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Court denies Quinn on insurance switch

By Kurt Erickson
The Southern Springfield Bureau

SPRINGFIELD - It could be December - or maybe even June 2012 - before thousands of state workers, their dependents and retirees have to grapple again with switching their health insurance plans.

In a decision issued Wednesday, a state appeals court unanimously ruled that Gov. Pat Quinn's administration must wait for the outcome of a court case concerning the controversial switch before moving forward with new health insurance offerings.

The decision - and the pace of the court case - is expected to force the state to again extend current health insurance contracts.

At issue is a plan announced last spring by Illinois Department of Healthcare and Family Services to award health insurance contracts that might have forced downstate workers to switch doctors or pay higher costs.

Although the plan was hailed as producing $1 billion in savings over time, the decision upset many downstate residents because it would have meant the end of coverage by Urbana-based Health Alliance.

In its ruling, the Fourth District Appellate Court upheld an earlier order by Sangamon County Circuit Judge Brian Otwell, who told state officials to halt finalizing the new contracts pending the outcome of a lawsuit by Health Alliance.

The three-judge panel suggested the Quinn administration should not have ignored a legislative panel that sought to block the switch.

During the dust-up, the state has allowed employees and retirees to keep their current provider. That emergency extension stays in place through Sept. 28.

Another 90 day extension would give the state until late December to finalize new contracts and dispense with the court case. State Sen. Mike Frerichs, D-Champaign, said he believes the current contracts could be extended through the end of the fiscal year in June 2012.

"Let's just realize it's going to take that long," Frerichs said.

In a statement, the Quinn administration said it was reviewing the ruling and preparing for an Aug. 19 hearing in which it will seek to have Health Alliance's suit dismissed.

Health Alliance chief Jeff Ingrum called the appeals court ruling "good news."