Illinois gets more than $5 million to establish health insurance exchange

Federal grant will help create more competitive health insurance marketplace for families and businesses

[August 23, 2011]  CHICAGO -- The Illinois Department of Insurance received $5.128 million in federal funds to develop and maintain an Illinois-based American Health Benefits Exchange -- a transparent, centralized competitive health care marketplace where individuals and small businesses can purchase health insurance coverage. The federal grant funds, issued under the federal health reform law known as the Affordable Care Act, will help lay the foundation for Illinois lawmakers and other stakeholders to create an Illinois Health Benefits Exchange that best meets the needs of Illinois families and businesses.

"Everyone in Illinois deserves access to quality, affordable health care," said Gov. Pat Quinn. "Illinois must develop a strong health insurance marketplace to ensure that our families and employers -- especially our small businesses -- have appropriate health care options and much-needed financial security. This federal grant will aid us in creating a robust exchange and developing the tools to make it easy for everyone to use."

The Department of Insurance is planning for a setup that will include an easy-to-use website and health plan comparison tool to give individuals and small businesses more control, choice and protection while shopping for and enrolling in health insurance coverage that is tailored to their needs.

Specifically, the activities funded to achieve the goals of the state's health insurance exchange over the next year are to:

1. Complete the state's efforts to conduct comprehensive background research on the current health insurance coverage marketplace, projections for the future of health insurance coverage, and the impact of establishing a health insurance marketplace in Illinois.

2. Design the information infrastructure that businesses and consumers will require of the exchange.

3. Hire the necessary staff to plan and coordinate with consultants to create the initial design features of this exchange in Illinois.

4. Educate the public on an Illinois exchange and engage stakeholders in the design of its operations.

"Illinois families and small businesses continue to struggle with the affordability and availability of health insurance coverage and are still faced with options that are neither competitive nor easy to understand," said Jack Messmore, acting director of the Department of Insurance. "This department intends to continue to support the establishment of a competitive marketplace to purchase health coverage that better protects and empowers consumers to make the right choice for them and their families."

The state's grant application, which outlines in detail its proposal to consider and plan for the establishment of a state-based health insurance exchange in Illinois, can be viewed at: http://www.insurance.illinois.gov/hiric/hie.asp.

About the Department of Insurance: The department's mission is to protect consumers by providing assistance and information, by efficiently regulating the insurance industry's market behavior and financial solvency, and by fostering a competitive insurance marketplace. The department assists consumers with complaints on all types of insurance, including health, auto, life and home. Consumers in need of information or assistance should visit www.insurance.illinois.gov or call the department's toll-free hotline at 866-445-5364.

[Text from Illinois Department of Insurance file received from the Illinois Office of Communication and Information]