In February, Gov. Pat Quinn told lawmakers that to rescue Illinois’ Medicaid program, the state would need to “reduce expenditures in the program by $2.7 billion” for fiscal year 2013. But so far, neither Quinn nor lawmakers have proposed a plan that does so.
The Illinois Policy Institute has proposed reforming Medicaid into a premium assistance program, as outlined in Budget Solutions 2013. But as lawmakers race against the clock before the spring legislative session ends May 31, they are instead seeking ways to cut next year’s Medicaid bill.
The Institute has developed the following menu of $1.7 billion in Medicaid reforms that cut spending and do not include any tax increases or the dramatic rate cuts that Quinn has proposed. These reforms, in addition to the $1.4 billion in savings that Quinn’s Medicaid working group has developed, allow the state to exceed the targeted $2.7 billion in savings
Implement an independent, standardized and uniform assessment for enrollees, particularly within long-term care, developmentally disabled and behavioral health. Potential savings: $350 million
- Implement case review, intensive case management and care coordination for high-cost cases. Potential savings: $50 million
- Implement acute care utilization management. Potential savings: $350 million
- Implement comprehensive bidding for durable medical equipment. Potential savings: $30 million
- Implement data analytics and transparency tools. Potential savings: $185 million
- Strict enforcement of eligibility rules and implement front-end electronic identify verification system for all new applicants. Potential savings: $180 million
- Aggressively manage utilization of pharmaceutical drugs. Potential savings: $200 million
- Rebalance long-term care. Potential savings: $350 million
Total potential savings: $1.695 billion