…Adding… Erin Collins, senior vice president of state and policy affairs at the National Association of Mutual Insurance Companies…
NAMIC is alarmed to see the Governor of Illinois publicly misunderstand and mischaracterize the business of insurance. Consumers demand and deserve competitive and dynamic insurance products to insure against what is an increasingly risky world. By continuing a pattern of misinformation, the Governor deteriorates not just his state’s insurance market, but also the trust that consumers should have that fairness and accuracy will govern their future insurance needs.
Let’s be clear: cost-shifting is not being used in actuarial practices. Illinois policyholders are not subsidizing risk in other states. To the contrary, insurers are required to price based on actuarially sound, state-specific data and are held to rigorous standards under the Illinois Insurance Code. In fact, to further cement that standard in response to the Department’s stated concern, industry proactively proposed an explicit ban on cost-shifting during this spring’s legislative session —an offer that was rejected without explanation.
Despite clear and repeated explanations from those that understand the industry, this misinformation campaign continues to misstate core actuarial principles of insurance. Alarming public statements from the Governor’s office and Department of Insurance—claiming that policyholders are bearing costs unrelated to their coverage—demonstrate a fundamental misunderstanding of how premiums are developed, risks are pooled, and capital is managed to ensure long-term solvency.
NAMIC encourages policymakers and consumers alike to cut through the noise – insurance is about math. You pool risk with your neighbors. Rather than focusing on scoring political points, let’s engage with the facts. Lowering rates starts with lowering risk. The industry has and will continue to bring proposals to increase mitigation, address community wide resilience, reduce frivolous lawsuits, and increase availability and affordability in Illinois.
Insurance will always be about protecting consumers. Insurance isn’t about press conferences or polling—it’s about data, discipline, and long-term solvency. When math becomes political, consumers lose.
…Adding… Joint Statement from the Illinois Insurance Association, American Property Casualty Insurance Association and National Association of Mutual Insurance Companies…
As organizations committed to protecting consumers and promoting a fair, competitive, and diverse insurance market, the Illinois Insurance Association (IIA), the American Property Casualty Insurance Association (APCIA) and the National Association of Mutual Insurance Companies (NAMIC) strongly reject claims that insurers are arbitrarily hiking rates or shifting out-of-state costs onto Illinois policyholders and are releasing the following joint statement:
“Rates filed by insurance companies in Illinois reflect the rising cost of claims, which is primarily driven by local natural disasters and inflation, and are not influenced by losses in other states. Illinois experienced 120 reported tornadoes in 2023 alone – more than any other state. These extreme weather events, combined with elevated inflation and high material costs, have dramatically increased the cost of repairing and rebuilding homes.
“This reality puts enormous financial strain on everyone, including insurers. Over the past decade, State Farm alone has incurred $1.26 in losses for every $1.00 in premium earned in Illinois as they fulfill their commitment to stand by homeowners when disaster strikes. According to the National Association of Insurance Commissioners’ most recent profitability report, homeowners’ insurers in Illinois had a significant 8.3 percent underwriting loss over the last decade and a staggering 30.3 percent underwriting loss reported in 2023.
“Illinois’ insurance market remains one of the most competitive in the nation and we are committed to maintaining the state’s competitive market and ensuring insurers can continue to fulfill their promises to policyholders.”
As Texas grapples with the massive flooding that struck Hill Country and killed at least 119 people during the July Fourth weekend, many Illinois homeowners will soon see their home insurance rates skyrocket due to the increase in such extreme weather events.
State Farm is raising homeowners insurance rates in Illinois by a whopping 27.2% beginning Aug. 15, according to a filing with the state last month. The rate hike, one of the largest in the state’s history, will affect nearly 1.5 million policyholders. New policyholders will pay the higher rates as of July 15.
In its filing, Bloomington-based State Farm said the rate increase is driven by catastrophic losses related to extreme weather events in Illinois.
