Ellman bill protects access to health coverage, prevents denials over past-due premiums

SPRINGFIELD - With nearly one in 10 Americans lacking health insurance coverage according to the U.S. Census Bureau, State Senator Laura Ellman is working to advance legislation to ensure Illinois residents are not locked out of coverage due to past-due premium payments.

"Health care coverage shouldn't be out of reach for someone simply because they've fallen behind on a previous payment," said Ellman. "This legislation is about protecting access to care and making sure families can get insured when they need it most."

Senate Bill 3815 would prohibit health insurance companies from denying new coverage to individuals or employers solely because they owe premiums from a previous policy. The measure maintains that insurers may still pursue collection of unpaid balances, but ensures that outstanding debt does not act as a barrier to accessing care.

Additionally the bill aims to restore consumer protections at the state level by ensuring Illinoisans can obtain new coverage without first resolving prior debt, while still holding individuals accountable for unpaid premiums through standard collection processes.

The measure does not apply to grandfathered health plans, those established prior to the Affordable Care Act's enactment in 2010, which are exempt from certain federal requirements and are no longer available for purchase.

"Unexpected financial hardship can happen to anyone, especially when many are living paycheck to paycheck," Ellman added. "We should not be creating additional barriers that prevent people from accessing essential health care."

Senate Bill 3815 passed the Senate Insurance Committee on Tuesday and heads to the full Senate for further consideration.