Friday, February 06, 2009
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Ill. comptroller: Fed cutbacks, delays on Medicaid placing burden on state

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[February 06, 2009]  SPRINGFIELD -- The following is from Fiscal Focus, a publication of the Illinois comptroller's office:

The Medicaid program is a cornerstone of federal and state efforts to provide medical services to low-income children, adults and the disabled. Created in 1965, Medicaid has served millions of Americans through a unique partnership that splits the costs of medical care between the federal and state governments. Medical costs have continued to increase over the years, and attention has shifted to ways to balance government budgets.

At the federal level the tactic has been to curtail or limit the services that will be reimbursed. But that creates a dilemma for state governments. If states want to maintain their Medicaid programs in the face of federal cutbacks, then they have to assume more costs. States' budgets are especially stressed if they have to absorb more costs in a period when the economy is bringing in less revenue and caseloads are increasing.

Illinois has seen both its Medicaid enrollees and liabilities increase over the years. Medicaid liabilities have grown from $4.3 billion in fiscal 1994 to $8.2 billion in fiscal 2007, and an average of 2.1 million people per month are covered by Medicaid.

According to a May 2008 report from the Illinois auditor general, Illinois' Medicaid program suffers from payment delays and the carry-over of unpaid bills. From fiscal 2005 to fiscal 2007, an average of $1.5 billion in unpaid medical claims was carried over into the next fiscal year. It is time for the state to take action.

Your comments about this or any of our other publications are welcome. Your input can be directed to 217-782-6000 in Springfield, 312-814-2451 in Chicago, or via www.ioc.state.il.us.

Sincerely,
Daniel W. Hynes
State comptroller

[Text from file received; article from the comptroller's office]

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