In the past few months, it has become evident that Illinois vastly underestimated the number of newly eligible recipients who would sign up for Medicaid under the Affordable Care Act. However, the fiscal implications of the unexpectedly strong enrollment remain unclear. Governor Pat Quinn said on September 30, 2014 that 468,000 newly eligible individuals had enrolled in Illinois’ Medicaid program. The Governor made the announcement at an event marking the one-year anniversary on October 1 of…
Despite Illinois’ tight budget for the current fiscal year, the State enacted major Medicaid legislation featuring increased payments to nursing homes and hospitals. Public Act 98-0651 covers 231 pages and was the result of months of negotiations involving legislators, State officials and healthcare providers. The legislation was introduced as an amendment to an existing bill on May 26, 2014—the final week of the spring session. It cleared the House of Representatives on May 28, the Senate on…
The Illinois Supreme Court’s recent ruling on health insurance for State retirees is expected to increase State costs by approximately $128 million through FY2015, according to the Department of Central Management Services. Although litigation is ongoing, the high court’s decision apparently means the State will bear the cost of health insurance premium increases previously charged to retirees. Officials at the Department of Central Management Services (CMS) said that those premiums amounted…
More Illinois residents than originally projected are signing up for Medicaid as a result of the federal Affordable Care Act, but the long-term impact on the State budget remains unclear. Illinois officials had initially projected that 241,500 new recipients would sign up by the end of the current fiscal year on June 30, 2014. The current enrollment estimate for year-end FY2014 is 78.1% higher at 430,000. Medicaid is a joint federal-state program that pays for healthcare for certain categories…
UPDATE: On June 4, 2014, the State of Illinois filed its application for a $5 billion Medicaid plan with the federal government. Advocates for Medicaid recipients said they were told by State officials that there were no substantial changes from the version of the plan posted for public comment in February. Original post published on April 11, 2014 Despite a scheduled submission date of March 12, 2014, the State of Illinois has not yet filed an application to use more than $5 billion in new…
The State of Illinois hopes to receive approximately $3.25 billion in new federal Medicaid funding under a proposal to be submitted to the federal government in March. The estimated amount of new federal funding in the State’s comprehensive waiver proposal was discussed at a General Assembly hearing in Chicago on January 22. Consultants testified that the new funding would be based on State costs of $650 million a year that are not currently reimbursed by the federal government but that would…
The following posts were among the most highly read on the Institute for Illinois’ Fiscal Sustainability’s blog in 2013 and represent some of the most closely followed Illinois fiscal issues this year: Analysis of Pension Reform Proposal Shows Significant State Savings January 3, 2013 This blog examines a pension reform proposal introduced in the Illinois General Assembly late in 2012 by a bipartisan group of legislators. Actuarial reports showed that the proposal could immediately reduce…
On December 18, 2013, the Illinois General Assembly held its first hearing on the plan to apply for a federal waiver to overhaul the State’s Medicaid program. State officials plan to submit an application to the federal government by the middle of February 2014. A draft of the proposal—scheduled to be posted for comment on January 5—is likely to be delayed because of continuing work on the financial aspects of the plan, according to testimony at the joint hearing in Chicago of two House…
The State of Illinois plans to apply for a sweeping federal waiver to overhaul its Medicaid program, according to a draft concept paper issued on November 7, 2013. The waiver proposal, called Path to Transformation, covers all of the State’s Medicaid spending and all of the populations that are currently eligible or may be eligible under the federal Affordable Care Act. It would allow Illinois to test new approaches that do not conform to federal program rules and to receive federal funding to…
In a report released today, the Civic Federation supports Cook County’s proposed FY2014 operating budget of $3.2 billion, which holds the property tax levy relatively flat by reducing expenditures and aggressively pursuing new revenue for the Cook County Health and Hospitals System under the federal Affordable Care Act. “This budget shows admirable restraint and forward thinking from Board President Preckwinkle and her leadership team,” said Laurence Msall, president of the Civic Federation. “…
