(Story updated with additional content at 6 p.m. ET.)
Illinois Gov. Patrick Quinn is calling for reductions in 58 separate line items to help achieve $2.7 billion in Medicaid savings, including provider rate reductions of $675 million.
The Illinois Hospital Association says the plan requires a $350 million rate cut for hospitals, and called Quinn's plan “the wrong approach that will hurt patients.” The IHA suggested alternatives including better maximization of federal revenues and improving the Primary Care Case Management program.
“While we commend the Governor for taking some positive steps—including incorporating several of IHA's savings alternatives—the proposal is still too drastic and too rash to impose on the state's already fragile healthcare system,” an IHA statement read.
“Elimination or reduced coverage of certain optional populations and services” is one of those 58 items, which would represent $1.35 billion, or half of the $2.7 billion in cuts Quinn said needed in February. Other line items include controls on use of Medicaid services to prevent overuse or waste, a redesigned healthcare-delivery system through coordinated care and expanding cost-sharing by clients.
Quinn told reporters assembled in Springfield, Ill., that he appreciated the work of clinicians, but said they needed to make sacrifices.