Illinois health benefits exchange, insurance premium rate review bills signed into law

SPRINGFIELD, Ill. (WAND) — Illinois is providing relief for many people struggling to pay for health insurance. Gov. JB Pritzker signed two bills into law Tuesday to create a state-based health insurance marketplace and establish a rate review process to protect customers from health insurance rate hikes.

Over half a million people in the state are uninsured, according to a 2021 feasibility study conducted by the Illinois Department of Insurance and Department of Healthcare and Family Services. The vast majority of those Illinoisans say they can’t afford insurance off the federal marketplace because copays and deductibles are too expensive.

“We can address the affordability of premiums, provide a more streamlined enrollment experience, and reduce inequities in the healthcare system that have resulted in barriers for people of color, people with disabilities, and other underrepresented populations,” said Sen. Ann Gillespie (D-Arlington Heights).

Sponsors said the Illinois Health Benefits Exchange will also act as a safeguard against interruptions in enrollment or coverage at the federal level. That was a top priority for Pritzker and other Democratic leaders who know access to affordable healthcare is under threat heading into 2024.

“I’m suggesting that if Joe Biden were to lose re-election to a Republican, that people nationally would lose their healthcare coverage or lose their access to that federal exchange,” Pritzker stressed. “But, they won’t lose access to the Illinois exchange.”

Illinois will be the 19th state to create a state-based marketplace once the platform launches for plan year 2026. People will be able to enroll in the Illinois Health Benefits Exchange during the open enrollment period starting November 1, 2025.

The state will be able to crack down on health insurance rate increases with a new consumer protection law as well.

“This gives the Department of Insurance the regulatory authority it needs to protect consumers,” said Sen. Laura Fine (D-Glenview). “It will ensure consumers are getting what they are paying for and allow for more healthy affordable outcomes.”

Insurance companies will be required to provide specific information about how they set their rates to be more transparent for customers. The Department of Insurance will also have the ability to approve, modify, or disapprove health premium rates that it determines to be unreasonable or inadequate.

“To achieve health equity in Illinois means tackling healthcare costs,” said William McNary, Co-Director of Citizen Action Illinois. “And to build a more prosperous Illinois means tackling healthcare costs. We all do better when we all do better.”

Over half a million people in the state are uninsured, according to a 2021 feasibility study conducted by the Illinois Department of Insurance and Department of Healthcare and Family Services.

Both plans passed out of the House and Senate on partisan votes this spring. Republican lawmakers said they were 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.”

Although, Illinois will now join 41 other states protecting consumers from unfair premium rate hikes. The Small Business Advocacy Council also celebrated the law as a victory for employees across the state.

“Small businesses have been crushed by the escalating costs of health insurance,” said President and Co-Founder Elliott Richardson. “By passing this bill, legislators have taken a proactive step towards stabilizing and reducing the costs of health insurance for small businesses and their employees.”