50 Ill. Adm. Code 4521.111
Cancellation
Section 5421
Section 4521.111
Cancellation
a) No HMO shall cancel a group or individual contract or evidence
of coverage except for one or more of the following reasons:
1) Failure of the enrollee to pay the amount due under the
contract or evidence of coverage, for which the enrollee is legally responsible;
2) Fraud or material misrepresentation in enrollment or in the
use of services or facilities;
3) Material violation of the terms of the contract or evidence of
coverage;
4) Failure of the enrollee and the primary care physician to
establish a satisfactory patient-physician relationship if the enrollee has
repeatedly refused to follow the plan of treatment ordered by the physician; it
is shown that the HMO has in good faith provided the enrollee with the
opportunity to select an alternative primary care physician; and the enrollee
has been notified in writing at least 31 days in advance that the HMO considers
such patient-physician relationship to be unsatisfactory;
5) Under the Basic Outpatient Preventive and Primary Care
Services for Children Program, failure to meet or continue to meet eligibility
requirements as required by Section 4521.131 of this Part; or
6) Other good cause agreed upon in the contract and approved by
the Director pursuant to Section 4-13 of the Act.
b) A group contract, evidence of coverage or individual contract
may not be cancelled for any of the following reasons:
1) The status of the enrollee's health;
2) The enrollee has exercised his or her rights under the HMO's
grievance system.