Contracts recently awarded by the state dropped Health Alliance HMO in favor of expanding the state’s use of self-insured plans. The state pays a fixed amount for fully insured plans like Health Alliance HMO, whereas it assumes most of the risk for paying healthcare claims in self-insured plans.
If Health Alliances is successful, the restraining order could allow Health Alliance HMO and Humana’s HMO to be extended for several months or even years. Circuit Judge John Schmidt is expected to rule on the restraining order within a few days.
According to the report, the state of Illinois will fight the suit, saying the new contracts with save the state government more than $1 billion over the next 10 years.
Read the MySurburbanLife report on Health Alliance.
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