Carle Health announced it will discontinue its Health Alliance and FirstCarolinaCare health insurance plans, excluding Medicare Advantage, at the end of the year. The move will force all policyholders, including many University faculty, to choose an alternative plan.
“In recent years, the health insurance industry has changed dramatically, particularly for provider-owned insurers,” read a statement released by Carle Health. “Because of this, health plans, like Health Alliance and FirstCarolinaCare have struggled to achieve operational and financial efficiency.”
WCIA reported that 187,824 Health Alliance members will have to choose another insurer in the next year. Seven thousand of those affected are at the University.
The Daily Illini spoke with two McKinley Health Center faculty who explained the implications for policyholders at the University.
“Broadly speaking, health insurance is the safety net that allows people to go about and live their day with a little bit of stability, that if some major medical event happens, it’s not going to break their bank entirely,” said Nick Chancellor, associate director of program support services and student health insurance at McKinley.
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Brin Schuler, a staff physician at McKinley, is one of many faculty members currently enrolled in a Health Alliance insurance plan. Schuler was covered by Health Alliance when she suffered a stroke in 2018 and when she fought ovarian cancer.
“It was great,” Schuler said of her insurance plan. “There were literally no problems with it.”
The state of Illinois offers University employees seven health insurance plans to choose from, including Health Alliance. With Health Alliance no longer an option, Schuler and other University faculty must select a new policy by June 30.
“I’m sorry to see it go,” Schuler said. “I’ll have to pick a different (Health Maintenance Organization) or (Preferred Provider Organization) plan and go from there.”
Schuler also mentioned that at least one colleague on the insurance is concerned that they may have to go through the prior authorization process again to receive their medication.
“They are very worried about the plan being gone,” Schuler said.
Chancellor said he doesn’t anticipate a large impact on the student body. An estimated 30 University students formerly covered by Health Alliance are expected to switch to the University’s student health insurance. The student insurance plan is offered in partnership with UnitedHealthcare.
These changes could also affect the greater Champaign-Urbana community. Chancellor said he worries for small businesses that currently provide their employees with a Health Alliance policy and will now have to choose a different plan that could be more expensive.
Chancellor offered advice to those in search of a new health insurance plan.
“Don’t sit back and wait,” Chancellor said. “At least start looking at what your company offered before. At least start talking to your friends about comparable plans you hear of in the area. The more questions you can ask … the more conversation you can have, the better off you’re going to be.”
