On Tuesday, Governor JB Pritzker was joined by state and local officials as he signed legislation authorizing a new state-based marketplace (SBM) for Illinois, which gives state agencies additional tools to create a more consumer-focused health insurance exchange and better identify traditionally uninsured communities. The Governor also signed a rate review legislation, which will protect health insurance consumers from unfair rate hikes. The Illinois Department of Insurance (DOI) and the Department of Healthcare and Family Services (DHFS) will work together to implement the new legislation and coordinate with all state medical assistance programs. Illinois residents currently access the Affordable Care Act (ACA) Marketplace using the federal platform which the state pays a fee to use. This legislation (HB 579) will transition Illinois to a state platform, redirecting that fee to Illinois to fund the new SBM. The full state-based marketplace goes live for plan year 2026, and consumers will start enrolling via the Illinois platform during the ACA Marketplace Open Enrollment Period beginning November 1, 2025. For the first time, insurance companies will have to provide specific information about how they set their rates and the DOI will have the authority to approve, modify, or disapprove health premium rates that it determines to be unreasonable or inadequate in the individual and small group market. During the phased-in transition, Illinois will gradually take over additional responsibilities for the state-based marketplace from federal CMS.