IL HB5259

Health insurance issuers in individual, small group, and large group markets are prohibited from denying coverage to individuals or employers based on failure to pay premiums owed under a prior insurance policy.

Insurers cannot apply premium payments for a new policy toward past-due amounts from a previous policy as a condition of coverage.

Grandfathered health plans (those in which individuals were enrolled on March 23, 2010 and maintain that status under federal regulations) are exempt from these requirements.

Health insurance issuers retain the right to pursue collection of past-due premiums through other legal means, separate from coverage decisions.

Amends the Illinois Health Insurance Portability and Accountability Act (215 ILCS 97) and takes effect immediately.