Illinois proposes Medicaid rate cut
Koehler, Crespo say insurers making excess profits during pandemic
By Peter Hancock
Capitol News Illinois
SPRINGFIELD – Two Democratic lawmakers this week introduced legislation to reduce state payments to the insurance companies that manage Illinois’ Medicaid program, arguing that the COVID-19 pandemic is resulting in excess profits for the insurers.
Sen. Dave Koehler, of Peoria, and Rep. Fred Crespo, of Hoffman Estates, say that money saved due to the pandemic could be used to help struggling downstate hospitals whose resources have been strained by excess hospitalizations and low revenue.
“While insurance companies and managed care organizations see record-setting profits at the height of a global pandemic, rural communities across the state are experiencing unsustainable strain in their health care systems due to lack of resources,” Koehler said in a statement Wednesday. “The money recouped through this legislation would provide immediate relief for Downstate hospitals that have been devastated by COVID-19.”