Illinois'  top insurance regulator blasted the insurance industry yesterday and accused state lawmakers of dealing with insurers with kid gloves.

Mike McRaith, acting secretary of the Illinois Department of Financial and Professional Regulation, said legislators' lenient handling of the industry is an embarrassment. His department oversees insurance.

“There is nothing we should be more ashamed of, in my opinion, than the way we allow health insurance companies to operate in this state,” said McRaith, who spoke at a health care reform summit yesterday at downtown's Adler School of Professional Psychology.

McRaith said the General Assembly is banking on Washington to institute changes.

State Rep. Monique Davis (D-Chicago), chair of the state House Insurance Committee, disagrees with McRaith's assessment and says she plans to make sure consumers' interests are protected.

State Sen. William Haine (D-Alton), who chairs the state Senate's Insurance Committee, was not immediately available for comment.

McRaith’s harsh criticism dressed down the insurance industry in Illinois for making it difficult for the poor or people with pre-existing conditions to get coverage. More than 1.8 million people in the state lack health insurance. Most of those live in the Chicago area.

“To get health insurance in Illinois, you have to be healthy, wealthy or both,” he complained. “We need a situation where families are not denied access.”

Though he criticized the General Assembly, McRaith pointed out that some lawmakers are filing legislation to deal with insurance problems, including state Reps. Greg Harris and Mary Flowers, both Chicago Democrats.

David Munar, vice president for policy and communications for the AIDS Foundation of Chicago, spoke after McRaith, explaining possible changes in federal health care. He questioned the feasibility of President Barack Obama’s plan, which calls for the creation of a $634 billion reserve fund to reform health care.

The money would be generated over 10 years by cutting waste and making Medicare and Medicaid more efficient.

Munar said Chicago’s HIV/AIDS community must make its voice heard as lawmakers discuss changes to health care.

Dr. Tim Long, a physician at Near North Health Service and chief medical officer at Alliance of Chicago, a community health network, said HIV/AIDS cases in Chicago are rising, furthering the need for comprehensive health care.

“HIV is continuing to increase in the number of patients we are seeing,” he said.