# Illinois HB4735: TRANSPARENCY IN DOWNCODING ACT

Illinois HB4735, TRANSPARENCY IN DOWNCODING ACT, is a 104th General Assembly (2025–2026) House bill sponsored by Sharon Chung (Democratic); status in committee, last action 2026-05-05 (Added Chief Co-Sponsor Rep. Jeff Keicher) (as of 2026-11-01).

- Canonical: https://policyrisk.com/state-bill/IL-HB4735-2025-2026
- As of: 2026-11-01
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: Illinois HB4735
- State: Illinois
- Session: 104th General Assembly (2025–2026)
- Title: TRANSPARENCY IN DOWNCODING ACT
- Status: in committee
- Chamber: House
- Introduced: 2026-01-30
- Last action: 2026-05-05, Added Chief Co-Sponsor Rep. Jeff Keicher
- Sponsor: Sharon Chung (Democratic)
- Cosponsors: 3
- Subjects: insurance
- Touches household money: no
- Economic provisions PRIA read: 0

## 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.

## Bill overview

No economic impacts identified for this bill.

## Sponsors and cosponsors

- Sponsor: Sharon Chung (Democratic), House
- Cosponsor: Dagmara Avelar (Democratic), House
- Cosponsor: Jeff Keicher (Republican), House
- Cosponsor: Ryan Spain (Republican), House

## Actions (8)

- 2026-05-05: Added Chief Co-Sponsor Rep. Jeff Keicher (House)
- 2026-03-27: Rule 19(a) / Re-referred to Rules Committee (House)
- 2026-03-12: Assigned to Insurance Committee (House)
- 2026-03-03: Added Co-Sponsor Rep. Ryan Spain (House)
- 2026-02-27: Added Co-Sponsor Rep. Dagmara Avelar (House)
- 2026-02-06: Referred to Rules Committee (House)
- 2026-02-06: First Reading (House)
- 2026-01-30: Filed with the Clerk by Rep. Sharon Chung (House)

## Bill text

- Introduced: [PDF](https://www.ilga.gov/documents/legislation/104/HB/PDF/10400HB4735.pdf)

## Related bills

- HB5198: AFFORDABLE HOUSING-CILAS (passed house)
- SB1937: PENSION CODE-VARIOUS (passed senate)
- HB2563: CONDO-RESERVE STUDY (in committee)
- HB4701: LIMITATIONS FACILITY FEES ACT (in committee)
- SB3008: DHS-ABLE PROGRAM INFO MATERIAL (passed senate)
- SB3484: VEH CD-PLATES-REGISTRATION (signed)

## Sources
- [Introduced (PDF)](https://www.ilga.gov/documents/legislation/104/HB/PDF/10400HB4735.pdf)

## Related
- [HB5198: AFFORDABLE HOUSING-CILAS](https://policyrisk.com/state-bill/IL-HB5198-2025-2026)
- [SB1937: PENSION CODE-VARIOUS](https://policyrisk.com/state-bill/IL-SB1937-2025-2026)
- [HB2563: CONDO-RESERVE STUDY](https://policyrisk.com/state-bill/IL-HB2563-2025-2026)
- [HB4701: LIMITATIONS FACILITY FEES ACT](https://policyrisk.com/state-bill/IL-HB4701-2025-2026)
- [SB3008: DHS-ABLE PROGRAM INFO MATERIAL](https://policyrisk.com/state-bill/IL-SB3008-2025-2026)
- [SB3484: VEH CD-PLATES-REGISTRATION](https://policyrisk.com/state-bill/IL-SB3484-2025-2026)
- [Illinois bills](https://policyrisk.com/states/illinois/bills)
- [Illinois state hub](https://policyrisk.com/states/illinois)
- [All state legislation](https://policyrisk.com/state-bills)

Source: PRIA, https://policyrisk.com/state-bill/IL-HB4735-2025-2026 (as of 2026-11-01).