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November 20, 2009

Governor Signs Legislation for New Medicaid Stimulus Funds

We are pleased to report that the Governor this morning signed House Bill 542 into law, completing his approvals of a series of bills to infuse nearly $1.1 billion in new federal Medicaid funds into the Illinois economy, including $155 million in new Medicaid stimulus payments for hospitals. Earlier this week, the Governor signed the other two bills in the legislative package needed for the stimulus funding – Senate Bills 1181 and 1265.

As the final step, the U.S. Centers for Medicare & Medicaid Services needs to approve a state plan amendment before Medicaid stimulus payments to hospitals can actually be paid out. That step is expected to be accomplished in the near future.

Considering the state of Illinois’ serious fiscal challenges, securing this funding through the General Assembly and the Governor is a considerable accomplishment by the hospital community. A major national study released last week indicated that Illinois is among 10 states headed for economic disaster, with a budget gap as a percentage of its general funds of 47%, second worst in the nation only to California (49%).

IHA is continually seeking ways to support our members, advancing proposals like this legislative package for stimulus funding, whenever the opportunity arises. We greatly appreciate the outstanding response of members to our call during the Veto Session to contact your legislators on the stimulus funding bills. As a result, we were able to achieve this success on very short notice, even in a challenging economic and political environment.