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Today’s number: $2.05 billion

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Illinois

As Illinois continues operations without an enacted budget, the State Employee Group Insurance Program (SEGIP) has built up significant claims to be paid out.

As of the end of October, approximately $2.05 billion in claims are being held by the state from various insurers, organizations, and companies.

Of this total, the largest portion is approximately $1.08 billion of Managed Care claims. The second largest line, Prescription, OAP, and Mental Health claims, totals $598 million. The third largest portion of the overall claims hold comes from CIGNA, which has $291 million in claims currently held by the state. Concurrently, the estimated time for claims to be held is 360 days for Managed Care, 293 days for CIGNA, and 271-357 days for Prescriptions/OAPs/Mental Health.

posted by Rich Miller
Friday, Nov 6, 15 @ 9:12 am

Comments

Good work Bruce.

Comment by PublicServant Friday, Nov 6, 15 @ 9:13 am
Deja vu all over again.

Comment by Formerly Known As... Friday, Nov 6, 15 @ 9:14 am
That’s ridiculous. Shame on Illinois!

Comment by Flynn's Mom Friday, Nov 6, 15 @ 9:19 am
“I’ve been success at everything I’ve ever done”.

Comment by Unspun Friday, Nov 6, 15 @ 9:24 am
And now I know why out of state providers ask for my Visa card after seeing my IL Cigna card.

Comment by Diogenes in DuPage Friday, Nov 6, 15 @ 9:24 am
This is why State employees get billed by the medical providers because the insurance companies aren’t paying the claims.

Comment by Huh? Friday, Nov 6, 15 @ 9:24 am
Shame on all of them. And no one is even talking.

One meeting is scheduled, but bruce says dont expect much. January looks better. Yep, the state is getting better already, thats clear. /s

Comment by Langhorne Friday, Nov 6, 15 @ 9:26 am
Dear state employees,

Governor Rauner cares. Governor Rauner made sure state employees got paid.

Health insurance?

Did I mention the part that Gov. Rauner made sure state employees got paid?

No one “hoots” it better than The Owl, Ron Sandack;

“@RonSandack: I’m frustrated 2, but taking steps towards reforming IL more important than short term budget stalemate.”

So… there’s that…

Reforming Illinois is more important than state employees’ health?

“What does ‘The Owl’ say?”

Comment by Oswego Willy Friday, Nov 6, 15 @ 9:26 am
Winning!

Comment by Frenchie Mendoza Friday, Nov 6, 15 @ 9:26 am
BTW — this must be one of the “50% of what you hear about the budget is nonsense” items.

Comment by Frenchie Mendoza Friday, Nov 6, 15 @ 9:27 am
Hang in there, Insurers!

Comment by Roamin' Numeral Friday, Nov 6, 15 @ 9:28 am
one person I know with State Employee Group Health Insurance has a debt collector hounding them because a health care vendor got tired of waiting for the State to pay, and turned the bill over to a debt collection agency.

Too bad the debt collection agencies aren’t hounding the Governor and the General Assembly instead.

Comment by Joe M Friday, Nov 6, 15 @ 9:30 am
$2.05 billion + Interest = Another Rauner Win?

Comment by Norseman Friday, Nov 6, 15 @ 9:32 am
Can we make a trade with PA? Wolf for Rauner(not total snark).

http://www.npr.org/2015/11/06/454970619/pa-budget-stalemate-drags-on-no-compromise-in-sight

Comment by Anon221 Friday, Nov 6, 15 @ 9:33 am
Some doctors no longer take state employee insurance because of not getting paid for a year or more.

Comment by DuPage Friday, Nov 6, 15 @ 9:34 am
Make me glad that come January, I will be on the Teamsters health insurance.

Comment by Anonymous Friday, Nov 6, 15 @ 9:39 am
But whatever you do, don’t ask the Democrats to use their power to pass a budget. And if anyone suggests that they do, make it sound like some Democrats have vowed never to vote for a budget unless Rauner signs on, no matter what. And if anyone asks you “who said that” tell them “Governors own.” And if someone says “what does this governor care about “owning” - it won’t affect his life, and GOP legislators, who have no power in superminority status, are either in safely gerrymandered districts or Rauner will spend what it takes to get them reelected” keep repeating “Governors own.”

