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6 million in unpaid interest owed to providers treating Medicaid patients between July 1999 and November 2007, despite the existence of an Illinois prompt-payment law. This interest is money that should not 'need' to have been spent, since money paid for interest does nothing to improve the quality of care for recipients. Another problem is a high rate of rejection of Medicaid claims and slow processing of rejection notices -- as much as 87 days in fiscal 2006, according to one recent study (Trapp 2008).
This high rate of rejection of claims has caused a correspondingly high rate of rejection of patients with serious health complaints, including children. A The New England Journal of Medicine study published in June of 2011 found that 66% of parents who mentioned they were part of the Medicaid-CHIP (Children's Health Insurance Program) were denied appointments from specialist physicians for complaints spanning from their children's diabetes, seizures, asthma, broken bones to depression, compared with 11% who said they were privately insured. For those whom the specialist agreed to see, the waiting time was on average 22 days longer (McArdle 2011). This results in less...
Unless the low and slow rate of reimbursement is addressed, the health of Medicaid patients, including children, will continue to suffer in Illinois. But expediting the bureaucracy behind the program will take an initial influx of cash that the state can ill-afford in recessionary times.
References
Jacobs, Philip & John Rapoport. (2002). The economics of health and medical care. Aspen.
McArdle, Megan. (2011, June 16). Most Illinois specialists won't treat Medicaid. The Atlantic.
Retrieved June 17, 2011 at http://www.theatlantic.com/business/archive/2011/06/most-illinois-specialists-wont-take-medicaid-patients/240548/
Trapp, Doug. (2008, June 16), Illinois Medicaid paid physicians too slowly, state audit says.
American medical news. Retrieved June 17, 2011 at http://www.ama-assn.org/amednews/2008/06/16/gvsb0616.htm
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