Illinois Department of Financial and Professional Regulation Division of Insurance	NEWS

Insurance Premium Relief

SPRINGFIELD, IL – A multi-million dollar grant, secured from the United States government, will provide insurance premium relief to the people of Illinois covered by a safety net health coverage plan. Illinois is one of only two states using this grant money to provide insurance premium relief.

“Help is on the way for some 11,000 Illinois citizens,” said Governor Rod R. Blagojevich. “I have made it a top priority of this administration to capture a greater share of Illinois federal tax dollars. This grant will be used to help working families who are in transition between jobs and who have no other access to health insurance plans.”

Illinois will use $5.365 million of federal funds distributed to the state by the U.S. Department of Health and Human Services, for insurance premium relief for those enrolled in the Health Insurance Portability and Accountability Act (HIPAA) pool.

HIPAA provides for the portability of health insurance coverage, without regard to pre-existing health problems, to persons coming off group coverage and who have otherwise exhausted their COBRA or state continuation benefits. HIPAA is one of several health insurance programs administered by the Illinois Comprehensive Health Insurance Plan (ICHIP).

“The average premium relief for each of the 11,000 enrollees will be $482 in 2005, said Deirdre K. Manna, Acting Director of the Division of Insurance. “The one time reduction in premiums will range from $160 to more than $1,000 depending on several factors, such as age and residence.”

ICHIP provides access to health insurance coverage for some Illinois residents who have been denied access to major medical coverage by private insurers because of pre-existing health problems. ICHIP also serves as the state’s agency of compliance with the individual portability requirements of the federal Health Insurance Portability and Accountability Act.

The reduction will show up on the December 2004 payment notices.