“Over the last several years, our catastrophe provision has proven to be inadequate when compared to our actual catastrophe loss experience,” State Farm said in the filing. “While there is volatility associated with extreme weather events, our Illinois catastrophe losses have exceeded the year’s catastrophe provision in 13 of the last 15 years, signaling the provision used in rating has been insufficient in recent history.”
* Governor JB Pritzker…
I am deeply concerned by State Farm’s unfair and arbitrary insurance rate hike on Illinois homeowners.
These increases are predicated on catastrophe loss numbers that are entirely inconsistent with the Illinois Department of Insurance’s own analysis – indicating that State Farm is shifting out-of-state costs onto the homeowners in our state. Hard-working Illinoisans should not be paying more to protect beach houses in Florida.
In addition to increased premiums, State Farm intends to raise out-of-pocket deductibles and reduce payouts for certain claims. In total, these changes will cost Illinois homeowners hundreds of additional dollars per year without a state-based justification or corresponding increases in protection.
Over the past six years, our state economy has flourished based on transparent markets and fair competition. State Farm’s actions are antithetical to the core principles that the Illinois business community is built on.
Today, I’m directing the Illinois Department of Insurance to take all available regulatory action to enforce the law and ensure a level playing field for Illinois homeowners.
I also am calling on the General Assembly to enact a legislative solution during veto session that prevents insurance companies from taking advantage of consumers through severe and unnecessary rate hikes like those proposed by State Farm.
Click here for the State Farm’s filing to the state and click here for the DOI’s objection.
Thoughts?
* More…
*Crain’s | State Farm to hike Illinois home insurance prices by another 27.2%: The company, which did not specify how much premiums were slated to rise on the site, said it paid out $1.26 for every $1 in Illinois homeowners’ premiums it collected in 2024. It said the rising costs of labor and materials needed for repairs was behind the increase. Weather trends also contributed, State Farm said. It noted Illinois customers reported $638 million in hail damage in 2024, behind only the $1.1 billion reported by Texas customers.
* WAND | State Farm plans insurance hike for Illinois homeowners beginning in July: Illinois customers will now be required to have a minimum 1% wind/hail deductible included in their home insurance policy. Additionally, auto insurance rates in Illinois will decrease an average of 5.7%, with some customers seeing premium reductions up to 15%. The rate adjustments will apply to new and existing policies beginning July 18.
* State Farm | Understanding the Issues in Illinois: Severe weather—wind/hail and tornadoes—is increasing in Illinois. Trends in recent years indicate damaging storms are more frequent here. In fact, Illinois had more hail damage claims than any other state except Texas in 2024. Illinois premiums are priced for the risk in this state—not for losses in other states, including wildfires, earthquakes, or hurricanes.
Gerry’s Café in Arlington Heights is more than a coffee shop—it’s a community-driven café staffed by adults 22 and older with intellectual and developmental disabilities. Co-founded by Amy and Natalie, the café is named in honor of Amy’s Aunt Geralyn, a child with Down syndrome who brought immense joy to her family. The mission is to empower capable individuals often excluded from the workforce by offering meaningful employment, job training, and a place to connect. At Gerry’s Café, every order fills more than just your cup—it uplifts lives and builds a stronger, more inclusive community.
The business employs 35 adults with disabilities between the ages of 22 to 52. They work independently as baristas, cashiers, greeters, bakers, dishwashers and sandwich and salad makers. A general manager, assistant manager and two shift supervisors oversee day-to-day operations, training, inventory and payroll.
“What I thought would be our biggest challenge was our employees and their training, and would they be successful. That was never a challenge,” Griffin said. “I was proven wrong because they immediately accepted the job, they got the training, they were excited, and they put forth so much effort to be good at their jobs.”
* But the business is still facing challenges. More from the Daily Herald…
The founders acknowledge the financial sustainability of Gerry’s Café remains a concern. Nearly two years in, they’ve yet to break even at the register. Payroll costs remain high, and were further increased by the hike in the minimum wage from $14 to $15 an hour at the beginning of the year, they say.
