Relating to transient lodging taxes; prescribing an effective date.

2025 Regular Session Introduced by Cyrus Javadi

Illinois HB 3325 would require private insurers and public plans to cover habilitative and rehabilitative speech therapy for stuttering, starting Jan 1, 2027, with cost shifts to local entities.

In committee upon adjournment.

HB 3325 — Summary (Introduced 2025)

Note: The bill file includes an apparent title mismatch — the header lists “Relating to transient lodging taxes,” but the bill text and cross-references clearly amend the Illinois Insurance Code and multiple public employer insurance laws to require coverage of speech therapy for stuttering. This summary reflects the bill text as introduced.

Main purpose

Require group and individual accident & health insurance policies, managed care plans, public employer plans, and certain health program statutes to cover habilitative and rehabilitative speech therapy when used to treat stuttering, and to incorporate that requirement into a range of Illinois laws governing public and private health coverage. Establishes an effective date and assigns enforcement responsibilities.

Key provisions

Adds a new provision to the Illinois Insurance Code (new 215 ILCS 5/356z.80) requiring that policies amended, delivered, issued, or renewed on or after January 1, 2027:

Provide coverage for habilitative speech therapy as a treatment for stuttering, regardless of whether the stuttering is classified as developmental.
Provide coverage for rehabilitative speech therapy as a treatment for stuttering.
Where both habilitative and rehabilitative benefits exist, both must cover speech therapy for stuttering.

Amends multiple statutes to require the same coverage in those programs:

State Employees Group Insurance Act (5 ILCS 375/6.11)
Counties Code (55 ILCS 5/5-1069.3)
Illinois Municipal Code (65 ILCS 5/10-4-2.3)
School Code (105 ILCS 5/10-22.3f)
Health Maintenance Organization Act, Limited Health Service Organization Act, Voluntary Health Services Plans Act, Illinois Public Aid Code, and related provisions.

Specifies enforcement responsibilities (Department of Insurance and, for some state employee plan matters, the Department of Central Management Services).

Amends the State Mandates Act to require implementation “without reimbursement,” indicating local governments must comply without guaranteed state compensation for new costs.

Effective date: January 1, 2027 (applies to policies/purchases on or after that date).

Who is affected

Private insurers offering accident and health policies and managed care plans in Illinois.

Employers and public entities that self-insure or purchase group health coverage (state, counties, municipalities, school districts).

HMOs, limited health service organizations, voluntary health plans, and Medicaid/Public Aid programs.

Individuals who stutter — increased access to coverage for habilitative/rehabilitative speech therapy.

Local units of government and school districts may incur increased costs but are required to implement without state reimbursement.

Potential impacts

Access: Likely improves access to speech therapy for people who stutter.

Cost: May raise short-term costs for insurers and plan sponsors (private employers, public entities, Medicaid), with fiscal effects concentrated where coverage is newly mandated.

Local fiscal pressure: The “without reimbursement” language could shift costs to local governments/school districts.

Bill