Staff Reports
The Illinois General Assembly recently approved two bills that would significantly change health insurance plans regulated by the state government. The measures, championed by Democrats and Gov. J.B. Pritzker, aim to eliminate what they describe as “deceptive” short‐term limited duration insurance plans and bring about reforms to protect patients.
Pritzker’s health insurance overhauls cross finish line https://t.co/8GO9ZYBbMG via @thecentersquare
— Bishop On Air (@BishopOnAir) May 25, 2024
House Bill 2499, known as the Health Care Protection Act, seeks to eliminate these short‐term limited duration insurance plans, which have been criticized for their lack of coverage and high costs. The bill, which has now passed both the House and Senate, is expected to be signed into law by Governor Pritzker.
In addition to banning what they deem as “junk insurance plans,” the legislation also aims to end unchecked rate increases for large group insurance companies. Governor Pritzker expressed his support for the bill, emphasizing that it will protect patients and improve access to healthcare.
During committee hearings, lawmakers and officials debated the necessity of eliminating these short‐term plans. Some Republicans raised concerns about the potential impact on the affordability of health insurance for consumers. They argued that banning these plans would limit the choices available to individuals seeking affordable healthcare coverage.
Another bill, House Bill 5395, also passed both chambers and is set to go to the governor’s desk. This bill would empower the Illinois Department of Insurance to intervene in setting insurance premium rates and restrict insurance companies from selling plans at rates deemed unsound by the department.
While supporters of the bills lauded them as necessary steps to protect consumers from predatory insurance practices, critics voiced concerns about the potential consequences. The Illinois Life & Health Insurance Council cautioned that banning the use of certain cost-control tools and restricting prior authorization could lead to an increase in health insurance premiums.
Overall, the passage of these bills represents a significant shift in the regulation of health insurance plans in Illinois. As the governor prepares to sign these measures into law, the impact on the state’s insurance market and consumers’ access to affordable coverage remains a topic of debate.
