The legislation has the strong support of the Illinois Hospital Association and the hospital community. "When hospitals and other health care providers receive Medicaid payments from the State, those funds promote new rounds of spending – including supporting wages for employees and the purchases of pharmaceuticals, goods and services from other businesses," said IHA President Maryjane Wurth. "That spending, in turn, generates further rounds of spending throughout the economy and tax revenues for the state."

Schoenberg added that the proposed legislation has broad support. "I have been working with the Quinn Administration and legislative leaders of both parties over the past 10 days to craft the proposal," said Schoenberg. "I am confident that it will receive legislative approval and be signed into law by the Governor."

According to one study, Medicaid has a tremendous multiplier effect on the state’s economy because it pulls a large infusion of new dollars – federal dollars – into the economy from outside the state. Each additional $1 of Medicaid spending generates $3 of economic activity in Illinois. (Families USA, April 2008; www.familiesusa.org/issues/medicaid/other/medicaid-calculator/medicaid-calculator.html?state=Illinois).

Under the federal economic stimulus law, which provides the State with an enhanced federal Medicaid matching rate of nearly 62 percent (a temporary increase of about 12 percent), for every $1 Illinois spends on Medicaid, the federal government is providing more than $1.60 to the state. The state’s enhanced Medicaid matching rate expires on Dec. 31, 2010.