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Steans leverages federal funds to support Medicaid program

steans 022818 3SPRINGFIELD – Hospitals that serve Medicaid patients would continue to benefit from federal funding under a measure sponsored by State Senator Heather Steans (D-Chicago) which passed the Senate today.

“I have worked with my colleagues in both chambers for several months to develop a new Medicaid Hospital Assessment Program that is fair to patients and hospitals,” said Steans. “This new program supports hospitals that serve a vital role in communities while distributing funding in a more accurate manner.”

The Medicaid Hospital Assessment Program was designed to leverage federal matching funds to cover the cost of services provided to Medicaid patients in private Illinois hospitals. Currently, hospitals receive a flat payment based on a variety of factors, such as the number of Medicaid patients served. The new program would use more recent patient data and phase in a claims-based payment model over the next six years.

“Hospitals are not reimbursed for the full cost of treating Medicaid patients and rely on these payments to help some of the neediest Illinoisans,” Steans said. “I urge the federal government to review this proposal immediately so that service to patients in Illinois will not be disrupted.”

Nearly half of the annual Medicaid payment funds are set to expire under Illinois statute on June 30, 2018. The assessment laid out in Senate Bill 1773 requires state and federal approval before it can take effect.

Senator Heather Steans


7th District

Years served: 2008 - Present

Committee assignments: Appropriations I (Chairperson); Appropriations II (Vice-Chairperson); Environment and Conservation; Executive; Government Reform; Human Services.

Biography: Born May 8, 1963, in Lake Forest, IL; B.A. in Urban Studies from Princeton; M.A. in Public Policy from Harvard's John F. Kennedy School of Government; former budget director, WI Department of Industry, Labor and Human Relations and former strategic planner, Chicago Public Schools; married (husband, Leo Smith) with three children.