Illinois
Illinois lawmakers brace for possible federal cuts to Medicaid
SPRINGFIELD — Health care advocates, hospital officials and people who rely on Medicaid for their medical coverage warned state lawmakers Wednesday of consequences that could result from proposed cuts in federal Medicaid funding.
The video in the player above is from a previous report.
“This is it. This is absolutely it. This is the line,” said Carrie Chapman, senior director of litigation and advocacy at Legal Council for Health Justice, a Chicago-based advocacy group. “Medicaid stays or goes as the program that we’ve know it right now.”
Chapman was among nearly a dozen people who spoke Wednesday to an Illinois House budget committee that oversees spending for human services, including Medicaid, the public health insurance program that covers about 3.4 million lower-income people in Illinois.
Established in 1965 alongside Medicare, the federally funded health insurance program for seniors, Medicaid has traditionally targeted lower-income pregnant women, children, seniors, parents, and people with disabilities. In Illinois, the federal government pays approximately 51% of the cost of covering those individuals’ care.
However, with passage of the Affordable Care Act in 2010, Medicaid eligibility was expanded to include working-age adults with incomes up to 138% of the federal poverty level. Approximately 770,000 people in that category are covered by Illinois Medicaid and the federal government pays 90% of the cost for that expansion group.
Currently, according to the Illinois Department of Healthcare and Family Services, Medicaid pays for about half of all child births in Illinois and two-thirds of all nursing home days. Nearly 50% of Illinoisians living with HIV are covered by Medicaid, as well as almost 80% of people served by community mental health centers.
All told, according to the state comptroller’s office, Illinois spent about $36.9 billion on Medicaid in the fiscal year that ended June 30. Illinois Department of Healthcare and Family Services Director Lizzie Whitehorn said about 62% of total state Medicaid spending comes from the federal government.
At issue was a budget resolution that recently passed the Republican-controlled U.S. House in Washington, which calls for deep cuts in federal spending. Part of that resolution calls on the U.S. House Committee on Energy and Commerce, which has jurisdiction over Medicaid, to cut $880 billion from the federal budget deficit over the next 10 years.
Because Medicaid makes up a large part of all the programs the Energy and Commerce Committee oversees, many have assumed that cuts of that size would have to include substantial cuts to Medicaid.
“There’s no way they can cut that much out of the federal budget without touching Medicaid, because Medicaid is such a substantial portion of the discretionary funds that they have access to,” Rep. Anna Moeller, D-Elgin, who chairs the legislative appropriations committee, said after the hearing.
Whitehorn noted that the expansion of Medicaid under the Affordable Care Act resulted in cutting the state’s uninsured rate in half and reducing the amount of uncompensated care delivered in Illinois by more than a third.
“Federal cuts would mean we have to limit services or eligibility,” she told the committee. “And we don’t have the money as a state to make up the difference.”
A.J. Wilhelmi, president and CEO of the Illinois Health and Hospital Association, described the list of proposals being considered in Washington as “both sweeping and shocking.” He said they include turning federal Medicaid spending into a block grant to states, establishing per capita caps on Medicaid benefits, and eliminating certain funding mechanisms, known as provider taxes, that are used to draw down additional federal matching funds to support the cost of operating hospitals.
“And make no mistake, there would be no hospital Medicaid program without hospital provider taxes,” he said.
Last month, Gov. JB Pritzker laid out a $55.2 billion budget proposal to the Democratic-controlled General Assembly to fund state government operations over the 2026 fiscal year, which begins July 1. In his budget address, however, he noted the uncertainty of various streams of federal funds that are used to help pay the cost of many state operations, including Medicaid.
Rep. Bob Morgan, D-Deerfield, who serves on the committee, said Wednesday that the decision about future federal Medicaid funding is in the hands of the Republican-controlled Congress. He urged GOP members of the General Assembly to use their influence to persuade the three Illinois Republicans in the U.S. House to vote against cutting Medicaid funding.
