NAIFA Illinois Legislative Update

By: Phil Lackman, Vice President of Government Affairs

Veto Session Update – Consideration of Illinois' Health Benefit Exchange on Hold Until 2012
The Illinois General Assembly finished the scheduled two-week veto session with little action on the major issues on the agenda, including SB 1313, legislation which would have created a governance structure for Illinois' Health Benefit Exchange. According to legislative staff familiar with the issue, the General Assembly will not debate the issue until after the 2012 March Primary Election.

For the past six months, NAIFA Illinois, in coordination with our Agent/Broker Coalition and our larger coalition of business groups and insurers, have negotiated with the Quinn Administration, legislators and many other stakeholders to reach an agreement on the governance structure and other operational issues regarding Illinois' Health Benefit Exchange.

As of mid November, there were four significant issues of disagreement, including appointments to the Board of Directors, active purchaser vs. market organizer, funding, and a severability clause.

The coalition of businesses, insurers and agent/brokers currently supports Amendment #3 to SB 1313, which was filed by Rep. Jo Ann Osmond. The administration was supportive of Amendment #4, filed by Rep. Frank Mautino. Some of the more liberal advocacy groups supported Amendment #5, filed by Rep. Robyn Gabel. All three amendments can be viewed here.

The good news to date is that two of the amendments, #3 and #4, contain our agent/broker Exchange priorities:
1. Clear statutory authorization to enroll individuals and small employers in the Exchange
2. A certification program producers must complete to enroll individuals and small employers
3. A producer locator prominently displayed on the Exchange website where consumers can find a certified producer in their area to assist them with enrollment; and
4. Language stating that qualified health plans shall compensate certified producers in the same manner inside and outside of the Exchange

Our Agent/Broker Health Reform Working Group has spent an extraordinary amount of time developing positions and testifying on behalf of all producers in Illinois. There is still a long way to go in establishing Illinois' Health Benefits Exchange.

Download NAIFA IL Victories 2011 (doc)