The Looming $1.5 Billion Budget Hole
Ananias Ocampo has health insurance thanks to a Medicaid-like program that now benefits immigrants 65 and older regardless of immigration status. (Photo: Chicago Tribune)
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The Tribune touched a little on the issue over the weekend, but the impact of a Medicaid-style health insurance for undocumented immigrants could cost an additional $880 million next fiscal year and could balloon to nearly $1.5 billion if lawmakers succeed in an attempt to expand the program.
Illinois Department of Healthcare and Family Services Director Theresa Eagleson testified before a Senate committee last week (though, nobody has actually seen the testimony because Blueroom didn’t record it) and warned of growing cost increases to the Health Benefits For Immigrant Seniors and Health Benefits For Immigrant Adults programs.
The Trib explained the programs:
Illinois created a program in 2020 that provides Medicaid-style coverage to immigrants 65 and older who are in the country without legal permission or who have green cards but haven’t completed a five-year waiting period and are therefore ineligible for the traditional health insurance program for the poor, which is jointly funded by the federal government. The program has been expanded twice, now covering those 42 and older.
Eagleson reportedly told the committee the cost of the program, without changes in eligibility, would balloon by around $900 million in FY24.
A spokesperson for DHFS did not return a message from The Illinoize Monday to confirm the figures or to make any DHFS staff available.
“No matter how you add it up, it’s a significant budget hit,” said Sen. Chapin Rose (R-Mahomet), the lead Senate Republican budget negotiator. “How do you fill that gap?”
The complicating factor is an effort by some Democrats, led by Sen. Omar Aquino (D-Chicago), to expand the program to non-citizens from the ages of 19-41. The bill has not advanced, but we’re told there is wrangling to work the expansion into a piece of legislation over the final two weeks of the legislative session.
Eagleson reportedly told the committee the expanded program would increase costs to $1.3 billion next year. We’re told other independent estimates put the cost at closer to $1.5 billion.
Add that to dozens of budget requests working their way through the legislature and falling revenue estimates, and it makes the task of passing a balanced budget by the end of next week even more difficult.