Illinois 103rd Regular Session Status: Enacted Bipartisan · 7 D · 1 R cosponsors

SB 2735 — INS-ELECTRONIC PAYMENT FEES

Last action — Public Act . . . . . . . . . 103-0618

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

This bill has been enacted into law. Introduced January 12, 2024. Enacted.

Signed by Governor JB Pritzker (Democratic) on July 01, 2024.

Prognosis

Likely to advance 98% · high confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 8 sponsors

    2 primary, 6 co-sponsors signed on.

  • Bipartisan support

    Sponsored across 2 parties (7 D · 1 R) — cross-party backing.

  • Cleared a recorded vote

    Passed 4 recorded votes so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Summary

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.

Bill Text

What changed in the latest version

8 added · 8 removed

Plain-language change summary

The latest version of Bill SB 2735 has undergone a change where eight lines have been added to the text, replacing eight lines that were previously removed. This indicates that the bill is moving toward a finalized state with revised language that may clarify or enhance its provisions. Understanding these changes is important as they could impact how the bill functions and what it aims to achieve once enacted.

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SB2735 Engrossed LRB103 34765 RPS 64615 b AN ACT concerning regulation.
SB2735 Enrolled LRB103 34765 RPS 64615 b AN ACT concerning regulation.
(c) If one of the available payment methods has a fee associated with it, the insurer or managed care plan, or its contracted vendor, shall, prior to initiating the first SB2735 Engrossed - 2 - LRB103 34765 RPS 64615 b payment to an in-network health care provider or upon changing the payment methods available to a health care provider:
(c) If one of the available payment methods has a fee associated with it, the insurer or managed care plan, or its contracted vendor, shall, prior to initiating the first SB2735 Enrolled - 2 - LRB103 34765 RPS 64615 b payment to an in-network health care provider or upon changing the payment methods available to a health care provider:
SB2735 Engrossed - 3 - LRB103 34765 RPS 64615 b (215 ILCS 125/5-3) (from Ch.
SB2735 Enrolled - 3 - LRB103 34765 RPS 64615 b (215 ILCS 125/5-3) (from Ch.
(b) For purposes of the Illinois Insurance Code, except for Sections 444 and 444.1 and Articles XIII and XIII 1/2, Health Maintenance Organizations in the following categories SB2735 Engrossed - 4 - LRB103 34765 RPS 64615 b are deemed to be "domestic companies":
(b) For purposes of the Illinois Insurance Code, except for Sections 444 and 444.1 and Articles XIII and XIII 1/2, Health Maintenance Organizations in the following categories SB2735 Enrolled - 4 - LRB103 34765 RPS 64615 b are deemed to be "domestic companies":
SB2735 Engrossed - 5 - LRB103 34765 RPS 64615 b (3) the Director shall have the power to require the following information:
SB2735 Enrolled - 5 - LRB103 34765 RPS 64615 b (3) the Director shall have the power to require the following information:
(e) In considering any management contract or service agreement subject to Section 141.1 of the Illinois Insurance SB2735 Engrossed - 6 - LRB103 34765 RPS 64615 b Code, the Director (i) shall, in addition to the criteria specified in Section 141.2 of the Illinois Insurance Code, take into account the effect of the management contract or service agreement on the continuation of benefits to enrollees and the financial condition of the health maintenance organization to be managed or serviced, and (ii) need not take into account the effect of the management contract or service agreement on competition.
(e) In considering any management contract or service agreement subject to Section 141.1 of the Illinois Insurance SB2735 Enrolled - 6 - LRB103 34765 RPS 64615 b Code, the Director (i) shall, in addition to the criteria specified in Section 141.2 of the Illinois Insurance Code, take into account the effect of the management contract or service agreement on the continuation of benefits to enrollees and the financial condition of the health maintenance organization to be managed or serviced, and (ii) need not take into account the effect of the management contract or service agreement on competition.
and (ii) the amount of the refund or additional premium shall not exceed 20% of the Health Maintenance Organization's profitable or unprofitable experience with respect to the group or other enrollment unit for the period (and, for purposes of a refund or additional SB2735 Engrossed - 7 - LRB103 34765 RPS 64615 b premium, the profitable or unprofitable experience shall be calculated taking into account a pro rata share of the Health Maintenance Organization's administrative and marketing expenses, but shall not include any refund to be made or additional premium to be paid pursuant to this subsection (f)).
and (ii) the amount of the refund or additional premium shall not exceed 20% of the Health Maintenance Organization's profitable or unprofitable experience with respect to the group or other enrollment unit for the period (and, for purposes of a refund or additional SB2735 Enrolled - 7 - LRB103 34765 RPS 64615 b premium, the profitable or unprofitable experience shall be calculated taking into account a pro rata share of the Health Maintenance Organization's administrative and marketing expenses, but shall not include any refund to be made or additional premium to be paid pursuant to this subsection (f)).
SB2735 Engrossed - 8 - LRB103 34765 RPS 64615 b (g) 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;
SB2735 Enrolled - 8 - LRB103 34765 RPS 64615 b (g) 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;
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How this bill changes current law

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AI-generated reading aid from the bill's amendatory text — verify against the official bill.

