Posted on 06/27/2017 9:10:36 AM PDT by Oldeconomybuyer
Negotiations over increasing Illinois' payments to Medicaid providers have failed, opening the door for a U.S. judge to force the cash-strapped state to pay as much as $1 billion a month to ensure medical care continues for the program's three million recipients, according to a court filing on Monday.
The move would cause a huge problem for the state, which has accumulated a $15 billion bill backlog due to a budget stalemate between its Republican governor and Democrats who control the legislature. It could force Illinois to stop making full payments on other state-mandated or court-ordered spending such as pensions and payroll.
The filing in U.S. District Court by attorneys representing Medicaid recipients asked Judge Joan Lefkow to order the state to pay $500 million a month for four months to start reducing a $3.1 billion pile of unpaid bills owed to managed care organizations that turn pay doctors and others.
As long as Illinois remains without an enacted budget, the proposed order calls for the state to spend an additional $586 million a month to cover Medicaid-related bills incurred after June 30, 2017.
Entering a third-straight fiscal year without a spending plan could sink Illinois' credit ratings to "junk," a first for any U.S. state.
(Excerpt) Read more at reuters.com ...
QUESTION?
Will GOV. RAUNER go back on his word to veto HB 40, (unlimited taxpayer funded abortions for government workers and Medicaid recipients at any stage of pregnancy), in order to strike a budget deal?
GOD will not be mocked.
I hope to HECK that NYS is watching this.
Well, Albany, how do you like the preview of coming attractions...?
I’d like to add Sacramento to that list.
The black robes keep mandating even when all the money is gone.
Maybe Illinois can borrow some money from their Democrat pals in Puerto Rico.
Someone has to pay for all the wounded victims of Chicago’s gangland violence.
Sometimes judges overreach (yeah, 9th Circuit Court, I’m talking about you). But in this case the judge is just applying the law as it is written.
Except in bankruptcy cases, a judge cannot - and should not - get to decide who should get paid, and who should not. The ‘no money’ problem...that’s on the legislators to fix.
Side note: There is only one way out for Illinois. They will have to amend their state constitution to allow for pension reductions. As it is, pensions cannot be reduced even by a penny. The state constitution directs that that all pensions must be paid in full.
I know that states can’t declare bankruptcy. But if Chicago declared bankruptcy, would that be enought to help IL dig out, anyone know?
The big problem comes down to the issues caused by Cook County, the county of the city of Chicago. They need to force Cook County to go into Chapter 9 bankruptcy, which will go a long way in improving Illinois’ finances.
> do their legislators have the political will to do such a thing? <
Not a chance. I think it’ll eventually come to the point where the state and city treasurers will refuse to write checks because the checks would bounce. A judge will order them to write the checks (as required by law), and the treasurers will resign instead.
Then after that...who knows?
Glad i do not own a home in that state..
That’s gonna leave a mark...
“But if Chicago declared bankruptcy, would that be enought to help IL dig out”
i don’t see how that would help. these are STATE obligations not being paid. example: the state owes 4 billion alone in past due bills to non-medical vendors for goods and services already received but not paid for.
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