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Hynes: Illinois' Medicaid system is broke

Posted February 13, 2008 10:00 pm

Doug Finke

Illinois Comptroller Dan Hynes has a simple assessment of the state's Medicaid system, the joint state-federal program that pays health-care bills for the poor.

"The Medicaid system is broke and is underfunded by $2 billion to $3 billion a year," he said Wednesday.

The reason, Hynes said, is a loophole in state law that allows health-care bills, mainly those for Medicaid, to be pushed from one fiscal year to the next. It allows the state budget to be legally balanced on paper, even though the reality is that it is not. The loophole contributes to what Hynes said is an overall $3.6 billion operating deficit for the state.

"That's what makes a difference to people day to day," Hynes said.

The impact is felt most by businesses that provide services under the Medicaid program and then wait months for the state to pay.

"There's a number of pharmacists with whom I've met who say they don't know if they can take Medicaid (business) anymore," said Michael Patton of the Illinois Pharmacists Association. "Pharmacists are out (drugs) that they have to pay for within two weeks of getting delivery. Some are having to borrow money to maintain supply."

Pharmacies that do a large Medicaid business are supposed to be paid within 30 days, Patton said. It's now taking 57 days for the state to make payment. Other pharmacies are waiting more than 100 days, he said.

Nursing homes also feel the pinch. They are reimbursed $104 a day for Medicaid patients when actual costs are about $130, said Dave Voepel, executive director of the Illinois Health Care Association. Plus, they, too, have to wait for state payments. He said many nursing homes just received a state check for services that were delivered in October.

"When it gets to be five and six months, our members start to struggle," Voepel said.

Doug Finke can be reached at (217) 788-1527.

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