Litigation Update 4

August 5, 2015

Medicaid Litigation Update #4 – HFS to Pay All Providers Statewide for Services To Children and Adults

The Attorney General’s Office advised Federal district court Judge Joan Lefkow this morning that the Rauner Administration has decided to pay all Medicaid providers statewide during the budget impasse for services provided to all Medicaid beneficiaries, including children and adults. The Attorney General’s Office informed the court that:

  • Payments based on claims would be processed and paid per the typical schedule;
  • All other payments – hospital assessment, supplementals, adjustments, ACA, MCOs, etc. – for the month of July would be paid the week of August 10; and
  • All other payments – hospital assessment, supplementals, adjustments, ACA, MCOs, etc. – for the month of August would be paid the week of August 24.

This announcement was made during a hearing on two motions filed by the Sargent Shriver Center on National Poverty Law asking the federal Court in Chicago to order the State to make payment to all providers statewide under the Beeks Consent Decree and to clarify and enforce the Court’s July 24 Order in Memisovski. Based on the promises made to the Judge in open court by the Attorney General’s Office, the court entered an order continuing the two motions for two weeks, until August 19, to monitor compliance.  If the payments are not made as promised, the Shriver Center can return to court for relief.

We anticipate that the Department of Healthcare and Family Services will issue a provider notice soon, with further details on this issue. We will provide more information about the payment schedule as soon as it becomes available.

During the budget impasse, IHA has been urging the Administration to continue Medicaid payments for essential health care services across the state. While there remains much work to do to achieve a reasonable and workable final FY 2016 state budget, this decision by the Administration is an important step to preserve access to care for Illinoisans. IHA greatly appreciates the actions taken by the Shriver Center, under the leadership of John Bouman, its President, along with their Co-Counsel, on this matter. It should also be noted that IHA, along with several other provider associations, worked collaboratively to provide support to the Shriver legal team on this matter.