Illinois One Step Closer To Health Insurance Reform

Main Category: Health Insurance / Medical Insurance
Article Date: 05 Apr 2009 - 2:00 PDT

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The record number of people who've lost their employer-sponsored health insurance, forced into the private market where they struggle to get the care they need -- received good news last night, they are one step closer to having a new law on their side. Legislation establishing stronger consumer protections in the private health insurance market passed the Illinois House Health Care Availability and Access Committee.

The Health Insurance Consumer Protection Act (House Bill 3923), introduced by State Representative Greg Harris (D-Chicago), addresses key barriers facing consumers who struggle with unfair and inconsistent industry practices. The legislation is being heavily opposed by the health insurance industry.

"Unfair practices in the insurance industry have put up a wall between people and their health care," said Bob Gallo, AARP Illinois State Director. "AARP commends Representative Harris for his leadership on this critical issue."

The Individual Health Insurance Fairness Act would:

-- Require insurance companies to spend at least 75% of premium dollars on medical care rather than on executives' salaries, marketing, and profits. -- Establish an Office of Consumer Health Insurance to conduct external independent reviews of denied claims and rate increases. -- Simplify the complicated application process for both individual and small group markets by creating a standard application, making it easier for them to get coverage.

"The insurance industry is working hard to defeat this bill and keep the people of Illinois from the insurance reforms they deserve," added Gallo. "Getting this legislation signed into law is AARP's top priority and we urge the State House to pass it."

Nationally, nearly 4 million people have lost their health care since the recession began, while roughly 17 million purchase their own coverage. In the private market, an average annual premium for a family of four has risen to nearly $5,500, while an individual premium costs $2,500 in Illinois. A recent AARP study found that adults aged 50-64 spend roughly 10% of their income on health coverage, and paying three times as much as their peers with employer-sponsored coverage.

Source
Health Insurance Consumer Protection Act