SB3862 Summary

• Creates new Section 355.5 of the Illinois Insurance Code to exempt HSA-eligible high deductible health plans (HDHPs) from cost-sharing requirements until the deductible is met, allowing compliance with federal health savings account criteria under 26 U.S.C. 223.

• Requires insurance companies to identify plans as "HSA-eligible" or "non-HSA" for policies issued, delivered, amended, or renewed on or after January 1, 2021, with specific disclosure language for non-HSA high deductible policies.

• Allows large group employers with high deductible non-HSA policies issued by December 31, 2020 to elect amendments making their coverage HSA-eligible through a Notice and Election form process, with companies filing forms with the Department of Insurance within 30-60 days.

• Removes existing exemptions from cost-sharing prohibitions for mammograms, male sterilization procedures, and whole body skin examinations that previously allowed high deductible plans to maintain HSA eligibility.

• Applies to the Illinois Insurance Code, Health Maintenance Organization Act, and Voluntary Health Services Plans Act, with most provisions effective January 1, 2021, except certain requirements taking effect immediately upon enactment.