Ill. Lawmakers Race To Approve Cuts, Tax Increases To Fill Medicaid Budget Hole
A $1-per-pack cigarette tax increase moves along in that state's legislature. It would help fill a budget gap in the Illinois Medicaid program. Lawmakers also approve a bill that further defines nonprofit eligibility for hospitals. In the meantime, lawmakers there also consider changes to retiree pensions and health care.
The Associated Press/Washington Post: $1-A-Pack Tax Increase For Cigarettes Passes Illinois Senate Committee Along Party Lines
Democrats argue the increase will help close a hole in the state Medicaid budget and also help prevent smoking. Republicans object to any tax increase. Officials face a $2.7 million budget problem for Medicaid. They've already approved spending cuts of roughly $1.6 billion (5/29).
Modern Healthcare: Tax-Exemption Legislation Heads To Ill. Governor's Desk
The Illinois Senate approved a bill that attempts to better define what makes a not-for-profit hospital eligible for tax-exempt status and increases the state's cigarette tax to fund its Medicaid program. The state's House approved the same bill last week (Selvam, 5/29).
Stateline: Illinois Rushes To Finish Budget, Medicaid And Pension Changes
What may be the nation's most fiscally troubled state is in the middle of a fateful week. Illinois legislators are racing to approve a new state budget and changes to the state's Medicaid and public employee pension systems ahead of their scheduled adjournment tomorrow. On Medicaid, legislators already approved $1.6 billion in cuts last week. Now, the state is poised to approve a dollar-a-pack cigarette tax increase that would help Medicaid meet its costs. The measure would more than double the amount of the tax (Goodman, 5/30).
Chicago Sun-Times: Unions: Pension Bill Forces Choice 'Between Harm ... Or More Harm'
A House Democratic push to force state workers and retirees to either surrender their automatic 3-percent pension increases or give up their state health insurance appeared to combust Tuesday in a flame of partisan bickering and heavy union pushback. ... Those unwilling to give up their automatic 3-percent annual pension increases would have to surrender their generous, state-subsidized health care coverage, and current employees would be barred from having future pay increases factored into the size of their pensions (McKinney & Maloney, 5/29).