Illinois appeals panel puts insurance changes on hold

August 4, 2011

The Associated Press

(AP/Seth Perlman)
Illinois had awarded new health insurance contracts for employees that were to begin July 1.

Gov. Pat Quinn's administration has been ordered to wait a while longer before making sweeping changes to state employees' health insurance plans.

An appeals court has ruled that the state of Illinois must wait for a lawsuit over the changes to make its way through the courts before moving forward.

Illinois had awarded new health insurance contracts for employees that were to begin July 1.

But a lower court judge placed a stay on the new contracts as part of a lawsuit filed by providers who are upset they weren't chosen by the state.

The decision handed down Wednesday upholds the lower court ruling.

State employees are currently covered by temporary contracts that expire Sept. 28. Legislators say those contracts will likely have to be extended.