At the same time, there’s great demand for jobs: the shop has a waitlist of 35. […]
But the big thing has been “just getting people to know that we’re here,” Griffin said.
I know I’ll be stopping at Gerry’s soon.
…Adding… If you want to support Gerry’s click here!
State Sen. Mike Simmons will launch his campaign Tuesday, he told the Tribune, joining recently announced state Rep. Hoan Huynh — who also planned a campaign kickoff event Tuesday evening — and some 10 other Democratic candidates vying for the seat.
The latest campaign announcements come just ahead of the Cook County Democratic Party’s planned slating meetings next week, when the party is expected to endorse candidates ahead of the 2026 primary. […]
“I’m running because the communities in the 9th District have raised me, and they’re struggling,” Simmons said Monday. “It’s one of the most diverse areas in the nation, and it is becoming unaffordable for too many.” […]
He said he’s running in part to help families who feel priced out of the district.
“I symbolize everything that Donald Trump is trying to erase right now, but the point that’s really important is that this is going to be about so much more than Donald Trump. It’s going to be about talking about those (affordability) struggles,” said Simmons, who is 42 and lives in Rogers Park.
Sen. Simmons jumping into the race isn’t a surprise, he participated in a campaign event with other Democratic challengers last month.
[Sen. Simmons] joins a crowded field of Democrats vying for the seat that includes Chicago’s North Side and nearby suburbs. Democratic candidates include fellow state Sen. Laura Fine, state Rep. Hoan Huynh, Evanston Mayor Daniel Biss, Skokie school board member Bushra Amiwala, civil rights attorney Howard Rosenblum, progressive influencer Kat Abughazaleh, community organizer and former Schakowsky aide Miracle Jenkins, high school math teacher David Abrevaya, Evanston resident Bethany Johnson, environmental health and safety professional Justin Ford and homeless advocate Lauren Million.
* Click here for reactions to the budget reconciliation bill’s passage. AP…
President Donald Trump’s big bill to cut taxes and reduce federal spending on some social safety net programs could have large implications for states, but for many it’s too late to do much about it this year.
Tuesday marks the start of a new budget year in 46 states. Though some legislatures are still working, most already have adjourned and finalized their spending plans without knowing whether federal funding will be cut and, if so, by how much. […]
Several states have taken preemptive steps, setting aside money in reserves or tasking committees to monitor the impact of federal funding reductions. Others are tentatively planning to return in special sessions this year to account for potential funding cuts to joint federal-state programs such as Medicaid and the Supplemental Nutrition Assistance Program, or SNAP. Others will have to wait until their legislatures are back in session next year.
The Tribune’s Olivia Olander wrote a nice explainer last month on the $100 million ’safety valve’ Pritzker can use to fill budget holes.
Asked during a campaign stop in Chicago Wednesday about the bill Congress was advancing, and whether Illinois legislators should come back to Springfield to react, [Governor JB Pritzker] said that may not be necessary.
“Just to be clear, many of the provisions that are in the big terrible bill, are provisions that don’t go into effect until perhaps a year plus from now,” Pritzker told reporters.
One area Pritzker anticipates action is if there are fewer federal tax funds for things like the Affordable Care Act.
“We might need to take the funds that are matching funds because they’re going to take away their federal funds, take our matching funds, and figure out how we’re going to distribute those among the critical access and safety net hospitals that are threatened to close as a result of what they’re doing in Washington, D.C.,” Pritzker said.
In Illinois, 1.9 million residents receive SNAP benefits, including more than 891,000 people in Cook County. Approximately 3.4 million Illinoisans are covered by Medicaid.
The legislation would slash $287 billion from SNAP and more than $1 trillion from Medicaid and the Affordable Care Act over the next decade.
Gov. JB Pritzker’s office said the loss in federal funding could cost the state $1.2 billion annually.
“The food pantries are going to feel it,” said Danielle Perry, vice president of policy and advocacy at the Greater Chicago Food Depository. “The lines are already long. We’re at the numbers we were during COVID. Can you imagine what will happen when people lose their SNAP benefits?”
