Illinois Sen. Ellman’s health insurance payment policy bill passes House and Senate

Newly passed bill authored by State Sen. Laura Ellman aims to define grandfathered health plans and restrict insurers from denying new coverage due to unpaid premiums, following approval in both chambers, according to the Illinois General Assembly.

In the House, 63 Democrats and 31 Republicans voted in favor of the bill, while five Republicans opposed it.

Meanwhile, in the Senate, 37 Democrats and 16 Republicans voted in favor of the bill.

Ellman introduced the bill in the Illinois Senate on Feb. 6, 2026 during the 104th session.

The legislation, known as SB3815, was passed on May 22, 2026 during the general assembly session 104.

According to the Illinois General Assembly site, the legislature summarized the bill’s official text as follows: “Amends the Illinois Health Insurance Portability and Accountability Act. Defines “grandfathered health plan”. Provides that, except for grandfathered health plans, a health insurance issuer in the individual, small group, or large group market shall not deny coverage to an individual or employer due to the individual’s or employer’s failure to pay premiums owed under a prior policy, certificate, or contract of insurance. Specifies that nothing in the provisions concerning past-due premiums prohibits a health insurance issuer from pursuing the collection of past-due premiums from an individual or employer by any other means permitted by law. Effective immediately.”

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, this bill amends the Illinois Health Insurance Portability and Accountability Act to define a grandfathered health plan and bar most health insurers in the individual, small group and large group markets from denying new coverage to individuals or employers because of unpaid premiums owed on a prior policy, certificate or contract. It also prohibits insurers from applying payments for a new policy to past-due amounts on an old policy. The bill exempts grandfathered health plans and clarifies that insurers may still use any other lawful means to collect past-due premiums. The bill takes effect immediately.

The bill was sponsored by Sen. Cristina Castro (Democrat-22nd District), Rep. Martha Deuter (Democrat-45th District), and Sen. Mary Edly-Allen (Democrat-31st District), along with two other sponsors.

Bills in Illinois follow a multi-step legislative process, beginning with introduction in either the House or Senate, followed by committee review, floor debates, and votes in both chambers before reaching the governor for approval or veto. The General Assembly operates on a biennial schedule, and while typically thousands of bills are introduced each session, only a fraction successfully pass through the process to become law.

You can read more about bills and other measures here.

Ellman graduated from Grinnell College in 1987 with a BS.

Ellman, a Democrat, was elected to the Illinois State Senate in 2019 to represent the state’s 21st Senate District, replacing previous state senator Michael Connelly.

Lawmakers listed as “Not Voting” were present for the vote but did not cast a vote. Those marked as having an “Excused Absence” were not present and formally provided a reason for their absence, which was accepted.