Attention Central Illinois ACA Marketplace customers: a major change is coming to your health insurance options. Health Alliance, a leading regional insurer, has announced that it will discontinue all Affordable Care Act (ACA) individual and group plans at the end of 2025. This means that if you’re currently enrolled in a Health Alliance plan through the marketplace, your plan will not be available in 2026. Below, we’ll explain what this announcement means, who is affected, and what you need to do to maintain continuous health coverage. We’ll also highlight how working with a five-star independent agency like HCIP Insurance Services can make navigating the upcoming 2026 open enrollment period simple and stress-free.
Health Alliance’s 2025 Discontinuation Announcement
On February 25, 2025, Carle Health (the parent company of Health Alliance) announced a significant change: effective January 1, 2026, Health Alliance will cease operating all lines of business except Medicare Advantage. In plain terms, Health Alliance will not offer individual ACA marketplace plans or employer group health plans after December 31, 2025. They will focus only on Medicare Advantage plans going forward.
This decision was not made lightly. Health Alliance has been serving Illinois communities since 1980 and is the largest health insurer in downstate Illinois. However, due to financial pressures and industry changes, the company determined it cannot continue its ACA and employer plans beyond 2025. Throughout 2025, your current Health Alliance coverage will continue as normal, and the company will still pay claims and honor its commitments for the rest of this year. But starting in 2026, those plans will no longer exist. It’s important to understand how this affects you if you rely on a Health Alliance plan for your health coverage.
Who Is Affected by the Change?
The discontinuation of Health Alliance’s ACA plans will affect thousands of individuals and families in Central Illinois and beyond who currently get their insurance through Health Alliance on the ACA marketplace. If you purchased your 2024 or 2025 health insurance plan on Healthcare.gov (the Illinois ACA Marketplace) and your plan is through Health Alliance, you are among those impacted. This includes many residents in Champaign-Urbana, Bloomington-Normal, Peoria, Springfield, and surrounding Central Illinois communities who chose Health Alliance for its local provider network and reputable coverage.
In addition, some small businesses or employer groups that provided Health Alliance coverage to their employees will be affected, as those group plans are also ending. Essentially, anyone not on a Medicare Advantage plan with Health Alliance will need to find a new insurance carrier for 2026. Health Alliance and regulators will be sending notices to all affected members explaining that your plan will terminate on December 31, 2025. It’s crucial not to ignore these notices. Even if you don’t get a letter right away, this change applies to all Health Alliance individual marketplace plans in Illinois.
What Marketplace Customers Need to Do Next
If you’re a Health Alliance marketplace customer, you will need to take action during the 2026 Open Enrollment period to ensure you stay covered on January 1, 2026. Here are the key steps to follow:
- Mark Your Calendar for Open Enrollment: The Open Enrollment period for 2026 coverage will start November 1, 2025 and run through mid-December 2025 (exact end dates will be announced, but traditionally Open Enrollment ends December 15th). This is the window when you can sign up for a new health plan for coverage effective in 2026
- Review Your Current Coverage Needs: Take stock of your healthcare needs and budget. Has anything changed in your health or family situation? Knowing what doctors, hospitals, and medications you need coverage for will help in choosing a new plan.
- Explore Alternative Insurance Carriers: Since Health Alliance will not be an option, you’ll want to look at other insurance companies available on the Illinois Marketplace for Central Illinois. Options may include Blue Cross Blue Shield of Illinois, Molina Healthcare, Ambetter, Oscar, or others, depending on your county. Each insurer has different networks and pricing, so compare carefully.
- Update Your Marketplace Application: When Open Enrollment begins, log in to your Healthcare.gov (Get Covered Illinois) account and update your application for 2026. This ensures your subsidy information is up to date. Do not let your Health Alliance plan auto-renew (it won’t be available, so auto-renewal would likely fail or place you in a placeholder plan that may not be ideal). You must actively choose a new plan.
- Enroll in a New Plan by the Deadline: Select a new ACA health plan for 2026 before the Open Enrollment period ends to guarantee you have coverage starting January 1, 2026. If you miss the deadline, you could have a gap in coverage, so it’s important to act during Open Enrollment.
Taking these steps will help you smoothly transition to a new health insurance plan for 2026. However, we understand that sorting through plan options can be overwhelming – especially with a major change like this. That’s where expert guidance can make a big difference.
