House approves rate review proposal

A plan granting the Department of Insurance the authority to approve or deny proposed health insurance rate increases will head to Gov. JB Pritzker after being approved last week by the Illinois House.

The agency can currently review rate changes to determine whether they’re reasonable, but cannot reject rates deemed “unreasonable,” as defined by the Affordable Care Act.

Rep. Robyn Gabel, D-Evanston, told colleagues in the House Friday that the plan is one of the “biggest pieces of consumer protection legislation” that lawmakers have considered in recent memory.

“When the governor signs this bill, Illinois will join 41 other states in protecting Illinois’ consumers and small businesses from unfair premium rate hikes,” she said.

The provision would go into effect in the 2025 plan year.

Additionally, the bill would task the department with creating an annual report that analyzes health insurance coverage, affordability and cost trends. The initial report would be due May 2026.

Rep. Jeff Keicher, R-Sycamore, called the plan “one of the scariest things that we’ve encountered” in the consumer protection realm. He said the current self-regulating marketplace has done well to ensure the state’s rates are competitive.

Additionally, he questioned whether the agency would have the capacity to handle the reviews and other work the bill would charge it to do.

“So we are putting ourselves, again, in a position with this department … (that does) not have the personnel on board to be able to regulate this,” Keicher said.

Gov. JB Pritzker said in a statement that he will sign the bill into law.

“We’re holding health insurance companies accountable, preventing unnecessary rate hikes and ensuring residents who are eligible to receive health insurance get connected to the plan they deserve,” he said.