Gov. Pat Quinn says the cuts he made to Medicaid in the state budget last week are intended to force reform of the program. Pointing out that the state's Medicaid rates are outdated, David Vaught, the state's budget director told WBEZ, "Medicaid is a very ... cost sensitive area that's increasing since 2008 at 5.8 percent a year on average. That's a higher rate than the state can afford. And it squeezes out other priority spending."
The $270 million in cuts to Medicaid reimbursements will not save the state money, instead it hold off on paying hospitals for one year -- which the facilities requested over having reimbursements cut entirely.
The state currently owes over $4 billion in past due bills.