In Brief: Ohio Will Expand Medicaid; Illinois Hospitals Want Millions In Tax Refunds
Ohio Will Expand Medicaid Program
Ohio Gov. John Kasich's budget proposal includes the Buckeye State opting into the Medicaid expansion as part of the Patient Protection and Affordable Care Act.
Kasich, who unveiled his budget at a press conference on Monday, said the expansion was not an endorsement of healthcare reform, but is “Ohio's interest.”
An estimated 275,000 Ohioans would qualified for expanded coverage of the program, which would raise income thresholds to 138% of the Federal Poverty Level, or $31,809 for a family of four.
Ohio is expected to receive about $13 billion in federal funding for the Medicaid expansion over the remainder of the decade. The state is also estimated to save about $235 million in uncompensated care over the next two years.
Kasich has been in negotiations with the Obama Administration about possibly lowering the income qualification threshold. He indicated on Monday that those negotiations were ongoing.
Minnesota Launches New Medicaid Incentive Program
The state of Minnesota has launched an incentive program for Medicaid providers that is projected to save as much as $90 million a year.
The program, which was announced last week by Gov. Mark Dayton and Human Services Commissioner Lucinda Jesson, would pay incentives to providers who steer patients into preventative care. If its results in savings, providers will split it with the state.
“Right now, in our healthcare programs, as in so many across the country, the incentives are to providers and for plans to do more. We pay for people to do more,” Jesson said. “This is a dramatic change.”
Six providers have agreed to participate in the pilot project with the Department of Human Services: Children's Hospitals and Clinics of Minnesota; Essentia Health CentraCare Health System; North Memorial Health Care; Federally Qualified Health Center Urban Health Network; and Northwest Metro Alliance.
Illinois Hospitals Want Millions Back In Taxes
At least three recently declared tax-exempt Illinois hospitals are seeking state refunds totaling $10 million – the amount they paid in levies while they battled with state regulators over their status.
The refunds are being sought by Edward Hospital & Health Services, Adventist Bolingbrook Hospital, and Decatur Memorial Hospital, according to Crain's Chicago Business. The taxes were levied during a period the hospital's management battled with regulators over their tax-exempt status. The battle was part of a crackdown on property tax exemptions for hospitals perceived not to provide enough to the community in terms of charity care benefits.
“We believed that in our situation, the morally right decision was to pay our taxes, under protest, to Will County in full, letting the county know we were certain the hospital would be recognized as deserving tax-exempt status,” CEO Rick Mace said in a memo on Wednesday to the board of directors of Adventist Bolingbrook, part of Adventist Health Midwest. That facility is seeking by far the largest refund: $7.1 million. Decatur Memorial is seeking $1.6 million in refunds, while Edward is seeking about $1 million.
