Reis Backs Health Savings Accounts Option

March 17, 2011

Springfield, IL.…Today, the House Insurance Committee passed legislation offering participants in the State’s employee health insurance plan a new, voluntary-enrollment coverage option with the potential to save Illinois millions of dollars.

Serving as chief co-sponsor, State Representative David Reis (R-Ste. Marie) voted in favor of the bill which requires the state employee insurance program to design a new coverage option which offers a high deductible plan linked to a health savings account.

House Bill 1569 is modeled after Indiana’s successful Health Savings Accounts (HAS) program for government employees. In 2010, over 70 percent of Indiana state workers selected a HAS option which has saved taxpayers over $30 million and added thousands of dollars to workers’ take-home pay, according to the Illinois Policy Institute.

“The proposed plan offers tailored coverage for an individual employee’s needs while limiting costs for taxpayers and employees,” Rep. Reis said. “By promoting personal responsibility and offering financial incentives, employees will have more say in their heath care choices and will benefit at the end of the year by making wise decisions.”

A high deductible plan paired with a health savings account offer individuals lower initial premiums and the ability to cover expenditure costs with money deposited into their health savings account. Compared to the state’s current health insurance program, health savings accounts will allow individuals to collect end of year balances, carry them over from year-to-year, or pass them on as part of an estate.

“This is a major piece of our overall budget reform goal,” said Reis. “In the next decade we could see our state employee health insurance costs skyrocket in size to $4.8 billion compared to today’s cost of $1.6 billion. It’s imperative to back initiatives like health savings accounts as a way to reign in out of control spending while still providing quality health care coverage to enrollees.”

The measure passed the House Insurance Committee on a vote of 18-0-0 and now awaits action on the House floor.