Local Government Health Plan

The Local Government Health Plan (LGHP) is a self-insured employee health, prescription drug, dental and vision benefit program funded solely by participating units of local government. To qualify for the program, the local government unit must have been created by statute or have the ability to tax. This program allows individual local governments to take advantage of economies of scale and is administered by the Department of Central Management Services.

The program benefits parallel the State of Illinois employee benefit plans. Enrollment in LGHP offers local governments the ability to stabilize rates, pool risks and contain costs by utilizing common administrative systems and limited benefit flexibility. Premiums are deposited into the Local Government Health Insurance Reserve Fund from which all claims are paid. There are no state funds involved and the state cannot access the money in this fund. The fund is fiscally sound and claims are paid promptly by the contracted administrators.

Interested units submit demographic data from which an initial premium rate tier is assigned. New rates are developed at the beginning of each fiscal year. Local governments are required to sign a two year commitment agreement. Coverage can begin the first of any month, and all initial enrollees are covered from the first day with no pre-existing condition waiting period.

The local government must agree to enroll 100 percent of their active full-time employee population. However, up to 15 percent may then elect to waive coverage and premium at the local government’s discretion. Local governments have the option of allowing enrollment of dependents, retirees, part-time employees, elected officials and COBRA participants. There may be some restrictions on these optional enrollments.

LGHP allows each individual member to select from the indemnity health plan or from a variety of HMO’s (health maintenance organizations) available in their geographic area. Some units in central Illinois can select a point of service plan as well. The dental and vision plans are provided to all members regardless of the health plan selected.

To receive a Local Government Health Plan rate quote, please complete the Rate Tier Survey [PDF, 11 KB] and mail to the address listed on the form or fax it to 217-524-7541.

Benefit Plans

For more information regarding Local Government health, dental and vision benefits, please go to www.benefitschoice.il.gov.

For further information contact:

Department of Central Management Services
Bureau of Benefits
201 E. Madison
Springfield, Illinois 62702
(217) 524-1227