Comment by lake county democrat Friday, Nov 6, 15 @ 9:41 am
- lake county democrat -

I read your rant.

Former Governor Jim Edgar and I disagree.

Comment by Oswego Willy Friday, Nov 6, 15 @ 9:46 am
==State employees get billed by the medical providers because the insurance companies aren’t paying the claims==

Will the companies then reimburse state employees?

They can terminate your policy for not paying the premium, but how can an insurance company refuse to pay claims they are obligated to pay?

Comment by Formerly Known As... Friday, Nov 6, 15 @ 9:47 am
Still waiting on the reimbursement for my wife’s root canal that we were forced to pay out-of-pocket and then submit to the state.

It’s sad when you consider switching jobs because you can’t afford to go to the dentist as a state employee.

Comment by Stuff Happens Friday, Nov 6, 15 @ 9:49 am
Real effects from real mismanagement. Sometimes the costs are not worth the benefit.

I am sure that mixed in with the $2.05B, there are very sick people who are fending off debt collectors. smh.

This is true injustice and lacks any moral component, regardless of the ROI from all this “shakin’.”

I am shaken.

Comment by cdog Friday, Nov 6, 15 @ 9:50 am
—
It’s sad when you consider switching jobs because you can’t afford to go to the dentist as a state employee.
—

Hang in there!

/s

Comment by Frenchie Mendoza Friday, Nov 6, 15 @ 9:52 am
LAKE COUNTY DEM

The Dems did pass a budget. Rauner vetoed it.

What more can they do.

Comment by MOON Friday, Nov 6, 15 @ 9:53 am
==don’t ask the Democrats to use their power to pass a budget==

Mike Madigan himself suggested he might pass a budget without Bruce Rauner as a negotiating partner.

https://capitolfax.com/2015/07/17/get-out-your-decoder-rings/

Comment by Formerly Known As... Friday, Nov 6, 15 @ 9:53 am
“Hang In There” - you can’t hang in there by not choosing to hang with something to begin with.

You can’t “Hang In There” embraces that…

“Governors Own”

Comment by Oswego Willy Friday, Nov 6, 15 @ 9:54 am
@MOON - respectfully, that is like saying

==Rauner introduced a budget. The GA gutted it.

What more can he do.==

They must both remove their heads from their rears and run the state like adults instead of kids.

Comment by Formerly Known As... Friday, Nov 6, 15 @ 9:58 am
Raunernomics: Collect taxes, then refuse to return them to the community in the form payment for tneir intended purposes.

LCD, I find your theory of the Illinois governor as a marginal public policy player absolutely fascinating. Did you come up with that one? It’s gotten quite popular in some circles in recent months.

Comment by Wordslinger Friday, Nov 6, 15 @ 9:58 am
- FKA -,

Madigan didn’t because;

Why vote twice for a vetoed budget Rauner will use as a reason to campaign stops, allowing Rauner to play the victim.

“@RonSandack: I’m frustrated 2, but taking steps towards reforming IL more important than short term budget stalemate.”

Nope.

Structured roll calls, both chambers - FKA -.

Governors own, why bail out Rauner so he can spend weeks talking about himself being “Gov. Victim”

Comment by Oswego Willy Friday, Nov 6, 15 @ 9:59 am
Moon = “What more can they do?” =

Override

OW = “Governors Own”

Ownership will be significantly determined by the public on 11/8/16. They are and always will be who determines ownership, no matter how many times you say otherwise.

Comment by Kodachrome Friday, Nov 6, 15 @ 10:02 am
“Override” Just like they did with 60 of 61 other vetoes? How many R votes are going to be for that override? Yeah, that’s what I thought.

Comment by Skeptic Friday, Nov 6, 15 @ 10:09 am
@Oswego Willy - so he actually ==could==, but he ==won’t==?

I understand why he would not strategically. It just sounds like we all concur, including Speaker Madigan himself, that he possibly ==could== and he does have a role to play in this.

