The Local Government Health Plan (LGHP) is a self-insured employee health, prescription drug, dental and vision benefit program funded solely by participating units. This program provides insurance benefits for local government units, such as cities, towns, villages and townships; entities that have the ability to tax or receive moneys from the State of Illinois, such as park districts, housing authorities, water districts, schools; and entities allowed by statute, such as rehabilitation facilities, domestic violence shelters and child advocacy centers. The LGHP allows participating units to take advantage of economies of scale and is administered by the Department of Central Management Services.
The program benefits are similar to the State of Illinois employee benefit plans. Enrollment in LGHP offers participating units the ability to stabilize rates, pool risks and contain costs by utilizing common administrative systems. Premiums are deposited into the Local Government Health Insurance Reserve Fund from which all claims are paid. There are no state funds involved. The fund is fiscally sound.
Interested units submit demographic data from which a premium rate tier is assigned. New rates are developed at the beginning of each fiscal year. Units are required to sign up to 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 unit must agree to enroll 100 percent of their active full-time employee population. However, up to 50 percent may then elect to waive coverage and premium at the unit’s discretion. Units have the option of allowing enrollment of dependents, annuitants, part-time employees, elected officials and COBRA participants. There may be restrictions on these optional enrollments.
LGHP allows each individual member to select from the Local Care Health Plan or from a variety of managed care plans available in their geographic area. The dental and vision plans are provided to all members regardless of the health plan selected.
To receive a Local Government Health Plan rate quote, please complete the Rate Tier Survey [PDF, 200 KB] and mail to the address listed on the form or fax it to 217-524-7541.
For more information regarding Local Government health, dental and vision benefits, please go to www.benefitschoice.il.gov.
For further information contact:
- Diann Reed, Mgr.
Local Government Health Plan
Department of Central Management Services
801 S. 7th Street
Springfield, Illinois 62703