SPRINGFIELD, IL – State Senator John Sullivan (D – Rushville) is questioning the cost savings projected from dropping the State’s group health insurance contracts with Health Alliance and Humana. Senator Sullivan recently joined a bipartisan coalition of over 30 Senators in sending a letter to Governor Pat Quinn and Department of Healthcare and Family Services (HFS) Director Julie Hamos requesting the details behind the claimed cost savings.

"I applaud the administration for their efforts to find cost-savings, but unfortunately, dropping Health Alliance and Humana doesn’t appear to save the State any money," said Sullivan. "While I’m not certain about claims of cost savings, I am sure this decision would have a hugely negative impact on thousands of people’s access to affordable healthcare in downstate Illinois."

The Governor’s Office and HFS recently awarded the State’s group health HMO contract to Blue Cross Blue Shield of Illinois, a provider whose network does not currently extend much outside the Chicago-land area. Contracts with Health Alliance and Humana, both major downstate providers, were not renewed. To keep seeing current doctors, members would have to pay more out of pocket for an Open Access Plan (OAP), which is also more expensive than an HMO for the State.

"I encourage the Governor’s Office and HFS to reconsider this potentially devastating decision," said Sullivan. "I think the best thing to do now would be to re-start the process and re-bid the group health insurance contracts."

Health Alliance and Humana have both filed protests of the decision. Their protests are currently under review with the Chief Procurement Officer at the Executive Ethics Commission. If their protests return a favorable decision, or if the Commission on Government Forecasting and Accountability (COGFA) does not approve the new contracts at their next meeting, HFS must re-bid the contracts.