Illinois Exchange Study Reports

The Illinois Department of Insurance released two reports describing the key market structure issues and operational requirements for the development of the state health insurance exchange required under the ACA. The research was partly funded from a $1 million grant from the federal government. The first report produced by Deloitte, Review of the Current Illinois Health Coverage Marketplace, assesses the current health insurance climate and offers insights about the affordability of private health coverage.

Key Findings include:

• The number of residents covered by employer-based coverage dropped 16 percent over the last decade;
• Establishment of an exchange will cut the number of uninsured residents from 12 percent currently to 7 percent in 2020; and
• An additional 1.4 million Illinois residents will achieve coverage through plans purchased over the exchange in 2020.

The second report produced by Health Management Associates and Wakely Consulting Group, identifies the resources and capabilities required for the development and maintenance of an exchange.

The report notes that:

• The exchange must be operational by October 2013 for plans effective on Jan. 1, 2014; and
• Costs for administering the exchange are thought to be between 2 percent and 5 percent of health premiums.