Wednesday, January 26, 2011
 
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Illinois embraces Medicaid reform

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[January 26, 2011]  SPRINGFIELD -- Gov. Pat Quinn on Tuesday signed landmark bipartisan legislation into law to overhaul the state's Medicaid system and save the state more than $774 million over five years.

Insurance"Medicaid reform is one part of my plan to stabilize our budget," Quinn said. "A priority of my administration is eliminating inefficiencies so that we are saving money while delivering better services to those that most need them."

As the largest program funded by the state, the Department of Healthcare and Family Services program makes up about 30 percent of the state's total budget. The state's Medicaid program serves about 2.8 million elderly, disabled and poor people. The program is jointly funded by the state and federal governments and managed by the state.

Under the law, 50 percent of the state's Medicaid recipients will be moved into managed care by 2015, where they will have a "medical home."

Lawmakers say reforms to the system will save the state money in the future by cutting costs.

"It is a landmark achievement, I think, for health care in Illinois," Quinn said during a news conference in Chicago. "It really was the result of a tremendous number of people working together, putting aside any partisan differences and working for the health of the people of Illinois."

During the lame-duck veto session, Democratic and Republican lawmakers from both chambers of the General Assembly overwhelmingly approved House Bill 5420. But the legislation didn't begin with support from both sides of the aisle.

State Sen. Dale Righter, R-Mattoon, acknowledges he was "number one" on the list of cynical Republicans when it came to reforming the system. But Righter changed his mind and signed on as a sponsor of the legislation after Democratic Sen. Heather Steans of Chicago approached him, saying the program "needs to be fixed."

"And she was right -- this program was on a collision course," Righter said. "It had an unattainable rate of growth, where liabilities were far outstripping the revenues available to pay for it. ... And in the end, the people who were bearing the burden to pay for that were the people who were finding themselves on the lowest rungs of the economic ladder -- the people for whom this program isn't convenient, it's necessary."

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State Rep. Patricia Bellock, R-Hinsdale, agreed that she questioned the reform effort from the start, but she was thrilled with the outcome.

"Even one of my counterparts, a state (representative) on my side of the aisle, said to me, 'Is this just a smoke-and-mirror bill or is this really reform?'" Bellock recalled. "And I said, 'This is real reform in Illinois, and we should all be proud of it on both sides of the aisle.'"

The law also tightens eligibility requirements, maximizes the prescription drug program and increases civil penalties for abuses.

Bellock said the reforms to the $15 billion-a-year program will help to protect the most fragile population.

"The Medicaid program was set up to be a safety net for low-income people so that they could get good health care," Bellock said. "This reform bill will lead to people being able to (have) a medical home. They will have a primary care physician, and they will get equal access to health care. And, they will get good quality of health care, we hope, with the reforms."

The legislation is effective immediately.

[Illinois Statehouse News; By DIANE S.W. LEE]

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