May 18, 2012

With less than two weeks left before the scheduled 2012 spring session, lawmakers have been busy approving legislation to be sent to Gov. Pat Quinn for consideration, while behind the scenes negotiations continue on the state’s most pressing issues: the budget, Medicaid and state pension reform.

On the critical issue of Medicaid reform, at week's end it appeared significant progress was being made toward closing a $2.7 billion gap in the program. Senate Republican Leader Christine Radogno said a key objective of Senate Republicans is to enact reforms that will force the state to "cut up its Medicaid credit card" by reforming the controversial "Section 25" provisions in state law. Reforming this provision is critical to assuring that savings approved by the legislature actually materialize, by limiting the administration's ability to push off costs.  

Under "Section 25" the state digs itself into a deep budget hole each year by buying more Medicaid services than it can pay for and then pushing the bills off into the next year. The Civic Federation earlier this year estimated that Illinois' Medicaid debt would consume most of its budget within five years if the state does not get Medicaid spending under control and end the practice of buying services in one year and then charging the costs off onto future years. Massive deficits like those projected by the Civic Federation, and even the Governor's own social service agency, could jeopardize the healthcare safety net for those who truly need it.

Read more: Progress on Medicaid reform becomes the focus of a busy session week