The Illinois Finance Authority has preliminarily approved a new program that would allow unpaid Medicaid claims from hospitals, physicians and other providers to be funneled to a group of investors in efforts to speed up unpaid payments, according to a Reuters news report.
Under the new program, the state would assign unpaid Medicaid claims to the IFA, which would then assign the claims to a group of investors. The new program mirrors a similar program launched last year that allowed vendors to allocate non-Medicaid claims to investors, such as banks, in exchange for rights to payments for the bills and any "prompt payment" penalties, according to the news report.
As of March 31, Illinois faced a $4.51 billion backlog of claims, with some dating back to Oct. 2010. "What is envisioned is a program that expedites payments to vendors for services they have provided to the state of Illinois," said IFA Executive Director Chris Meister.
Read the news report about the Illinois Finance Authority.
Read other coverage about Medicaid:
- Missouri Senate Votes to Extend Hospital Taxes
- Obama's Plan to Reduce Deficit Will Preserve Medicare, Medicaid But Includes "Tough Cuts"
- Wake Forest Baptist Hospital May Lose Medicare, Medicaid Status Following Patient Attack
Under the new program, the state would assign unpaid Medicaid claims to the IFA, which would then assign the claims to a group of investors. The new program mirrors a similar program launched last year that allowed vendors to allocate non-Medicaid claims to investors, such as banks, in exchange for rights to payments for the bills and any "prompt payment" penalties, according to the news report.
As of March 31, Illinois faced a $4.51 billion backlog of claims, with some dating back to Oct. 2010. "What is envisioned is a program that expedites payments to vendors for services they have provided to the state of Illinois," said IFA Executive Director Chris Meister.
Read the news report about the Illinois Finance Authority.
Read other coverage about Medicaid:
- Missouri Senate Votes to Extend Hospital Taxes
- Obama's Plan to Reduce Deficit Will Preserve Medicare, Medicaid But Includes "Tough Cuts"
- Wake Forest Baptist Hospital May Lose Medicare, Medicaid Status Following Patient Attack