Illinois Senate Passes Medicaid Reform
Yesterday, the Illinois Senate passed legislation recommended by the Special Committee on Medicaid Reform, and the legislation will be moving to the House.
by Amanda Griffin-Johnson
Yesterday, the Illinois Senate unanimously passed Medicaid reform legislation. The legislation, HB5420, was the result of work done by bipartisan special committees created in the House and Senate. Medicaid has consistently been a significant and growing portion of the Illinois state budget and currently encompasses approximately 30 percent of state spending. It is estimated that the reforms will save $800 million over the next five years. In the coming days, HB5420 will likely come up for a vote in the House, and we will continue to provide updates on the legislation.
- Transitioning individuals from institutional care settings to community-based long-term care programs;
- Changing eligibility verification through:
- Active eligibility redeterminations.
- The use of one month’s income (rather than two weeks) to verify
income requirements upon application for benefits as well as during
annual redeterminations of eligibility. - Verification of state residency.
- Transitioning 50 percent of Medicaid recipients into coordinated care programs by January 1, 2015;
- A two-year moratorium on Medicaid eligibility expansions;
- An income cap on the All-Kids program at 300 percent of the federal poverty level (currently $66,150 for a family of four); and
- Measures to enhance fraud detection and prevention.
There are some caveats in the bill. For example, many of the new reforms will be implemented “unless the Department receives written denial from the federal government.” Significant regulations in the federal healthcare overhaul are still being written and established, which may affect how these Medicaid reforms are enacted.
But this bill is a good first step towards ensuring the sustainability of this vital program for those who need it most. You can view the text of the legislation here or check out a quick summary of the bill from Sen. Righter in the video below.