Illinois Authorizes New State-Based Marketplace for Health Insurance, Rate Review (Copy)
CHICAGO, Ill. – This week, Governor JB Pritzker signed into law a new state-based marketplace for Illinois, which gives state agencies additional tools to create a more consumer-focused health insurance exchange and better identify traditionally uninsured communities. Additionally, the governor also signed legislation that will protect health care consumers from unfair rate hikes.
"We know that far too many families are unable to afford quality healthcare due to the skyrocketing cost of insurance premiums, but this legislation can help us change that,” said House Speaker Emanuel “Chris” Welch. “Not only will it help keep care more affordable, but it will also help us provide care for those in marginalized and underserved communities. We must ensure that we have a health care system that puts the needs of people first as we work to build a stronger, more healthy Illinois.”
“These measures ensure that health care is accessible and affordable for Illinois families,” said House Majority Leader Robyn Gabel (D-Evanston), the sponsor of the legislation. “With these important steps, the Legislature and Governor Pritzker are sending a clear message that health care access in Illinois won’t be dependent on politicians in Washington and costs won’t go unchecked. Building a health care market that puts the needs of Illinois families first is a crucial step toward building a stronger Illinois.”
“As governor, I’ve worked to build a state government that is more efficient and more responsive to what working families need,” said Governor JB Pritzker. “Operating our own healthcare marketplace gives us the dexterity to offer more enrollment windows, coordinate with nonprofit partners who help families navigate insurance choices, and protect Illinoisans from any future changes in federal policy that seek to undermine access to affordable healthcare – including access to reproductive healthcare.”
Illinoisans currently access the Affordable Care Act Marketplace using the federal platform, which the state pays a fee to use. This legislation (HB 579) will transition Illinois to a state platform that will go live for plan year 2026. Consumers will start enrolling via the Illinois platform during the ACA Marketplace Open Enrollment Period beginning November 1, 2025.
The rate review legislation (HB 2296) is a monumental piece of consumer protection legislation that advances health care affordability and protects Illinoisans from unfair premium rate hikes. With this law, insurance companies will have to provide specific information about how they set their rates and the Illinois Department of Insurance will have the authority to approve, modify, or disapprove premium rates that it determines to be unreasonable or inadequate.
The Illinois Department of Insurance and the Department of Healthcare and Family Services will work together to implement the new legislation and coordinate with all state medical assistance programs.