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Illinois, 13 Other States, Cut Medicaid to Balance Their Budgets

Health & Medicine Policy Research Group (HMPRG)
August 8, 2012

Illinois cut $1.6 Billion from the State Medicaid program May 25, 2012, keeping pace with states around the country who looked to Medicaid cuts to balance their state budgets. Kaiser Health News reports that Illinois' and other states' cuts are more extensive than last years.

Health & Medicine questioned the cuts to Illinois' Medicaid programs that are provided in the home- and community-based setting in a report recently released, prior to the enacted Medicaid cuts. Our research shows that Medicaid cuts to home- and community-based services are short-sighted: saving money in the short-run and costing the state in the long-run. With less access home- and community-based services, Medicaid beneficiaries are expected to use more costly emergency room, hospital and nursing facility services.

Illinois' financial crisis resulted in decisions that result in quick Medicaid dollar savings, but probable further financial strain on the Medicaid system. Health & Medicine will continue to advocate for policies and programs that result in long-term cost-savings through quality health programs that improve population health. For more information on our work regarding home- and community-based service advocacy, email Kristen Pavle, Associate Director, Center for Long-Term Care Reform @ Health & Medicine.