Illinois General Assembly Approves Legislation To Borrow $500M for Five-Year Hospital Assessment Program

The Illinois state House and Senate on Thursday voted to approve a bill (HB 1027) that would borrow $510 million from special state funds to initiate a five-year hospital assessment program that will draw down additional federal Medicaid funds, GateHouse/Peoria Journal Star reports. Under the bill, the state government would borrow $335 million from a fund dealing with the retirement of general obligation bonds and $175 million from the State Employees' Retirement System fund. The money and interest would be repaid to the special funds by April 14. State officials say the hospital assessment program would enable hospitals and the state government to collect an additional $4.5 billion to pay for health care for low-income residents. Illinois Gov. Pat Quinn (D) plans to sign the bill into law, according to spokesperson Libby White (Colindres, GateHouse/Peoria Journal Star, 2/26).