SPRINGFIELD — Disability insurance helps protect people from financial losses if an accident or illness renders them incapable of working and receiving regular income. However, disability insurance plans do not always treat mental health conditions the same as physical health conditions. To help those struggling with mental health conditions, State Senator Mattie Hunter passed a bill in the Senate that would ensure insurance providers properly disclose mental illness limitations for disability insurance purposes.
“Mental illness limitations for disability insurance purposes is discriminatory and unfairly limits the economic protection that disability insurance is intended to promise,” said Hunter (D-Chicago). “Insurance providers need to be upfront with their customers about how their policy treats mental health disorders.”
Hunter’s bill would require private health insurers to disclose to consumers seeking a policy that includes whether the policy limits the duration of coverage for mental health or substance use disorders. The bill would also give consumers the right to request more information about the limitation and other coverage options that include unlimited duration, if available.
The Department of Insurance found that 68% of disability insurance plans offered in Illinois limit mental health and substance use disorder benefits.
Senate Bill 1327 passed the full Senate Thursday.
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