Health Alliance Medicare Advantage plans set to end, impact over 33K people
CENTRAL ILLINOIS (WCIA) — Three months ago, Carle Health announced that its healthcare plans through Health Alliance will end by the end of the year. Now, the health system says Health Alliance Medicare Advantage plans will end by Dec. 31, 2025 as well.
Carle Health said coverage for current Medicare Advantage members will remain unchanged through the end of the year.
Insurance expert breaks down implications of Health Alliance's discontinued services
'This decision reflects the challenges facing provider-owned health plans in the current insurance and economic environment,' Carle Health said in a news release.
Medicare Advantage replaces Original Medicare. It's sold and managed by private insurance companies. People who qualify for Medicare include people 65 or older, or those with a disability, End-Stage Renal Disease (permanent kidney failure requiring dialysis or a transplant), or ALS (also called Lou Gehrig's disease), according to the Department of Health and Human Services.
Carle Health previously said Medicare Advantage would continue. But, after they 'concluded their comprehensive strategic and financial analysis,' that decision changed. The decision impacts 33,332 Medicare Advantage members, according to Carle Health.
'Our decision to exit the insurance market comes at a time when market dynamics and plan designs have made it increasingly difficult for provider-owned health plans to remain sustainable,' James C. Leonard, MD, Carle Health president and chief executive officer, said. 'We're proud of the service our health plans have delivered for decades, and especially proud to have connected people to the care they've trusted through every stage of life. That legacy continues as Carle Health focuses our efforts on delivering exceptional care and positioning Carle Health for long-term strength and impact.'
Carle layoffs set to begin in July on 'rolling basis' in Champaign
WCIA has reached out to Carle Health to find out what services or help Carle Health plans to provide Medicare Advantage users when it's time for them to choose a new coverage option.
The health system said they maintain relationships with other Medicare Advantage plans. And, when it's time to explore new coverage options, Carle said they will provide resources to help.
'For Carle Health patients wishing to stay connected to their care teams, we will be providing helpful enrollment information during the Annual Election Period at ChooseCarleHealth.org. We are focused on a thoughtful and supportive transition for our members,' Carle Health said.
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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