Gov. Rauner`s Budget Proposal

February 18, 2015
Chief Executive Officers, Member Hospitals and Health Systems
Chief Financial Officers
Government Relations Personnel
Public Relations Directors
Maryjane A. Wurth, President & CEO
A.J. Wilhelmi, Chief Government Relations Officer
Gov. Rauner’s Budget Proposal – IHA Advocacy
Earlier this afternoon, Governor Rauner delivered his budget address and proposal for
FY2016 to the General Assembly.
Based on preliminary information, key provisions in the Governor’s proposal concerning
the state budget and Medicaid include:
State Budget:
 $6.7 billion overall reduction from projected spending for next fiscal year, FY2016;
 No new revenues.
 $1.5 billion reduction in Medicaid spending – about a 10% reduction – including:
o Eliminating fixed hospital payments (e.g., rate reform transition payments)
and repurposing a certain amount of hospital assessment funds to pay for
general Medicaid services;
o $75 million from increased verification of eligibility and reducing provider
waste, fraud and abuse;
o $41 million from moving persons from Medicaid onto plans offered on the
marketplace under the ACA; and
o $320 million from rolling back increases in services and rates enacted since
the SMART Act.
IHA will be sending you a memo providing greater detail about the Governor’s budget
proposal in the coming days. [See the Governor’s summary of the proposed budget;
transcript of the Governor’s speech; and the Governor’s budget proposal webpage.]
IHA Statement
In response to the Governor’s proposal, IHA issued a statement to the news media,
expressing deep concerns and urging the Governor and General Assembly to invest in
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health and responsibly fund the Medicaid program, to ensure that all Illinoisans have
access to quality health care. The statement includes the point that a 10% cut in Medicaid
hospital spending would mean the state loses $1.1 billion in economic activity and 8,200
IHA Advocacy
IHA continues to meet with key Administration officials, legislative leaders and key
legislators to advocate for the critical need to invest in health by assuring that Medicaid –
the health insurance program for children, seniors, adults, and individuals with disabilities
or mental illnesses – is responsibly funded.
It is imperative that hospitals and health systems engage with their legislators, community
leaders, local news media and other key stakeholders. (See IHA memo on Medicaid/Invest
in Health advocacy tool kit.)
Plan to attend two key upcoming IHA advocacy events in Springfield: Our Legislative
Reception on March 18 at the Sangamo Club; and IHA Hospital Advocacy Day on April
29. (See IHA memo for details about the legislative reception.)