Tuesday, December 14, 2010
 
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Medicaid reform could be bitter medicine

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[December 14, 2010]  SPRINGFIELD -- A bitter pill to swallow -- that's how some Illinois officials are describing proposed reforms to Medicaid and changes to the state's health care system as required by the federal health care overhaul.

HardwareAt least one lawmaker sees some possible cuts coming, as the state faces a budget gap of at least $13 billion.

"I do expect that revenues (will be) discussed ... , but with the amount of dollars that are out there, it's going to be impossible to do things painlessly," said Rep. Frank Mautino, D-Spring Valley.

Mautino's comments came during a daylong Illinois House of Representatives hearing on changes to Medicaid, a joint state-federal health insurance program that serves the poor and disabled. The program targets mostly pregnant women and children younger than 6 whose families make less than 133 percent of the federal poverty level, but children up to 18 are also covered if the family income is less than the FPL. Illinois, however, has expanded the program to higher income levels.

In Illinois, roughly 2.8 million people benefit from Medicaid.

Mautino said the June 30 end of federal stimulus dollars that have shored up the system for the past two years will only exacerbate the problem, likely forcing the state to seek a combination of increasing revenue and cutting some services.

Topics ranging from tightening the system that checks out people's eligibility to increasing the amount people in the system pay for prescription medications were brought up during the meeting as possible cost-saving solutions.

One area some committee members were concerned about was the practice of the state paying for health insurance for more than 50,000 undocumented immigrant children. Unlike other sections of the state-funded children's health care program, the care for undocumented children doesn't receive any federal match. All of the funds must come from the state's general revenue fund, according to Julie Hamos, director of the Department of Healthcare and Family Services and a former Democratic state legislator.

"We see the issue of serving undocumented (immigrant) children as a policy issue, one that we're proud of and one this governor supports, so we are not proposing changes in reducing eligibility for undocumented children," Hamos said.

However, advocates have noted that health care for children is relatively inexpensive when compared with adult needs.

Another point of discussion focused on how the state verifies a family's income, and therefore the family's eligibility for certain programs. One pay stub annually is all a family needs to provide right now to show annual income.

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State Rep. Patti Bellock, R-Westmont, who co-chairs the committee, has introduced legislation that would change that requirement to proof of a month's worth of income. This provides a better sense of what a family makes over the course of a year, proponents claim.

Not everyone wants to see these changes, however. State Rep. Mary Flowers, D-Chicago, said it's a waste of state resources to chase after people whose income is likely constantly in flux.

"Income varies from week to week, or it could be from day to day. ... You're really complicating the situation, making it a lot worse, and you're clogging up the system, chasing after the cheats as opposed to providing the services which you are supposed to be providing," Flowers said.

Making any changes that might bump people out of Medicaid could be tricky. A clause in the federal health care overhaul act says that states can't make "eligibility standards, methodologies or procedures" more restrictive than what was in place as of March 23, 2010, without federal approval.

"We don't know really how the federal government will react. We've told you that we'll make the best case for why income verification is different from changes in eligibility, but we don't know how they will react," Hamos said.

The committee is meeting again Tuesday afternoon and will talk with representatives from the Department of Human Services and the Illinois Auditor General's office about a recent report on the state's children's insurance program.

A final report is slated to be finished by Jan. 3, when the General Assembly returns to Springfield for its lame-duck session.

[Illinois Statehouse News; By ANDREW THOMASON]

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