Health Alliance to Close, Leaving 187,000 Insured in Search of Coverage

CHAMPAIGN, Ill. — Health Alliance, a provider-owned health plan in Illinois, will cease operations by the end of the year as it struggles against larger competitors in the insurance market. This closure affects approximately 187,000 policyholders who will need to find new insurance options.

Dr. Jim Leonard, president and CEO of Carle Health, which owns Health Alliance, announced the decision during a news conference. “The insurance business has become incredibly difficult,” he stated. “The bigger you are, the more leverage you have. In the last five years, we’ve had a lot of difficulty making it because we’re too small.”

In addition to the 187,000 affected, the fate of another 45,000 individuals enrolled in Health Alliance’s Medicare Advantage program remains uncertain. Leonard expressed that discussions regarding those members are ongoing.

Health Alliance has been in operation for nearly 50 years, marking its unique position as the only provider-owned health plan in Illinois. Leonard acknowledged the emotional toll the closure will have on many: “I understand that this is a very emotional decision for some people,” he remarked.

Carle Health is working closely to transition Health Alliance’s 600-plus employees to other positions within the organization. “We have lots of jobs,” Leonard assured. “It’s just a matter of lining people up in the right slot.”

For the past year, Carle has been trying to resolve the future of Health Alliance, but interest from potential buyers was minimal. Leonard noted that attempts to sustain the insurance business diverted resources from maintaining quality care. “This is a very difficult decision, one that’s been done to ensure the clinical enterprise is even stronger,” he explained.

As for the future of the insurance landscape in the region, Leonard did not name any specific companies that might step in to fill the void left by Health Alliance. However, he described the insurance marketplace as “dynamic” and indicated that any new entrants would likely incorporate Carle medical services within their offerings.

While the announcement prompts immediate concern for many policyholders, Leonard’s message focused on ensuring continuity of care and support for those affected by the transition.