Rep. Sanalitro backs HB5393 to revise limited health service organization regulations

Rep. Jennifer Sanalitro (R-48th) cast a Yes vote on HB5393, legislation aimed at revising limited health service organization regulations, during the 104th General Assembly on May 31, 2026. The Illinois House approved the bill in a unanimous 116-0 vote.

The bill's official description reads: "LIMITED HEALTH SERVICE ORGS."

The following summary is based on our reading and clarification of the actual bill text.

This bill updates the definitions and regulatory framework for limited health service organizations, or LHSOs, that offer point-of-service arrangements. It more clearly defines which services are considered in-plan or out-of-plan and revises terminology related to limited health care plans. The legislation eliminates a previous mandate that LHSOs provide a separate annual maximum benefit of up to $2,500 for out-of-plan services. It also changes how spending limits on out-of-plan services are administered. If an LHSO spends more than 20% of its total limited health service expenses on out-of-plan care in a quarter, specific penalty and compliance requirements are exempted if the LHSO meets capital and surplus requirements for life, accident and health insurers.

The official action recorded for HB5393 was 'Senate Floor Amendment No. 1 House Concurs'.

Sanalitro, a Republican, began serving in the Illinois State House in 2023, representing the 48th House District and succeeding Terra Costa Howard.

Under Illinois law, bills follow a multi-step legislative process beginning with introduction in either chamber, followed by committee hearings, floor debate, and votes in both the House and Senate, before proceeding to the governor for final consideration. The General Assembly operates on a two-year cycle, and while thousands of bills are brought forward each session, only a small percentage progress to become law.