SR0066

LRB095 08149 RCE 28314 r






1

SENATE RESOLUTION


 
2
    WHEREAS, The State Prompt Payment Act was adopted by the 
3
General Assembly to penalize the State for payment delays and 
4
thereby encourage timely payments to vendors; and

 
5
    WHEREAS, The State Prompt Payment Act, while a punitive 
6
measure against the State, provides fair compensation to 
7
vendors not receiving timely reimbursement for services 
8
rendered; and

 
9
    WHEREAS, The State Prompt Payment Act requires the State to 
10
automatically pay interest on any delinquent bill that 
11
generates in excess of $50 in interest; and

 
12
    WHEREAS, The State Prompt Payment Act allows vendors to 
13
request interest on any delinquent bill that generates in 
14
excess of $5 in interest; and

 
15
    WHEREAS, The Department of Healthcare and Family Services 
16
has amassed millions of dollars in Prompt Payment interest over 
17
the past four years; and

 
18
    WHEREAS, The vast amount of unpaid bills at the Department 
19
of Healthcare and Family Services are unpaid Medicaid and Group 
20
Health Insurance bills; and

 
 


 






SR0066
- 2 -
LRB095 08149 RCE 28314 r




1
    WHEREAS, There is substantial evidence that the Department 
2
of Healthcare and Family Services is not paying Prompt Payment 
3
interest on delinquent bills that the Department is statutorily 
4
required to pay; therefore, be it

 
5
    RESOLVED, BY THE  SENATE OF THE NINETY-FIFTH GENERAL 
6
ASSEMBLY OF THE STATE OF ILLINOIS, that the Auditor General is 
7
directed to conduct a performance audit on the Medicaid program 
8
and Group Health Insurance program at the Department of 
9
Healthcare and Family Services for compliance with the mandates 
10
of the State Prompt Payment Act from July 1, 2003 through 
11
December 31, 2006; and be it further

 
12
    RESOLVED, That the audit include, but is not limited to, 
13
the following determinations:
14
        (i) the number of unpaid bills that have generated in 
15
    excess of $50 in interest, by fiscal year;
16
        (ii) the amount of unpaid Prompt Payment interest on 
17
    unpaid bills that have generated in excess of $50 in 
18
    interest, by fiscal year;
19
        (iii) the amount of paid Prompt Payment interest on 
20
    unpaid bills that have generated in excess of $50 in 
21
    interest, by fiscal year;
22
        (iv) the number of unpaid bills that have generated in 
23
    excess of $5 in interest but no more than $50 in interest, 
 


 






SR0066
- 3 -
LRB095 08149 RCE 28314 r




1
    by fiscal year;
2
        (v) the amount of unpaid Prompt Payment interest on 
3
    unpaid bills that have generated in excess of $5 in 
4
    interest but no more than $50 in interest, by fiscal year; 
5
    and
6
        (vi) the amount of paid Prompt Payment interest on 
7
    unpaid bills that have generated in excess of $5 interest 
8
    but no more than $50 in interest, by fiscal year; and be it 
9
    further


 
10
    RESOLVED, That the Auditor General commence this audit as 
11
soon as possible and, upon completion, make the findings and 
12
recommendations public in accordance with the provisions of 
13
Section 3-14 of the Illinois State Auditing Act.