In the wake of Governor Pat Quinn’s decision to drop Humana and Health Alliance as state health insurance providers, state Rep. Jehan Gordon (D-Peoria) on Monday backed legislation to reverse the governor’s order and preserve access to healthcare for thousands of current and retired public employees in Central Illinois.
“The Department of Healthcare and Family Services elected to unilaterally drop all HMO providers in the state in favor of Blue Cross Blue Shield without fully evaluating what it would mean to the people of my district and surrounding areas,” Gordon said. “The administration’s ill-conceived decision impacts the lives of over 100,000 residents across the state, and many of those individuals have contacted my office out of desperation and a fear that they will unnecessarily have to change medical providers who have cared for them for years.”
Prior to a 2005 executive order, the procurement process for state health insurance was coordinated by Central Management Services (CMS). Under the executive order issued by former Governor Rod Blagojevich, healthcare procurement was transferred to the Department of Healthcare and Family Services (DHFS). With the contract of the current HMO providers set to expire in July, DHFS recently announced it would drop three providers (Health Alliance, Humana, and Unicare) in favor of only one provider, Blue Cross/Blue Shield. This change in policy would result in an estimated 100,000 individuals in Central Illinois having to change insurance providers.
Health Alliance and Humana, common providers in the Peoria area, immediately protested the decision, and after their bid was rejected, the Commission on Government Forecasting and Accountability (COGFA) passed a resolution against the change.
Senate Bill 178, backed by Gordon, transfers healthcare purchasing power back to CMS and the original agencies, thereby reversing the administration’s decision. The bill also increases the ability of COGFA to not only review proposed healthcare contracts, but to approve or disapprove of the contracts before they are finalized. If COGFA disapproves of a contract, the General Assembly would have to pass a joint resolution for the contract to become effective.
“The dramatic shift in policy regarding the state’s health insurance providers will severely affect my constituents and it is very clearly my responsibility to make sure the governor’s proposed change doesn’t happen,” Gordon said. “This legislation ensures that state agencies cannot make unilateral decisions that so radically impact the lives of Illinoisans without a proper review and oversight.”
Senate Bill 178 now heads to the governor’s desk for his consideration. For more information, please contact Rep. Gordon’s constituent service office at (309) 681-1992.