Illinois Adopts Legislation to Access Additional Federal Medicaid Funds - December 8, 2009

Illinois Governor Pat Quinn recently signed legislation that will enable the state to access $230 million in additional federal Medicaid payments, of which $155 million will be directed to hospitals. The bill would accelerate implementation of the Hospital Assessment Program, which was scheduled to begin on January 1, 2011, to the middle of 2010, so that the state may draw down the enhanced federal matching payments that are available under ARRA through December 31, 2010. In addition to speeding up the payments, hospitals also will be required to make two monthly assessment payments. The bill will enable the state to pay a significant portion of its backlog in unpaid claims.