SPRINGFIELD (WGEM) – Illinois Gov. JB Pritzker’s proposed health insurance overhaul is one step closer to becoming law. The state Senate Insurance Committee passed two bills Tuesday changing how health insurers operate in Illinois.
One bill, the Health Care Protection Act, would do several things.
The bill would ban so-called “step therapy.” This is when an insurance company requires a patient to try and fail alternative medications before covering medications their doctor recommends.
It would also ban prior authorization for in-person mental health treatment for the first 72 hours. It would also require insurers post all procedures requiring prior authorization.
“Passing the Health Care Protection Act will give the Department the tools it needs to hold insurance companies accountable for business practices that undermine Illinoisans ability to access care in a timely manner,” said Illinois Department of Insurance Acting Director Ann Gillespie.
The bill’s opponents, however, fear the proposed reforms could make health insurance to expensive.
“The concern I have is that we keep adding benefits, and they’re all good, but we keep making insurance so good that people can’t afford it any longer,” said state Sen. Dave Syverson, R-Cherry Valley.
The House passed a different version of the bill on April 18. That bill included a ban on short-term limited duration (STLD) plans, or so-call “junk” plans. The Senate chose to put the STLD ban in a separate stand-alone bill.
That bill’s supporters argue these plans are exempt from and often don’t meet the minimum standards of the Affordable Care Act. They typically don’t cover pre-existing conditions.
“Short-term limited duration plans, STLDs, are predatory insurance products that use misleading marketing to trick consumers into thinking they are purchasing comprehensive health insurance. STLD plans are sometimes cheaper than real health insurance because they are not real health insurance,” said Illinois Department of Insurance General Counsel Joanna Coll.
Syverson argues the bill limits insurance choices.
“Is a temporary police for 90 days that may not be great, is that better than having nothing for the family that says we can’t afford a $3,000 COBRA or a $1,000 policy with a $7,000 deductible,” he asked.
Both bills now head to the Senate floor.
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