Illinois HB 4908: INS CD-SITE-NEUTRAL PAYMENT

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104TH GENERAL ASSEMBLY 
State of Illinois 
2025 and 2026
HB4908

Introduced , by Rep. Martha Deuter 

SYNOPSIS AS INTRODUCED:

5 ILCS 375/10 from Ch. 127, par. 530

215 ILCS 5/368h new

 Amends the State Employees Group Insurance Act of 1971. Provides that the Department of Central Management Services shall require all contracts, managed care arrangements, and third-party administrator agreements under the State Employees Group Insurance Program to apply site-neutral payment principles for covered services. Grants the Department rulemaking authority, including specified rules. Amends the Illinois Insurance Code. Requires the Department of Insurance to instruct health insurance companies operating in the State to apply site-neutral payment principles for any covered service for any health insurance product the health insurance company sells, manages, offers, or markets in the State. Grants the Department rulemaking authority, including specified rules. Effective January 1, 2027.

LRB104 18917 BAB 32362 b

A BILL FOR

HB4908LRB104 18917 BAB 32362 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 State Employees Group Insurance Act of 1971 

5is amended by changing Section 10 as follows:

6 (5 ILCS 375/10) (from Ch. 127, par. 530)

7 Sec. 10. Contributions by the State and members. 

8 (a) The State shall pay the cost of basic non-contributory 

9group life insurance and, subject to member paid contributions 

10set by the Department or required by this Section and except as 

11provided in this Section, the basic program of group health 

12benefits on each eligible member, except a member, not 

13otherwise covered by this Act, who has