Archive for April 2012

Gov. Pat Quinn Proposed Illinois Medicaid Cuts to Cost Illinois Economy $3.2 Billion, Report Says

April 26, 2012

(Springfield, IL) – Two health-care advocacy groups are predicting thousands of job losses and billions of dollars in economic damage to Illinois, if Gov. Pat Quinn’s plan to conjure $2.7 billion in savings from the Medicaid program is implemented.

Quinn’s plan would jeopardize 25,615 jobs and cost the state’s economy $3.2 billion, according to a report released Wednesday by the Illinois Hospital Association, which lobbies for Illinois hospitals, and the Campaign for Better Health Care, an organization that advocates for health-care access

“Drastic Medicaid cuts hurt everyone, not just the Medicaid patients. Hospitals will be forced to reduce jobs. Local businesses will be impacted,” Illinois Hospital Association President Maryjane Wurth said.

“And hospitals will be forced to cut or eliminate medical services that everyone uses — there is not a separate set of staff, equipment and facilities just for Medicaid patients.”

Quinn’s proposal reduces the amount Medicaid providers get paid by $675 million, accounting for 25 percent of the $2.7 billion in savings.

Nearly every dollar of the $6.6 billion the state spends on Medicaid goes to providers. Cutting provider reimbursement’s by $675 million translates into an across the board rate reduction of 7 percent to 9 percent for providers, according to Quinn spokeswoman Brie Callahan.

Callahan said that in the end it wouldn’t be a blanket rate cut. Some providers would see rates reduced by more than 9 percent, while others might avoid a rate cut all together.

“That still is something that’s being worked out,” Quinn spokeswoman Brooke Anderson said. “These are tough choices, but the reality is that (the) entire Medicaid system will collapse, which would be far worse, if we do nothing.”

Anderson pointed out that Quinn’s plan actually doesn’t seek $2.7 billion in cuts to the Medicaid program. Instead, it calls for:

  • Cutting $2 billion in services and what Medicaid providers are paid,
  • Raising the state’s cigarette tax by a dollar, from 98 cents to $1.98.

The tax hike is expected to yield $337.5 million, plus a federal match of $337.5 million for that tax increase, all of which would cover the rising cost of Medicaid, according to Quinn’s office.

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