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State RegulationsIL specificDifficulty 1/5

Which Illinois statute establishes the framework for health maintenance organizations?

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Answer & full 3-part explanation (select an option above, or peek)

Why D is correct

Health maintenance organizations in Illinois are governed by the HMO Act at 215 ILCS 125/1-2, with requirements in sections 4-1 through 4-16, together with the administrative rules at 50 Ill. Adm. Code 5421. The other statutes cited govern different regimes, and the Illinois Department of Insurance supervises HMOs under the HMO Act.

Why the other options are wrong

  • A) 215 ILCS 130/1002 et seq. belongs to the Limited Health Service Organization Act, which governs plans limited to specified services, not full HMOs.
  • B) 215 ILCS 5/364 contains accident and health unfair trade practices and does not organize the HMO framework.
  • C) 215 ILCS 5/531.01 begins the guaranty association provisions, which address insolvency protection rather than HMO structure.

Memory hook

HMO = 125 in Illinois; LHSO = 130. Two acts, one digit apart.

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