SB2766 Summary

• Amends the Health Maintenance Organization Act to restrict HMO organization to domestic insurance companies, nonprofits under the Dental Service Plan Act or Voluntary Health Services Plans Act, and domestic corporations; removes allowance for foreign corporations to qualify as HMOs.

• Modifies definitions in Section 1-2 to change "any organization" language to "an organization" and specifies that organizations must be domestic entities operating as HMOs without other business activities.

• Eliminates the special contingent reserve requirement for HMOs certified prior to 1987 and simplifies net worth requirements, requiring minimum $1,500,000 net worth for new organizations.

• Updates Section 2-1 to remove provision allowing foreign corporations to qualify under the Act subject to state registration.

• Adds new point-of-service product requirements in Section 2-4(d-5) establishing minimum net worth thresholds ranging from $3,500,000 to $6,000,000 based on projected out-of-plan claims.