Health Insurer Closure Could Impact State Employees
The Health Alliance office in Champaign.
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Champaign-based health insurance company Health Alliance sent shockwaves through the state Tuesday when it announced it was ceasing operations at the end of 2025, leaving some 240,000 people across the state searching for a new health insurance provider.
But, the closure could have a large impact on state employees, too.
Health Alliance is one of the main insurance systems for state employees, specifically in the Springfield area and throughout downstate Illinois. While it isn’t the only option available for employees, it is one of the most popular.
Open enrollment begins for most state employees in May, and it isn’t clear if the state’s Central Management Services was aware of the pending closure and how it may impact open enrollment.
“It’s going to leave the state scrambling,” one source said.
A CMS spokesperson did not respond to a message from The Illinoize Tuesday.
In a statement, Sen. Chapin Rose (R-Mahomet) said he has reached out to CMS to “see what healthcare options will be available come open enrollment in May for the countless families who currently utilize Health Alliance for their insurance provider.”
“Continuity of care and access to trusted physicians must be the priority as thousands of local members will now be forced to find a new insurance carrier,” Rose said in a statement. “Being able to choose your medical team going forward is an absolute imperative.”
It likely won’t have a major impact on state retirees as Health Alliance lost its Medicare Advantage contract with the state about a decade ago.
We’ll continue to inquire about state plans for health insurance options for employees.
