Families USA, Shriver Center on Poverty Issue Report Entitled 'How Illinois Can Make Health Insurance More Affordable'

WASHINGTON, June 4 -- Families USA and the Shriver Center on Poverty Law issued a 22-page white paper in December 2022 entitled "How Illinois Can Make Health Insurance More Affordable."

Here are excerpts:

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Introduction

Increases in health care costs are negatively impacting individuals and small businesses in Illinois by making health insurance less affordable. The high cost of health care leads to higher health insurance premiums and out-of-pocket costs for individuals and small businesses.

In a 2021 survey of Illinois adults, conducted by Altarum, nearly 58% of those surveyed reported experiencing health care affordability burdens in the past year, and 80% reported being worried about being unable to afford health care in the future.1 There are steps Illinois can take now to improve the affordability of health care and reduce the burden and worries of consumers and small businesses. As a first step, Illinois should conduct a rigorous review and oversight of health insurance rates to combat unaffordable prices.

In this paper, supported by Arnold Ventures, and developed by Families USA and the Shriver Center on Poverty Law, we outline four best practices that are working in states across the country and, if adopted, will result in increased numbers of Illinoisians being insured and lower health care costs overall.

These recommendations fall into two categories: increased statutory authority for Illinois insurance regulators to consider affordability when setting rates and increased opportunities for consumers to engage in the rate review process. The result of implementing these best practices will be a more accurate and equitable pricing structure that will make insurance more affordable for consumers and small businesses.

Conclusion

Illinois could lower health insurance prices for residents by taking a number of steps at the legislative and administrative levels -- steps that have proven effective in states around the country. First and foremost, Illinois law should require in statute approval of all proposed insurance premium rate increases, not just those that exceed 15%.

Affordability and underlying prices should be among the criteria for approving rates.

Illinois should also increase public representation and amplify consumer voice in the rate review process by taking the following steps: creating an Office of Health Care Affordability to represent consumers and small businesses in the rate filing process, increasing transparency of rate filings and information, inviting public comment, funding consumer assistance programs and providing actuarial support.

In addition, Illinois should set specific factors for insurers to use in pricing premiums for silver health plans on the exchange in relation to bronze and gold plans.

Finally, Illinois should watch innovations now occurring in other states to constrain health care prices and insurance premiums, and consider similar mechanisms in the future.

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The report is posted at: https://familiesusa.org/wp-content/uploads/2022/12/COV-2022-163_Illinois-Insurance-Report_1-17-23B.pdf

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