Rep. Reis: Feds Halt Cost-Saving Medicaid Reforms

July 27, 2011

Olney, IL.…State Representative David Reis (R-Ste. Marie) joined state and federal lawmakers objecting to the federal government’s decision to block statewide Medicaid reform efforts.

Recently the federal government sent a letter to state officials disallowing a provision of the Illinois Medicaid reform law, which is intended to curb the fraudulent collection of health benefits intended for low-income families.

"I’m joining Illinois lawmakers who’ve asked the federal agency to reconsider its decision and permit our state to move forward with the Medicaid reforms," Rep. Reis said. "Right now the Medicaid program enrolls nearly 2.8 million Illinois residents which cost taxpayers over $11 billion a year. By verifying a Medicaid applicant meets a simple income and residency requirement, it serves as a strong deterrent against Medicaid fraud and abuse."

The Centers for Medicare and Medicaid Services (CMS) issued a determination that would void Illinois reforms designed to strengthen the integrity of its Medicaid program. CMS's decision resulted from its interpretation of the new federal health care law that prohibits states from implementing new income and residency verification procedures.

"We must preserve the Medicaid reforms which are intended to safeguard the state’s limited resources for those who need it the most," Rep. Reis said. "By requiring Medicaid beneficiaries to verify their income with a pay stub and residency with a simple utility bill, our state is taking a common-sense approach to reducing Medicaid fraud."

Medicaid eligibility verification will save the program nearly $5 million over the next five years, helping to refocus the program as a safety net for the state’s most vulnerable. The comprehensive Medicaid reform has an estimated cost savings up to $770 million.

Rep. Reis continued, "Our state is facing an uphill challenge to regain our fiscal foothold and instituting the Medicaid reforms is key to getting Illinois back on track. For the federal government to deny the reforms at the last minute, it’s irresponsible and puts our state’s Medicaid program and its enrollees at the whim of federal, political games."

For more information regarding the Medicaid reforms, please contact Rep. Reis’ Olney legislative office at 219 East Main Street, call 618-392-0108 or visit www.davidreis.org