A coalition of seven Illinois hospitals say they have a way to create efficiencies and maximize federal contributions when it comes to the state’s cash-strapped Medicaid program.   Much of the savings come from securing federal money that the state has failed to collect. For example, the state currently spends $52 million annually providing care to undocumented immigrant children through the All Kids program.

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By converting that to a Critical Hospital Adjustment Payment program, federal funds could cover half the cost, the hospitals say.   The state could also save money by ensuring that those on Medicaid qualify. Of the 2.7 million enrollees, there are 100,000 to 300,000 individuals who no longer qualify because of income. Those persons have not been properly removed from the program, according to the hospitals. The savings there could range from $240 million to $720 million. Other savings could be achieved through manufacturer rebates on drugs used in an outpatient setting.


The seven hospitals say some “safety-net” hospitals risk closure if the governor’s proposed $2.7 billion in cuts to Medicaid are made.


Proposed actions:


  • Collect federal funds on all current HFSD plans ($30-$40 million)
  • Expand hospital assessment program ($200 million)
  • Ensure all Medicaid recipients are eligible ($240-$720 million)
  • Reimburse hospital outpatient drugs separately to collect rebates
  • Identify Medicaid patients with alternative coverage
  • Enhance provider-cased care coordination
  • Enhance pre-natal care for expectant mothers
  • Recover federal funds for treating undocumented children
  • Recover federal funds for state hemophilia program
  • Require co-pays for non-emergency emergency room visits and other incentives to encourage efficient access to services