CHICAGO — With his proposal to borrow $8.75 billion to pay down bills floundering, Illinois Gov. Pat Quinn is pressing lawmakers to authorize $1.75 billion to $2 billion of short-term bonding to pay off Medicaid-related bills before federal reimbursement rates drop in July.
Quinn said the state could capture millions of extra federal dollars by issuing bonds to pay off its Medicaid bills before July 1. That’s when a special federal reimbursement rate of 57% will return to 50%. A special rate of 59% expires at the end of the month. A 62% rate expired last year. The enhanced reimbursements were included in the federal stimulus package.