093_HR0186

 
                                     LRB093 11434 HSS 14226 r

 1                          HOUSE RESOLUTION

 2        WHEREAS, The Illinois Medicaid Program is a federal-state
 3    entitlement program which  provides  preventive  and  primary
 4    health  care,  hospital,  pharmacy, long term care, and other
 5    medical services; and

 6        WHEREAS, The Illinois Medicaid program covers  a  monthly
 7    average of 1.6 million people, and considering turnover, over
 8    2 million unique individuals per year; and

 9        WHEREAS,  Medicaid  providers  rely on timely payment for
10    services rendered to remain economically viable and  able  to
11    provide  needed  services  to  the  most  needy  of Illinois'
12    population; and

13        WHEREAS, The Illinois  Medicaid  program  currently  owes
14    providers  in  excess  of  $1.2 billion for services rendered
15    including $406.1 million owed to  hospitals,  $364.1  million
16    owed  to  long  term  care facilities, $333.0 million owed to
17    pharmacies for prescription drugs, and $189.1 million owed to
18    noninstitutional providers; and

19        WHEREAS, Many providers are currently waiting up  to  six
20    months  from the time services are rendered for payments, and
21    the payment cycle identified by the  Illinois  Department  of
22    Public  Aid  once  payment  vouchers  have  been  received is
23    running in excess of 99 days for long term  care  facilities,
24    99 days for pharmacists, and 100 days for physicians; and

25        WHEREAS,  Due  to  the  extended  payment cycle, Medicaid
26    vendors have been forced to exhaust personal lines of  credit
27    and layoff employees to continue to provide services; and

28        WHEREAS, Twenty-seven long term care facilities closed in
29    Illinois  in  2002  due  to  financial  difficulties  and  an
30    additional   six   facilities   in  2003  have  notified  the
31    Department of  Public  Aid  that  they  will  be  filing  for
 
                            -2-      LRB093 11434 HSS 14226 r
 1    bankruptcy; and

 2        WHEREAS,   Without   an   expedited   payment   schedule,
 3    additional facilities will be forced to either end operations
 4    or  refuse to provide services to Medicaid enrollees, leaving
 5    Medicaid enrollees with limited or no coverage options; and

 6        WHEREAS, A lack of action  will  permanently  damage  the
 7    health care delivery system for Illinois' aged, disabled, and
 8    financially needy populations; therefore be it

 9        RESOLVED   BY   THE   HOUSE  OF  REPRESENTATIVES  OF  THE
10    NINETY-THIRD GENERAL ASSEMBLY OF THE STATE OF ILLINOIS,  that
11    we  support  and  urge  efforts  by Governor Rod Blagojevich,
12    Treasurer Judy Baar Topinka, and  Comptroller  Dan  Hynes  to
13    provide  relief to Medicaid providers by borrowing up to $700
14    million under the Short Term Borrowing Act due to failure  in
15    revenues; and be it further

16        RESOLVED, That the Illinois Development Finance Authority
17    and  the  Illinois  Health  Facilities Authority are urged to
18    sell short-term notes and use the proceeds from the  sale  to
19    buy the accounts receivables of providers; and be it further

20        RESOLVED,  That  a  suitable  copy  of this resolution be
21    delivered to the Governor, the Treasurer, and the Comptroller
22    of the State of Illinois and  also  to  the  members  of  the
23    Illinois  Health  Facilities Authority and the members of the
24    Illinois Development Finance Authority.