Illinois Legislature approves Sen. Ellman’s bill regulating health insurance payment denials

A recently advanced bill from State Sen. Laura Ellman seeks to clarify the definition of grandfathered health plans and limits insurers from declining new coverage due to unpaid premiums, as approved in both legislative chambers, according to the Illinois General Assembly.

The House approved the measure with support from 63 Democrats and 31 Republicans, while five Republicans voted against it.

In the Senate, 37 Democrats and 16 Republicans gave the bill their endorsement.

Ellman formally brought the proposal forward in the Illinois Senate on Feb. 6, 2026, during its 104th session.

The measure, referred to as SB3815, gained final passage on May 22, 2026, in session 104 of the general assembly.

The Illinois General Assembly site summarizes the official bill text: "Amends the Illinois Health Insurance Portability and Accountability Act. Defines "grandfathered health plan". Provides that, except for grandfathered health plans, a health insurance issuer in the individual, small group, or large group market shall not deny coverage to an individual or employer due to the individual's or employer's failure to pay premiums owed under a prior policy, certificate, or contract of insurance. Specifies that nothing in the provisions concerning past-due premiums prohibits a health insurance issuer from pursuing the collection of past-due premiums from an individual or employer by any other means permitted by law. Effective immediately."

Our summary, based directly on the bill language, adds clarity to these provisions.

Essentially, the measure alters the Illinois Health Insurance Portability and Accountability Act to specify what a grandfathered health plan is and prevents most health insurers in the individual, small group, and large group markets from rejecting applications based on overdue premiums from previous policies. It further prevents insurers from crediting payments toward a new policy to unpaid balances on an old policy. Grandfathered health plans are exempt, and insurers are still allowed all other legal methods to pursue overdue premiums. The bill takes effect upon enactment.

The bill had co-sponsors including Sen. Cristina Castro (D-22nd District), Rep. Martha Deuter (D-45th District), Sen. Mary Edly-Allen (D-31st District), plus two additional sponsors.

Bills in Illinois progress through a legislative process with several steps, starting with introduction in one chamber, consideration in committee, debates, and separate votes in each chamber, before presentation to the governor for final approval or veto. The General Assembly functions on a biennial schedule, and only a limited number of the thousands of bills introduced per session are enacted.

Further information about legislative measures can be found here.

Ellman is a 1987 Grinnell College graduate with a BS degree.

Ellman, a Democrat, joined the Illinois State Senate in 2019, succeeding Michael Connelly as representative of the 21st Senate District.

Lawmakers marked as "Not Voting" were present but did not register a vote, while "Excused Absence" signifies an accepted formal notice for an absence.