Comment by Formerly Known As... Friday, Nov 6, 15 @ 10:11 am
And I agree that he will ultimately ==own== once it is done. But they are partners in this.

Comment by Formerly Known As... Friday, Nov 6, 15 @ 10:12 am
==”Of this total, the largest portion is approximately $1.08 billion of Managed Care claims. The second largest line, Prescription, OAP, and Mental Health claims, totals $598 million. The third largest portion of the overall claims hold comes from CIGNA, which has $291 million in claims currently held by the state. Concurrently, the estimated time for claims to be held is 360 days for Managed Care, 293 days for CIGNA, and 271-357 days for Prescriptions/OAPs/Mental Health”==
Rich, if any of the claims go over the allotted time, does that mean, it won’t be paid by the State? Thanks

Comment by Mama Friday, Nov 6, 15 @ 10:13 am
Has anyone heard any news about the union complaint in St. Clair County to compel the State to resume making payments on these health insurance claims? The larger issue is why the State self-insures to begin with.

Comment by SaxMan Friday, Nov 6, 15 @ 10:13 am
- FKA -,

My respect for you allowed me to play along with your premise

Jack Franks won’t give Madigan his 71, and in January you need 60, Democrats still need 71 for the override, so Franks comes into play again.

I have 60 of 61 failed overrides to make my case.

Again, - FKA -, with respect.

Comment by Oswego Willy Friday, Nov 6, 15 @ 10:14 am
Skeptic - If all D’s believe BR is destroying he state, which is clearly obvious to most here, they don’t need any R’s. Or do they not want to “own” alone? If not all D’s believe that, where are the attacks here on the non-believers?

Comment by Kodachrome Friday, Nov 6, 15 @ 10:17 am
==“@RonSandack: I’m frustrated 2, but taking steps towards reforming IL more important than short term budget stalemate.”==

What is Sandack’s definition of ’short term budget stalemate.’? When does budget stalemate become ‘long-term’?

Comment by Mama Friday, Nov 6, 15 @ 10:17 am
=== “Override” Just like they did with 60 of 61 other vetoes? How many R votes are going to be for that override? Yeah, that’s what I thought. ===

Overrides of reduction vetoes require a lower vote threshold. A point made by a reporter at the recent CityClub of Chicago presentation. What was not pointed out is the fact that the gov doesn’t have to spend the money.

If I recall correctly, Rich has pointed to this fact as a concern among Dems. Even if an agreement is made on approp level, Rauner could then refuse to spend to that level.

If nothing is agreed to by January, I believe the Dems will start sending budgets to Rauner again.

Comment by Norseman Friday, Nov 6, 15 @ 10:17 am
Do Not Feed Trolls.

Comment by Oswego Willy Friday, Nov 6, 15 @ 10:18 am
Kodachrome: So NO Repubs think Rauner is hurting the state? Not a single one? That’s very very sad indeed.

Comment by Skeptic Friday, Nov 6, 15 @ 10:21 am
OW - no snark intended at all, but you do seem to agree. The disagreement is in what you wrote to FKA: why should the Dems bail Rauner. I think they should 1) to minimize the damage caused from the budget fight and 2) because I think if they do it right they won’t take a political hit. But if I’m wrong on #2, tough - we elect leaders to work in the public interest, their political fortunes come second.

Comment by lake county democrat Friday, Nov 6, 15 @ 10:22 am
Does anyone know what interest rate they are or will be paying these providers for the overdue bills?

Comment by ISP Retired Friday, Nov 6, 15 @ 10:24 am
===If I recall correctly, Rich has pointed to this fact as a concern among Dems. Even if an agreement is made on approp level, Rauner could then refuse to spend to that level.===

Yep. The victim known as Gov. Rauner can just decide not to fund all kinds of things, even if it’s appropriated.

===If nothing is agreed to by January, I believe the Dems will start sending budgets to Rauner again.===

Agree, but only things that Rauner will flat-out veto, nothing like a K-12 Approp that Rauner will sign to keep the stalemate going with marginalized pain.

The structured roll calls, they are the end game for both. Rauner wants his Agenda, the rest, like people, are the collateral damage to get his agenda.

