IllinoisHB4735104th General Assembly (2025–2026)House

TRANSPARENCY IN DOWNCODING ACT

Sponsored By: Sharon Chung (Democratic)

In Committee

Summary

Creates the Transparency in Downcoding Act. Provides that the Act applies to certain policies of health insurance amended, delivered, issued, or renewed on or after the effective date of the Act, except for employee or employer self-insured health benefit plans under the federal Employee Retirement Income Security Act of 1974 and health care provided pursuant to the Workers' Compensation Act or the Workers' Occupational Diseases Act. Prohibits a health insurance issuer from using an automated process, system, or tool to downcode a claim; from downcoding a claim based solely on the reported diagnosis codes; and from using downcoding practices in a targeted or discriminatory manner against physicians who routinely treat patients with complex or chronic conditions. Requires downcoding decisions to be made by a physician licensed to practice medicine in all its branches in any United States jurisdiction and of the same or similar specialty as a physician who typically manages the medical condition or disease. Sets forth provisions concerning notification requirements for downcoded claims; the appeal process for downcoded claims; enforcement by the Department of Insurance; and penalties. Provides that any pattern or practice of discriminatory downcoding identified by the Director of Insurance or another regulatory authority shall be subject to enforcement actions, including fines, restitution, or suspension of the health insurance issuer's license in this State. Effective immediately.

insurance

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Bill Overview

No Economic Impacts Identified for this Bill

Sponsors & Cosponsors

Sponsor

  • Sharon Chung

    Democratic • House

Cosponsors

  • Dagmara Avelar

    Democratic • House

  • Jeff Keicher

    Republican • House

  • Ryan Spain

    Republican • House

Roll Call Votes

No roll call votes available for this bill.

Actions Timeline

  1. Added Chief Co-Sponsor Rep. Jeff Keicher

    5/5/2026House
  2. Rule 19(a) / Re-referred to Rules Committee

    3/27/2026House
  3. Assigned to Insurance Committee

    3/12/2026House
  4. Added Co-Sponsor Rep. Ryan Spain

    3/3/2026House
  5. Added Co-Sponsor Rep. Dagmara Avelar

    2/27/2026House
  6. Referred to Rules Committee

    2/6/2026House
  7. First Reading

    2/6/2026House
  8. Filed with the Clerk by Rep. Sharon Chung

    1/30/2026House

Bill Text

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