Illinois Democrats are pushing a bill that federal regulators have already flagged as illegal — and ordinary Illinois insurance customers could end up paying the price.

House Bill 5408 would force insurance companies to hand over funds held in segregated accounts under the Affordable Care Act to a new state-run Abortion Access Fund. The problem? The federal Centers for Medicare & Medicaid Services issued guidance in December 2025 explicitly warning that this approach "exceeds the permissible uses of the segregated funds" under federal law. Illinois lawmakers are moving forward anyway.

When states defy federal regulations, the consequences are real — legal battles, compliance failures, and disruption to the insurance market that ultimately affects policyholders. The Illinois Life & Health Insurance Council, which represents the industry, has said plainly that this bill "is not workable" and creates serious legal and operational risk.

There is also a deeper concern about consent. Under the ACA, insurance enrollees contribute at least one dollar per month into these accounts as a condition of their plan. Most have no idea this money exists — and under HB 5408, the state would redirect it into a grant program without any meaningful transparency or input from the people whose premiums funded it. That's not how government should work.

Illinois residents deserve a healthcare system that operates within the law and spends their money responsibly. Passing a bill that federal regulators have already warned is legally dubious is not protecting anyone — it's creating a crisis waiting to happen.

We're calling on the Illinois General Assembly to reject HB 5408 and find solutions to healthcare access that don't put the state on a collision course with federal law.

Sign this petition: protect Illinois from legal overreach. Vote no on HB 5408.