The bill establishes new requirements for health care provider reimbursement in Illinois, mandating that insurers offer various payment methods and prohibiting certain payment mandates.

  • 215 ILCS 5/355.6

    Sec. 355.6. Health care provider reimbursement. (a) In this Section, 'health care provider' has the meaning given to the term 'provider' in Section 370g. (b) 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, which shall include, but not be limited to, payment by check and electronic funds transfer. An insurer or managed care plan shall not mandate payment by credit card. For purposes of this subsection, 'credit card' means a single-use or virtual credit card provided in an electronic, digital, facsimile, physical, or paper format. (c) If one of the available payment methods has a fee associated with it, the insurer or managed care plan, or its contracted vendor, shall, prior to initiating the first payment to an in-network health care provider or upon changing the payment methods available to a health care provider: (1) notify the health care provider that there may be fees associated with a particular payment method and that the insurer or managed care plan, or its contracted vendor, shall disclose any fees beyond what the health care provider would normally pay to process a payment using that payment method; and (2) provide the health care provider with clear instructions on the insurer's or managed care plan's, or its contracted vendor's, website or through means other than the contract offered to the health care provider as to how to select each method. (d) 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. (e) 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.

    This change creates new standards for how health care providers are reimbursed by insurers, ensuring multiple payment options without mandatory credit card payments.

  • 215 ILCS 125/5-3

    5 355.6, → 5 355.6, 355.6,

    This amendment includes the new Section 355.6 on health care provider reimbursement among the provisions to which Health Maintenance Organizations are subject, thereby making it part of the regulatory framework.

Amendments

1 amendment

Click Show changes on an amendment above to see how it modifies the bill.

Action History

  1. Public Act . . . . . . . . . 103-0618

  2. Effective Date January 1, 2025

  3. Governor Approved

  4. Sent to the Governor

  5. Passed Both Houses

  6. Third Reading - Short Debate - Passed 113-000-000

  7. Added Alternate Co-Sponsor Rep. Camille Y. Lilly

  8. Added Alternate Chief Co-Sponsor Rep. Lindsey LaPointe

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

  10. Second Reading - Short Debate

  11. Placed on Calendar 2nd Reading - Short Debate

  12. Do Pass / Short Debate Insurance Committee; 015-000-000

  13. Added Alternate Chief Co-Sponsor Rep. Anthony DeLuca

  14. Assigned to Insurance Committee

  15. Added Alternate Chief Co-Sponsor Rep. William E Hauter

  16. Referred to Rules Committee

  17. First Reading

  18. Chief House Sponsor Rep. Bob Morgan

  19. Arrived in House

  20. Third Reading - Passed; 059-000-000

  21. Added as Co-Sponsor Sen. Mary Edly-Allen

  22. Added as Co-Sponsor Sen. Laura M. Murphy

  23. Placed on Calendar Order of 3rd Reading **

  24. Placed on Calendar Order of 3rd Reading March 20, 2024

  25. Second Reading

  26. Placed on Calendar Order of 2nd Reading March 14, 2024

  27. Do Pass as Amended Insurance; 008-000-000

  28. Senate Committee Amendment No. 1 Adopted

  29. Senate Committee Amendment No. 1 Assignments Refers to Insurance

  30. Senate Committee Amendment No. 1 Referred to Assignments

  31. Senate Committee Amendment No. 1 Filed with Secretary by Sen. Laura Fine

  32. Postponed - Insurance

  33. Assigned to Insurance

  34. Referred to Assignments

  35. First Reading

  36. Filed with Secretary by Sen. Laura Fine

Sponsors

Sponsorship breakdown

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2 sponsors · 6 co-sponsors · 175 not signed on

Sponsors (2)

Co-sponsors (6)

Not signed on (175)

175 members have not signed on to this bill.

