* Clawing out of this hole gets more difficult by the day…
Approaching a 10th month without a budget, Illinois has racked up a mound of unpaid claims, about $2.8 billion worth, in its state employee group insurance program.
Payment delays to health insurers and providers are now averaging 15 months, according to Meredith Krantz of Illinois Central Management Services. That’s due not only to the current budget impasse but years of under-funding in the group insurance program that has caused regular payment delays of eight months or longer, she said.
The current hold on claims is split nearly down the middle, with $1.4 billion owed for the state’s self-insured plans, and $1.5 billion for the fully insured plans, she said. Fully-funded plans are the HMOs and Medicare Advantage plans; the self-insured plans include Coventry Health Care Open Access Plan, Health Link OAP, Cigna (Quality Care) and Delta Dental.
As of today, the state owes one local carrier, Carle-owned Health Alliance Medical Plans, $720 million for 16 months’ worth of premiums at $45 million a month, according to Health Alliance spokeswoman Laura Mabry.