Illinois lawmakers introduced House Bill 35, which aims to regulate how artificial intelligence (AI) is used by health insurance companies when making decisions about coverage approvals, claims, and treatment authorizations. The proposed law comes amid growing concerns that algorithm-based decision-making could lead to unfair or opaque denials of care.

For many Illinois families, the last few years have been a rollercoaster of coverage options, premium shifts, and political whiplash. In the wake of the pandemic, expanded ACA subsidies, Medicaid protections, and easier enrollment rules made health insurance feel, for once, more accessible and affordable. But as 2025 came to a close, that stability began to shake.

Health Alliance Medical Plans, a significant health insurance provider in central and southern Illinois, announced substantial layoffs and eventual closure due to competitive pressures and rising healthcare costs. Owned by Carle Health, Health Alliance served hundreds of thousands of residents, significantly impacting healthcare coverage in the region.

Illinois announced significant reductions in its Medicaid budget, sparking concerns among healthcare providers, nonprofit leaders, and advocates for vulnerable populations. The cuts come amid broader state budget constraints and have the potential to impact services for millions of low-income residents who rely on Medicaid for essential healthcare.