Illinois has passed legislation to establish its state-run health insurance exchange, joining 18 other states and the District of Columbia. The phased transition plan aims to utilize the federal platform for the 2025 plan year and fully transition to a state-based exchange by 2026. Governor JB Pritzker, who also secured consent for the state’s Department of Insurance to examine and approve premium rates in the individual and small group markets, is in favor of the initiative.
Illinois has successfully passed legislation to establish its state-run health insurance exchange. The $10 million launch cost for the effort, which has the support of Illinois Governor JB Pritzker, is included in the governor’s suggested budget.
The legislation, approved on May 26, outlines a phased transition to a state-based ACA exchange. For the 2025 plan year, the state will utilize the federal platform while aiming for a fully state-based exchange by the 2026 plan year.
Governor Pritzker emphasized that a state-based insurance marketplace signifies a significant step toward ensuring accessible healthcare for all eligible individuals in Illinois. In a statement shared with Becker on May 4, he expressed that it represents progress in creating a healthcare system that guarantees the necessary care and treatment for everyone.
By implementing this legislation, Illinois will join the ranks of 18 other states and the District of Columbia that operate their own ACA exchanges instead of relying on the federal marketplace, according to CMS data. Georgia also recently passed similar legislation, awaiting CMS approval after Governor Brian Kemp signed a bill to establish a state-based platform on May 2.
Additionally, Illinois lawmakers approved a measure granting the state’s Department of Insurance the authority to review and approve premium rates in the individual and small group markets. Governor Pritzker highlighted the importance of holding health insurance companies accountable, preventing unwarranted rate hikes, and ensuring eligible residents are connected with the appropriate health insurance plans in a tweet on May 27.