State Panel Reviews New State Health Plans and Health Alliance Protest

Last week's news that the state was going to stop offering a popular health insurance plan to government employees is being met with a backlash. On Monday, a bipartisan legislative panel heard testimony surrounding the decision, but details remain sparse.

Severing Illinois' 30-year relationship with Urbana-based insurer Health Alliance would save the state money. So says the Department of Health Care and Family Services, which last week announced state workers can instead sign up with Blue Cross Blue Shield's managed care. Savings is pegged at about $100 million per year.

But Health Alliance C-E-O Jeff Ingrum says the decision will "disrupt doctor patient relationships for ten thousands of state employees and their families."

Ingrum disputes the projected savings. Health Alliance has filed a formal protest. That puts the bid process under review, which means little information is being released.

Thousands of downstate state employees are caught in the middle. They could be forced to pay more for coverage or change doctors. The review could also push back the annual open enrollment period.

Once the review is complete, a legislative commission will have the final say over the health insurance contracts.