NOT-FOR-PROFIT INSURANCE CAP

Illinois General Assembly - Full Text of SB3448

Select Language

×

The Illinois General Assembly offers the Google Translate™ service for visitor convenience. In no way should it be considered accurate as to the translation of any content herein.

Visitors of the Illinois General Assembly website are encouraged to use other translation services available on the internet.

The English language version is always the official and authoritative version of this website.

NOTE: To return to the original English language version, select the "Show Original" button on the Google Translate™ menu bar at the top of the window.

Choose Language

English

Afrikaans

Albanian

Arabic

Armenian

Azerbaijani

Basque

Bengali

Bosnian

Catalan

Croatian

Czech

Danish

Dutch

Esperanto

Estonian

Filipino

Finnish

French

Galician

Georgian

German

Greek

Gujarati

Haitian Creole

Hausa

Hawaiian

Hebrew

Hindi

Hungarian

Icelandic

Indonesian

Interlingua

Interlingue

Inuktitut

Irish

Italian

Japanese

Javanese

Kannada

Khmer

Korean

Latin

Latvian

Lithuanian

Luxembourgish

Macedonian

Malagasy

Malayalam

Maltese

Maori

Marathi

Myanmar

Nepali

Norwegian

Odia

Pashto

Punjabi

Romanian

Russian

Samoan

Sango

Sanskrit

Sardinian

Sindhi

Sinhala

Slovak

Slovenian

Somali

Southern Sotho

Spanish

Sundanese

Swahili

Swedish

Tamil

Telugu

Thai

Tigrinya

Tonga

Turkish

Ukrainian

Urdu

Vietnamese

Welsh

Xhosa

Yiddish

Yoruba

Zulu

Powered by
Translate

Close

Illinois General Assembly

Top Navigation Bar

Translate

Learn

Select General Assembly

Search the 104th General Assembly

Enter search terms for legislation, members, committees, or schedules.

ILGA.GOV

LEGISLATION & LAWS

Bills & Resolutions

Public Acts

Illinois Compiled Statutes

Illinois Constitution

Search Legislation

Glossary

Guide

Reports & Inquiry

Legislative Reports

Special Reports

FTP Site

Legislator Lookup

Capitol Complex Phone Numbers

Rules & Regulations

Illinois Register

Administrative Rules

Senate

Members

Schedules

Committees

Request for Remote Testimony

Journals

Transcripts

Rules

Audio/Video

FOIA Information

Senate Employment Opportunities

Media Guidelines

House

Members

Schedules

Committees

Submit testimony for House Committees

Journals

Transcripts

Rules

Audio/Video

FOIA Information

House Employment Opportunities

Log In

Mobile Top Bar

Search the 104th General Assembly

Enter keywords to search the Illinois General Assembly website.

Full Text of SB3448

Home

Legislation

Full Text

SB3448 - 104th General Assembly

Bill Status

Full Text

Votes

Witness Slips

Select Menu

Bill Status

Full Text

Votes

Witness Slips

Printer Friendly Version

Introduced

Printer Friendly Version

Introduced

Open PDF

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB3448

Introduced 2/4/2026, by Sen. David Koehler

SYNOPSIS AS INTRODUCED:

New Act

Creates the Not-for-Profit Health Insurance Reserve Cap Act.
Prohibits a not-for-profit health insurance company from maintaining
reserves in excess of 125% of the minimum solvency standards required by
the Department of Insurance by the end of each calendar year. Requires each
not-for-profit health insurance company to submit an annual financial
report to the Department detailing the company's reserve levels. Provides
that any excess reserves shall be utilized for all the specified purposes
during the applicable calendar year. Provides that the Department shall
monitor and enforce compliance with the Act.
LRB104 18172 BAB 31611 b

A BILL FOR

SB3448
LRB104 18172 BAB 31611 b
1

AN ACT concerning regulation.

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
Not-for-Profit Health Insurance Reserve Cap Act.

6

Section 5.
Purpose.
The purpose of this Act is to limit
7
excessive accumulation of reserves by not-for-profit health
8
insurance companies in order to ensure that surplus funds are
9
used to improve health care services in Illinois, fairly
10
compensate Illinois medical providers, and benefit
11
policyholders and the policyholders' employees, retirees, and
12
dependents.

13

Section 10.
Definitions.
In this Act:
14

"Department" means the Department of Insurance.
15

"Excess reserves" means any amount of reserves maintained
16
by a not-for-profit health insurance company that exceeds 125%
17
of the regulatory minimum solvency requirement established by
18
the Department.
19

"Health insurance issuer" has the meaning given to that
20
term in Section 5 of the Illinois Health Insurance Portability
21
and Accountability Act.
22

"Not-for-profit health insurance company" means any health

SB3448
- 2 -
LRB104 18172 BAB 31611 b
1
insurance issuer organized and operated as a not-for-profit
2
under applicable State and federal laws.
3

"Reserves" means any surplus funds or financial assets
4
held by a not-for-profit health insurance company that exceed
5
the minimum amount required by the Department to endure
6
solvency and operational stability.

7

Section 15.
Limitations on reserves.
By the end of each
8
calendar year, no not-for-profit health insurance company
9
shall maintain reserves in excess of 125% of the minimum
10
solvency reserve standards required by the Department. Each
11
not-for-profit health insurance company shall submit an annual
12
financial report to the Department detailing the company's
13
reserve levels, including any reserves held in excess of the
14
prescribed cap.

15

Section 20.
Use of excess reserves.
Any excess reserves
16
shall be utilized for all the following purposes during the
17
applicable calendar year:
18

(1) market level compensation for health care
19

providers currently in the insurer's network;
20

(2) expansion of access to health care for underserved
21

populations; and
22

(3) reduction in premiums for current policyholders.

23

Section 25.
Enforcement and penalties.
The Department

SB3448
- 3 -
LRB104 18172 BAB 31611 b
1
shall monitor compliance with this Act. This monitoring shall
2
include, but not be limited to, conducting audits, reviewing
3
financial disclosures required by this Act, issuing subpoenas,
4
and other judicial processes. Any not-for-profit health
5
insurance company in violation of this Act shall be subject to
6
fines, penalties, and other corrective action, including, but
7
not limited to:
8

(1) imposition of a monetary fine not exceeding 50% of
9

the excess reserve held; and
10

(2) suspension or revocation of its license to operate
11

in Illinois.

Footer

Disclaimer

This site is maintained for the Illinois General Assembly by the
Legislative Information System, 705 Stratton Building, Springfield, Illinois 62706.

Contact ILGA Webmaster

ILGA.gov uses cookies to ensure you get the best experience on our website. By continuing to browse ILGA.gov you consent to our use of cookies.
Read About Cookies

ILGA.GOV

2026 ILGA.gov | All Rights Reserved |
ADA

|
Disclaimers
|
Learn

This site is maintained for the Illinois General Assembly by the
Legislative Information System, 705 Stratton Building, Springfield, Illinois 62706.
Contact ILGA Webmaster

ILGA.gov uses cookies to ensure you get the best experience on our website. By continuing to browse ILGA.gov you consent to our use of cookies.
Read About Cookies

ILGA.GOV

2026 ILGA.gov | All Rights Reserved |
ADA

|
Disclaimers
|
Learn