SPRINGFIELD, Illinois –Legislation sponsored by Illinois State Senator William Delgado (D-Chicago) has been signed into law by Governor Quinn that will promote health insurance fairness.

House Bill 3923 creates the Individual Health Insurance Fairness Act, which establishes an independent review process for consumers who have been denied their medical claims by an insurance company.  In addition, this measure requires insurance companies to report information on their administrative expenses to the Department of Insurance.

This law will also establish a committee that will create a standard application form to be used by both companies and individuals when they apply for insurance through an independent company.  The Department of Insurance will have this measure in place by Jan. 1, 2011.

“This law will give patients with private health insurance a way to appeal a denied claim,” said Senator Delgado, Chairman of the Senate Public Health Committee.  “This legislation will help to put an end to unfair practices that make it difficult for patients have their procedures covered by their private insurance.”

According to a report by American Association of Retired Persons (AARP), 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 health care coverage.