State RegulationsIL specificDifficulty 2/5
Which statement about limited health service organizations in Illinois is accurate?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Limited health service organizations answer to 215 ILCS 130/1002 et seq., the LHSO Act, which includes definitional provisions at 215 ILCS 130/1002, organizational sections at 215 ILCS 130/3001 through 215 ILCS 130/3005, and operating requirements continuing from 215 ILCS 130/3008 through 215 ILCS 130/4003. An LHSO must satisfy these Illinois requirements under the supervision of the Illinois Department of Insurance before and while doing business in the state.
Why the other options are wrong
- A) The HMO Act at 215 ILCS 125/1-2 and 50 Ill. Adm. Code 5421 govern health maintenance organizations; LHSOs have their own statute at 215 ILCS 130/1002 et seq.
- B) LHSOs are not exempt; the Illinois Department of Insurance oversees their compliance with the LHSO Act.
- C) 215 ILCS 5/364 is the accident and health unfair practices provision and does not create the LHSO regulatory regime.
Memory hook
LHSOs march to 215 ILCS 130/1002 et seq.: their own act, their own rulebook.