Written by Schoenberg Staff Wednesday, 19 May 2010 10:12
Anxious providers to receive relief through increased federal ARRA Medicaid funding
Evanston – Federal regulators have given final approval to an initiative that would quickly pump nearly $1.1 billion in new federal Medicaid funds into the Illinois economy and provide critical support to the state’s health care delivery system.
Under the package crafted by chief sponsor Assistant Senate Majority Leader Jeff Schoenberg (D-Evanston), and signed into law by Gov. Pat Quinn in October, 2009, the state created the Health Care Provider Relief Fund to pay claims for various medical assistance programs (including Medicaid, AllKids and FamilyCare). As part of the plan to maximize federal funding, the state successfully sought federal approval from the Center for Medicare and Medicaid Services of a state plan to receive matching funds for previous FamilyCare claims. Schoenberg’s legislation also ensured that through accelerated Hospital Assessment Program and quarterly Medicaid payments to hospitals and the paying down of the state’s backlog of medical assistance bills, the state would be able to obtain additional federal Medicaid matching funds under the economic stimulus law. "With many of the state’s health care and human service providers desperately gasping for breath as they fight to stay alive, this major infusion of new federal dollars couldn’t come at a better time." Schoenberg added, "Rising unemployment and increased demand for services have taken their toll on not-for-profit providers in communities across the state. We can now offer some oxygen for health care and human service providers seeking to preserve jobs and enable people to have continued access to quality health care." According to Schoenberg, the proposal did not require any new state funding or borrowing. He stressed that the legislation will be a major boost to the state’s economy. "Hospitals and other health care providers are key economic engines in communities all over the state, with hospitals employing nearly a quarter of a million Illinoisans and supporting many other businesses, including suppliers and vendors," Schoenberg said. Statewide, hospitals are among the top three largest employers in 48 out of 102 counties. Collectively, hospitals have an annual impact of nearly $72 billion on the state’s economy. The legislation had the strong support of the state’s hospitals and networks of not-for-profit health care and human service providers. Under the federal economic stimulus law that expires on December 31, 2010, Illinois receives an enhanced federal Medicaid matching rate of nearly 62 percent (a temporary increase of about 12 percent). Consequently, for every $1 Illinois spends on health care covered by Medicaid, the federal government is providing more than $1.60 to the state. According to one study, Medicaid has a tremendous multiplier effect on the state’s economy because it pulls a large infusion of new dollars 
Schoenberg said that the approval by federal regulators will mean that hospitals and health care and human service providers will begin seeing some relief from the state’s chronic inability to make payments for services.
Senator Schoenberg Menu
9th District
Assistant Majority Leader
Years served: 1990 - 2002 (House); 2003 - Present (Senate)
Committee assignments: Committee of the Whole; Financial Institutions; Appropriations I (Vice-Chairperson); Appropriations II (Vice-Chairperson); Public Health; Revenue; Revenue Subcommittee on Prop. Taxes; Subcommittee on Amendments.
Biography: House of Representatives, six terms, 1990-2002; Senator Schoenberg, his wife, Lynne Sered, and their two children reside in northwest Evanston.