Show all 175 →

"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 113 Yea · 0 Nay · 4 Other
Party YeaNayPresentNot Voting
Democrat 62002
Unaffiliated 14002
Republican 37000
Total 113004
% of votes cast 97%0%0%3%
How each member voted (117)
Member Party Vote
Nichols — Yea
Ortiz — Yea
Frese — Yea
Yednock — Yea
Flowers — Not Voting
Burke — Yea
Caulkins — Yea
Costa Howard — Yea
Du Buclet — Yea
Faver Dias — Yea
Hernandez, Lisa — Yea
Katz Muhl — Yea
La Ha — Yea
Ladisch Douglass — Not Voting
Williams, Jawaharial — Yea
Yang Rohr — Yea
Abdelnasser Rashid Democrat Yea
Angelica Guerrero-Cuellar Democrat Not Voting
Ann M. Williams Democrat Yea
Anna Moeller Democrat Yea
Anne Stava Democrat Yea
Anthony DeLuca Democrat Yea
Barbara Hernandez Democrat Yea
Bob Morgan Democrat Yea
Camille Y. Lilly Democrat Yea
Carol Ammons Democrat Not Voting
Curtis J. Tarver, II Democrat Yea
Dagmara Avelar Democrat Yea
Daniel Didech Democrat Yea
Dave Vella Democrat Yea
Debbie Meyers-Martin Democrat Yea
Diane Blair-Sherlock Democrat Yea
Edgar González, Jr. Democrat Yea
Emanuel "Chris" Welch Democrat Yea
Eva-Dina Delgado Democrat Yea
Fred Crespo Democrat Yea
Gregg Johnson Democrat Yea
Harry Benton Democrat Yea
Hoan Huynh Democrat Yea
Jaime M. Andrade, Jr. Democrat Yea
Jay Hoffman Democrat Yea
Jehan Gordon-Booth Democrat Yea
Jennifer Gong-Gershowitz Democrat Yea
Joyce Mason Democrat Yea
Justin Slaughter Democrat Yea
Kam Buckner Democrat Yea
Katie Stuart Democrat Yea
Kelly M. Cassidy Democrat Yea
Kevin John Olickal Democrat Yea
La Shawn K. Ford Democrat Yea
Lawrence "Larry" Walsh, Jr. Democrat Yea
Lilian Jiménez Democrat Yea
Lindsey LaPointe Democrat Yea
Marcus C. Evans, Jr. Democrat Yea
Margaret Croke Democrat Yea
Martin J. Moylan Democrat Yea
Mary Beth Canty Democrat Yea
Mary Gill Democrat Yea
Matt Hanson Democrat Yea
Maura Hirschauer Democrat Yea
Maurice A. West, II Democrat Yea
Michael J. Kelly Democrat Yea
Michelle Mussman Democrat Yea
Nabeela Syed Democrat Yea
Natalie A. Manley Democrat Yea
Nicholas K. Smith Democrat Yea
Norma Hernandez Democrat Yea
Rita Mayfield Democrat Yea
Robert "Bob" Rita Democrat Yea
Robyn Gabel Democrat Yea
Sharon Chung Democrat Yea
Sonya M. Harper Democrat Yea
Stephanie A. Kifowit Democrat Yea
Sue Scherer Democrat Yea
Suzanne M. Ness Democrat Yea
Thaddeus Jones Democrat Yea
Theresa Mah Democrat Yea
Will Guzzardi Democrat Yea
William "Will" Davis Democrat Yea
Yolonda Morris Democrat Yea
Adam M. Niemerg Republican Yea
Amy Elik Republican Yea
Amy L. Grant Republican Yea
Blaine Wilhour Republican Yea
Brad Halbrook Republican Yea
Brad Stephens Republican Yea
Bradley Fritts Republican Yea
Brandun Schweizer Republican Yea
Charles Meier Republican Yea
Chris Miller Republican Yea
Christopher "C.D." Davidsmeyer Republican Yea
Dan Swanson Republican Yea
Daniel J. Ugaste Republican Yea
Dave Severin Republican Yea
David Friess Republican Yea
Dennis Tipsword Republican Yea
Jackie Haas Republican Yea
Jason R. Bunting Republican Yea
Jed Davis Republican Yea
Jeff Keicher Republican Yea
Jennifer Sanalitro Republican Yea
Joe C. Sosnowski Republican Yea
John M. Cabello Republican Yea
Kevin Schmidt Republican Yea
Martin McLaughlin Republican Yea
Michael J. Coffey, Jr. Republican Yea
Norine K. Hammond Republican Yea
Patrick Sheehan Republican Yea
Patrick Windhorst Republican Yea
Paul Jacobs Republican Yea
Ryan Spain Republican Yea
Steven Reick Republican Yea
Tom Weber Republican Yea
Tony M. McCombie Republican Yea
Travis Weaver Republican Yea
Wayne A. Rosenthal Republican Yea
William E Hauter Republican Yea

