HEALTH CARE FUNDING ACT
Creates the Health Care Funding Association to levy quarterly assessments on insurers and other health‑care payers to fund immunizations and health information lines in Illinois.
Creates the Health Care Funding Association to levy quarterly assessments on insurers and other health‑care payers to fund immunizations and health information lines in Illinois.
Status & timeline
- Introduced: 2/18/2025 (Rep. Michael J. Kelly).
- Passed both chambers (House and Senate) in May 2025.
- Signed by the Governor: 6/20/2025.
- Effective date: 9/1/2025.
Overview / primary purpose
- Creates the Health Care Funding Association (the "Association") to equitably determine and collect assessments from health carriers and other entities to pay for (1) immunizations and (2) health care information lines in Illinois when those costs are not covered by other federal or State funding. The law establishes dedicated state treasury funds to receive and disburse those revenues.
Key provisions
- Creation of the Health Care Funding Association: a not-for-profit corporation composed of all "assessed entities." The Association's primary purpose is determining and collecting assessments to fund immunization purchases/programs and health care information lines (e.g., Illinois DocAssist).
- New special funds in the State treasury:
- Immunization Program Fund (for immunization purchase funds and program costs).
- Health Care Information Line Fund (for information/referral services).
- Receipts go into the respective funds per the Association’s plan of operation; expenditures must be used exclusively for program costs and are at no cost to providers.
- Assessments:
- "Assessed entities" must pay a specified quarterly assessment to the Association. Assessed entities include insurers, HMOs, third‑party administrators, preferred provider arrangements, fraternal benefit societies, administrative services organizations, self‑insurers, governmental employers with in‑State plans, health cost‑sharing programs, managed care organizations, and others that finance or administer health care costs for persons in the State.
- The Act defines "covered lives" (who count for assessment purposes) to include individuals residing in or receiving health care in the State who are covered under individual or group policies, self‑insured employer plans (with specified nexus), managed care arrangements, or health cost‑sharing programs.
- The Act requires an equitable methodology for calculating assessments and establishes reporting, audit, and enforcement provisions (the bill text sets the framework; specific formula details are set in the Association’s methodology).
- Governance and operations:
- Board of directors and executive director for the Association; powers and duties specified (administration of funds, establishing plan(s) of operation, assessment methodology, contracting, reporting, audits).
- Only the Illinois Department of Public Health Director (or designee) may authorize expenditures from the funds.
- Legal/administrative features:
- Provisions addressing Association immunities, tax‑exempt status, an administrative allowance to the Department of Public Health, and conforming amendments to the State Finance Act.
Who is affected
- Primary: health carriers and other assessed entities listed in the Act (insurers, HMOs, third‑party administrators, self‑insured employers, health cost‑sharing programs, managed care organizations, etc.), which will incur quarterly assessment liabilities.
- Secondary: insured individuals and employers — assessments could influence carrier costs and potentially premiums or plan funding decisions. Public health programs and providers may receive funding/support for immunizations and information lines.
Procedural notes
- The bill directs the Association to adopt operational plans and assessment methodologies (including reporting and audit requirements). While the Act establishes the structure and authority, detailed implementation (rates, allocation rules, and timelines for first assessments) will be determined by the Association’s plan of operation and associated administrative actions.
Limitations / further detail
- The introduced text defines the scope, governance, fund structure, and authority to assess, but does not list a specific numerical assessment rate in the statute; methodology and exact assessments are to be developed by the Association per the Act.
Compiled from official sources — confirm details with the bill’s official record.
Sign in to ask a question.