Illinois Governor Approves New Medicaid Hospital Assessment Plan

March 2018 ~

The Governor of Illinois has signed a new Medicaid funding plan that makes changes to the hospital assessment formula and is intended to ensure that hospitals whose patients overwhelmingly rely on Medicaid coverage receive additional funding.

The new plan makes changes the state’s $3.5 billion hospital assessment program to comply with federal mandates that more patients be covered by cost-cutting managed care organizations.

The legislation would also add oversight, tracking managed-care organizations following opposition complaints that such organizations often hurt hospital cash flow by denying claims or delaying payments.

The new formula relies on updated patient data and gives additional funding to hospitals whose patients overwhelmingly rely on Medicaid coverage, according to Chicago Democratic Rep. Greg Harris, who sponsored the legislation in the House. He adds that the hospital assessment program is a creative solution to fill Medicaid funding gaps, bringing billions in federal matching funds to the state via a tax on hospitals.

Illinois is working to ensure funding before the current assessment program expires June 30.

“We in Illinois have been allocating Medicaid dollars based on a process that was set up back in 2005,” said the Governor. “It’s long overdue to come up with a new way to reimburse health care delivery.”

The plan is now on its way to the federal government for approval.

Source(s): New Haven Register; Chicago Sun Times;