Comment by Oswego Willy Friday, Nov 6, 15 @ 10:25 am
MOON and others:

I’m talking about a real budget, not the “kick the can” placeholder that Franks wouldn’t go along with. But - and this is crucial - Franks didn’t say he wouldn’t vote for any balanced budget unless Rauner/GOP is on board. He said he wouldn’t vote for the ploy.

The Dems aren’t even trying to negotiate an alternative budget (or if they are, they’re doing it with impressive secrecy). And if they can’t work out a budget amongst themselves, isn’t that an admission that they need Rauner and should at least negotiate with him? There is NOTHING sacrosanct (or illegal) about saying “give us fewer program cuts and we’ll give you redistricting.” Or whatever they’d really negotiate.

Comment by lake county democrat Friday, Nov 6, 15 @ 10:26 am
Hang in there sick people and businesses! /s

Comment by JS Mill Friday, Nov 6, 15 @ 10:27 am
- Norseman -

All great points, btw.

To you,

Can you see a Higher Ed Approp being passed in January?

Comment by Oswego Willy Friday, Nov 6, 15 @ 10:28 am
=Agree, but only things that Rauner will flat-out veto, nothing like a K-12 Approp that Rauner will sign to keep the stalemate going with marginalized pain.=

That K-12 appropriation is a bit of a sham. They have not paid out much in the way of MCAT (we have received only $5000 for dirver’s ed). Those MCAT’s, especially transportation, are a big nut. Approximately 1/3 of what our small district gets from the state, about $1 million dollars. So, K-12 might be lucky right now, but we ain’t that lucky.

Comment by JS Mill Friday, Nov 6, 15 @ 10:30 am
==Does anyone know what interest rate they are or will be paying these providers for the overdue bills?==

1% to 2% a month depending on the type of bill.
See section (30 ILCS 540/3-2)

http://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=539&ChapterID=7

Comment by Joe M Friday, Nov 6, 15 @ 10:32 am
- JS Mill -,
I’m sure that has a lot to do, and I mean a lot to do with the court orders and required spending by statute overriding the full allocation of the K-12 monies getting to where it was suppose to go.

That’s also a Dem fear that Rauner just won’t spend what a passed budget says.

Rauner has lost loads of trust.

Comment by Oswego Willy Friday, Nov 6, 15 @ 10:36 am
@lcd
“#2, tough - we elect leaders to work in the public interest, their political fortunes come second.”

Agreed. Then why did Bruce request an expansion of Wealthy Welfare after the election, when the state should come first?

Comment by Jack Stephens Friday, Nov 6, 15 @ 10:37 am
lcd,

Why did Rauner want to be Governor then? Didn’t he want to, you know, govern? Nobody put a gun to his head, he volunteered for it and spent $60 million to get the job.

When do you think he’s going to get started?

Comment by 47th Ward Friday, Nov 6, 15 @ 10:38 am
A Doctor had an opinion piece in the SJR yesterday. He described the problems caused by the state not making the medical payments, both for providers and patients. He said CMS says providers would be penalized if they ask for upfront payments. It was obvious he cares deeply for his patients and is distressed by the situation. I almost hate to point out that his concluding pleas was to,

“Please write your senator, congressman or congresswoman to let them know the gravity of this situation . . .”

Comment by Bigtwich Friday, Nov 6, 15 @ 10:40 am
==Does anyone know what interest rate they are or will be paying these providers for the overdue bills?==
I have been receiving 9%/yr prorated on dental bills to Delta Dental, typically 6 months late but now I’m figuring 12 months. I am owed $1420, so could get an interest check of $128.

Comment by OldIllini Friday, Nov 6, 15 @ 10:40 am
- lake county democrat -

I read your comment.

Jim Edgar makes my points better, as he was a Governor, and I have not been.

Comment by Oswego Willy Friday, Nov 6, 15 @ 10:42 am
The Governor is doing what needs to be done for Illinois to prosper again, to have a budget that is within the means of the revenue taken in without the constant raising of taxes every year and misappropriating funds from from one department to another for lack of planning as well.

