Illinois on track to end health coverage program for immigrant adults - 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
May 14, 2025 Newswires
Share
Share
Post
Email

Illinois on track to end health coverage program for immigrant adults

PETER HANCOCK Capitol News IllinoisJournal Gazette & Times-Courier

SPRINGFIELD — State officials are on track to shut down a program at the end of June that provides publicly funded health care coverage to more than 30,000 non-U.S. citizens in Illinois, including many who are in the country without legal authorization.

A legislative oversight committee took no action Tuesday on a set of administrative rules the Illinois Department of Healthcare and Family Services adopted in March that will end the program, effective July 1 — the first day of the next fiscal year.

Sen. Bill Cunningham, D-Chicago, co-chair of the Joint Committee on Administrative Rules, said the lack of action Tuesday means nothing has changed about the plans to bring the program to an end.

"It (the rule) is in place now. It's phasing out. JCAR hasn't taken any action on it," Cunningham said in an interview after Tuesday's meeting. "I don't think there's anything to read into it beyond that."

The Health Benefits for Immigrant Adults program, or HBIA, was launched in 2021. It covers qualifying individuals aged 42 to 64. The program came about as a companion to a program that began the year before, Health Benefits for Immigrant Seniors, or HBIS, which covers about 8,900 individuals aged 65 and over.

Both programs were intended to provide health coverage to a segment of the population that was ineligible for coverage under Medicaid solely because of their immigration status. The programs cover those who are not lawfully present in the United States as well as legal permanent residents who have not been in the country long enough to receive Medicaid benefits.

However, the two programs have far exceeded their original cost estimates. According to an auditor general's report released in February, the total cost of both programs from Fiscal Year 2021 through Fiscal Year 2024 was more than $1.6 billion.

And because the programs cover individuals who are not eligible for traditional Medicaid — the public health insurance program for low-income individuals that is jointly funded with state and federal funds — nearly all the cost of those programs came exclusively from state dollars.

With the state facing flattening revenues and a projected budget deficit in the coming fiscal year, Gov. JB Pritzker proposed ending the HBIA program effective July 1.

A notice on the program's web page reads: "Due to State Fiscal Year 2026 budgetary constraints, the state had to make the difficult decision to use the limited funding available to continue coverage for eligible noncitizens aged 65+ only."

In proposing to end the program, Pritzker noted the working-age adults that it covers can get jobs with employer-sponsored health benefits.

The General Assembly's revenue estimating group, the Commission on Government Forecasting and Accountability, recently increased its revenue estimate over its previous March projection by about $266 million. But COGFA's latest forecast is still $471 million below the governor's February projection for baseline revenues, and Pritzker has not backed down from his call for ending the HBIA program.

Andy Manar, his deputy governor for budget issues, was quoted in the Chicago Tribune as saying as recently as last week that Pritzker remains "firm" in his decision to cut the program, noting that cuts had to be made in many state programs to balance next year's budget.

But as lawmakers continue working to pass a final budget before the end of May, Congress is considering other changes to the Medicaid program that could have an even more profound impact on the state budget.

The U.S. House Energy and Commerce Committee, which has jurisdiction over Medicare and Medicaid, began hearings Tuesday on a package of spending recommendations that the Congressional Budget Office estimates would reduce the federal deficit by more than $880 billion over the next 10 years.

Much of that, according to a summary of the recommendations, would come from the Medicaid program and the Affordable Care Act, the 2010 health insurance reform package also known as "Obamacare."

Those recommendations include, among other things, requiring Medicaid recipients to verify their income every six months instead of 12 months. It also calls for withholding federal funds under Medicaid or the Children's Health Insurance Program for people who do not provide proof of U.S. citizenship or satisfactory immigration status.

The package also calls for cutting by 10% the federal matching rate, known as the Federal Medical Assistance Percentage, or FMAP, for states that provide health care coverage under Medicaid or any other state-based program for undocumented immigrants.

"It could have a dramatic effect, if it actually happens," Cunningham said of the total package of proposed cuts. "Obviously Medicaid is one of the largest tranches in our budget and we depend on a lot of reimbursement dollars from the federal government. If the federal government goes ahead with those cuts, it would cause hundreds of thousands of people in Illinois to lose their health insurance."

Older

Idaho is telling health insurers to prepare for new enhanced breast cancer screening law

Newer

Recessions are a normal part of how the economy ebbs and flows. This time is different

Advisor News

  • Berkeley arts tax heads toward passage while public bank measure looks likely to fail
  • Americans’ sense of overall prosperity still ticks upward
  • Turning expanded eligibility into a better coverage plan for federal clients
  • Election 2026: Which of Berkeley's 7 ballot measures will pass?
  • How advisors can help frugal retirees finally enjoy their savings
More Advisor News

Annuity News

  • AM Best Affirms Credit Ratings of Knighthead Annuity & Life Assurance Company and Merit Life Insurance Co.
  • Jackson reports record annuity sales, increases share repurchase authorization
  • Why the market doesn’t need more carriers
  • Equitable, Corebridge steam toward merger with strong Q3 annuity sales
  • Jackson Announces New Annuity Offering for AARP Members
More Annuity News

Health/Employee Benefits News

  • CVS Health will split into two new companies. What does it mean for Hartford-based insurer Aetna?
  • An Application for the Trademark “ALMERA” Has Been Filed by Health Care Service Corporation: Health Care Service Corporation
  • Reports Outline Managed Care Study Findings from Ohio State University (Factors Associated With Pretreatment Patient Attrition in an Advanced Orthodontic Education Clinic: A Cross-Sectional Study): Managed Care
  • State: Beware of unlicensed health coverage marketed by LifeX Research Corporation
  • Kirksville school board to meet Friday on benefits association agreement, 2027 health insurance rates
More Health/Employee Benefits News

Life Insurance News

  • Brighthouse Financial Announces Third Quarter 2026 Results
  • Prudential earnings dip as Japan sales suspension offsets U.S. growth
  • U-Haul Holding Company Reports Second Quarter Fiscal 2027 Financial Results
  • Genworth Financial Announces Third Quarter 2026 Results
  • AM Best Affirms Credit Ratings of Knighthead Annuity & Life Assurance Company and Merit Life Insurance Co.
More Life Insurance News

NEWS INSIDE

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

FEATURED OFFERS

Press Releases

  • Spectrum Weather & Specialty Insurance Celebrates 15 Years and Welcomes the Next Generation
  • Royal Neighbors of America® Increases Service Capacity
  • Benefits Studio Launches to Fill the Missing Middle of Benefits Navigation at $49/mo
  • Lauren Sinnott Named to Ragan’s Top Women in Marketing Awards, Class of 2026 
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.