Illinois HIPAA Health Insurance Plans – What You Need to Know About the IL HIPAA Regulations

Illinois HIPAA Health Insurance Plans – What You Need to Know About the IL HIPAA Regulations


The Illinois HIPAA health insurance laws are designed to protect the health care rights of all Illinois residents and prevent “job lock“. If one is eligible for an IL HIPAA health insurance plan then the plan will be issued on a guaranteed issue basis and all pre-existing conditions will be covered immediately from day one.

The state of Illinois is one of the most important ones in the whole continental United States. It is home to 12,831,970 people and its population has increased by 3.3% since the year 2000. All this changes have led to regulation from the Federal Government, specifically Health care regulations. The state of Illinois like many others, offers low cost health insurance for many people, however there are many more that cannot be covered because they are non eligible or they simply think that the type of state funded care is not comparable to one that they can buy by them.

In August 26, 1996 the Federal government passed the Health Insurance Portability and Accountability Act (HIPAA) that changed the health care insurance company world drastically. The act calls for insurance companies to improve efficiency in the health care system delivery by standardizing electronic data interchange and to protect confidentiality and security of health care data through setting and enforcing standards.

While one of the most important aspects of the HIPAA laws to remember if you are an Illinois resident looking for health insurance (or really a resident of any of the 50 states since is a Federal law) is that HIPAA allows for guaranteed issue coverage if one meets certain criteria. Speak with a qualified health insurance agent or financial planner for more details on the specific HIPAA requirements.

Complying with all requirements of this law will require providers and all entities within the health care industry to make significant changes to their computer information systems, business practices and procedures. If companies did not comply with the regulations they would be subject to heavy fines up to $25,000 a year! The deadlines for this law were divided into the electronic standards (October 26, 2002) and the privacy standards (April 14, 2003).

Within the state of Illinois the same provisions under federal law apply. The state of Illinois published new rules that would ensure standardization of electronic patient health, administrative and financial data, and unique health identifiers for individuals, employers, health plans and health care providers, and protecting security standards for individual’s intimate information. The HIPAA’s regulations can be viewed as an “administrative simplification” which is composed of four parts.