HEALTH INSURANCE ALLIANCE ACT

Creates the Health Insurance Alliance Act. Establishes the Illinois Health Insurance Alliance as a nonprofit public corporation for the purpose of providing increased access to health insurance for small employers in Illinois. Provides that the members of the Alliance shall be insurance companies authorized to do business in this State as a condition of their authority to offer health insurance. Authorizes a board of directors elected by the members and including the Secretary of Financial and Professional Regulation as the chairperson and a nonvoting member. Requires the submission of a plan of operation by the board to the Secretary. Sets forth powers and duties of the board. Requires certain approved health plans to be approved by the board and offered by the Alliance. Provides that members offering approved health plans are to be reinsured for certain losses by the Alliance. Requires members to pay an assessment to the Alliance for net reinsurance and administrative losses and allows the board to defer the payment if the payment would endanger the ability of the member to fulfill contractual obligations. Requires all members to pay an initial assessment of $500. Provides for the selection and duties of an alliance administrator. Provides criteria for eligibility for an approved health plan for employers and individuals. Requires members to provide notice of the Alliance to certain small employers. Sets forth general benefits, deductible, co-insurance, and out-of-pocket payment guidelines. Requires renewability of the health plan except for nonpayment of premiums, fraud, or termination of the approved health plan (except that the individual has the right to transfer to another approved health plan in the case of termination). Requires the Secretary to adopt rules to provide for disclosure of the availability of health insurance from the Alliance and to carry out the provisions of the Act. Provides that the participation of members in carrying out the provisions of the Act may not be a basis of any legal action against the members. Requires the Alliance to determine a standard risk rate index. Provides that the Alliance is the last payor of benefits. Requires the Department of Financial and Professional Regulation, in cooperation with the Alliance, to develop a plan to provide health insurance coverage to uninsured children, individuals, and other employers.