Illinois House passes legislation for Medicaid providers
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Fund
transfers will generate $900 million through federal matching funds
to immediately reduce payment
[MAY 4, 2006]
Sov. Rod R. Blagojevich commended the
Illinois House Wednesday for passing legislation requiring state
Treasurer Judy Baar Topinka to release hundreds of millions in fund
transfers that she has held up over the last year that would pay
down bills owed to state Medicaid providers. In total, she's pledged
to hold up fund transfers that would generate a total of $900
million. The legislation now goes back to the Senate for final
legislative action.
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The bill directs her to immediately release $250 million in fund
transfers from fiscal 2005 and 2006, which will generate a total of
$500 million through federal matching dollars and reduce the payment
cycle by 22 days. There is an additional $200 million in fund
transfers to be issued for fiscal 2006, but she has indicated she
will stop those from moving forward as well. These transfers,
combined with those the House has instructed her to now release,
will generate a total of $900 million for Medicaid providers to be
paid out before the end of the current fiscal year.
"The House did the right thing today for Medicaid providers
throughout our state who are providing critical health care services
to working families, their children and seniors," Blagojevich said.
"Our providers have been waiting far too long for these funds, and
to wait a day longer would only place a continued burden on them.
The General Assembly has also approved another $200 million in fund
transfers for this year's budget, and we urge the treasurer's office
to do the right thing by following their will and also make those
funds available for doctors, nursing homes and hospitals in
Illinois."
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In fiscal 2005 the General Assembly voted nearly unanimously in
the House and unanimously in the Senate to approve various fund
transfers as a means to help balance the state's budget. The General
Assembly also approved such transfers in fiscal 2006. These
transfers were used, in part, as revenues to pay down bills owed to
Medicaid providers. By holding up these transfers, the treasurer's
actions have threatened to throw the state's budget out of balance,
while placing an undue burden on Medicaid providers throughout the
state.
"I want to thank my colleagues for moving this bill forward, as
the treasurer has been holding up these fund transfers for too long
and our Medicaid providers are the ones feeling the greatest pain
because of it," said Rep. Jay Hoffman of Collinsville. "The release
of this state funding will bring in a total of $500 million to ease
the burden on Medicaid providers. We shouldn't make our health care
providers suffer when the funding is available now."
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When a health care provider gives services to a Medicaid
beneficiary, that provider bills the Department of Healthcare and
Family Services, either electronically or on paper, submitting a
claim through the department. The payment cycle begins when the
department receives a completed claim, either electronically or in
hard copy. After processing, the claims are held until the
department has the resources through appropriations and can voucher
it for payment by the comptroller. When payment goes out from the
comptroller, the payment cycle ends.
"We're extremely happy that the House passed legislation today
requesting the release of funding we need to operate on a daily
basis," said Steve Brant of Four Fountains Convalescent Center in
Belleville. "We serve a critical population in our region, and the
release of funding will ease the pressure for us and providers
across the state."
$900 million in fund transfers will pay down Medicaid bills
The passage of
Senate Bill 14 and remaining fiscal 2006 fund transfers will
enable Illinois to pay down $900 million in Medicaid bills.
|
Senate
Bill 14 |
Remaining
fiscal 2006 fund transfers |
Total |
Dollars in millions |
State funds |
$ 250M |
$ 200M |
$ 450M |
Federal match |
250M |
200M |
450M |
Total funds for |
$ 500M |
$ 400M |
$ 900M |
Medicaid providers |
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[News release from the governor's
office]
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