“So I’ll just close with my request to the minority spokesmen and the minority members of this committee to come back in a week to share with this entire committee those letters and those emails and those texts in discussion with us about the things they have done to make sure that the U.S. House of Representatives and the U.S. Senate and the president do not make these horrible, horrible, damaging, life-impacting cuts to our Medicaid system,” he said.
Republicans on the panel argued that the subject of federal budget negotiations was beyond the scope of the state legislative committee’s purview and suggested Wednesday’s hearing was more about partisan politics than solving the state’s budget issues.
“And so this, I think, is performative,” said Rep. William Hauter, R-Morton. “We don’t know what will happen. There’s a lot of things that we have no control over, budget negotiations going on at the national level.”
Moeller argued the hearing was more than a stage show, noting that Congress faces a March 14 deadline to pass a bill to renew federal spending authority or face a partial shutdown of the federal government.
“This hearing this morning is far more than performative,” she said. “We are going to be heading into our budget cycle, our budget making process, with huge uncertainty hanging over our heads. What happens on March 15, in the next few weeks, in Washington, D.C., will have a direct impact on the level of funding that we will have available for all of these important programs.”
Capitol News Illinois is a nonprofit, nonpartisan news service that distributes state government coverage to hundreds of news outlets statewide. It is funded primarily by the Illinois Press Foundation and the Robert R. McCormick Foundation.
A record share of Illinois university employees opt-out of pensions for a 401(k)-style plan, lawmakers should give other state employees the same flexibility.
More retired state university employees are opting for a 401(k)-style plan rather than a traditional pension than ever before. They want more choice and flexibility in their retirement benefits. Lawmakers should expand the option to all state workers.
SURS published its annual actuarial evaluation for 2025. With only 47.1% of what they need to pay retirees, they are the second-highest funded state pension in Illinois, beaten only by the Teachers Retirement System with a funded ratio of 47.8%. That shouldn’t be a source of pride, however.
Experts say 60% funded is dangerous and 40% funded or lower is past the point of no return, so 47% is far too low. Illinois’ pension crisis is the worst in the nation.
But the system stands apart because it offers a way out for employees who don’t want to be stuck in the outdated, one-size-fits-all pension model or a pension system that might become insolvent.
SURS gained 1,314 new employees last year, 725 to the traditional and portable pension plans while 589 opted into the Retirement Savings Plan. Nearly half, 45%, of all new members joining are opting out of a traditional pension.
The numbers show 18.2% of all active employees opted into the Retirement Savings Plan, the highest ever since it started in 1998.
It’s a defined contribution plan, similar to a 401(k), rather than the typical defined benefit pension available in most state retirement systems. That’s up from 17.7% of active employees in 2024.
Actuaries expect this pattern to continue, projecting a growing share of active employees opting into the plan until it reaches around 30% of all active employees who are on a defined contribution plan.
Academic hires such as professors are expected to opt-in to the Retirement Savings Plan at a rate of 45%. Non-academic employees such as administrators are expected to opt-in at a rate closer to 25%.
In both cases, employees seem to enjoy getting more choice over how to invest their retirement benefits, but the difference highlights why this option is so important. Currently state university employees are the only ones with this defined contribution option.
Traditional pensions for new workers at Illinois universities have a vesting period of 10 years. That means if someone leaves their job or the state before they’ve completed 10 years, they won’t be eligible for anything but a refund of their contributions. Not the state match or any interest they could’ve accrued while working.
Early-career academics face higher job uncertainty and are more likely to change institutions than later-career or tenured faculty. Under higher expected mobility, defined contributions are more attractive because you don’t have to worry about losing out on retirement benefits because the vesting period is much lower at 5 years.
Mobility isn’t only important in academia. The ability to change careers is important for a variety of jobs today. Wage and salary workers in the public sector today have a median tenure of 6.2 years. That number is likely skewed because 3-in-4 government workers are aged 35 and older.
