While the U.S. Congress is still working to strike a comprehensive health reform package, Illinois is leading the way for the rest of the nation with legislation aimed at helping consumers who are forced to go the private insurance market to get the care they need. An AARP-backed bill establishing stronger consumer protections in the private health insurance market passed in the Illinois House on Thursday night, and is on its way to the Governor’s desk for his signature.
The Individual Health Insurance Fairness Act will:
— Bring transparency to the insurance industry in Illinois – letting
consumers see critical information regarding industry profits and
premium increase.
— Establish, for the first time in Illinois history, the right to an
independent external review for members of PPO plans (approximately 90
percent of the insured market in the state).
— Simplify the complex application process for both individual and small
group markets by creating a standard application, making it easier for
them to get the coverage they need.
Nationally, over 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.
