We strongly encourage the General Assembly to accept new federal Medicaid funding that will be made available to Illinois in 2014 to fill a historic gap in the Medicaid program and provide health care coverage for hundreds of thousands of the lowest income uninsured Illinois residents. The measure will strengthen the financial health of our hospitals and other health care providers and boost our local economies as federal funds create jobs.
Medicaid has never covered all low-income individuals. It has always had a gap. Even if you are very poor, you do not qualify for Medicaid unless you are also elderly, disabled, pregnant, parenting or a minor child. Eliminating this gap in Medicaid opens the door for coverage to people with income under $16,000 who are ages 18-65, not officially disabled and not raising a minor child. For example, vital health coverage would be available to young adults just coming out of high school or college and starting their working lives; other young adults experiencing underemployment after a tour in the military (Illinois has 43,000 uninsured veterans); older adults whose children have passed age 18 who are not high earners; and people troubled with mental health and other issues that block their efforts at employment.
The State of Illinois, its localities, and all of the rest of us have been filling this Medicaid gap. We do it through charity care programs, safety net healthcare arrangements funded by property taxes, and state-funded human services programs that could be covered by Medicaid if the individual were eligible. The average U.S. family and their employers pay an extra $1,000 in health insurance premiums each year to compensate for health care for the uninsured. The Kaiser Family Foundation estimates that total uncompensated care in Illinois will decline by approximately $953 million from 2013 - 2022. Townships and General Assistance providers will be relieved from paying for coverage of those who are uninsured and are currently ineligible for Medicaid.
The brunt of the Medicaid gap also falls on those not covered — poor health, premature death, lowered employability and productivity, lost opportunity, medical bankruptcy and more. SB 26 will allow the State of Illinois to use federal funds to close the Medicaid coverage gap, address these health inequities, and begin to address the problem of rising health care costs due to uncompensated care for the uninsured.
The Federal government will provide 100 percent of the cost of filling the Medicaid gap for the first three years ($4.6 billion for the Illinois economy), and 90 percent of the cost after that ($21 billion over the first ten years). This means nearly 20,000 new jobs, which means paychecks being spent in stores and restaurants. The tax revenue resulting from this federal investment in our state's health care system will more than cover the state's small financial contribution.
In announcing that she would accept the federal money to fill the Medicaid gap in her state, Arizona's Governor Jan Brewer simply said, "I did the math". Seven Republican governors, all at one time vocal opponents of the measure, have now joined this pragmatic and sensible chorus. It is just too obviously in the best interests of their people and their states to reject.
Health care coverage keeps people healthier and reduces overall health system costs. That's why we, the undersigned organizations — a diverse constituency of consumers, providers, hospitals, local governments, businesses and insurance companies throughout the state — support SB 26 and urge the Illinois General Assembly to pass this bill.
Signed,
AARP Illinois
Aetna, Inc.
AIDS Foundation of Chicago
Heartland Alliance for Human Needs & Human Rights
Illinois Hospital Association
Illinois Maternal and Child Health Coalition
Illinois Primary Health Care Association
Meridian Health Plan of Illinois
Sargent Shriver National Poverty Law Center
SEIU Healthcare Illinois Indiana
* Below is a comprehensive list of supporting organizations.
Support SB26: A New Medicaid Opportunity for Illinois
SB26 would allow for 342,000 low-income adults in Illinois to be newly eligible for and enrolled in Medicaid over the next four years. Coverage for those who enroll would start on Jan 1, 2014. Enrollment starts Oct 2013.
SB26 includes language that would cease coverage for this new population if the federal government's share of Medicaid matching funds drops below 90%. The federal government pays 100% of the costs of the newly eligible from 2014 through 2016.
Who are the newly eligible?
-Of the 1.7 million uninsured Illinois residents, approximately 342,000 people would be newly eligible for Medicaid.
-Over 60% of those newly eligible are employed, but work at low-wage or part-time jobs that do not offer affordable coverage.
Why is it important for Illinois pass this legislation?
-Through 2016, this legislation will bring an estimated $4.6 billion into Illinois in Medicaid provider payments for the newly eligible adults, with no net state costs for their health care.
-Access to low-cost preventive and maintenance medical care through a medical home will help to keep individuals out of costly emergency rooms.
-Coverage for this newly eligible population is required by federal law.
How much would this cost Illinois?
-"New Medicaid" would be paid for 100% by the federal government, from 2014 — 2016, replacing GRF and local government funds currently spent on this population and reducing the uncompensated care costs shifted to public and private payers.
-The Kaiser Family Foundation estimates that total uncompensated care in Illinois would decline by approximately $953 million from 2013-2022.
-Illinois would receive federal funds to pay for mental health and other services that are currently only state-funded.
-Townships and general assistance units would be relieved from paying some of the bills of general assistance recipients who are uninsured.
