Illinois Legislation Looks to Reform Health Insurance Industry

Rep. Harris Takes Aim at Soaring Insurance Costs & Unfair Industry Practices -
AARP Strongly Supports Bill

SPRINGFIELD, Ill., Feb. 26 /PRNewswire-USNewswire/ -- Job losses are leaving
soaring numbers of people struggling to find health insurance on their own,
joining small businesses and the self-employed in facing unaffordable policies
and coverage denials due to pre-existing conditions. Legislation introduced
today by State Representative Greg Harris (D-Chicago), is taking aim at the
problem and cleaning up the insurance industry's practices.

"Illinois residents who've suffered a job loss now have to navigate the
private health insurance maze, only to find an industry that is too costly,
inconsistent and whose policies are unfair," said Bob Gallo, State Director
for AARP Illinois. "AARP commends Representative Harris for standing up to a
powerful industry that too often denies people the health care they and their
families need - getting this legislation passed is a top priority for AARP."

Currently in Illinois, insurance companies can refuse to cover people with
pre-existing conditions all together. Even if those with pre-existing
conditions are offered policies, those conditions are often excluded from
coverage, leaving the person without access to health care. Other industry
tactics are used to charge higher premiums based on a person's age and where
they live.

"It's about time in Illinois that health insurance works for families, not to
line the insurance company pockets," said Representative Greg Harris.

The AARP-backed Health Insurance Fairness Act, House Bill 3923, would
implement several key reforms that would:

-- Guarantee access to health insurance regardless of pre-existing
conditions.
-- Prevent insurance companies from charging more based on health status
or
gender.
-- Establish an Office of Patient Protection to conduct external
independent reviews of denied claims and rate increases.
-- Create new guidelines to allow small businesses and self-employed
individuals better access to affordable policies.
-- Require insurance companies to spend at least 85% of premium dollars
on
medical care rather than on executives' salaries, marketing, and
profits.

"This legislation is critical to ensuring access to insurance for people under
65 who do not have job-based coverage and are not eligible for Medicaid or
Medicare," added Gallo. "AARP is urging the Illinois General Assembly to act
on this important issue this year."

Nationally, nearly 4 million people have lost their health care since the
recession began, while roughly 17 million purchase their own coverage, in many
cases, without the ability to negotiate lower rates. AARP is committed to
improving access to private coverage by reforming the practices of health
insurers and private health care plans, including self-insured employer plans.

SOURCE AARP Illinois

David Irwin, +1-312-206-6755, or Gerardo Cardenas, +1-312-351-0228, both of
AARP Illinois