Health Alliance to end all plans but Medicare Advantage by 2026

URBANA, Ill. (WAND) — Champaign-based insurance company Health Alliance will be ending all insurance plans other than Medicare Advantage by Jan. 1 2026, according to parent company Carle Health.

In the announcement, Carle said that all health plans will maintain operations through 2025.

“Our commitment to the communities we serve requires a constant evaluation of the organization so we can continue to set the standard of excellence in healthcare,” James C. Leonard, MD, Carle Health President and Chief Executive Officer said. “Carle Health has had to make decisions that enable us to better focus on our core services, built around the health and wellbeing of patients. We recognize that in today’s health insurance environment, our health plans no longer successfully compete and Carle Health must effectively utilize our resources to meet the changing needs of customers.”

The company was unable to reach a financially viable level to compete with other insurers, according to Carle.

“We are so grateful for the commitment of all the health plan employees who will continue to serve customers as we navigate this transition. They have consistently brought innovative solutions, unique programming and unmatched customer service to improve the health outcomes of those we serve for decades, and that impact is felt by members across the country.” Sinead Madigan, Health Alliance President said.

Membership information will continue to be available through the Hally/MyChart member platform beyond the end of the year.

In a statement, State Sen. Chapin Rose (R-Mahomet) said he was "shocked, stunned, and saddened to learn of this." He said that his office will stand by to assist impacted employees and that they've reached out to the state's CMS Director to see what healthcare options will be available come open enrollment in May.

“Continuity of care and access to trusted physicians must be the priority as thousands of local members will now be forced to find a new insurance carrier. Being able to choose your medical care team going forward is an absolute imperative," said Rose.

An independent insurance agent told WAND News, last year, Health Alliance, "Started with agents, cutting the commissions, hoping that would alleviate or help lessen the burden for them." Dara Entwistle of Health Insurance Solutions of Illinois continued, saying, "In the back of my mind, the writing was on the wall."