State workers', retirees' insurance plans in chaos

[June 14, 2011]  SPRINGFIELD -- The Illinois Department of Healthcare and Family Services announced in early April that it had selected four managed care organizations to provide benefits to state employees, dependents and retirees, starting July 1. 

If only it were that simple. What to do became more confusing Monday as state officials worked to interpret a judge's Friday ruling that temporarily reduced the number of health insurance options.

The Illinois HFS announced the change as money-saving to the state when the department awarded coverage to Blue Cross Blue Shield and PersonalCare while dropping current HMO providers Health Alliance and Humana.

Health Alliance had filed a lawsuit in Sangamon County Circuit Court contesting the state's decision, and a judge issued a temporary restraining order halting the implementation of PersonalCare and HealthLink.

A spokesman for HFS stated that they will have a discussion on the matter today in Chicago. As soon as the state has guidance for group insurance plan members, it will be posted on www.benefitschoice.il.gov, he said.

At the moment, remaining options are HMO Illinois, BlueAdvantage HMO and Quality Care Health Plan. If the restraining order isn't lifted and workers and retirees have chosen HealthLink or PersonalCare, they will be defaulted into the Quality Care plan.

State Rep. Dan Brady issued this statement: "The intention of the lawsuit was to give the state more time to sort out the matter. Instead, it has resulted in more chaos."

Brady is on record as supporting Senate Bill 178, which would extend the enrollment period and allow enrollees to continue with their current insurance coverage until the bidding process is reviewed. Brady wants Health Alliance and Humana to remain options.

The plans provide care to members of the Local Government Health Plan, the Teachers' Retirement Insurance Program and College Insurance Program

[Associated Press; LDN]