The CMS approved a financing plan by Illinois that will generate about $1.8 billion in additional federal funds for the states Medicaid program over three years. Under the plan, hospitals will pay a 2.538% tax on gross revenue, or about $600 million annually, enabling the state to draw a dollar-for-dollar federal match. The revenue tax will be returned to the hospitals, and about $470 million of the annual $600 million federal match also will be used to fund hospital care. The remaining $130 million annually is slated to go to the state Medicaid Trust Fund to finance care for the indigent, including long-term care. The Illinois General Assembly authorized the tax in 2005, but CMS approval was needed for the plan to go forward. -- by Mark Taylor
Illinois Medicaid plan gets go-ahead
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