Senator Steans presents legislation to leverage federal funds to support the Medicaid program.SPRINGFIELD – Hospitals that serve Medicaid patients would continue to benefit from federal funding under a measure sponsored by State Senator Heather Steans (D-Chicago) which passed the Senate today.

“I have worked with my colleagues in both chambers for several months to develop a new Medicaid Hospital Assessment Program that is fair to patients and hospitals,” said Steans. “This new program supports hospitals that serve a vital role in communities while distributing funding in a more accurate manner.”

The Medicaid Hospital Assessment Program was designed to leverage federal matching funds to cover the cost of services provided to Medicaid patients in private Illinois hospitals. Currently, hospitals receive a flat payment based on a variety of factors, such as the number of Medicaid patients served. The new program would use more recent patient data and phase in a claims-based payment model over the next six years.

“Hospitals are not reimbursed for the full cost of treating Medicaid patients and rely on these payments to help some of the neediest Illinoisans,” Steans said. “I urge the federal government to review this proposal immediately so that service to patients in Illinois will not be disrupted.”

Nearly half of the annual Medicaid payment funds are set to expire under Illinois statute on June 30, 2018. The assessment laid out in Senate Bill 1773 requires state and federal approval before it can take effect.

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