The Year in Review
Applications and Enrollment Expansion
The number of applications for enrollment in CHIP during 2010 increased dramatically,
particularly in the HIPAA pool. In 2009, applications averaged 531 a month; in 2010 the monthly
average increased by 42%, to 752. Reflecting the expanded application activity, total enrollment at
the end of the year increased by 12.5% from 16,085 in 2009 to 18,098 in 2010.
The HIPAA pool accounted for most of the surge in applications and enrollment, probably
because of the economic recession and resultant expiration of COBRA coverage. At year-end,
applications increased by 1,974 (43%) from 4,559 in 2009 to 6,533 in 2010, with enrollment expand-ing
by 1,996 (17%) from 11,520 in 2009 to 13,516 in 2010. By contrast, at year-end, applications for
the Traditional pool increased by 680 (37%) from 1,819 in 2009 to 2,499 in 2010, with enrollment ex-panding
by only 17 (.4%) from 4,565 in 2009 to 4,582 in 2010.
New Contracts
To save money and to improve the efficiency of the plan’s operation, the CHIP Board decided
in 2010 to rebid its pharmacy benefit manager (PBM) and actuarial services contracts. In 2006 the
Board had awarded the PBM contract to Walgreens Health Initiatives (WHI), which served as PBM
for four years from 2007 through 2010. With the State in the midst of a severe fiscal crisis, and with
CHIP’s prescription drug consultant estimating that the plan could save approximately $6 million
under a new contract, the CHIP Board voted in March 2010 to rebid its PBM contract. It awarded
the contract in August 2010 to Catalyst RX, which succeeded WHI as PBM on 1 January 2011.
Hause Actuarial Solutions had provided actuarial services to CHIP since March 2008 and,
following a rebidding of the actuarial contract in 2010, was replaced as consulting actuary in March
2011 by Magnum Actuarial Group.
National Healthcare Reform
The State of Illinois has operated CHIP for more than 20 years. Passage of the Affordable
Care Act (ACA) on March 23, 2010 has had minimal effect on CHIP operations. The ACA does not
affect the premium rates or benefits that the CHIP Board is required by law to provide for CHIP en-rollees.
The CHIP Board of Directors remain committed to operating CHIP in a responsible and fis-cally
prudent manner and to provide the best possible services to current and potential CHIP enrol-lees.
CHIP has provided technical support and expertise in the State’s implementation and estab-lishment
of the federally funded temporary high risk pool (referred to as the PCIP) also known as Illi-nois
Preexisting Condition Insurance Plan (IPXP). Since PCIPs have limited funding, enrollment cri-teria
were established for IPXP. CHIP enrollees were cautioned not to disenroll from CHIP in order
to be eligible for the IPXP since they would not be eligible to join until they have been uninsured for
six months, and if the demand exceeds funding, then the enrollment will be closed. Illinois law pro-hibits
participants who voluntarily disenroll from CHIP from reenrolling for 12 months following disen-rollment
unless they qualify as a HIPAA eligible individual.
2
