Health insurers in Illinois can raise rates with impunity, while making enormous profits and doing little to improve health care for their customers. But a bill introduced in the Illinois House would change that. The legislation would create what is known as rate review, requiring insurers to inform the Department of Insurance of any rate hikes, giving the department an opportunity to reject what it determines are excessive or discriminatory increases.
Last year, the biggest insurance companies reported (PDF) surpluses of $28.3 billion, while increasing premiums over 18 percent, according to the Department of Insurance. Since 2005, insurance rates in Illinois have skyrocketed over 181 percent. Thirty states currently have legislation to provide a check on rate hikes by health insurance companies, but Illinois is not one of them.
State Rep. Greg Harris (D-Chicago), the lead sponsor of the rate review bill (HB 1501), told Progress Illinois his legislation would "provide information to the Department of Insurance to be sure that the
increases they're asking for in premiums are fair and just." He added that thanks in part to federal grants issued to Illinois as part of the federal health care reform, the bill is also revenue neutral. The bill seems like a no-brainer, though it faces an uncertain fate in the House Insurance Committee. Harris said he is not after corporate profits but he wants to protect consumers and create transparency. "I think people justifiably want to know if those going to increase health care or is this going into someone's pocket," he said.