Comment by Allen D Friday, Nov 6, 15 @ 10:48 am
@OldIllini, Joe M
Depending on the type of bill, it receives 9 or 12% interest annually. Better than the stock market.

Comment by Former ILS Friday, Nov 6, 15 @ 10:49 am
The interest payments the State will owe far exceed the interest rates they would pay if they went to the bond market and raised enough to pay off the past due bills. More penny-wise, pound-foolish behavior. Running the State as a business would be run? Hardly.

Comment by Concerned Friday, Nov 6, 15 @ 10:51 am
- Allen D -,

As a state employee, I hope you wish your co-workers “good health”

As for me, I hope you stay healthy too.

Comment by Oswego Willy Friday, Nov 6, 15 @ 10:54 am
@allend:

Good point.

How come the Downstate Republican Patronage Complexes (’prisons”) have NEVER, EVER been paid for with sufficient revenue?

Monies taken one from one pot to another so the State can baby sit pot smokers to the tune of $20,000.00+ And that is just while they are in the joint!

Comment by Jack Stephens Friday, Nov 6, 15 @ 10:55 am
That’s $20.000.00 per person a year.

Comment by Jack Stephens Friday, Nov 6, 15 @ 10:55 am
=== Can you see a Higher Ed Approp being passed in January? ===

Passing yes, being signed? I hesitate to say a quick no. To be consistent Rauner would use a total veto. However, the folks affected by the failure to fund are of more concern politically to the Raunerites than the social service types. I might put my money on item/reduction vetoes. Student money gets ok’d, school money gets slashed.

Comment by Norseman Friday, Nov 6, 15 @ 10:57 am
Allen D: What is the governor doing to make Illinois “prosper again”? And how was the state not prospering prior to rauner’s election? Taxes were not be raised every year and funds were not being misappropriated. Where are the data to back up your assertions?

Comment by My New Handle Friday, Nov 6, 15 @ 11:02 am
- Norseman -

If Rauner slashes school money, with students still attending classes, during the prism of the impasse, won’t some of the blowback be Rauner is diminishing Higher Ed and the Education the students thought they were getting in August?

My fear would be the pointed blowback during the crisis that students are “paying” or getting scholarships or loans for full price, while Rauner is choosing, during the impasse, to lessen the value?

Thoughts?

Comment by Oswego Willy Friday, Nov 6, 15 @ 11:03 am
I really hate insurance companies, so I too will withhold payments. I will let you all know how that turns out in the next few months,

Comment by Blue dog dem Friday, Nov 6, 15 @ 11:06 am
To bring it back, apologies, to the Post,

This is another example of the budgetary impasse costing more money in the long term, and also might be costing employees a decision;

How long do I hope my health holds out?

Comment by Oswego Willy Friday, Nov 6, 15 @ 11:07 am
What does the vision of “reforming Illinois” really look like? I hear this term used alot but I’ve never seen a clear articulation of what the reformed Illinois will actually look like.

Comment by forwhatitsworth Friday, Nov 6, 15 @ 11:11 am
—
Why did Rauner want to be Governor then?
—

So he could shut down the government, rewrite the contracts, and bring in his pals to privatize and pick up the pieces.

You know — you absolutely have to know — that there are all sorts of companies waiting in the wings for the dust to settle so they can swoop in and pick up pieces.

I’d bet that most of Rauner’s pre-election meetings — and probably many post-election meetings — were with private companies to give formerly public work to.

I suspect that’s one reason why he doesn’t want anyone to see his day-to-day calendar.

Comment by Frenchie Mendoza Friday, Nov 6, 15 @ 11:23 am
As stated, the State is up to a year or more behind on paying employee medical bills … and this is by design. Each FY appropriation is pretty much going to pay off the previous year’s debt. It’s been many, many years since the State was current. And if Rauner has his way in the proposed cuts, the time will stretch out to a year and a half or more.

Comment by RNUG Friday, Nov 6, 15 @ 11:34 am
Thank you RNUG!
You said it so well.
I have experience it myself with a Debt Collector because of a Clerical snafu!

