Appeals panel puts insurance changes on hold

SPRINGFIELD — An Illinois appeals court has ordered Gov. Pat Quinn’s administration to wait before making sweeping changes to state employees’ health insurance plans.

Under the ruling by the Fourth District Appellate Court, the state must not move forward until a lawsuit over the changes is resolved.

Illinois had awarded new health insurance contracts for employees that were to begin July 1. But providers who were upset that they weren’t chosen by the state filed a lawsuit challenging the new contracts, and a Sangamon County judge placed a stay on the changes. The decision handed down by the appeals court Wednesday upholds the lower court ruling.

The providers that filed the lawsuit are the only health care option for thousands of employees, retirees and their families across wide swathes of the state. Temporary contracts that let most employees keep their existing insurance provider were put in place through Sept. 28 as the legal challenge makes its way through the courts.

In a statement, the Quinn administration said it was reviewing the appeals court ruling and plans to ask for the lawsuit to be dismissed at a hearing on Aug. 19.

“We remain confident in the process of awarding and contracting with the winning vendors as well as their ability to offer quality health care at a price that will save the state money during these tough fiscal times,” said Mike Claffey, spokesman for the Department of Healthcare and Family Services.

Legislators say the temporary insurance contracts will likely have to be extended. State Sen. Mike Frerichs said he believes the current contracts could be extended through the end of the fiscal year in June.

“Let’s just realize it’s going to take that long,” Frerichs said.