|
October 28, 2008
Urge Your State Senator to Restore Hospital Medicaid Funding in Veto Session
The Illinois Senate is scheduled to return to Springfield Nov. 12 for its
fall Veto Session. Members are urged to ask their Senators to support and pass
House Bill 6350 to restore $350 million in hospital Medicaid funding in
the FY2009 state budget. While the Senate and House both approved the state
budget, which would have made the hospital Medicaid payment cycle manageable,
the Governor reduced Medicaid funding for hospitals by $350 million.
Last month, the House passed HB6350 to restore the Medicaid funding on a vote
of 101-12. The bill is now poised for action in the Senate. The Senate sponsor
is Mattie Hunter (D-Chicago).
ACTION REQUESTED: Call, visit, fax or email your state Senator and ask
him/her to support and pass HB6350 during the Veto Session.
Suggested Talking Points
When you return to Springfield for the Veto Session, I urge you to
support and vote "Yes" on House Bill 6350 to restore $350 million in
hospital Medicaid funding in the FY2009 state budget that had been cut by
the Governor.
This funding is NOT for any expansion of health care services but only
covers CURRENT obligations of the state to Medicaid beneficiaries to keep
the already overly long payment cycle from getting longer.
The state has a backlog of about $2 billion in Medicaid bills, according
to the Comptroller’s Office. The payment cycle for hospitals, on average, is
more than 100 days.
If this Medicaid cut stays in effect, many hospitals will not be paid
for SIX MONTHS or longer -- even up to a year late -- putting them at serious financial
disadvantage. During these difficult and perilous economic times and as the
demand for Medicaid services increases, extending the Medicaid payment cycle
even further is onerous and unworkable.
Many hospitals have cash flow of only a few days, and some have been
forced to borrow just to make payroll or meet other basic operating
expenses, and some are continuing to postpone critically needed projects to
update their facilities, equipment and technology. However, additional
financing is now generally not available because of the economic and credit
market crises.
Investing in our health care system not only improves the health and
well-being of our state's children, families and communities, but also helps
keep our local and state economies strong. My hospital and hospitals across
Illinois are the economic engines and cornerstones of their communities.
Hospitals in Illinois have a total impact on the state economy of more than
$63 Billion a year, and are among the top three employers in half of the
state's counties.
It is imperative that the Senate take action now to avert a potential
crisis in the health care delivery system and the great harm that would
occur to hospitals and communities across the state if this critically
needed Medicaid funding is not restored. Please vote "Yes" on House Bill
6350 during the Veto Session to restore the $350 million in hospital
Medicaid funding to the state budget.
|