Illinois Auditor General Report Says Gov. Blagojevich Administration Rolled Over Medicaid Bills To Hide Problems With State Budget

Main Category: Medicare / Medicaid / SCHIP
Also Included In: Public Health
Article Date: 16 May 2008 - 6:00 PDT

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The administration of Illinois Gov. Rod Blagojevich (D) has hidden state budget problems by rolling over about $1.5 billion in Medicaid claims each year, according to a new state audit, the Chicago Tribune reports. The audit, by state Auditor General William Holland, was requested by state Sen. Dale Richter (R). According to the Tribune, the audit found that Blagojevich's staff had rolled over about $1.5 billion in outstanding Medicaid provider payments annually, "a budgeting trick" that some governors use "to artificially boost the size of their states' checkbooks."

The audit also found that the Illinois Department of Healthcare and Family Services took an average of 77 days to reimburse physicians and pharmacists who care for low-income or aging patients but are not associated with large hospitals. Barry Maram, director of the health care department, said the delayed payments were a result of the lower health care finances, after lawmakers last year cut $250 million from Blagojevich's proposed health care budget. Maram added that the department has reduced its Medicaid deficit from $2.2 billion in 2003.

State Comptroller Dan Hynes and several lawmakers are using the audit to criticize Blagojevich's attempt to implement a proposal to expand FamilyCare, the state's subsidized health care program. Hynes said, "This is appalling and inexcusable," adding, "Health care providers have been forced out of business as a result of the ongoing mismanagement of this program."

Richter dismissed Maram's claims and noted that the Medicaid budget deficit in 2003, before Blagojevich took office, was less than $1 billion. Richter said, "The real problem here is the administration's unwillingness to recognize that there are deep-seated problems in this program" (Long/Meitrodt, Chicago Tribune, 5/13).

The audit report is available online (.pdf).

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