The U.S. House gave final passage Thursday to a budget bill that will cut federal Medicaid spending by an estimated $1 trillion over 10 years.
All three Republican members of the Illinois congressional delegation voted in favor of the bill, despite a last-minute plea from Democratic Gov. JB Pritzker who warned the bill will result more than 330,000 Illinoisans losing Medicaid coverage and have a devastating effect on some rural hospitals.[…]
Today, according to the Illinois Department of Healthcare and Family Services, the [Medicaid] covers about 3.4 million people in Illinois, or a fourth of the state’s population. At a total cost of $33.7 billion a year, it is one of the largest single categories of expenditures in the state’s budget. It pays for about 40% of all childbirths in the state, according to KFF, as well as 69% of all nursing home care. […]
Those include imposing a work requirement on adults enrolled in Medicaid through the Affordable Care Act, also known as “Obamacare.” That law expanded eligibility for Medicaid to working-age adults with incomes up to 138% of the federal poverty level. About 772,000 people in Illinois are enrolled under that program.
The bill also calls for requiring people enrolled through the ACA expansion to verify their continued eligibility for Medicaid twice a year instead of annually. That is expected to filter out enrollees whose incomes rise above the eligibility limit as well as those who simply fail to complete the verification process.
Another provision would limit the ability of states to finance their share of the cost of Medicaid by levying taxes on health care providers. Illinois imposes such taxes on hospitals, nursing facilities and managed care organizations that administer the program. Revenue from those taxes is used to draw down federal matching funds that are then used to fund higher reimbursement rates to health care providers.
The final version of the bill does not, however, include a provision penalizing states like Illinois that also provide state-funded health care to noncitizens who do not have lawful status to be in the United States. That provision, which was included in the earlier House version, was not included in the Senate bill, according to KFF.
The $4.5 trillion in tax cuts that Trump sought would make the current tax rates and brackets permanent, eliminate taxes on tips and overtime pay, and add a $6,000 deduction for older Americans who make $75,000 or less. It also raises the child tax credit to $2,200.
Workers will be able to deduct $25,000 in tips a year from their income. After that, tips will be federally taxed.
A Congressional Budget Office analysis last month found the wealthiest households would see an average income increase of $12,000 annually, while it will cause low-income Americans to lose $1,600 a year. Middle-income households should see a tax break of between $500 and $1,200.
Consumer watchdogs at the Citizens Utility Board said the measure will mean higher power bills for consumers in Illinois and across the country. […]
The bill ends these tax credits by Dec. 31, 2025. The Joint Economic Committee estimated those tax cuts had helped a typical family save up to $1,080 every year.
Sarah Garza Resnick, president and CEO of Chicago-based pro-choice advocacy group Personal PAC, said both the judicial decision and Trump’s spending bill will cut access to reproductive care for Medicaid patients, providing them few alternatives. […]
In a statement Thursday, Planned Parenthood of Illinois said it will keep providing all types of sexual health and reproductive services that the organization says patients can’t go without.
“We refuse to stop providing care to our patients even though it’s clear the Republicans in Congress are trying to force us to do so,” Tonya Tucker, interim president and CEO of Planned Parenthood of Illinois, said in a statement. “Over 40% of PPIL patients use Medicaid to cover the cost of their health care and we will not allow people to forgo essential health care!”
…Adding… Gov. JB Pritzker…
Following the signing of Trump and Republicans’ ‘Big Beautiful Bill,’ Illinois is raising awareness about the devastating impacts on our working families. This includes draconian cuts and alterations to the Supplemental Nutrition Assistance Program (SNAP), which threatens food benefits for an estimated 360,000 Illinoisans, jeopardizes jobs, grocery stores, and harms local economies.
“SNAP has been a crucial federal resource for families trying to put food on the table for more than 60 years, but Trump and Republicans would rather children go hungry so their friends can receive tax cuts,” said Governor JB Pritzker. “Here in Illinois, we have been working to combat food insecurity for years, and while no state can backfill these costs, the State of Illinois will continue to fight against these harmful impacts and stand up for working families.”
