HB 4830

Abstract

Amends the Illinois Insurance Code. Provides that an employee or member or the eligible dependent of an employee or member is eligible for continuing coverage under a group insurance policy for up to 12 months (instead of 9 months) after the date the employee's or member's insurance under the policy would otherwise have terminated because of termination of employment or membership or reduction in hours below the minimum required by the group plan. Provides that the employer must give written notice of the employee's option to elect continuation coverage directly to the employee or send the notice to the employee via certified mail within 10 days after the employee's termination or reduction in hours below the minimum required by the group plan. Provides that an employee or member who wishes continuation of coverage must request such continuation in writing within the 30 day (instead of ten-day) period following the later of: (i) the date of such termination or reduction in hours below the minimum required by the group plan, or (ii) the date the employee is given written notice of the right of continuation by either the employer or the group policyholder. Provides that the written notice provided to an employee must include an explanation that his or her option for continuation coverage will expire within the 30 day period following the later of (i) the date of such termination of employment or reduction in hours below the minimum required by the group plan, or (ii) the date the employee is given written notice of the right of continuation by either the employer or group policyholder. Provides that any employer who fails to provide the notice required in the provision is guilty of a petty offense and shall be fined $500. Effective immediately.