B2G is moving!
Blogs posted after May 22, 2015 will be located on Deltek's central blog page at
Just select the "B2G Essentials" blog to continue to receive this valuable content.
Big cuts to Illinois' Medicaid

Shortly after blogging about Illinois’ budget deficit, House lawmakers approved $1.6 billion in Medicaid cuts yesterday, adding a $1 per-pack cigarette tax to increase revenue. Reductions in eligibility, provider rates, and cutting/eliminating programs make up the approved cuts, with other parts of a $2.7 billion Medicaid reform package waiting to be passed. These reforms have been a mainstay in Illinois Medicaid Advisory Committee (MAC) discussions for the past year. The Department of Healthcare and Family Services (HFS), responsible for Medicaid, was underfunded by almost $2 billion this year, which combined with the end of an enhanced federal match. MAC estimates that at the end of this fiscal year, HFS will have about $1.8 billion in unpaid bills.
HFS utilized the Civic Federation to crunch budget numbers and create a five-year plan predicting outcomes if the state did not make any changes to its current Medicaid practices. This amounted to $22 billion in unpaid bills, meaning vendors would not be paid for a year. MAC looked at:
  • Reducing eligibility for children from 300 percent to 200 percent of the federal poverty level (FPL)
  • Reducing eligibility for family members enrolled in FamilyCare from 185 percent to 133 percent of the FPL
  • Reducing eligibility for state-only funded programs
Cutting optional services such as prescription drug coverage for adults represented a savings of $800 million. If all adult options were eliminated, project savings would be $1.9 billion. MAC is also looking into Medicaid utilization controls for further savings.

Illinois is currently procuring a phased Coordination Care Innovations Project, in which the state is looking to redesign its health care delivery system with a more patient-centered model to improve health outcomes, enhance patient access, and patient safety. The state is seeking a coordinate care system with emphasis on managing transitions between physical and mental health and substance abuse. The first-phase solicitation received 70 letters of intent to participate in the innovations project for adults. The next phase will be for care for children with complex health needs, and a separate solicitation for dual Medicare/Medicaid care integration.

Comments (Comment Moderation is enabled. Your comment will not appear until approved.)