IL HB5111

Authorizes the Department of Healthcare and Family Services to implement a uniform tax rate on managed care organizations beginning July 1, 2026, which may be based on a percentage of premium revenue or per member per month, up to federal limits set by the Centers for Medicare and Medicaid Services.

Expands the definition of "managed care organization" to include preferred provider organizations (PPOs), subjecting them to the assessment.

Removes exemptions from the "member months" calculation for Limited Health Services Organizations (including stand-alone dental/vision plans), Medicare Supplement Plans, and Federal Employee Health Benefits Plans, thereby broadening the tax base.

Eliminates the requirement that upward adjustments to Tier 3 rates (non-Medicaid managed care organizations) be limited to the minimum necessary to meet federal statistical tests.

Takes effect July 1, 2026.