Tuesday, January 04, 2011
 
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Medicaid reform slated for midweek, targets long-term care

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[January 04, 2011]  SPRINGFIELD -- There will be Medicaid reform in Illinois this week, but total savings are still under wraps.

InsuranceHowever, one key element may raise hackles among the state's long-term care providers.

House lawmakers returned to Springfield on Monday for the Legislature's lame-duck session before inauguration of the new General Assembly on Jan. 12. Reforms to the state's Medicaid and workers' compensation systems are on the docket for this week, with education waiting in the wings.

As a member of the House Medicaid Reform Committee and a House budget expert, state Rep. Frank Mautino, D-Spring Valley, said he expects to see reform legislation surface either Tuesday or Wednesday.

However, he wouldn't put a number on the potential savings, nor would his Medicaid Reform Committee Senate colleague, Sen. Heather Steans, D-Chicago.

Nursing Homes

"We're still working out what that's likely to look like," Steans said, although she indicated the reform legislation would start in the Senate.

Nearly 2.8 million Illinois residents are enrolled in the state-federal health care program for the poor and disabled, at an annual cost of $14 billion. About 195,000 participants are in managed care -- where patients are assigned a medical home -- with an additional 40,000 elderly and disabled patients set to enroll in a pilot project in March.

Expanding managed care has been one of the goals of Medicaid reform proponents, but Mautino said that element of the proposal is on shaky ground.

"It's where all the money is at in this bill, and that's why it's the most controversial," Mautino said.

Steans said the challenge is finding the best medical infrastructure throughout the state.

"We're setting the framework so that we're moving people into coordinated care but giving the department the ability to be flexible in working with the stakeholder groups about what models are going to work in different regions and for different populations," she said.

However, the proposed legislation will most likely ruffle feathers among providers of long-term care for the elderly, developmentally disabled and mentally ill, Mautino said.

"There's a provision in here for long-term care, where we're going to take the pieces of the budget out of all of these other different agencies it's located in -- make one global budget, which would be for the long-term care side," he said. "And then up to 4 percent of that total budget would then have to be spent on community services where the money follows the patient."

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The philosophy of "money following the person" is popular at both the state and federal levels since it generally is less expensive than institutional care. And the U.S. Supreme Court's 1999 Olmstead decision calls for the disabled to live in the least restrictive environment possible.

"It's something we haven't done, but the courts have told us we need to do," Mautino said. "So at this time, though it's controversial, I would expect to see that in this bill."

However, pharmacists apparently are escaping deep cuts in the proposed legislation in exchange for cutting the interest charged on late state payments. Lawmakers were shocked to learn the state pays more than double in Medicaid prescription dispensing fees when compared with fees paid for the state employees' health care plan.

"I believe their dispensing fees are going to stay the same, but their amount that they can receive on late payment fees, they've agreed to cut in half," Mautino said.

The proposed legislation also calls for Medicaid recipients to periodically prove continued eligibility instead of the state assuming they are still eligible; provide a statement of monthly income for eligibility instead of a single pay stub; and cross-check eligibility among databases from the Illinois departments of Healthcare and Family Services, Human Services, and Employment Security.

Senate lawmakers return to the Capitol on Tuesday.

[Illinois Statehouse News; By MARY MASSINGALE]

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