IL SB2965

Amends Illinois Insurance Code (215 ILCS 5/368g) to restrict how contracting entities, insurers, and third-party administrators can grant access to provider networks and contractual discounts.

Prohibits granting provider network access unless the original contract specifically authorizes third-party assignment, the third party agrees to comply with all contract terms, and the insurer has agreed to cover the services; providers may refuse assignment without penalty.

Requires parties to preferred provider contracts to obtain prior written notification and express authority from all contracting parties before selling, leasing, or transferring information about payment or reimbursement terms.

Mandates that entities granting network access must: provide providers with a list of third parties accessing the network, maintain an updated website or toll-free number for provider inquiries (updated every 90 days), require third parties to identify discount sources on payment forms, notify third parties of contract terminations 7 days prior, include both entity names on member ID cards, and allow providers audit rights.

Establishes enforcement by the Department of Insurance with penalties of $200 to $5,000 per offense for violations, and grants the Department authority to issue cease and desist orders and other penalties.