FOR IMMEDIATE RELEASE:
August 16, 1999

FOR INFORMATION CONTACT:
Kelley Elwood, 312/580-6497

New Laws Reduce Hassle Factor for
Physicians; Improved Credentialing and
Claim Reimbursement Procedures

CHICAGO - Today, Governor George Ryan signed into law two important bills that promise to vastly improve physician credentialing and claim reimbursement procedures.

HB 2713, principally sponsored by Robert Madigan (R-Lincoln), Thomas Dart (D-Chicago), Elizabeth Coulson (R-Glenview) and Andrea Moore (R-Libertyville), requires insurance companies and HMOs to pay claims in a timely fashion to all health care professionals and providers. Clean claims for health care services must be paid in 30 days. Certain claims paid by Independent Practice Associations (IPAs) and Physician Hospital Organizations (PHOs) are not due for 60 days initially, although beginning in 2001, they will be payable in 30 days as well. Additionally, HMOs must make timely capitation payments. The initial cap payment to a physician must occur within 60 days of the patient’s effective enrollment date, and monthly thereafter.

HB 1780, the Health Care Professional Credentials Data Collection Act, principally sponsored by Angelo "Skip" Saviano (R-Elmwood Park), Thomas Ryder (R-Jerseyville) and Bradley Burzynski (R-Sycamore), requires all health plans to use standardized forms for credentialing and re-credentialing physicians. Re-credentialing is allowed only once every two years, unless warranted by quality concerns.

Credentialing is the process of assessing and validating the qualifications of a health care professional.

"These new laws bring Illinois physicians two fewer hassles. They will reduce the time we spend on unnecessary paperwork and will help reduce administrative costs. Physicians will be able to focus more of their time and resources on patient care," said Clair M. Callan, MD, ISMS president. "We thank the legislature for passing these bills and Governor Ryan for signing them into law."

ISMS is a professional membership organization representing 16,000 physicians, practicing in all specialties statewide.

ISMS permits and encourages reproduction of ISMS news releases with the request that ISMS is credited as the source of the information.