Bill > SB3448

This bill, titled the Not-for-Profit Health Insurance Reserve Cap Act, aims to ensure that not-for-profit health insurance companies in Illinois use their surplus funds effectively rather than accumulating excessive reserves. Specifically, it prohibits these companies from holding reserves, which are defined as surplus funds or financial assets exceeding the minimum amount needed for stable operations, beyond 125% of the minimum solvency standards set by the Department of Insurance, the state agency responsible for overseeing insurance companies. Each year, these companies must submit a financial report to the Department detailing their reserve levels. Any reserves found to be in excess of this 125% cap must be used during that calendar year for purposes such as providing fair compensation to medical providers, expanding healthcare access for underserved communities, or reducing premiums for policyholders. The Department of Insurance will monitor compliance with these rules and can impose penalties, including fines up to 50% of the excess reserves or even suspension or revocation of the company's license, for violations.

https://www.ilga.gov/Legislation/BillStatus?DocNum=3448&GAID=18&DocTypeID=SB&SessionID=114&GA=104