Bill
HB 2623
HB 2623 abolishes PEIA, replacing it with a contract healthcare system for state employees, impacting their insurance coverage and private healthcare providers.
Bill Number: HB 2623
Introduced By: Rep. Adam M. Niemerg
Introduced On: February 4, 2025
Current Status: To House Health and Human Resources
Classification: Bill
Subject: State Personnel
HB 2623 aims to abolish the Public Employees Insurance Agency (PEIA) and replace it with a system of contract healthcare for state employees. The bill seeks to streamline healthcare provisions for state employees by transitioning from a state-run insurance program to a model that utilizes contracted healthcare services.
Abolishment of PEIA: The bill proposes the complete dissolution of the existing PEIA framework, which currently provides health insurance coverage to state employees.
Contract Healthcare System: Establishes a new system where state employees will receive healthcare through contracts with private healthcare providers rather than through a state-managed insurance program.
Implementation Timeline: The bill does not specify an immediate timeline for the transition but indicates that the new system will be phased in following the bill's passage.
Regulatory Oversight: The bill includes provisions for oversight and regulation of the new contract healthcare system to ensure compliance with state laws and standards.
State Employees: The primary group affected by this bill will be state employees who currently rely on PEIA for their health insurance coverage. They will need to adapt to the new contract healthcare system.
Healthcare Providers: Private healthcare providers will be impacted as they may enter into contracts to provide services to state employees under the new system.
State Government: The state will need to manage the transition from PEIA to the new system, including potential changes in funding and administrative processes.
Legislative Journey:
Future Actions: The bill will undergo further discussions and potential amendments in the House Health and Human Resources Committee before it can be voted on by the full House.
HB 2623 represents a significant shift in how healthcare is provided to state employees in Illinois. By abolishing PEIA and establishing a contract healthcare system, the bill aims to create a more efficient and potentially cost-effective model for delivering health services. Stakeholders, including state employees and healthcare providers, will need to stay informed about the developments and implications of this legislative change.
Compiled from official sources — confirm details with the bill’s official record.
Sign in to ask a question.
