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Talks break down, Medicaid providers want half a billion more a month

Tuesday, Jun 27, 2017

* Reuters

A U.S. judge should order Illinois to pay Medicaid providers about $1 billion a month to ensure medical care continues for the three million recipients of the health program after talks with the state reached an impasse, according to a court filing on Monday.

The move would cause a huge problem for the cash-strapped state, which has accumulated a $15 billion bill backlog due to a budget stalemate between its Republican governor and Democrats who control the legislature. It could force Illinois to stop making full payments on other state-mandated or court-ordered spending such as pensions and payroll.

The filing in U.S. District Court by attorneys representing Medicaid recipients asked Judge Joan Lefkow to order the state to pay $500 million a month for four months to start reducing a $3.1 billion pile of unpaid bills owed to managed care organizations that turn pay doctors and others.

As long as Illinois remains without an enacted budget, the proposed order calls for the state to spend an additional $586 million a month to cover Medicaid-related bills incurred after June 30, 2017.

The proposed order noted that federal reimbursements for Medicaid would reduce Illinois’ outlay to $543 million a month.

Oh, this is so not good. As we’ve already discussed, Illinois will barely have enough cash to make its “core” payments in July and will fall $185 million short of having enough money in August for those payments.

A court hearing is scheduled for later today tomorrow at 9:45. (For some reason, I keep thinking today is Wednesday. Maybe it’s because we worked over the weekend.) Stay tuned.

The legal motion is here.

- Posted by Rich Miller        

8 Comments
  1. - Sir Reel - Tuesday, Jun 27, 17 @ 8:39 am:

    This is how you run the State as a business … a business you run into the ground.


  2. - cdog - Tuesday, Jun 27, 17 @ 8:42 am:

    This is real pressure, not a bunch of words.

    It is a good development and increases the chance that the various politicians may finally capitulate.


  3. - Dublin - Tuesday, Jun 27, 17 @ 9:01 am:

    This is going to breed all kinds of anger…Missing payroll because medicaid has to be paid.

    More infighting. More demands to “fix the system”. More carnage to the “collectivism”. More chaos. More chances to blame Madigan and democrats for a failed system.

    This is what Bruce wants.


  4. - Responsa - Tuesday, Jun 27, 17 @ 9:22 am:

    == politicians may finally capitulate.==

    Words like this are a very big part of the problem. Language is important to honest messaging. Until both sides or at least one side of the aisle is able to see and tell each other, their followers and interested partisans that this is about saving the state–instead of viewing it solely as “capitulation” we are doomed.


  5. - Blue dog dem - Tuesday, Jun 27, 17 @ 9:23 am:

    Is illinois on the hook for 10% of Medicaid in 2020 based on Medicaid expansion and Obamacare? Have used Google but i cant find answer.


  6. - Pelonski - Tuesday, Jun 27, 17 @ 9:41 am:

    This is probably good news in the long run. It seems that we are going to need a complete failure of the State to finally get a budget agreement. It’s a sad state of affairs.


  7. - cdog - Tuesday, Jun 27, 17 @ 9:44 am:

    == politicians may finally capitulate.==

    With friendly differentiation, my intention, which I didn’t make clear enough with my words, is not meant as surrender of one party to another. I feel that the immoral agenda-driven politicians need to surrender and capitulate to governing norms. This new SOP is not normal and needs to be abandoned by uncompromising politicians of both parties. Progress is being made but if Judge Lefkow can turn up the heat a few more notches, that would be even better.


  8. - walker - Tuesday, Jun 27, 17 @ 10:57 am:

    “”agenda-driven politicians need to surrender and capitulate to governing norms”"

    Amen cdog


Sorry, comments for this post are now closed.


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