Quinn: Medicaid ‘on the brink of collapse’

Gov. Pat Quinn, seen here in December in Chicago. (Photo by Tasos Katopodis/Getty Images for GEANCO Foundation)

SPRINGFIELD – Gov. Pat Quinn said Wednesday that the health care system that covers 2.7 million people in Illinois is “on the brink of collapse.”

In his budget address, Quinn said Illinois must cut Medicaid spending by $2.7 billion to keep the system working. But the Democratic governor didn’t offer a plan for achieving that savings. He said a special working group will study the problem.

Quinn said possible changes include paying less to doctors and hospitals, cutting services, making it harder for people to qualify for Medicaid and more.

He challenged lawmakers not to end their spring session without a solution.

The Illinois Hospital Association says Quinn’s proposed cut to Medicaid spending would result in hospital layoffs and closures. The Illinois State Medical Society, which represents doctors, also issued a statement, calling the governor’s Medicaid proposal “shocking.”

Closures and overall spending

Meanwhile, Quinn also officially announced his proposal to close 14 major state facilities, including two prisons. The targeted prisons are a maximum security institution in Dwight and the “supermax” prison in Tamms. Also on the closure list are four mental institutions and two prisons for juveniles.

In his address, Quinn said the need to lower state spending “gives us no choice.”

Quinn said he plans to cut $425 million in agency spending, with most agency budgets to be reduced by at least 9 percent. He also plans to cut more than 700 jobs.

The cuts aren’t across-the-board: Quinn wants to increase early childhood education funding by $20 million, and boost Monetary Award Program scholarships by $50 million.

Lt. Gov. Sheila Simon said a “responsible budget must be based on real revenue.” She said she plans to cut her own office’s budget by 9 percent and eliminate staff positions.

“As a Southern Illinois resident, I am disappointed that the state is proposing facility closures in areas that already suffer from high unemployment,” Simon said in a statement. “I encourage the people whose livelihoods will be affected to join me in the budget process and speak up as we review the economic impact of such closures.”

PDF: Read Quinn’s entire budget speech.

Or listen to Quinn’s speech below:

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WJBC will update this story.

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