Bill undoing health contracts clears Senate; future uncertain
SPRINGFIELD — Legislation that would undo the recent health insurance contracts awarded by the state Department of Healthcare and Family Services cleared the Illinois Senate on Friday evening, but it faces a tougher time in the House and with the governor's office.
The bill (SB 178), sponsored by Sen. Mike Frerichs, D-Champaign, passed the Senate 37-13. It would cancel all state group insurance contracts awarded for the fiscal year beginning 2012 and continue existing contracts, including one with Health Alliance of Urbana, for two years. It also would shift the responsibility for purchasing health care coverage back to the Department of Central Management Services.
Finally it would clarify the role of the Legislature's Commission on Government Forecasting and Accountability in state contracting decisions, making clear that if COGFA does not advise and consent to a contract, the governor's office could not move forward with it.
Brie Callahan, a spokeswoman for Quinn, said the governor supports shifting the purchasing of health care back to Central Management Services.
But Quinn opposes "politicizing the procurement process," she said, by giving COGFA veto powers.
"All a vendor would have to do is convince seven members of COGFA to reverse an administration decision on a procurement," she said. "We think that would be very detrimental to the Illinois business climate."
In the House, Frerichs noted, his legislation has been picked up by Rep. Elaine Nekritz, D-Northbrook, who was one of three COGFA members who earlier this week supported the Quinn administration on the procurement.
"We have some obstacles to overcome over there," Frerichs said.
MoreI've read the bill backwards and forwards, and I can't find anything in it that cancels the new insurance contracts. No provisions in it take effect before 1/1/2012. The newly awarded contracts are never mentioned specifically. I realize that Frerichs' press release and email to constituents says those things, but I can't find them in the legislation. Anyone?
"(ii) to extend existing contracts for those benefits for a term of 2 additional years." The third to last sentence of the bill. If you click on the SB 178 link in the article and scroll to the middle of the page, it gives a text description of the bill that includes that language. The last sentence also says it's effective immediately.
Lets get rid of a company in central Illinois and give the contract to a company from Chicago. Like that has never happened before. Remember that this is the same governor that told the mayor of Danville not to hold his breath on them getting a casino, while saying that Chicago will get one. I say we cut everything north of I 80 loose, including the crooked politicians from there, and form a new state. Another idea would be for the counties to succeed from the state and join the neighboring states.
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