Sec. 5-21. Monthly assessments.
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/il/chapter-215/act-122/5-21A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Sec. 5-21. Monthly assessments.
(a)The Director of Insurance may apply a monthly assessment to each health benefits plan sold on the Illinois Health Benefits Exchange. The assessment shall be paid by the issuer and to the Department of Insurance and shall be used only for the purpose of supporting the exchange through exchange operations, outreach, and enrollment, including any efforts that may result in a benefit to policyholders. The assessment may be applied at a rate of:
(1)0.5% of the total monthly premium charged by an issuer for each health benefits plan
during any period that the State is on a State-based exchange using the federal platform; or
(2)2.75% of the total monthly premium charged by an issuer for each health benefits
plan during any period that the State is on the State-based exchange. The Director of Insurance shall adjust this rate to ensure that the Illinois Health Benefits Exchange is fully funded, but in no case shall the assessment be applied at a rate that exceeds 3.5% of the total monthly premium charged by a carrier. If the Director determines it is necessary to adjust the rate pursuant to this paragraph, the Director shall, in advance of the adjustment, post on the Department's website a report describing the reasons and justifications for the adjustment, which shall be consistent with the purposes of supporting the Illinois Health Benefits Exchange as provided in this Section, at least 120 days before the implementation of the rate adjustment.
(b)The Director of Insurance shall notify an issuer 120 days before the implementation of its assessment rate for the subsequent year. Issuers must remit the assessment due in monthly installments to the Department of Insurance.
(c)The assessment described in this Section shall be considered a special purpose obligation and may not be applied by issuers to vary premium rates at the plan level.
(d)There is created a special fund within the State treasury to be known as the Illinois Health Benefits Exchange Fund. The Illinois Health Benefits Exchange Fund shall be the repository for moneys collected pursuant to fees or assessments on exchange issuers, federal financial participation as appropriate, and other moneys received as grants or otherwise appropriated for the purposes of supporting health insurance outreach, enrollment efforts, and plan management operations through an exchange. All moneys in the Fund shall be used, subject to appropriation, only for the purpose of supporting the exchange through exchange operations, outreach, enrollment, and other means of supporting the exchange, including any efforts that may result in a benefit to policyholders.