Published: May 01, 2007 02:21 pm      

Governor promises $5.67 million more to area hospitals with Illinois Covered

By GREGORY R. NORFLEET

gregory.norfleet@register-news.com

MT. VERNON — If Gov. Rod Blagojevich convinces the legislature to pass his Illinois Covered plan as-is, Jefferson and Hamilton county hospitals would see as much as $5.67 million in additional funding, the governor’s office said.

According to a press release issued Thursday by the governor’s office, Southern Illinois hospitals would see an overall $68 million in new funding. Of that, St. Mary’s good Samaritan Inc. would get as much as $3.75 million more; Crossroads Community Hospital would get nearly $1.4 million; and Hamilton Memorial Hospital in McLeansboro would get nearly $527,000.

SMGSI CEO James Sanger said he is supportive of the idea because of the “rapid rise in people without insurance.”

The governor proposed a gross receipts tax, which he said would bring in $6 billion in new funding, to cover the cost. Sanger said he has “no thoughts” on whether the GRT was acceptable, but said the state should find a way to pay for it.

“The state is grossly underfunded,” he said, referring also to pensions and education. “We need a new revenue stream.”

He points out that the state owes about $4 million to $5 million in Medicaid funding from falling about three months behind on payments to SMGSI’s Mt. Vernon and Centralia hospitals.

“We need to get the state back on a good funding base,” he said.

HMH CEO Randy Dauby said the governor’s office is “giving out the high figure,” as he has heard the amount could be $270,000 to $527,000.

Dauby said the hospital, just like the Illinois Hospital Association, supports the governor’s idea to cover the underinsured and uninsured. However, unlike the IHA, the hospital is not sure if the governor’s proposed gross receipts tax is the best way to fund the idea.

What he does know is that HMH had to write off about $60,000 in overdue medical bills because the state is so far behind on Medicaid payments.

“That plays havoc on smaller hospitals,” he said.

Crossroads’ CEO Ed Cunningham could not be reached for comment.

The governor’s office estimates that there are 1.4 million adults in Illinois who are uninsured, and he hopes to offer them insurance through Illinois Covered. Blagojevich introduced Illinois Covered in his State of the State address last month.

Statewide, it would mean nearly $1.7 billion in new funding for hospitals, health care providers and medical centers, read the press release.

“While strong forces in Washington in our own state put up excuses for why we’re better off just leaving working families uninsured, we know that’s not right,” Blagojevich said in a statement.

With the state budget deficit near $2 billion, Republicans argue that the state cannot afford another major program and businesses balk at the idea that they would be required to cover most of the new costs.

The National Federation of Independent Businesses opposes Illinois Covered by itself, but especially because it is also being proposed to work hand-in-hand with a suggested 3 percent payroll tax.

“The draft language indicates that employers with more than 10 employees will have to pay a 3 percent payroll tax if the employer doesn’t spend at least 4 percent of their payroll on a “suitable” health care plan,” according to a statement from the NFIB. “The problem is that there are no definitions indicating what a “suitable” health care plan is. So even if you meet the spending level, the healthcare product you currently provide may not be good enough for the Governor.”

The NFIB is also concerned that the proposed legislation leaves too many details to the rule-making process.

“(This) is very dangerous as it gives too much authority to state bureaucrats and the governor’s office, with little oversight,” the press release said.

Blagojevich issued the figures during Cover the Uninsured Week, and believes that health care spending in Illinois will almost double within 10 years.