The program benefits parallel the State of Illinois employee benefit plans. Enrollment in LGHP offers local governments the ability to stabilize rates, pool risks and contain costs by utilizing common administrative systems and limited benefit flexibility. Premiums are deposited into the Local Government Health Insurance Reserve Fund from which all claims are paid. There are no state funds involved and the state cannot access the money in this fund. The fund is fiscally sound and claims are paid promptly by the contracted administrators.
Interested units submit demographic data from which an initial premium rate tier is assigned.
New rates are developed at the beginning of each fiscal year. Local governments are required to sign a two year commitment agreement. Coverage can begin the first of any month, and all initial enrollees are covered from the first day with no pre-existing condition waiting period. The local government must agree to enroll 100 percent of their active full-time employee population. However, up to 15 percent may then elect to waive coverage and premium at the local government s discretion.