The Carle/Health Alliance administrative center is shown on Fields South Drive at Carle at the Fields.
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CHAMPAIGN — After 45 years in business, Carle Health’s for-profit insurance company will shut down almost all of its health plans by Jan. 1, 2026.
As of that date, “our health plans will cease operating all lines of business except for Medicare Advantage,” Health Alliance said in an email to brokers that was obtained Tuesday by The News-Gazette.
“As a leader in healthcare, Carle Health has an obligation to set the standard for excellence,” the company announced in the letter. “We continually evaluate and expand on successful components of our organization while addressing areas that may fall short. Every action and strategy we pursue is rooted in our mission to be a trusted partner in healthcare decisions, ensuring we effectively utilize our resources to best serve our patients, families and communities.”
Per the email announcement, currently insured large group, small group, self-funded, balance or Medicare Supplement (group or individual) customers that have already renewed their plans in 2025 will see their coverage end on Dec. 31, 2025 without an opportunity to renew, “regardless of any other dates listed within Health Alliance/FirstCarolinaCare group contracts or any prior communication.”
Insured large group and small group customers who have yet to renew this year will have the opportunity to do so, with the caveat that all coverage will end on Dec. 31.
“All existing Self-Funded and Balance groups will end without the opportunity for renewal on the earliest of the day prior to their scheduled 2025 renewal date or December 31, 2025,” the company said. “All outstanding Self-Funded and Balance renewal proposals for effective dates on or after April 1, 2025 are withdrawn. These groups will not be offered a renewal.”
Health Alliance, which is based in Champaign, touts itself the largest health insurer based in downstate Illinois and serves other states as well. According to its website, the company was originally established as CarleCare HMO in 1980 and later reorganized as a for-profit insurance company in 1989.
Health Alliance has over 240,000 members and over 600 employees.
The company said that it will continue to provide “a high level of service” to customers through the end of 2025.
This is a developing story.