Medical Debt Relief
Effective January 2025
Illinois Gov. J.B. Pritzker signed the Medical Debt Relief Act in July, enabling the state to purchase medical debt from hospitals, healthcare providers, and collection agencies. This will then erase medical debt for an estimated 300,000 residents. The Department of Healthcare and Family Services will run the pilot program. It is available to low-income households 400% below the federal poverty level or those whose medical debt costs exceeds 5% of their annual household income.
Maternal Health Coverage
Effective January 2026, with doula service coverage beginning January 2025
The new Birth Equity Act will require health insurers in Illinois to cover a range of maternal health services, from abortion care to doulas, midwives, and lactation consultants. As states surrounding Illinois enact abortion bans (Indiana, Iowa, Kentucky, and Missouri), this new law ensures Illinois will continue to safeguard maternal healthcare. State leaders also hope that by recognizing doulas, midwives, and lactation consultants as healthcare providers, the coverage for these types of maternal care will decrease the maternal death gap.
Mental Health Claim Denials
Effective January 2025
In a move to protect consumers, the Biden administration announced in September that it will hold insurance companies accountable for denying mental health care coverage. If an insurer denies mental health claims, they must provide more data on their reason for limiting their coverage. Under the new rules, patients have the right to view the insurance company’s records within 30 days of making a request. The new rules update the 2008 Mental Health Parity and Addiction Equity Act, which ensures equal access to mental health care as medical care. They impact the 175 million people in the U.S. enrolled in private health insurance plans.
Originally published in the Fall 2024/Winter 2025 print issue.
An award-winning journalist, Katie has written for Chicago Health since 2016 and currently serves as Editor-in-Chief.