Official roll call →

Insurance

Passed 15 Yea · 0 Nay
Party YeaNayPresentNot Voting
Democrat 8000
Republican 4000
Unaffiliated 3000
Total 15000
% of votes cast 100%0%0%0%
How each member voted (15)
Member Party Vote
Katz Muhl — Yea
La Ha — Yea
Williams, Jawaharial — Yea
Anthony DeLuca Democrat Yea
Bob Morgan Democrat Yea
Camille Y. Lilly Democrat Yea
La Shawn K. Ford Democrat Yea
Lilian Jiménez Democrat Yea
Margaret Croke Democrat Yea
Rita Mayfield Democrat Yea
Thaddeus Jones Democrat Yea
Jackie Haas Republican Yea
Jeff Keicher Republican Yea
Travis Weaver Republican Yea
William E Hauter Republican Yea

Official roll call →

Third Reading

Passed 59 Yea · 0 Nay
Party YeaNayPresentNot Voting
Democrat 34000
Republican 17000
Unaffiliated 8000
Total 59000
% of votes cast 100%0%0%0%
How each member voted (59)
Member Party Vote
Stoller — Yea
Gillespie — Yea
Bennett — Yea
Toro — Yea
Harris, N. — Yea
Simmons — Yea
Glowiak Hilton — Yea
Loughran Cappel — Yea
Bill Cunningham Democrat Yea
Celina Villanueva Democrat Yea
Christopher Belt Democrat Yea
Cristina Castro Democrat Yea
David Koehler Democrat Yea
Don Harmon Democrat Yea
Doris Turner Democrat Yea
Elgie R. Sims, Jr. Democrat Yea
Emil Jones, III Democrat Yea
Gregg Johnson Democrat Yea
Javier L. Cervantes Democrat Yea
Julie A. Morrison Democrat Yea
Karina Villa Democrat Yea
Kimberly A. Lightford Democrat Yea
Lakesia Collins Democrat Yea
Laura Ellman Democrat Yea
Laura Fine Democrat Yea
Laura M. Murphy Democrat Yea
Linda Holmes Democrat Yea
Mary Edly-Allen Democrat Yea
Mattie Hunter Democrat Yea
Michael E. Hastings Democrat Yea
Michael W. Halpin Democrat Yea
Mike Porfirio Democrat Yea
Omar Aquino Democrat Yea
Patrick J. Joyce Democrat Yea
Paul Faraci Democrat Yea
Rachel Ventura Democrat Yea
Ram Villivalam Democrat Yea
Robert F. Martwick Democrat Yea
Robert Peters Democrat Yea
Sara Feigenholtz Democrat Yea
Steve Stadelman Democrat Yea
Willie Preston Democrat Yea
Andrew S. Chesney Republican Yea
Chapin Rose Republican Yea
Craig Wilcox Republican Yea
Dale Fowler Republican Yea
Dan McConchie Republican Yea
Dave Syverson Republican Yea
Donald P. DeWitte Republican Yea
Erica Harriss Republican Yea
Jason Plummer Republican Yea
Jil Tracy Republican Yea
John F. Curran Republican Yea
Neil Anderson Republican Yea
Sally J. Turner Republican Yea
Seth Lewis Republican Yea
Steve McClure Republican Yea
Sue Rezin Republican Yea
Terri Bryant Republican Yea

Official roll call →

Insurance

Passed 8 Yea · 0 Nay · 3 Other
Party YeaNayPresentNot Voting
Democrat 5000
Unaffiliated 1002
Republican 2001
Total 8003
% of votes cast 73%0%0%27%
How each member voted (11)
Member Party Vote
Harris III, Napoleon — Yea
Gillespie, Ann — Not Voting
Stoller, Win — Not Voting
Christopher Belt Democrat Yea
Cristina Castro Democrat Yea
Javier L. Cervantes Democrat Yea
Laura Fine Democrat Yea
Linda Holmes Democrat Yea
Chapin Rose Republican Not Voting
Dan McConchie Republican Yea
Dave Syverson Republican Yea

Official roll call →

Subjects

healthcare health-insurance
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Frequently asked questions

What does SB 2735 do?
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.
Who sponsors SB 2735?
SB 2735 is sponsored by Laura Fine (Democrat), Laura M. Murphy (Democrat), Mary Edly-Allen (Democrat), Bob Morgan (Democrat), William E Hauter (Republican), Anthony DeLuca (Democrat), Lindsey LaPointe (Democrat), and Camille Y. Lilly (Democrat).
What is the current status of SB 2735?
This bill has been enacted into law. Introduced January 12, 2024. Enacted.
Where can I track SB 2735?
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