Health Care & Rx Drugs

After months of hard work by Illinois PIRG’s Health Care Advocate, on Wednesday, April 16 the House of Representatives passed the Premium and Loss Data Reporting Act, HB 5865. (Click here for Illinois PIRG’s fact sheet) The measure is a critical tool needed to protect consumers and expose insurance industry spending.

The bill, which passed in the face of strong opposition from the insurance industry, protects consumers by requiring health insurance companies to report how much of each premium dollar goes toward actual care, versus profit and administrative cost.

In national stockholder reports, health insurance companies admit to increasing premiums and lowering payouts as a strategy to bring in higher profits. This bill will expose this practice in Illinois and protect consumers.

“We have a health care crisis in Illinois. This bill is the first step in making sure our rising health care premiums are being used as they should—for our health care,” said Representative Mary Flowers (D-31), the lead sponsor of the bill.

“Politics has stalled health care reform for too long, and it’s time to get down to the business of the people of the State of Illinois,” said Emily Miller, Illinois PIRG’s health care advocate. “If the Senate cares about protecting Illinois consumers, they will join the House in passing this bill.”

The State Senate still has to pass the bill before it can be signed into law by the Governor.