Blagojevich proposes health coverage expansion

Illinois Gov. Rod Blagojevich (D) on Sunday unveiled a plan to expand access to health insurance to the 1.4 million uninsured state residents at an estimated cost of $2.1 billion per year, the Chicago Tribune reports (Graham, Chicago Tribune, 3/4).

Blagojevich's plan, called Illinois Covered, is based in part on recommendations by a legislative task force that all residents, including undocumented immigrants and non-resident students, be required to obtain health care coverage (Ritter, Chicago Sun-Times, 3/5). Under the plan, every insurer in the state would be required to offer a standardized, comprehensive insurance policy to uninsured residents regardless of pre-existing medical conditions (Chicago Tribune, 3/4). The plan would have three main components:

• "Illinois Covered -- Assist," which primarily would be intended for childless adults with annual incomes below the federal poverty level who are ineligible for Medicaid and FamilyCare;
• "Illinois Covered -- Choice," which would offer low-cost insurance plans from private insurers to residents who are unable to obtain coverage through their employers. Residents with annual incomes of up to 400% of the poverty level would be eligible for a state subsidy to help pay premium costs. Those with incomes greater than 400% of the poverty level still could enroll in the plan but would not receive the subsidy. Businesses unable to afford coverage for employees also would be able to use the program to provide insurance for workers; and
• "Illinois Covered -- Rebate," which would help residents pay premiums for existing employer-sponsored health plans.

Additional Details
Blagojevich estimates that 500,000 residents would sign up for the program in the first year, and more than one-third of all uninsured Illinois residents would have coverage by 2010, according to Anne Marie Murphy, the governor's director of health care programs (Chicago Tribune, 3/4). Deputy Gov. Sheila Nix said participation in insurance programs would be voluntary for the first three years, and then residents would be required to obtain coverage or likely will incur a fine (Chicago Sun-Times, 3/5). Blagojevich did not discuss funding for the program but is expected to propose a "gross receipts tax" on business transactions and a payroll tax on employers who do not offer health coverage. If it is approved by the state Legislature, the plan would begin in January 2008 and be fully implemented by 2010 (AP/Kansas City Star, 3/4).