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Illinois’ Medicaid program provides health coverage to nearly 30% of the state’s population—3.6 million children and adults. In 1995, only 10% of Illinoisans were covered by Medicaid. As the state’s largest health insurer, Medicaid has opened pathways to care for low-income residents, leading to better health outcomes.

But, Medicaid reimburses less than 80 cents for every $1 hospitals spend to provide Medicaid patients with high quality care. As hospitals face dire financial distress—from higher labor, drug and supply costs—this shortfall is exacerbating the challenges brought on by inflation and staffing shortages.

What can be done? Illinois hospitals are urging state lawmakers to support Senate Bill 1763 for the first General Revenue Fund (GRF) Medicaid hospital rate increase in 28 years. Consider the following:

• GRF funds less than 18% of hospital Medicaid spending, while hospitals fund over22% through the hospital assessment tax; and Federal matching dollars fund the remaining 60%.
• The GRF Medicaid hospital inpatient rate is less today than in 1995, while hospital costs are up 85%.

Passing SB 1763 would bring a much-needed 20% across-the-board increase to hospital Medicaid base rates—helping preserve and improve equity in funding for hospital care. Discover the facts to learn more.