* One legitimate criticism of Gov. Blagojevich’s endless quest to expand health care coverage is that he is doing such a poor job administering the state’s existing health care programs that he can’t be trusted to do the right thing with new programs…
Comptroller Dan Hynes and several lawmakers used a stinging new audit to blast Gov. Rod Blagojevich’s administration for trying to expand state-subsidized health care when the current state Medicaid program is racking up huge deficits and is sometimes taking months to pay doctors who care for the poor and elderly.
Auditor General William Holland’s examination provided the first hard evidence of how the administration has camouflaged the state’s budget problems by rolling over about $1.5 billion in Medicaid bills each year. Moreover, the report said, it is taking the Illinois Department of Healthcare and Family Services an average of 77 days to pay doctors and pharmacists who are not associated with large hospitals.
“This is appalling and inexcusable,” Hynes said. “Health-care providers have been forced out of business as a result of the ongoing mismanagement of this program.” […]
Rep. Frank Mautino (D-Spring Valley) said he was especially troubled by the audit’s finding that the state is taking nearly three months before telling many providers that a payment request has been rejected. [emphasis added]
* Hynes gave a quick outline of the Auditor General’s report in a statement issued to reporters…
–During the last three fiscal years on average $1.5 billion in medical claims went unpaid in the same year the services were provided.
–Due to the late payments, the [Department of Healthcare and Family Services] accrued potentially $81 million in interest costs since FY2000. In the current fiscal year alone, Hynes noted, the state has paid out more than $20 million in late-payment interest for healthcare-related bills.
–The agency failed to develop a system to pay interest on late medical reimbursements until nearly eight years after it should have done so. It took an average of 452 days to pay interest due to some healthcare providers.
* More from Hynes’ statement…
“This audit provides more evidence that the administration has been mismanaging the Medicaid system and has been manipulating the payment process,” Hynes said. “By doing so, they are not helping people as they claim. Rather, they are harming some of the most vulnerable Illinoisans and the dedicated healthcare professionals who are trying to provide those citizens with critical services.”
* One local angle…
In Rockford, SwedishAmerican Hospital is waiting on state reimbursement it requested five months ago for Medicaid-related expenses, said Richard Walsh, chief operating officer, adding that the hospital is waiting on $12.5 million.
“It’s frustrating for all health-care systems,” he said, that the state “continues to balance its budget by not paying for services that are being provided to Medicaid patients throughout the year, particularly when we can’t refuse those patients when they show up at our door.”
That’s the nut of it right there. The state is literally balancing its budget by borrowing from Medicaid providers. Illinois has always done this, but it’s gotten worse under the Blagojevich administration. Putting new people into Medicaid programs only puts more strain on the system.
The governor did try to address this last year, but his Gross Receipts Tax proposal - which would have pumped lots of money into Medicaid programs - was just too bizarre and too costly.
HYNES: We have to ask ourselves whether we’re really helping people if we’re expanding a system that’s broken, that’s underfunded, and where doctors don’t want to participate.
Correct.
* Somewhat related…
* Lawmakers: Enough space for IDOT in Springfield
* The Protest For/Against Everything
* No pay raises for state lawmakers
* Battle to unlock downstate transit funding faces impending deadline
* Authorities urge state to help curb child abuse