 2nd Reading - Short Debate

  92. Added Co-Sponsor Rep. Karen A. Yarbrough

  93. Do Pass as Amended / Short Debate Insurance Committee; 014-005-000

  94. House Committee Amendment No. 1 Adopted in Insurance Committee; by Voice Vote

  95. Added Chief Co-Sponsor Rep. Carol A. Sente

  96. Added Chief Co-Sponsor Rep. Kenneth Dunkin

  97. Added Chief Co-Sponsor Rep. Sara Feigenholtz

  98. House Committee Amendment No. 1 Rules Refers to Insurance Committee

  99. House Committee Amendment No. 1 Referred to Rules Committee

  100. House Committee Amendment No. 1 Filed with Clerk by Rep. Karen May

  101. Assigned to Insurance Committee

  102. Referred to Rules Committee

  103. First Reading

  104. Filed with the Clerk by Rep. Karen May

Sponsors

  • Karen May · Cosponsor
  • Annazette R. Collins · Cosponsor
  • Michael Noland · Cosponsor
  • Heather A. Steans · Cosponsor
  • Martin A. Sandoval · Cosponsor
  • Ira I. Silverstein · Cosponsor
  • Dan Kotowski · Cosponsor
  • John G. Mulroe · Cosponsor
  • Linda Holmes · Cosponsor
  • Terry Link · Cosponsor
  • Antonio Muñoz · Cosponsor
  • Mr. Steven M. Landek · Cosponsor
  • III Emil Jones · Cosponsor
  • David Koehler · Cosponsor

Sponsorship breakdown

Export CSV (upgrade) →

0 sponsors · 14 co-sponsors · 169 not signed on · 1 voted No

Sponsors (0)

None.

Co-sponsors (14)

  • Karen May
  • Annazette R. Collins
  • Michael Noland
  • Heather A. Steans
  • Martin A. Sandoval
  • Ira I. Silverstein
  • Dan Kotowski
  • John G. Mulroe
  • Linda Holmes Democrat
  • Terry Link
  • Antonio Muñoz
  • Mr. Steven M. Landek
  • Emil Jones, III Democrat
  • David Koehler Democrat

Not signed on (169)

169 members have not signed on to this bill.

Show all 169 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Third Reading

Passed 100 Yea · 5 Nay · 13 Other
Party YeaNayPresentNot Voting
Unaffiliated 824013
Democrat 12100
Republican 6000
Total 1005013
% of votes cast 85%4%0%11%
How each member voted (118)
Member Party Vote
Brauer — Nay
Brown — Yea
Burns — Not Voting
McAsey — Yea
Holbrook — Yea
Jakobsson — Yea
Jefferson — Not Voting
Nekritz — Yea
Kay — Yea
Mathias — Yea
McAuliffe — Yea
Reitz — Yea
Lyons — Yea
McCarthy — Yea
Mell — Yea
Moffitt — Yea
Morthland — Yea
Riley — Yea
Soto — Yea
Thapedi — Yea
McGuire — Yea
Bradley — Yea
Brady — Yea
Burke, Daniel — Yea
Harris, David — Yea
Burke, Kelly — Yea
Sullivan — Yea
Cavaletto — Yea
Dugan — Yea
Dunkin — Yea
Eddy — Yea
Farnham — Yea
Flowers — Yea
Franks — Yea
Golar — Yea
Hatcher — Yea
Lang — Yea
Leitch — Yea
Hernandez — Yea
Howard — Yea
Mendoza — Not Voting
Mulligan — Not Voting
Williams — Yea
Jones — Yea
Osmond — Not Voting
Davis, Monique — Yea
Phelps — Yea
Pihos — Not Voting
Mitchell, Bill — Nay
Watson — Nay
Tryon — Yea
Turner — Yea
Unes — Yea
Mitchell, Jerry — Not Voting
Verschoore — Yea
Harris, Greg — Not Voting
Winters — Yea
Yarbrough — Yea
Zalewski — Yea
Coladipietro — Yea
Cole — Yea
Colvin — Yea
Connelly — Yea
Cross — Yea
Currie — Yea
D'Amico — Yea
Durkin — Not Voting
Fortner — Not Voting
Gordon — Not Voting
Hays — Yea
Jackson — Yea
Kosel — Yea
Nybo — Yea
Osterman — Not Voting
Poe — Yea
Pritchard — Yea
Ramey — Yea
Reboletti — Yea
Reis — Yea
Roth — Yea
Sacia — Yea
Saviano — Yea
Schmitz — Yea
Sente — Yea
Senger — Yea
Sommer — Yea
Madigan — Yea
Acevedo — Yea
Arroyo — Yea
Barickman — Yea
Beaubien — Not Voting
Beiser — Yea
Bellock — Yea
Berrios — Yea
Biss — Yea
Mautino — Yea
Bost — Nay
May — Yea
Chapa LaVia — Yea
Anthony DeLuca Democrat Yea
Bill Cunningham Democrat Yea
Camille Y. Lilly Democrat Yea
Fred Crespo Democrat Yea
Julie A. Morrison Democrat Nay
La Shawn K. Ford Democrat Yea
Michelle Mussman Democrat Yea
Nicholas K. Smith Democrat Yea
Rita Mayfield Democrat Yea
Robert "Bob" Rita Democrat Yea
Robyn Gabel Democrat Yea
Sara Feigenholtz Democrat Yea
William "Will" Davis Democrat Yea
Brad Stephens Republican Yea
Chapin Rose Republican Yea
Jil Tracy Republican Yea
Joe C. Sosnowski Republican Yea
Norine K. Hammond Republican Yea
Wayne A. Rosenthal Republican Yea

Official roll call →

Subjects

healthcare health-insurance
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Frequently asked questions

What does HB 3236 do?
Amends the Co-operative Act. Provides that health benefit purchasing cooperatives may be organized by one or more persons in geographic areas designated by the Director of the Department of Insurance. Provides guidance for the design of a health benefit purchasing cooperative. Provides guidance for establishing member criteria and requires a cooperative to file the criteria and other reports with the Director of the Department of Insurance. Provides that each health benefit purchasing cooperative shall be organized on a membership basis with no capital stock. Provides that the contract between the health benefit purchasing cooperative and an insurer shall be for a term of 3 years. Effective immediately.
Who sponsors HB 3236?
HB 3236 is sponsored by Karen May, Annazette R. Collins, Michael Noland, Heather A. Steans, Martin A. Sandoval, Ira I. Silverstein, Dan Kotowski, John G. Mulroe, Linda Holmes (Democrat), Terry Link, Antonio Muñoz, Mr. Steven M. Landek, Emil Jones, III (Democrat), and David Koehler (Democrat).
What is the current status of HB 3236?
This bill died with 97th Regular Session. It reached “Passed House” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track HB 3236?
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