Insurance Clawback Bill SB1974 Advances!
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SPRINGFIELD—Chief sponsored by Illinois State Senator Laura Fine, Senate Bill 1974 (SB1974) has passed unanimously out of the senate and now awaits action in the Illinois House of Representatives.
Currently in Illinois, when a social work practitioner submits a claim to an insurance company for services rendered, for an 18-month period following, the insurance company may demand a recoupment from the practitioner for often no fault of the practioner. These "clawbacks" allow for insurance companies to take payments already made to a practitioner for services rendered with a client and, upon later review of the claim, allows for the insurance company to deny a claim or reverse their decision on a claim and demand recoupment from the practitioner.
SB1974 would amend the Illinois Insurance Code to reduce the clawback period from 18 months to a much more manageable timeframe of 12 months. Recoupment is still one of the biggest concerns private practioners have when dealing with insurance in Illinois. These often abusive practices are creating challenges for practitioners and making it harder for clients to find services.
Illinois State Representative Bob Morgan will now carry the bill in the Illinois House where we expect the bill will pass.
SB1974 is an initiative of the National Association of Social Workers, Illinois Chapter (NASW-IL).