Governor Signs Medicaid Cuts, Cigarette Tax Hike Into Law

GOVERNOR PATRICK QUINN signed into law a package of bills to achieve his desired $2.7 billion in Medicaid savings, including a bill that cuts $1.6 billion from Medicaid – the Federal-State health care program for the poor, elderly, and disabled -- and a measure to raise the cigarette tax by $1 a pack. The cigarette tax hike is expected to generate $700 million a year, including $350 million in matching Federal funds. The legislation cuts or eliminates a number of programs, including the elimination of Illinois Cares Rx, which gives prescription drugs to seniors.

ALSO, THE, the $2.7 billion actually translates into only $1.3 billion in savings, according to Progress Illinois. The rest is money Illinois will not see in its federal Medicaid reimbursement. The Federal government reimburses half or more of each state's Medicaid costs.

WITH MEDICAID cuts, UIC’s Medical Center can expect to see fewer Medicaid patients and lose some vital revenue that those patients provide UIC for their healthcare needs.

THE BILLS officially become law July 1.