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May 23, 2012 at 02:28 PM
CHICAGO (AP) — Illinois moved closer to drastic Medicaid cuts earlier this week with proposed legislation that could excise nearly $1.4 billion from the state’s program by shrinking benefits, such as regular adult dental care, and cutting payments to most hospitals and nursing homes.
The measure, backed by Gov. Pat Quinn, falls short of the $2.7 billion in cuts that Quinn originally said would be needed to prevent the health care program for the poor and disabled from collapsing.
Legislative sponsors said revenues, including Quinn’s proposed $1 cigarette tax increase, will be dealt with separately, and are needed to make the plan work.
“I honestly believe it is just not doable” without the cigarette tax, said Sen. Heather Steans, a Democrat who served on a four-member bipartisan Medicaid committee.
The measure, filed as a House amendment to a Senate bill, includes $240 million in payment rate cuts to hospitals and nursing homes. But it spares doctors from rate cuts, along with 51 rural community hospitals and about 20 urban hospitals that care for poor patients.
The legislation eliminates most dental care for adults, but keeps emergency dental care. It limits adult eyeglasses to one pair every two years, pays the same amount for cesarean sections as for vaginal deliveries — unless the C-section is medically necessary — and limits podiatry care to people with diabetes.
The bill would eliminate Illinois Cares Rx, a program that helps nearly 200,000 seniors get prescription drugs, which concerns the AARP.
“Not only are they trying to balance the budget on the backs of Illinois seniors, but cutting Illinois Cares Rx will not help balance the budget,” said David Vinkler of AARP, who added that seniors will end up going to the hospital and nursing homes more often when they can’t afford their medications.
Medicaid payments to many hospitals would be cut by 3.5%, but the bill exempts rural community hospitals and safety-net hospitals from the cuts. Association of Safety-Net Hospitals spokeswoman Julie Sznewajs said Latino and black caucus members are “standing strong for their communities” by supporting the exception.
“Lawmakers are hearing loud and clear that safety-net hospitals play a critical role in treating the poor and underserved,” Sznewajs said. A spokesman said the Illinois Hospital Association also is still evaluating the bill.
