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"For too long, working families in Illinois have gone without
health care coverage -- hurting their livelihood, their health and
their families. Millions of others who do have coverage are just one
illness or job change away from losing it. We've put together a plan
that will give every uninsured person in Illinois access to the
coverage they need and will help bring down costs for everyone
else," Blagojevich said. "We know that the time is now for health
care reform in Illinois, and we're pleased to have top health
providers and experts from around the state on board to help us
achieve our goal of health care for all Illinoisans."
The cost of health care is rising dramatically nationwide,
leaving more and more people uninsured and forcing businesses to
drop or significantly cut back coverage. As a result of
faster-than-inflation rate increases, the number of uninsured
nationally has increased by 6 million since 2000. The cost of
providing health services to uninsured people puts significant
pressure on families, the health care system and the state's
economy:
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Lack of insurance is the sixth-leading cause of death in the U.S.
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Medical-related bankruptcies have jumped 2,200 percent since
1981. The middle class accounts for 90 percent of these cases. And
in many of these cases, the families who suffered bankruptcies had
health insurance. They just couldn't keep up with the rising costs.
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A FamiliesUSA study found that the health insurance premiums for
families in Illinois increased by $1,059 due to costs incurred by
the uninsured. As health insurance premiums increase and employers
cut back on coverage, employers who continue offering benefits pay
more.
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The HR Policy Association estimates the annual cost of reduced
productivity due to uninsured workers in the nation's top 200
largest companies is between $87 billion and $126 billion.
Businesses are significantly affected by skyrocketing health care
costs. Over the past five years, health insurance premiums for
businesses have increased nearly five times faster than inflation
and four times faster than wage growth. While surveys show that
employees consider health insurance to be the most important benefit
and a leading reason to stay with an employer, the cost of health
insurance premiums for employers increased nearly 87 percent between
2000 and 2006. In one startling example, General Motors now spends
more money on a per-car basis on health insurance than it does on
steel.
"There are too many people that are uninsured. They come to the
emergency room, but by the time they get there, the prognosis is
worse. We are not letting people die in the streets, but their life
expectancy is lower when they can't get the preventative care they
need," said Howard Peters, Illinois Hospital Association senior vice
president.
"Real-life issues spawned this legislation," said Ken Smithmeir,
president of Decatur Memorial Hospital. "The reality that we as
health care providers see is people die because of our fatally
flawed system. I encourage you to not lose sight that this is the
right thing to do."
Under Blagojevich, Illinois has expanded access to health care to
over 560,000 more people and, through the All Kids plan, became the
first state in the nation to provide access to comprehensive health
insurance to every uninsured child in the state. As a result, the
Kaiser Family Foundation ranked Illinois No. 1 in the nation for
adding working parents to health care for three years in a row and
credited Illinois for sparking a national movement to provide health
care to all children.
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While the governor's All Kids plan, which took effect last year,
extended coverage to all children in the state, approximately 1.4
million adults in Illinois are currently uninsured. A majority,
roughly 75 percent, are from families with moderate incomes. The
governor's Illinois Covered plan will provide affordable coverage to
the uninsured and will also help many middle-income families and
small businesses that are currently enrolled in health insurance
plans save thousands a year on health care costs. The plan will also
reform the existing health care system to improve quality and
require more accountability.
A new report
authored by nationally renowned health economist Dr. Kenneth Thorpe
suggests that without Blagojevich's health care reforms, health care
spending in Illinois will almost double within 10 years, growing 1
1/2 times faster than the economy and more than twice as fast as
wages. In the absence of the Illinois Covered reforms, employers
will spend $26 billion on health care in 2011, or about 10.2 percent
of their payroll, and households will spend nearly $32 billion in
out-of-pocket costs and health insurance premiums. Thorpe's analysis
suggests that the Illinois Covered legislation can save over $15
billion in health care costs by 2011, making the return on
investment for the state over 2-to-1. The primary components of Blagojevich's Illinois Covered plan
include:
Creates an affordable,
comprehensive insurance plan that anyone without access to
employer-sponsored health insurance in Illinois can purchase. This
statewide pool of coverage will offer Illinoisans lower and stable
rates. Business groups such as chambers of commerce will be able to
connect many of their members with this new, affordable insurance,
and small-business owners can also purchase this product on behalf
of their employees.
Illinois Covered
Rebate: Lowers premiums for moderate-
to middle-income Illinoisans ($20,000-$80,000 for a family of four)
to help them afford their health insurance. The rebate will vary
based on income, and those with lower incomes would get a larger
rebate. Illinoisans can get rebates to lower their costs of their
employer-sponsored health insurance or can get it for the new
Illinois Covered Choice program.
Illinois Covered
Assist: Provides comprehensive
medical coverage to individuals or couples who are very low-income
(individuals currently making less than $10,210 annually and couples
making less than $13,690). This program is similar to FamilyCare,
Medicaid and All Kids, providing individuals with the medical
coverage that they need with only nominal co-pays that they can
afford.
The governor also proposes expanding the existing FamilyCare
program to 400 percent of the federal poverty level for those who do
not have access to employer-sponsored coverage, to expand health
benefits for workers with disabilities and to allow dependants to
retain coverage through their parents' insurance through age 29.
Additionally, the state will work with both consumers and health
care providers to develop a "Roadmap to Health" that will improve
the state's overall health care system and promote wellness, while
better managing chronic conditions, the most important component for
driving down overall health care costs.
[Text from file received from
the
Illinois Office of
Communication and Information]
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