SPRINGFIELD, Ill. (WAND) — The Illinois House passed two plans late Friday night that could provide relief for many people struggling with health insurance.
Illinois will take a big step forward by creating a state-based health insurance marketplace and instituting a rate review process to protect people from insurance rate hikes.
House Bill 579 could help Illinois become the 19th state to create a state-based health benefits exchange. Sponsors said this would allow Illinois to expand healthcare access by identifying uninsured communities, having effective outreach for residents, and helping people enroll in plans best suited for them.
"The copays and deductibles on the federal marketplace are very high," said Rep. Mary Flowers (D-Chicago). "And for the most part, people cannot afford to use the plan because they can't afford to pay the copays and deductibles."
Rep. Robyn Gabel (D-Evanston) hopes the Illinois Health Benefits Exchange can operate using the federal platform by plan year 2025 and as the state-based platform by 2026. The Illinois Department of Insurance will create an advisory committee with industry stakeholders to make recommendations to best operate the exchange.
However, lawmakers also want to crack down on insurance rate increases with a new consumer protection plan.
"It provides the Department of Insurance the authority to approve, modify, or disapprove health premium rates that it determines to be unreasonable or inadequate in the individual and small group market," Gabel explained.
Rep. Robyn Gabel (D-Evanston) answers questions during debate on her proposal for a state-based health insurance marketplace on May 26, 2023.
This plan will require insurance companies to provide specific information and be more transparent about how they set their rates. Sponsors said this could help consumers and small businesses know the reason why they pay higher prices.
Although, House Republicans are concerned that these changes could cause insurance companies to leave Illinois.
"We need to be careful about government intervention in the ability to predict losses," said Rep. Jeff Keicher (R-Sycamore). "We especially need to be cautious when we have a department that is chronically understaffed, unable to meet deadlines, and the criteria that it takes for an insurance company to maintain its operations."
Illinois will join 41 other states protecting consumers from unfair premium rate hikes if the measure is signed into law.
House Bill 579 passed out of the House on a partisan 71-37 vote with Flowers voting present. House Democrats also approved House Bill 2296 on a 69-38 vote. Flowers decided to vote present on that plan as well. Both proposals now head to Gov. JB Pritzker's desk.
Pritzker said the plans will help Illinois take historic action to provide affordable, quality health insurance to people across the state.
"We're holding health insurance companies accountable, preventing unnecessary rate hikes, and ensuring residents who are eligible to receive health insurance get connected to the plan they deserve," Pritzker said.
The governor said he looks forward to signing both bills into law.
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