The Prairie State is poised to net roughly $3 billion worth of Medicaid relief thanks to the stimulus package President Obama signed into law yesterday. However, the Illinois government is going to have to change some of its ways in order to hold on to these much-needed funds.

Each state’s chunk of the additional Medicaid funding is contingent on them promptly reimbursing providers, as Chicago Public Radio pointed out today. But in Illinois, this has been a continual problem. The gaping budget deficit has resulted in a huge backlog of Medicaid reimbursements, which has created a devestating ripple effect as hospitals and doctors turn away vulnerable patients covered by the program.

So in order to receive the full $3 billion earmarked for Illinois, the state needs to catch up on this backlog and make sure it doesn't fall behind again. There may be only one solution: borrow more money. Legislation introduced on February 6 by State Sen. Jeff Schoenberg (D-Evanston) would enable such action by the executive branch.

The bill text spells out the plan:

Authorizes the Governor, Comptroller, and Treasurer to borrow principal amounts not to exceed a total of $1,500,000,000, at any time and from time to time outstanding, to be applied to the purposes of paying hospital access improvement payments under the Public Aid Code and in order to obtain all funds available to the State under federal economic stimulus and recovery programs, together with paying debts and associated expenses incurred in connection with the borrowing. Provides that all moneys so borrowed shall be borrowed for a period not to exceed one year.

Let’s hope that the legislature moves quickly to clear the way.