Governor Signs Illinois Exchange Bill

Illinois Governor Pat Quinn signed SB 1555 to establish a health benefits exchange in Illinois. The bill creates a legislative study commission and requires the State to establish the Illinois Health Benefits Exchange (Exchange).

SB 1555 requires establishment of the Exchange beginning October 1, 2013, for individuals and small employers with no more than 50 employees. It further declares that the Exchange shall supplement, not replace, existing private health insurance markets for individuals and small employers.

The Exchange law requires the Legislative Committee to report all findings concerning the implementation and establishment of the Exchange to executive and legislative branches by September 30, 2011. The report is to include, but not be limited to, the following.

• Governance and structure of the Exchange
• Financial sustainability of the Exchange
• Stakeholder engagement, including an ongoing role for the Legislative Committee or other legislative oversight of the Exchange

The Legislative Committee must also report its findings with regard to the operating model of the Exchange, the size of the employers to be offered coverage through the Exchange, coverage pools for individuals and businesses within the Exchange and the development of standards for the coverage of full-time and part-time employees and their dependents.

The bill requires members of the Legislative Committee to be appointed within 30 days after the effective date of the law and they must convene their first meeting no later than 45 days after the effective date of the law.

Watch for public meetings on this issue in the coming weeks.