The backlog of payments to Medicaid providers is a serious problem in Illinois. When these notoriously low reimbursements to primary care physicians administering care to Medicaid patients don't arrive on time, it makes the doctors increasingly reluctant to treat that population. That diminishes health care access for some of the state's most vulnerable citizens, thus raising the potential for public health outbreaks and preventive disease and deaths. It's an unsound system, both economically and morally.

Since the recession hit, Illinois has been making payments to most providers by the skin of its teeth, thanks almost exclusively to President Obama's stimulus bill, which provided $2.9 billion in short-term federal aid. Congress could pass along a little more help if the Democrats' health care reform bill passes; the version that the House approved provides $23.5 billion for state legislatures to pay a higher share of all Medicaid costs -- 66 percent on average, up from 57 percent prior to the stimulus -- for an additional six months in 2010.

This morning, the state also took some independent action aimed at solving this problem, as Gov. Pat Quinn signed into law HB 542, sponsored by Rep. Dan Reitz (D-Sparta) and Sen. Jeffrey Schoenberg (D-Evanston). The bill frees up $120 million from the state's Hospital Assessment Program to make payments to hospitals treating a high level of Medicaid patients, as well as pharmacists and smaller medical providers previously shafted by the stop-gap state budget. Making good on those payments could trigger additional matching funds from Washington, totaling an estimated $1.1 billion over the next two years. Here's Schoenberg's statement:

“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,” said Sen. Schoenberg. “At a time when unemployment continues to climb, this legislation will also create an immediate economic stimulus to preserve jobs and provide the residents of our state continued access to quality health care.”

Accessing all of the available resources is smart policy. And hopefully, Congress will ante up more state aid shortly to counteract the boom/bust budgetary pressures here in Illinois.

But let's be clear: These are short-term fixes to a problem that's dogged Illinois since well before the economy collapsed. Contrary to the talking points you'll hear from the Illinois Republican Party, the state is making solid progress at controlling rising Medicaid costs. We just need sustainable revenue to ensure we can pay the bills going forward.

Image used under a Creative Commons license by Flickr user Big Grey Mare.