"By working closely with
our counterparts on the federal level, we have been able to secure
an infusion of federal health care funding that will strengthen the
finances of our health care system and speed up payments to many of
our providers," said HFS Director Julie Hamos.
The U.S. Department of Health and Human Services recently
approved Illinois' State Plan Amendment for the Medicaid program.
The amendment includes a policy change that moves low-income parents
from health care coverage under the Children's Health Insurance
Program to coverage under the Medicaid program. This important
federal approval means that HHS will release $365 million to the
state to pay Medicaid bills. Previously, the funds were withheld
pending approval of the State Plan Amendment.
By using the funds to pay Medicaid claims in the current fiscal
year, the state will receive federal matching funds at the American
Recovery and Reinvestment Act-enhanced rate of 62 percent. When the
federal matching dollars are received and spent again, the state
will generate an additional 62 percent match on the subsequent
spending. This will allow the state to leverage a total of more than
$900 million in federal funds for outstanding Medicaid claims over
the next few months.
The federal funds will help HFS pay current Medicaid bills and
can help to reduce backlogged bills for many of the state's health
Department of Healthcare and Family Services
file received from
Illinois Office of
Communication and Information]