Are you insured by Health Alliance? It may be time to start perusing the market for next year.
One of Illinois’ insurance providers, Carle Health announced on Feb. 25 its plan to close down the majority of its health plans. The end of coverage will take effect at the end of the year, leaving thousands without coverage.
Throughout the remainder of 2025, the health plans will maintain operations to support claims processing and meet ongoing business needs, regulatory mandates and contractual obligations. Membership information will continue to be available through the Hally/MyChart member platform beyond the end of the year.
Based in the Ubrana-Champaign area, Carle Health said Health Alliance and sister company FirstCarolinaCare are ceasing operations at the start of next year due to financial struggles competing with other for-profit health insurance companies.
“In recent years, the health insurance industry has changed dramatically, particularly for provider-owned insurers,” Carle Health said on Feb. 25 announcing the planned closures. “Medical inflation, rising prescription drug costs, increased utilization of healthcare services, higher volumes of chronic medical conditions, coupled with an increased demand for technology and broad networks have placed considerable financial strain on those organizations.”
First reported by Times News Global, 187,000 policy holders will lose insurance coverage with the change of the new year. In Illinois, Health Alliance offers individual and employer group plans, individual and group Medicare Advantage plans and Medicare Supplement plans.
Carle Health’s Health Alliance employs over 600 employees, which received communication from the company about transitioning to other positions within the company.
State Senator Chapin Rose, R-Mahomet, expressed his sadness and shock to learn of the end of operation for the affected employees and the tens of thousands of locals who rely on Health Alliance.
“My office will stand by to try and help in any way we can in job training and recruitment efforts for the impacted employees,” Sen. Rose said. “Continuity of care and access to trusted physicians must be the priority as thousands of local members will now be forced to find a new insurance carrier.”
Sen. Rose said his team has already connected with the Central Management Services director for group health insurance to see what healthcare options will be available next May enrollment cycle for the families affected.
Health Alliance insurance plans first launched in 1980, as CarleCare HMO. It changed its name to Health Alliance in 1989 and it was reorganized as a for-profit insurance company owned by Carle Clinic.
Health Alliance is the largest healthcare provider in downstate Illinois.
Almost 250,000 people are insurance through the company in Champaign; FirstCarolinaCare in North Carolina will process claims until the end of the year.
Claire Grant writes about business, growth and development and other news topics for The State Journal-Register. She can be reached at CLGrant@gannett.com; and on X (Formerly known as Twitter): @Claire_Granted
Source: Illinois health insurance provider ending coverage for hundreds of thousands of patients
