Springfield, IL – Today, State Senator Heather Steans (D-7th Chicago),
along with her Senate colleagues, joined Governor Pat Quinn at a bill
signing for House Bill 3923, which is designed to promote health
insurance fairness.

House Bill 3923 establishes an independent review process for carriers
who have denied claims and makes it easier for small businesses to apply
for health insurance. It also sets up a committee that will be
responsible for creating a standard heath insurance application for
individual and small employer policies. The committee will be comprised
of the Director of the Department of Illinois Insurance, consumers and
representatives of the health insurance industry and the standard
application must be completed by January 1, 2011. In addition, House
Bill 3923 will increase insurance companies’ reporting requirements to
the Department of Insurance by requiring each of these companies to
report their administrative expenses.

“This new law ensures that Illinoisans who pay for private insurance are
better protected from unfair and inconsistent health insurance industry
practices,” Steans said. “This law also gives the Department of
Insurance an additional tool to examine and study the rising costs of
health insurance.”
According to a report by AARP, which is a strong proponent of this
legislation, in the private market, an average annual premium for a
family of four has risen to nearly $5,500, while an individual premium
costs $2,500 in Illinois. A recent AARP study found that adults aged
50-64 spend roughly 10% of their income on health coverage, and pay
three times as much as their peers with employer-sponsored coverage.
“As more Illinois residents lose their employer-based health insurance,
they must turn to the private industry; however, many times the
application process can be so confusing that people are unable to get
the proper coverage they need,” Steans said. “This new law creates an
even playing field and ensures that all Illinoisans who have to purchase
private insurance plans have easier access to the quality health care
they need.”

Senator Steans, Representative Harris, and Governor Quinn discuss the signing of HB3923 at a press conference on January 5 before the bill was signed.

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