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Full Text of HB4785
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HB4785 - 104th General Assembly
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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB4785
Introduced , by Rep. Lindsey LaPointe
SYNOPSIS AS INTRODUCED:
New Act
Creates the Preventing Crisis Cost Shifting to Medicaid Act. Provides
that the General Assembly finds that (i) behavioral health crisis
services, including crisis call centers, mobile crisis response, and
crisis stabilization and receiving services, function as essential public
health infrastructure and must be available statewide without regard to
insurance status; and (ii) commercial health insurance policies issued or
administered in the State generally do not provide comprehensive coverage
for the full continuum of behavioral health crisis services, resulting in
the cost of such services being disproportionately borne by Medicaid,
local governments, and taxpayers. Requires specified entities (surcharge
payors) that are authorized to issue or administer a policy or contract of
accident and health insurance or a health maintenance organization
contract in the State to pay a behavioral health crisis assessment to the
Department of Human Services for deposit into the Statewide 9-8-8 Trust
Fund. Exempts Medicaid managed care organizations from paying the
behavioral health crisis assessment. Permits the Department to update the
total behavioral health crisis assessment amount as necessary to ensure
the continued availability, quality, or geographic equity of the statewide
behavioral health crisis system. Requires the Department to establish an
appropriate mechanism for enforcing a surcharge payor's liability, which
may include accrued interest on unpaid liabilities at a rate not to exceed
18% per annum and late fees or penalties at a rate not to exceed 5% per
month. Provides that the enforcement mechanism may also include
notification to the Department of Healthcare and Family Services to offset
payments on the surcharge payor's claims. Provides that the Department of
Human Services shall not direct the Department of Healthcare and Family
Services to offset claims payments unless the surcharge payor has
maintained an outstanding liability to the Statewide 9-8-8 Trust Fund for
a period longer than 45 days and has received proper notice of pending
enforcement.
LRB104 18498 KTG 31940 b
A BILL FOR
HB4785
LRB104 18498 KTG 31940 b
1
AN ACT concerning behavioral health.
2
Be it enacted by the People of the State of Illinois,
3
represented in the General Assembly:
4
Section 1.
Short title.
This Act may be cited as the
5
Preventing Crisis Cost Shifting to Medicaid Act.
6
Section 5.
Legislative findings and purpose.
The General
7
Assembly finds that:
8
(1) Individuals experiencing behavioral health
9
emergencies, including mental health and substance use crises,
10
require timely access to crisis services to promote safety,
11
stability, and recovery for themselves, their families, and
12
their communities.
13
(2) Behavioral health crisis services, including crisis
14
call centers, mobile crisis response, and crisis stabilization
15
and receiving services, function as essential public health
16
infrastructure and must be available statewide without regard
17
to insurance status.
18
(3) Commercial health insurance policies issued or
19
administered in this State generally do not provide
20
comprehensive coverage for the full continuum of behavioral
21
health crisis services, resulting in the cost of such services
22
being disproportionately borne by Medicaid, local governments,
23
and taxpayers.
HB4785
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LRB104 18498 KTG 31940 b
1
(4) A predictable, multi-payer financing mechanism is
2
necessary to prevent cost-shifting from commercial payors to
3
Medicaid and other publicly financed systems and to ensure the
4
long-term availability and geographic equity of a statewide
5
behavioral health crisis system.
6
Section 10.
Behavioral health crisis assessment.
7
(a) As used in this Section:
8
"Surcharge payor" means an entity that is authorized to
9
issue or administer a policy or contract of accident and
10
health insurance or a health maintenance organization contract
11
in this State and that made payments subject to assessment, as
12
determined by the Department of Human Services, in an amount
13
of $1,000,000 or more during the most recent fiscal year for
14
which data are available.
15
"Total behavioral health crisis assessment amount" means
16
$100,000,000, or, 2 years or later after the effective date of
17
this Act, the most recently updated total behavioral
18
assessment amount as designated by the Department of Human
19
Services by rule.
20
(b) Each surcharge payor shall pay a behavioral health
21
crisis assessment to the Department of Human Services for
22
deposit into the Statewide 9-8-8 Trust Fund.
23
(c) Each surcharge payor shall pay a portion of the total
24
behavioral health crisis assessment amount proportional to the
25
surcharge payor's payments subject to assessment during the
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LRB104 18498 KTG 31940 b
1
most recent fiscal year for which data are available, as
2
determined by the Department by rule.
3
(d) In the event of a merger, acquisition, or other
4
transfer of ownership, liability for the assessment shall be
5
assumed by the successor entity.
6
(e) The assessment imposed under this Section shall not
7
apply to Medicaid managed care organizations.
8
Section 15.
Deposit of assessment revenues.
All revenues
9
collected in accordance with this Act shall be deposited into
10
the Statewide 9-8-8 Trust Fund created under Section 6z-134 of
11
the State Finance Act and shall be expended in accordance with
12
the purposes of that Fund.
13
Section 20.
Adjustment of total assessment amount.
14
Beginning no earlier than 2 years after the effective date of
15
this Act, the Department of Human Services may update the
16
total behavioral health crisis assessment amount as necessary
17
to ensure the continued availability, quality, or geographic
18
equity of the statewide behavioral health crisis system.
19
Any updated amount shall apply prospectively and preserve
20
proportional allocation among surcharge payors. The Department
21
shall update the amount by rule, provide public notice of any
22
update, and report any such update to the General Assembly.
23
Section 25.
Enforcement.
HB4785
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LRB104 18498 KTG 31940 b
1
(a) The Department of Human Services shall establish an
2
appropriate mechanism for enforcing a surcharge payor's
3
liability under this Act if a surcharge payor fails to make a
4
required payment to the Statewide 9-8-8 Trust Fund; however,
5
the Department may establish threshold liability amounts below
6
which enforcement may be modified or waived.
7
(b) The enforcement mechanism may include assessment of
8
interest on unpaid liabilities at a rate not to exceed 18% per
9
annum and late fees or penalties at a rate not to exceed 5% per
10
month.
11
(c) The enforcement mechanism may also include
12
notification to the Department of Healthcare and Family
13
Services requiring an offset of payments on claims of the
14
surcharge payor, any entity under common ownership with the
15
surcharge payor, or any successor in interest to the surcharge
16
payor in an amount equal to the payment owed to the Statewide
17
9-8-8 Trust Fund, including any interest and penalties, and
18
transfer of the withheld amounts into the Fund.
19
(d) If the Department of Healthcare and Family Services
20
offsets claims payments in accordance with a notice under
21
subsection (c), the Department of Healthcare and Family
22
Services shall not be considered to be in breach of contract or
23
any other obligation for payment of non-contracted services,
24
and a surcharge payor whose payments are offset under this
25
Section shall continue to serve all Medicaid enrollees under
26
any contract then in effect with the Department of Healthcare
HB4785
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LRB104 18498 KTG 31940 b
1
and Family Services.
2
(e) The Department of Human Services shall not direct the
3
Department of Healthcare and Family Services to offset claims
4
payments unless the surcharge payor has maintained an
5
outstanding liability to the Statewide 9-8-8 Trust Fund for a
6
period longer than 45 days and has received proper notice that
7
the Department of Human Services intends to initiate
8
enforcement actions under this Section.
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