Comment by WhoKnew Friday, Nov 6, 15 @ 11:47 am
As a university employee for 25+ years, I can’t remember anytime the state wasn’t at least 6 months behind on payments.

Comment by Liberty Friday, Nov 6, 15 @ 11:50 am
How much are providers jacking up their fees to the rest of us and other insurers to compensate for the State of Debters? So much for creating a good business environment for Illinois …

Comment by Vole Friday, Nov 6, 15 @ 12:08 pm
These large company’s don’t mind the delay. Where else are they going to get 12% return on their investment? Thank you Prompt Pay Law.

Comment by To the post Friday, Nov 6, 15 @ 1:21 pm
I had some dental work done last week and was told after the work they wanted paid in full, $2,500. Said the state was not paying their bills but they would submit it to insurance for me and I would be reimbursed by the insurance company. Hope I live long enough to get it.

But I’m hangin’ in there….

Comment by Finally Out (and now very glad to be) Friday, Nov 6, 15 @ 1:38 pm
Just curious. Does anyone really think that Rauner anticipated this situation happening, and went ahead with the strategy anyway, or did he miscalculate and is just stuck in this mess and is riding out the storm?

Madigan and Cullerton ain’t giving in. They couldn’t care less about the well being of the people in Illinois, just maintaining the power and money that goes with it. If Rauner doesn’t have a ploy to go after THAT, he’s wasting his time and might as well cave.

Madigan will protect his union henchpersons, ambulance chasers, patronage system and crony businesses until they remove him from Springfield feet first.

Comment by Arizona Bob Friday, Nov 6, 15 @ 1:46 pm
== Does anyone really think that Rauner anticipated this situation happening, and went ahead with the strategy anyway, or did he miscalculate and is just stuck in this mess and is riding out the storm?==

Given some of his statements before he was elected I’d say he anticipated this. He said things like (and I’m paraphrasing here) “we may need to shut the place down.” That indicates to me that he was ready to do so.

My belief is that the Governor is still stuck in CEO mode and doesn’t yet quite fully understand what governing is all about, nor does he accept the reality of the parameters within which he must govern. I know the favorite mantra of the Raunerites is that he needs to stay the course but that just ignores reality. In government you do what is doable. If he would focus on that it would go a long way to ending this nightmare.

Comment by Demoralized Friday, Nov 6, 15 @ 2:16 pm
==Does anyone know what interest rate they are or will be paying these providers for the overdue bills?==

I think Prompt Payment requires 1% interest per month after a bill is more than 60 days past due.

Comment by Demoralized Friday, Nov 6, 15 @ 2:17 pm
From the FAQ on the link below:

Q1: How is the budget impasse impacting the State Employees Group Insurance Program (SEGIP)?
A1: Because the General Assembly has not yet passed a balanced budget, no appropriation has been made for SEGIP for the current fiscal year. Therefore, CMS does not currently have the legal
authority to release funds for the payment of claims or for premium payments to vendors
providing fully‐insured HMO coverage. …
These payment delays will continue to increase until the General Assembly passes a balanced
budget and funding is in place. Once fiscal year 2016 funding has been appropriated, payments
will resume where they left off.

http://www.illinois.gov/cms/Employees/benefits/StateEmployee/Pages/StateInsuranceProgram.aspx

Comment by Anonymous Friday, Nov 6, 15 @ 2:44 pm
@demororiled ” The Governor is still stuck in CEO mode and doesn’t yet quite fully understand what governing is all about”… You are so right - Rauner had no idea how corrupt Illinois was - one needs to be practiced in extortion, indifference and theft to flourish in Springfield - hence the longevity of Madigan and his unions.

Comment by quickpixTom Friday, Nov 6, 15 @ 2:46 pm
@quickpixTom:

Oh please. Grow up. I’m glad all of you get so much pleasure in constantly playing the victim. But it’s getting really old.

Whether some of you brilliant people want to admit it or not, governing requires knowledge of *gasp* government and how it works. Now, you can be snide (which you were) or you can live in the real world. Your choice. And living in the real world doesn’t involve being a victim all the time.

Comment by Demoralized Friday, Nov 6, 15 @ 4:51 pm