Unlikely Illinois Will Receive Federal Money Included in State Budget

by Amanda Griffin-Johnson Illinois Statehouse News (ISN) reports that “Gov. Pat Quinn’s office is, for the first time, acknowledging that the state may not get $750 million from Washington” for Medicaid. The Governor’s office was hoping that the Federal Medical Assistance Percentage (FMAP), the increased Medicaid reimbursements from the federal government, would be extended. Chances are...

by Amanda Griffin-Johnson

Illinois Statehouse News (ISN) reports that “Gov. Pat Quinn’s office is, for the first time, acknowledging that the state may not get $750 million from Washington” for Medicaid. The Governor’s office was hoping that the Federal Medical Assistance Percentage (FMAP), the increased Medicaid reimbursements from the federal government, would be extended. Chances are looking slim that the state will get the federal money now, and it is unclear how the governor plans to make up for that gap. According to the ISN article:

“The 24 furlough days [ordered earlier this month] is aimed at closing that $750 million gap,” [Kelly Kraft with the Quinn budget office] said.

The order for furlough days is expected to save $18 million over the course of a year.  Kraft is not saying where the state will find the rest of the cash.

But she acknowledged that hospitals, doctors, and nursing homes that rely on Medicaid money will suffer.

The federal stimulus money came with the requirement that Illinois pay those Medicaid providers within 30 days.  Without a Medicaid extension, Kraft said it will take longer to pay those bills. Right now other people and businesses owed money by the state are waiting 153 days for a check.

Republicans in Springfield have blasted the governor for including the Medicaid extension in the new budget since the continued boost in funding was not a done deal.

Kraft said Illinois is not alone. She points out that many other states crafted their budgets on the assumption that Congress would OK the extension.

“[The Quinn administration] did not feel it was premature to include [the $750 million] in the budget,” said Kraft.

Want to learn more about the budget Quinn signed on July 1st? Check out the Illinois Policy Institute’sBudget Cheat Sheet for all the details. The full article from Illinois Statehouse News is available here.