IL SB1877

Amends the State Employees Group Insurance Act to require health benefits programs to provide coverage for wellness programs under Illinois Insurance Code Section 356z.15.

Adds new Section 356z.15 to the Illinois Insurance Code authorizing group and individual health insurance policies and managed care plans to offer wellness coverage programs with incentives such as premium reductions, reduced copayments, coinsurance, or deductibles for participation in health behavior improvement programs.

Requires wellness programs to give participants at least one annual opportunity to qualify for incentives, provide reasonable alternatives for those unable to participate due to medical conditions, and limit total incentives to no more than 20% of employee-only coverage costs.

Prohibits wellness program incentives from discriminating based on health factors and requires compliance with federal Health Insurance Portability and Accountability Act (HIPAA) regulations regarding health factor discrimination exceptions.

Applies wellness coverage requirements to Health Maintenance Organizations under the Health Maintenance Organization Act and takes effect January 1, 2010.