SNAP has been a permanent, 100% federally-funded food benefit for more than 60 years. The bill threatens SNAP benefits for Illinoisans in three fundamental ways:
- Shifts cost on food benefits to states for the first time since the program’s inception and further threatens benefits if states can’t meet these new funding expectations;
- Strips eligibility from our most vulnerable populations leaving hundreds of thousands of Illinoisans hungry and putting thousands of jobs at risk; and
- Creates new, costly bureaucratic hurdles the state must implement in order to make the cuts.
These changes from the federal government will harm hundreds of thousands of working families across Illinois and drastically impact how SNAP functions across the state, leaving veterans, children, unhoused populations, and older adults vulnerable. In FY25, $4.7 billion in SNAP benefits were issued to Illinoisans, supporting over one million households (1.8 million individuals total).
Data from the Food Research and Action Center on SNAP issuance in Illinois indicates that:
- 44,217 veterans are participating in SNAP
- 37% SNAP households have older adults
- 45% SNAP households have children
- 44% SNAP households have a person with a disability
Trump’s spending bill endangers families that rely on SNAP, stripping their eligibility for assistance and making it harder to put food on the table. The State of Illinois also expects substantial economic harm to reverberate from these cuts, as SNAP supports more than 18,000 jobs in Illinois, across both the grocery and other supporting industries, including agriculture, manufacturing, transportation, and municipal services.
An overview of the expected impacts in Illinois can be found below.
- Stripping Benefits from Vulnerable Illinoisans: This bill changes eligibility requirements, putting an estimated 360,000 Illinoisans at risk of losing SNAP eligibility, removing work requirement exemptions for 23,000 unhoused, veterans, or youth aged out of foster care in Illinois, and costing Illinois tens of millions to support the additional administrative burden of policy implementation.
- Damaging Local Economies: SNAP supports more than 18,000 jobs in Illinois, across both the grocery and other supporting industries, including agriculture, manufacturing, transportation, and municipal services. According to the National Grocer’s Association, SNAP supports nearly $1 billion in Illinois wages. The extreme cuts will have far reaching consequences for grocery stores and jobs as fewer SNAP dollars circulate in local economies.
- Destabilizing the Current Funding Framework: This bill would implement a state cost share of food benefits (which have historically been 100% federally funded). Calculated based on the State’s Payment Error Rate (PER), Illinois’ required contribution to SNAP will go from $0 (currently) to $705 million annually.
* More…
* WGLT | LaHood votes yes, Sorensen votes no on Republican spending and tax cut bill: U.S. Rep. Darin LaHood, a Peoria Republican, voted in favor of the megabill. Rep. Eric Sorensen, a Democrat from Moline, voted against it. Together they represent Bloomington-Normal in the House. The sprawling GOP bill shifts resources away from the social safety net and investments in clean energy, and reorients them to finance trillions of dollars in new spending on tax cuts, immigration enforcement and national defense. Opponents in Central Illinois say the combination of Medicaid and SNAP food nutrition cuts will hurt those who can afford it least.
*NPR Illinois | Miller, Budzinski vote along party lines on Trump’s megabill: Rep. Miller, a Republican from Oakland in east central Illinois, went along with Trump. “The One Big, Beautiful Bill is a once-in-a-generation victory for the American people,” said Congresswoman Mary Miller. “It delivers on President Trump’s America First agenda with bold, decisive, and immediate action. This is the most pro-worker, pro-family, pro-America legislation I have voted for during my time in Congress, and I was proud to help get it across the finish line for the hardworking Americans across my district.” Miller, in a news release, called it an historic victory for American workers, families, and farmers. It eliminates taxes on tips and overtime, delivers permanent tax relief for small businesses and working families, and expands critical support for American agriculture.
