Illinois SB 3407: HOSPITAL EMPLOYEE PREMIUMS

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104TH GENERAL ASSEMBLY 
State of Illinois 
2025 and 2026
SB3407

Introduced 2/4/2026, by Sen. Karina Villa 

SYNOPSIS AS INTRODUCED:

210 ILCS 85/11.11 new

 Amends the Hospital Licensing Act. Provides that a hospital licensed under the Act shall not charge a covered hospital employee more than 10% of the total health insurance premium cost. Provides that any agreement permitting a charge to a covered hospital employee in excess of 10% of the total health insurance premium cost shall be deemed invalid, void, and unenforceable. Provides that a hospital in violation of those provisions shall pay a civil penalty of $500 to the Department of Public Health for each impacted covered hospital employee.

LRB104 18001 BAB 31438 b

A BILL FOR

SB3407LRB104 18001 BAB 31438 b

1 AN ACT concerning regulation.

2 Be it enacted by the People of the State of Illinois, 

3represented in the General Assembly:

4 Section 5. The Hospital Licensing Act is amended by adding 

5Section 11.11 as follows:

6 (210 ILCS 85/11.11 new)

7 Sec. 11.11. Health insurance premiums for hospital 

8employees.

9 (a) In this Section:

10 "Covered hospital employee" means any of the following:

11 (1) An employee of a large hospital who provides 

12 patient care, health care services, or services supporting 

13 the provision of health care, which includes, but is not 

14 limited to, employees performing work in the occupation of 

15 a nurse, physician, caregiver, medical resident, intern or 

16 fellow, patient care technician, janitor, housekeeping 

17 staff person, groundskeeper, guard, clerical worker, 

18 nonmanagerial administrative worker, food service worker, 

19 gift shop worker, technical and ancillary services worker, 

20 medical coding and medical bil