Organizations supporting SB26 (last updated 2/19/2013)
Illinois Hospital Association
Illinois Chamber of Commerce
Cook County
Cook County Health and Hospitals System
AARP Illinois
Access Living
Aetna
AFC-Community Development Corporation
Age Options
AIDS Foundation of Chicago
AIDS Legal Council of Chicago
Alexian Brothers AIDS Ministry
Alexian Brothers Center for Mental Health
Alzheimer Association Illinois Chapter Network
American Cancer Society Cancer Action Network
American Lung Association - Illinois
American Nurses Association Illinois
Areas of Aging (Northwestern, Western and Northeastern Illinois)
Asian American Institute, Member of AACAJ
Asian Health Coalition of Illinois
Asian Human Services
Asian Human Services Family Health Center
Association of Community Mental Health Authorities of Illinois
Association House of Chicago
BJC Healthcare
BlueCross BlueShield of Illinois
Campaign for Better Healthcare
Center for Housing and Health
Center on Halsted
Champaign County Health Care Consumers
Chestnut Health Systems
Chicago Alliance to End Homelessness
Chicago House and Social Service Agency
Chicago Women's AIDS Project
Citizen Action Illinois
CJE SeniorLife
Community Behavioral Healthcare Association Illinois
Community Counseling Centers of Chicago
Community Elements
Connect 2 Protect
Cook County Commissioner Larry Suffredin
Corporation for Supportive Housing
Crosspoint Human Services
Deborah's Place
Doctors Council SEIU
Dr. Art Jones
DuPage County Health Department
Ecker Center for Mental Health
Equip for Equality
Erie Family Health Center
Families and Children's Network (FCAN)
Family Services SRC
Family Voices of Illinois/The Arc of Illinois Family to Family
Fathers, Families, and Healthy Communities
Grand Prairie Services
Hamdard Center for Health & Human Services
Haymarket Center
Health Alliance Medical Plans
Health and Disability Advocates
Health and Medicine Policy Research Group
Health Information Center
Healthcare Alternative Systems
Healthcare Consortium of Illinois
Heartland Alliance for Human Needs & Human Rights
Heritage Behavioral Health Center
Housing Opportunities for Women
Howard Brown Health Center
Human Resources Development Institute, Inc
Illinicare Health Plan
Illinois Academy of Family Physicians
Illinois Academy of Physician Assistants
Illinois Action for Children
Illinois Alcoholism and Drug Dependence Association
Illinois Alliance for Retired Americans
Illinois Assistive Technology Program
Illinois Association of Area Agencies on Aging
Illinois Association of Public Health Administrators
Illinois Association of Rehabilitation Facilities
Illinois Chapter, American Academy of Pediatrics
Illinois Citizens for Better Care
Illinois Coalition for Immigrant and Refugee Rights
Illinois Collaboration on Youth
Illinois Maternal and Child Health Coalition
Illinois Network of Centers for Independent Living
Illinois Partners for Human Service
Illinois Primary Health Care Association
Illinois Psychological Association
Illinois Public Health Association
Illinois Retail Merchants Association (IRMA)
Illinois Society for Advanced Practice Nursing
Independence Center
Indian American Medical Association Charitable Foundation
Jewish Federation of Metropolitan Chicago
La Rabida Children's Hospital
Lake County Health Department
Latino Policy Forum
League of Women Voters of Illinois
Leyden Family Service and Mental Health Center
Lurie Children's Hospital
Lutheran Social Services of Illinois
Maine Center, Inc.
March of Dimes
Men & Women in Prison Ministries
Mental Health America of Illinois
Mental Health Summit
Meridian Health Plan of Illinois
METRO Counties of Illinois
Metropolitan Asian Family Services
Metropolitan Chicago Breast Cancer Task Force
Metropolitan Family Services
Molina Healthcare of Illinois NAMI Cook County North Suburban
NAMI DeKalb Kane South and Kendall Counties
NAMI of Greater Chicago
NAMI of Illinois
NAMI South Suburbs of Chicago
National Association of Social Workers IL Chapter
National Council of Jewish Women-Illinois Committee
National Kidney Foundation of Illinois
New Foundation Center
Next Steps- NFP
Northern Illinois Public Health Consortium
Northwestern Illinois Center for Independent Living
Northwestern Memorial HealthCare
Open Door Clinic
Organization of the NorthEast (ONE)
Ounce of Prevention Fund
Pediatric AIDS Chicago Prevention Initiative
Planned Parenthood of Illinois
Parents Organized to Win, Educate and Renew — Policy Action Council (POWER PAC)
Prairie Center
Presence Health
Progressive Action for the Common Good
Project IRENE
Protestants for the Common Good
Respiratory Health Association
Roosevelt University's Illinois Consortium on Drug Policy
Rosecrance
Sacred Creations
Sargent Shriver National Center on Poverty Law
SEIU Healthcare Illinois Indiana
SEIU Illinois Council
SEIU Local 73
Sinai Health System
South Asian American Policy & Research Institute
Southwest Organizing Project (SWOP)
Statewide Independent Living Council
Supportive Housing Providers Association
TASC, Inc.
The Arc of Illinois
The South Suburban Council on Alcoholism and Substance Abuse
Thresholds
Township Officials of Illinois
Trilogy
Turning Point Behavioral Health Care Center
UCB Pharma
United Power for Action and Justice
United Way of Illinois
University of Illinois Hospital & Health Sciences System
Vermilion County 708 Mental Health Board
Voices for Illinois Children
WellCare
Wells Center
WellSpring Resource