* AP | Rural hospitals brace for financial hits or even closure under Republicans’ $1 trillion Medicaid cut: “Our budget is pretty heavily reliant on the Medicaid reimbursement, so if we do see a cut of that, it’ll be difficult to keep the doors open,” said Sherman, who works at Webster County Community Hospital in the small Nebraska town of Red Cloud just north of the Kansas border. If those facilities close, many locals would see their five-minute trip to Webster County hospital turn into a nearly hour-long ride to the nearest hospital offering the same services.
* Talking Points Memo | Congress Throws More Money at Removing Immigrants than Most Countries Spend on Their Armies: It’s hard to convey just how big the new budget makes the country’s immigration enforcement infrastructure. The Bureau of Prisons? Bigger than that. The FBI? Bigger. The Marine Corps? Bigger even than that, by some estimates. All in all, the bill directs around $170 billion through 2029 to various forms of immigration enforcement, according to an analysis by the American Immigration Council and TPM’s own read of the legislation. ICE, responsible for enforcement, detentions, and removals, will oversee much of the spending.
* KFF Health News | GOP governors stay silent amid plans to slash Medicaid spending in their states: KFF Health News contacted all 19 governors for comment on the legislation’s Medicaid cuts. Only six responded. Most said they backed imposing a work requirement on adult Medicaid enrollees. “Implementing work requirements for able-bodied adults is a good and necessary reform so that Medicaid is being used for temporary assistance and not a permanent entitlement,” said Drew Galang, a spokesperson for Gov. Patrick Morrisey of West Virginia.
* Disability Scoop | Congress Approves Nearly $1 Trillion In Cuts To Medicaid Threatening Disability Services: The Medicaid cuts will take effect at the end of 2026 and roll out over 10 years, according to the American Association of People with Disabilities. “This is a devastating day for disabled Americans,” said Maria Town, the group’s president and CEO. “The catastrophic effects of this bill will reverberate for generations to come.” While the measure does not explicitly include changes to disability services, advocates have been warning for months that there is no way to insulate people with disabilities if the federal government chops its investment in Medicaid.
* Chalkbeat | How Trump’s sweeping tax and domestic policy bill will affect children and schools: “When you take it all together it’s kind of like an assault on children and families policy-wise,” said Megan Curran, the director of policy at the Center on Poverty and Social Policy at Columbia University. “We’re going to see that the effects reverberate well beyond what we’re even understanding” right now, she said, “and schools are going to be on the front lines.” The nearly 900-page bill also creates a new voucher-like program that will pay for private school scholarships — a major victory for school choice advocates who have successfully expanded similar programs in several states, but have previously failed to enact a nationwide version. States will be allowed to opt out.
* IPM | Illinois environmental advocates aim to strengthen ties with lawmakers, increase outreach amid federal policy changes: With recent federal rollbacks on environmental protections during the Trump administration, IEC has stated that it has had to rethink its advocacy strategies. Caldwell said a key focus of the organization is to strengthen its relationships with Republican and Democratic government officials. “Something new that we’re bringing in and beefing up is our federal presence in our state-to-federal work,” [Cate Caldwell, the senior policy manager for the Illinois Environmental Council, said.]“You know, [we are] continuing to relationship-build, continuing to advocate for the policies, continuing to listen to the residents and the people and the constituents that are actually being affected.”
* The Hill | Social Security no taxes message on Trump bill raises eyebrows: President Trump’s “big, beautiful bill” is sending mixed messages about whether most Americans are required to pay federal income taxes on their Social Security benefits. “It’s a mixed bag for seniors, because some seniors will get some tax relief; the cost of that, though, is borne by the entire Social Security system,” Alex Lawson, executive director of left-leaning advocacy organization Social Security Works, told USA Today.
* AP | What’s in the tax and spending bill that Trump has signed into law: It temporarily would add new tax deductions on tip, overtime and auto loans. There’s also a $6,000 deduction for older adults who earn no more than $75,000 a year, a nod to his pledge to end taxes on Social Security benefits. It would boost the $2,000 child tax credit to $2,200. Millions of families at lower income levels would not get the full credit.
