Illinois Highlighted in Forbes Article, State Reviews Federally Required Health Care and New Laws Signed

Please note: The Week in Review is written by a staff member of the Illinois Senate Republican Caucus and approved by legislators. It is meant to provide constituents with information about legislative action and activities during the week.

Springfield, IL - Illinois was recently highlighted in a Forbes article criticizing the Obama administration’s efforts to block bi-partisan Medicaid reforms.

On Aug. 27, Forbes columnist Avik Roy wrote a column highlighting how the Obama administration is trying to block commonsense portions of Illinois' Medicaid reform package that passed in January. At issue is a pronouncement from Obama's Centers for Medicare and Medicaid Services rejecting reforms which simply require Medicaid applicants to provide some nominal proof of eligibility.

Roy’s article advocated state-control of the program, stressing the “dysfunctional” way Medicaid is run. The article quoted Senate Republican Leader Christine Radogno, who noted, "Frankly, this is what enrages people. If all we want to do is find out if people are actually eligible for services, and the federal government is telling us we can't do that, that's absolutely ridiculous."

One of the reforms required Medicaid applicants to produce more than a single pay stub to establish income eligibility; an innocuous requirement targeted at preventing fraud. But under the logic of the current federal administration, any new attempt to verify that Medicaid recipients are actually eligible for Medicaid is considered a "new" and forbidden eligibility restriction.

"This type of overreach by the government is particularly egregious," Sandack said. "As such, it's good to know that others are recognizing the reform that was passed and how it can only improve the Medicaid system."

Senate Republican lawmakers have been longtime proponents of Medicaid reform. For years, Senate GOP legislators introduced and advocated for measures that would bring accountability and common sense to the Medicaid program; much of the January reform package was based on proposals long pushed for by Senate Republicans.

Also this week, State Sen. Ron Sandack (R-Downers Grove) said a state commission has begun to review the implementation of the state's federally required health care exchange.

The Commission on Government Forecasting and Accountability (COGFA) invited testimony from health care advocates, the medical community, organized labor and business organizations on the state’s federally-mandated health care exchanges. As a result of the federal health care reform package, every state is required to establish a health care exchange where people can learn about and purchase health insurance plans.

Though states are floating concepts that include both online and brick-and-mortar exchanges, no concrete decision has been made. However, according to witness testimony at the hearing, most parties agreed the state should not run the health care exchanges, but instead help establish the exchange and enforce related regulations.

"Illinois is 48th in job creation, has the most debt per capita of any state, has massive unfunded pension obligations and has a corruption problem," Sen. Sandack said. "It is no wonder that almost no reasonable person thinks Illinois is capable of running an effective health care exchange."

The state must have an exchange available by January 2013, otherwise the federal government will provide Illinois with an exchange.

Finally, this week the Executive Ethics Commission approved contracts that will allow continued health insurance coverage for state employees, retirees and dependents from their current group health insurance provider. The insurance plans will be good until June 30, 2012, while a permanent solution continues to be ironed out.

Legislation signed into law this week:

FOID Requests (HB 1716/PA 97-0579):  Allows public bodies to respond to a “recurrent requester” within a reasonable amount of time, similar to what is currently required for a commercial request. A “recurrent requester” has done one of the following in the previous 12 months: submitted 50 FOIA requests in the year; submitted 10 FOIA requests in a 30-day period; submitted 5 FOIA requests in a 7-day period. Exemptions are included for requests made by news media and non-profit, scientific or academic organizations..

Granny Tax (HB 3635/PA 97-0584):  Prohibits a nursing home bed tax or "Granny Tax" from being implemented before it is approved by the federal government.  Creates an appeal process for non-emergency medical transportation providers to appeal denials for reimbursement of services.

Gubernatorial Appointees (HB 2972):  States that gubernatorial appointees, with the exception of the members of the State Board of Elections and the Director of the Illinois Power Agency, must be confirmed by the Senate. These appointees may not serve longer than 60 days after their terms have expired.  Those who were appointed before the bill becomes effective and whose terms have expired will only be allowed to serve 60 days once the bill goes into effect.

Hiring (HB 2927/PA 97-0581):   Amends an existing, yet non-active program, which will provide incentives to private-for-profit and not-for-profit employers to hire new employees by subsidizing the wages of new employees. Economically disadvantaged individuals will be given hiring priority.

Mid-America Medical District (HB 3425/PA 97-0583):  Expands the Mid-America Medical District to include the cities of Belleville and O’Fallon and adds three members appointed by the mayor of Belleville. Also allows the District to issue revenue bonds.

Tax Abatement (HB 212/PA 97-0577): Allows property tax abatements for certain municipalities and school districts in eligible business corridors. Eligible municipalities must have a per capita equalized assessed valuation (EAV) that is less than 60% of the State average, and more than 15% of its population below the national poverty level. The school district must have maintained an unrestricted fund balance of at least 20% of its total direct expenditures for the most recent two years that data are available.

Service Member’s Employment Tenure
Violations (HB 2095/PA 97-0580):  States that a violation of the Service Member’s Employment Tenure Act constitutes a class A misdemeanor with a fine of between $5000 and $10000. Also requires the Attorney General to compile and maintain an employer listing of those who have violated this law.

Sex Offenders (HB 1253/PA 97-0578):  Requires sex offenders who have never been required to register before, or whose term of registration has expired, to register or register again if they are convicted of a new felony offense after July 1, 2011.