HR1570 95TH GENERAL ASSEMBLY

HR1570 LRB095 22753 RPM 53215 r

HOUSE RESOLUTION

WHEREAS, The Illinois Comprehensive Health Insurance Plan (CHIP) provides health insurance coverage for Illinois residents who cannot obtain individual coverage from private insurance companies due to a pre-existing medical condition and for residents with prior health coverage who meet federal rules for eligibility; and

WHEREAS, Persons may qualify for CHIP under the Traditional Pool, which covers individuals with preexisting conditions, or the HIPPA Pool, which provides individual health coverage to persons with previous group coverage pursuant to the portability requirements of the Health Insurance Portability and Accountability Act (HIPAA); and

WHEREAS, The Traditional Pool is financed through a combination of premium dollars and funds from the State General Revenue Fund and the HIPAA Pool is financed through a combination of premium dollars and funds collected through an assessment on insurance companies based on insurance premiums written in Illinois; and

WHEREAS, The CHIP Board recently adopted a new rate formula that reduces the amount of the projected deficit that will be covered by premiums paid by enrollees in the HIPAA Pool; and

WHEREAS, The amount of the assessment on insurance companies in FY08 totaled $19.8 million, with these assessed funds earmarked to cover the gap between the premiums paid by individuals enrolled in the HIPAA Pool and the actual medical bills incurred by individuals in the HIPAA Pool; and

WHEREAS, On September 25, 2008, the CHIP Board approved an FY09 assessment of $43.4 million on insurance providers, an increase of 119% compared to the FY08 assessment; and

WHEREAS, The CHIP Board has indicated that the need for this unprecedented increase in the assessment is due to an increase in the projected deficit of the HIPAA Pool based on actuarial studies performed by Hause Associates; therefore, be it

RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE NINETY-FIFTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that the Commission on Government Forecasting and Accountability shall conduct a review of the Comprehensive Health Insurance Plan focusing on the HIPAA Pool, the deficit projections and actuarial estimates for the HIPAA Pool, and the assessments paid by insurance providers; and be it further

RESOLVED, That the Comprehensive Health Insurance Plan shall provide all necessary documentation to the Commission on Government Forecasting and Accountability in relation to the finances of the Plan and the actuarial projections used to determine the FY09 assessment; and be it further

RESOLVED, That the members of the Commission on Government Forecasting and Accountability shall compile the results of their review in a report to the General Assembly.