IL SB2312

Prohibits misleading or false advertising that misrepresents the need to seek mental health disorder or substance use disorder treatment outside of Illinois.

Requires marketing materials for mental health or substance use disorder treatment directed to Illinois residents to display the facility's physical address, Illinois licensure status, in-state locations, insurance coverage information, network status, a link to the Department of Human Services website, and disclosure that treatment may be available at reduced cost or free within Illinois.

Bans kickback arrangements where patients seeking mental health or substance use disorder treatment are referred to facilities in exchange for fees, revenue percentages, or other remuneration based on referral volume or value.

Carves out exceptions allowing personal services agreements, management services agreements, charity care discounts based on financial necessity, and employee/contractor compensation that does not vary based on referral volume or value.

Exempts health insurance companies, health maintenance organizations, managed care plans, hospitals, and hospital affiliates licensed in Illinois from these prohibitions.