Despite Illinois' lack of funds, the state was ordered by a federal judge to promptly pay new Medicaid bills and reduce the $3 billion in overdue Medicaid bills, according to the Chicago Tribune.
The ruling requires Illinois to pay all new Medicaid bills in full, which will be an estimated $586 million per month. The federal government will make half of the total Medicaid payments, leaving Illinois on the hook for $293 million per month. The court also ordered Illinois to pay an additional $1 billion toward the overdue Medicaid bills throughout the fiscal year that began Sunday.
"Without these payments, doctors, hospitals, clinics and other key healthcare providers would stop seeing Medicaid patients, or else simply go out of business altogether," Tom Yates, a member of the Legal Council for Health Justice, said in a statement to Reuters.
Judge Joan Lefkow's decision came as Illinois failed to pass a budget on Friday. Illinois Comptroller Susana Mendoza is pleading for lawmakers to pass a state budget. Her office told Reuters this ruling "takes the state's finances from horrific to catastrophic."