Costs of Illinois state employee health benefits continue steep rise - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Health/Employee Benefits News
Newswires RSS Get our newsletter
Order Prints
April 18, 2026 Newswires
Share
Share
Post
Email

Costs of Illinois state employee health benefits continue steep rise

PETER HANCOCK Capitol News IllinoisThe Dispatch-Argus

SPRINGFIELD – Health insurance costs are expected to take a bigger bite out of the state's budget and out of state employees' pocketbooks next year.

Officials from the Department of Central Management Services told a legislative panel Tuesday they expect to see an increase of $380 million, or 9%, in total costs to the system in fiscal year 2027. That would bring total expenses paid by all funding sources to about $4.6 billion.

That would be a slightly lower rate of inflation than the state has seen in recent years. Costs increased this fiscal year by an estimated $402.8 million, or 10.5%, over fiscal year 2025. That year was almost 15% higher than fiscal year 2024.

CMS Director Raven DeVaughn said the increases have been due to several factors, including growth in the state's workforce. Since 2019, she said, the state has added about 10,000 employees. She said the health plan now covers about 470,000 lives, including employees, retirees and qualifying dependents.

But DeVaughn also cited general inflation in the health care industry as a contributing factor.

"Certainly, there's the general idea of inflation that we are all just fighting through as a country," she said. "We can't quite point to one specific thing that has increased our liabilities."

According to CMS data, the average cost per participant is expected to grow 8.3% next year, to $12,051. That would represent a 45.7% increase over fiscal year 2018.

As an employer, the state offers its employees a variety of different health benefit plans. They are funded through a combination of state funds, employee premiums, prescription drug rebates and other miscellaneous revenues.

The state's general revenue fund is the largest single source of funding, accounting for about 62% of the system's total revenues. That cost is expected to rise 12.8%, to $2.8 billion in the upcoming fiscal year. Contributions from the road fund are expected to decline 10%, to $155.5 million, while funding from university funds is expected to remain even at $45 million.

Member contributions are expected to increase $30 million, or 4.9%, to $637 million. Member contributions make up about 14% of the system's total revenues.

Premiums, which are largely a function of collective bargaining agreements, are expected to rise $8 per month for employees and $4 per month for all dependents in both fiscal year 2026 and 2027, the last year of the current labor contract.

Older

Health care deductibles could double, triple after School Board vote

Newer

Fed minutes show willingness to consider interest rate increases

Advisor News

  • Proposed legislation takes aim at Social Security shortfall
  • The overlooked retirement security risk that must be addressed
  • What advisors should know about hedge funds in retirement planning
  • Retirement control is top success measure for middle class, ACLI says
  • Industry groups applaud House passage of Financial Exploitation Prevention Act
More Advisor News

Annuity News

  • Built-in guaranteed annuities: What advisors should know
  • Malibu Life Holdings Completes Acquisition of TruSpire, Establishing Malibu USA and Accelerating Entry into the U.S. Retail Annuity Market
  • Why job boards are failing insurance agencies
  • MassMutual Ranks No. 100 on the 2026 Fortune 500® List
  • What’s fueling record annuity growth?
More Annuity News

Health/Employee Benefits News

  • Coalition sues to protect Medicaid coverage
  • Findings from George Washington University Update Understanding of Managed Care (Eligibility Assistance Increases Insurance Enrollment Within Community Health Centers but Not At the State Level): Managed Care
  • Findings from Razanne Oueini and Colleagues Provides New Insights into Proinsulin (Changes in persistence to basal insulin following the Medicare out-of-pocket cost cap): Peptide Proteins – Proinsulin
  • Researchers from Columbia University Detail New Studies and Findings in the Area of Managed Care (The Impact of Health Shocks On Housing Instability: Evidence From Urban Medicaid Enrollees): Managed Care
  • Studies Conducted at Stanford University on Economics Recently Reported (Why Doesn’t the United States Have National Health Insurance? the Political Role of the American Medical Association): Economics
More Health/Employee Benefits News

Life Insurance News

  • Fortitude Re Announces $3.8 Billion Long-Term Care Reinsurance Agreement with Unum Group
  • Unum Group Announces $3.8 Billion Long-Term Care Reinsurance Transaction with Fortitude Re
  • Before you debate premium financing, understand the bigger picture
  • NAIFA praises House committee approval of Clarity for Compensation Act
  • PHL Variable liquidation pushed out to 2027, Connecticut regulators say
More Life Insurance News

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Life moves fast. Your BGA should, too.
Stay ahead with Modern Life's AI-powered tech and expert support.

A MYGA for Clients Hesitant to Commit to One Long-Term Rate
First-year certainty. Annual rate updates. Get the CurrentRate® MYGA Sales Kit.

Elite Networking & Insights Await at the Event of the Year
The industry's premier conference for leaders driving what’s next in financial services.

Press Releases

  • Prosperity Life GroupSM Launches Prosperity PathWaySM Series, Bringing Greater Choice and Flexibility to Retirement Income Planning
  • Senior Market Sales® Fortifies Annuity Reach With Acquisition of Retirement Planning Firm Stratton & Company
  • RFP #T01625
  • Rockwood Programs Appoints Kerry Ladouceur as Vice President, Financial Lines
  • JP Insurance Group Launches Commercial Property & Casualty Division; Appoints Joe Webster as Managing Director
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.
Insurance News | InsuranceNewsNet