Why Work With an Independent Insurance Agency Like HCIP Insurance Services
Choosing a health plan is a big decision, and with Health Alliance exiting the market, Central Illinois consumers will have an array of new options to consider. Working with an independent insurance agency such as HCIP Insurance Services can simplify this process and ensure you find the best possible plan for your needs. Here are some of the benefits of partnering with HCIP during this transition:
- Expertise and Experience: HCIP Insurance Services is an experienced team of licensed agents specializing in health insurance and ACA marketplace plans. In fact, HCIP has over 10 years of experience in the health insurance industry, helping more than 1,000 individuals and families each year. Their experts stay up-to-date on Illinois marketplace changes, carrier offerings, and subsidy rules, so you get informed advice tailored to the latest 2026 plan information.
- Unbiased Guidance Across Multiple Carriers: As a truly independent brokerage, HCIP isn’t tied to any one insurance company. They can show you all of your options side-by-side. Whether it’s Blue Cross, Ambetter, Molina, or another carrier, HCIP will compare plans from the top-rated insurers available in Central Illinois. This unbiased approach means you’ll find the plan that best fits your doctors, prescriptions, and budget – not just whatever one company offers.
- Personalized Service and Advocacy: When you work with HCIP, you’re not on your own. HCIP acts as your health insurance advocate, even after you’ve enrolled in a new plan. Their team is known for excellent customer service and integrity, treating clients like family. If you have questions or issues down the road (for example, understanding benefits or handling an insurance billing problem), HCIP will help liaise with the insurance company on your behalf. They are committed to making sure you’re taken care of 24/7 – with support via phone, email, and online chat whenever you need it.
- Trusted Reputation: HCIP Insurance Services has built a trusted reputation in the Central Illinois community for doing things the right way. They were founded in 2015 with a mission to provide an insurance agency that people can trust, and they’ve lived up to that mission. HCIP is proud to have earned a 5-star rating on Google reviews from satisfied clients. Many customers praise HCIP’s honesty, responsiveness, and ability to find affordable coverage. When you’re facing a big change like losing your current plan, it’s comforting to have a trusted local expert guiding you through the process.
- Simplified Enrollment Process: HCIP makes the enrollment process easy. They’ll help you navigate Healthcare.gov or the Illinois enrollment platform step-by-step. From checking if you qualify for financial assistance to submitting your application, their knowledgeable staff ensures nothing falls through the cracks. With their assistance, you can confidently choose a new 2026 plan without the usual stress. Essentially, HCIP does the heavy lifting for you, so you can focus on your health and peace of mind.
By leveraging HCIP’s expertise and support, you can avoid common pitfalls and feel secure that you’ve made the best choice for your 2026 health coverage. This kind of guidance is especially valuable now, given the unusual situation of a major insurer exiting the marketplace. HCIP has helped many clients navigate plan changes in the past, and they are ready to help you seamlessly transition from your Health Alliance plan to a new insurer for 2026.
Don’t Wait – Start Planning Now for 2026 Coverage
Although your Health Alliance plan remains in effect through the end of 2025, it’s wise to start planning early for what’s next. Open Enrollment will be here before we know it, and the earlier you explore your options, the better prepared you’ll be. Take advantage of the resources and support available to you. Remember, doing nothing is not an option if you want to stay covered – you will need a new plan for 2026, and HCIP Insurance Services is here to help every step of the way.
Get Ahead of the Change – Connect with an HCIP Agent Today
Although Open Enrollment for 2026 coverage is still months away, now is the perfect time to get ahead of the change. With Health Alliance exiting the ACA marketplace after 2025, thousands of Central Illinois residents will need to select a new plan—and waiting until the last minute could lead to unnecessary stress.
By connecting with HCIP Insurance Services early in the year, you can:
✅ Understand your options well before Open Enrollment begins
✅ Get expert insights into which carriers and plans may be the best fit for you in 2026
✅ Receive reminders and personalized updates as new plan details become available
✅ Be first in line for assistance when it’s time to enroll in a new plan
Our licensed independent agents are here to answer your questions, guide you through the transition, and ensure you’re fully prepared when it’s time to enroll. Let’s make this change as smooth as possible for you!
📅 Stay ahead—schedule a consultation today!
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📧 Have questions? Email brett@hcipinsurance.com, and we’ll be happy to assist you.
Don’t wait until Open Enrollment—start planning now for a smooth transition into 2026!