Illinois Medicaid Budget Cuts Would Hurt Illinois Economy, Study Says

(Springfield, IL) – Two health-care advocacy groups are predicting thousands of job losses and billions of dollars in economic damage to Illinois, if Gov. Pat Quinn’s plan to conjure $2.7 billion in savings from the Medicaid program is implemented.

Quinn’s plan would jeopardize 25,615 jobs and cost the state’s economy $3.2 billion, according to a report released Wednesday by the Illinois Hospital Association, which lobbies for Illinois hospitals, and the Campaign for Better Health Care, an organization that advocates for health-care access

“Drastic Medicaid cuts hurt everyone, not just the Medicaid patients. Hospitals will be forced to reduce jobs. Local businesses will be impacted,” Illinois Hospital Association President Maryjane Wurth said.

“And hospitals will be forced to cut or eliminate medical services that everyone uses — there is not a separate set of staff, equipment and facilities just for Medicaid patients.”

Quinn’s proposal reduces the amount Medicaid providers get paid by $675 million, accounting for 25 percent of the $2.7 billion in savings.

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Illinois Medicaid Spending to Increase 41% in 5 Years, Civic Federation Report Says

(Springfield, IL) – A new report released Monday from the Civic Federation, a Chicago-based nonpartisan policy group that focuses on state spending, predicts Illinois’ Medicaid costs will skyrocket over the next five years.

Laurence Msall, federation president, said lawmakers and governors have spent Illinois into a deep hole by expanding Medicaid, which provides health-care coverage to low-income families.

“What is most frightening is that even after the income tax, the state was not able to pass a budget to fully fund Medicaid,” Msall said, referring to a 67 percent personal income tax increase and a 48 percent corporate income tax increase in January 2011.

But even with that additional revenue, Illinois lawmakers still had to pay more than $1 billion in 2011 Medicaid bills.

The Civic Federation report paints a grim picture for Medicaid spending:

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Topinka Says State to Reap Nearly $100 Million from U.S. Government for Illinois Medicaid Bills

(Springfield, IL) – Illinois lawmakers on Wednesday approved a plan to delay a $365 million payment into Illinois’ rainy day fund, and instead use that money to pay some of the billions of dollars Illinois owes to Medicaid providers.

Comptroller Judy Baar Topinka said the state is racing to maximize a federal Medicaid match that expires at the end of the month. Illinois is getting 57 cents on the dollar for qualifying Medicaid bills that it pays this month. Starting in July, that rate falls back to the normal 50 cents on the dollar.

Maximizing the $365 million, Topinka said, should allow her to pay $1.85 billion in Medicaid bills by June 30. She estimates Illinois could receive an extra $90 million to $100 million from the federal government.

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As Other States Health Cut Care for the Poor, Gov. Pat Quinn Embraces Illinois Medicaid Reform, Patient Care Safeguards

(Springfield, IL) – States across the nation are ratcheting down Medicaid services and eligibility to hold down costs, but Illinois officials are standing by Medicaid reforms passed in January that Republicans claim just skim the surface.

The $14 billion state-federal program offers health insurance for mostly low-income children, pregnant women, parents with young children, senior citizens and the disabled. Chief among the reforms passed in January were a requirement to move 50 percent of the state’s 2.8 million Medicaid participants to a “medical home” within the next four years through “coordinated” or managed care, and to move residents from nursing homes and other institutional care into community-based settings.

Illinois Senate Republicans believe the state can do better than the $800 million in savings expected from the reforms during the next five years.

“That was a good step one,” said state Sen. Pam Althoff, R- Crystal Lake, who served on the Medicaid reform task force. “But there’s now a step two.”

Julie Hamos, director of the Illinois Department of Healthcare and Family Services, noted the reforms are intended to keep people healthy and thereby hold down costs.

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