State could lose $ 4B a year in GOP health plan, industry says

SPRINGFIELD — Illinois could face nearly $ 40 billion in lost federal Medicaid support over 10 years under a health care overhaul proposed last week by congressional Republicans, a health industry spokesman told lawmakers Thursday.

Three state House committees heard testimony from experts on how major changes to Medicaid outlined in the American Health Care Act could impact Illinois recipients. The GOP plan to replace former President Barack Obama’s health care law would phase out an expansion of Medicaid and cap federal spending for the entire program going forward. President Donald Trump supports the proposal.

Illinois Health and Hospital Association spokesman David Gross testified that Illinois would lose at least $ 40 billion in federal Medicaid funding over the act’s 10year lifespan. The association arrived at this figure by taking Illinois’ share of the nation’s Medicaid expansion population and multiplying it by the $ 880 billion in reductions estimated by the nonpartisan Congressional Budget Office under the Republican plan. Gross said the cuts would jeopardize patient care.

Democratic Rep. Greg Harris of Chicago, who chairs the appropriations committee for human services, said one in four Illinois citizens receives Medicaid benefits and could be affected.

Illinois currently devotes $ 10 billion in state funds each year to Medicaid, or about one- quarter of the state’s general fund. The federal government currently matches that amount.

Harris said lawmakers would need to find ways to fill the $ 4 billion- a- year hole.

“That’s money the state has to come up with, out of tax dollars,” Harris said. Otherwise, he explained, Illinois would have to cover fewer people, offer fewer services or cut rates to care providers.