HB3236 Summary

• Amends Illinois Insurance Code to create new Section 44.1 authorizing organization of health care cooperatives as domestic mutual insurance companies limited to individual and small group markets.

• Health care cooperatives must be organized as nonprofit member corporations with majority member voting, ethics standards aligned with federal Affordable Care Act requirements, and excess surplus directed to lower premiums or improve benefits.

• Prohibits health care cooperatives from being sponsored by government entities and bars government representatives and representatives of pre-existing health insurers from serving on the board of directors.

• Amends Co-operative Act to allow health benefit purchasing cooperatives organized under new Section 30, enabling groups to negotiate collective health care coverage through single group policies while maintaining member participation in benefit design and health improvement decisions.

• Health benefit purchasing cooperatives must report annually to the Director of Insurance and submit final reports after contract terms detailing impact on uninsured populations, premium effects, and consumer involvement in the arrangement.