Younger workers tend to stay in jobs for shorter periods. Across the public and private sectors, the median tenure of workers 55 to 64 is 9.6 years and 2.7 years for workers 25 to 34. Both figures are far below the 10-year vesting requirement for most Illinois pensions.
There’s no reason to limit flexibility and control to only employees under the State University Retirement System. Senate Bill 3389 offers a step in the right direction by allowing downstate teachers to opt-in to a similar Retirement Savings Plan. But that is only the start.
Illinois should expand this option to all five of its state pension systems so that employees can choose to have more control over their retirement finances. Similar plans have been enacted in Rhode Island and Tennessee, which has one of the best-funded pension systems in the country. A defined contribution plan offers more freedom and security for retirees.
ILLINOIS – Illinois is making it possible for thousands more people with disabilities to set aside money for their needs without losing critical federal benefits.
A new rule, announced this week by State Treasurer Michael Frerichs, raises the eligibility age so that anyone whose disability began before age 47 can now open an ABLE (Achieving a Better Life Experience) savings account.
The change nearly doubles the number of Illinois residents who can use the program, which lets people with disabilities save and invest money tax-free for qualified expenses.
Frerichs called the expansion a “game changer,” estimating that 250,000 additional Illinoisans and about 6 million people nationwide now qualify.
“We’re happy to report that ABLE accounts are now available to anyone who acquired their disability before age 46, and I think this is a game changer for a lot of people,” Frerichs said.
Until this expansion, ABLE accounts were only available to people who acquired a disability before age 26. That restriction left out veterans, accident survivors, and people diagnosed with disabling conditions later in life. The new rule took effect this year after Congress responded to calls from Illinois advocates and families to expand access.
How ABLE accounts work:
An ABLE account functions much like a 529 college savings account. Account holders, friends, and family can contribute cash, which is then invested. The money grows tax-free as long as it is used for disability-related expenses such as housing, transportation, assistive technology, or education. Illinois also offers a state income tax deduction for contributions.
Before ABLE accounts, people with disabilities who received Supplemental Security Income (SSI) or Medicaid faced strict asset limits. Having more than $2,000 in savings could mean losing those benefits.
“This created a lot of anxiety for families who were preparing,” Frerichs said. “There’s a lot of fear for people who wanted to go out and work. What would happen if my paycheck put me over that threshold? Well, ABLE is the answer.”
The program allows up to $100,000 in savings without affecting federal benefits. Earnings and withdrawals remain tax-free if used for qualified expenses.
Real-life impact:
Frerichs shared stories from families who had to make difficult choices before ABLE accounts existed.
“I talked to parents who had to tell their children’s employer don’t give my kid a raise,” he said. “I’ve talked to parents who talked with their financial advisors, saying, don’t name your child in your will. We created a system that put parents in horrible positions, but now we have a solution that allows them to do more long-term planning and to truly set their kids up for a better life experience.”
Stephanie Cantor, director of the Illinois ABLE program, said the expansion lets her and thousands like her save for expenses that come with disability.
“Living with a disability just costs more, and it makes me think of all the ways an ABLE account could have been useful to me over the years to be able to save money and pay for these expenses,” Cantor said.
What’s next:
Illinois has about 8,500 ABLE account holders who have saved $121 million so far. The state treasurer’s office encourages anyone who thinks they may qualify to learn more and apply at illinoisable.com.
The Source: The information in this article was reported by FOX Chicago’s Terrence Lee.
The 29th Big Ten men’s basketball tournament starts Tuesday and ends Sunday at the United Center, where the champion will snip down the nets while the NCAA Tournament bracket reveal furiously gets underway.
In keeping with tradition, the NCAA selection committee will claim to have factored the Big Ten final into its seeding even though it — how to put this? — did not.
Unlike last year, when 15 teams made the Big Ten field, this tourney will include all 18 teams and begin a day sooner, because clearly a five-day event just wasn’t long enough.
A team-by-team glimpse, in order of seeding (odds via FanDuel):
1. MICHIGAN (29-2, 19-1)
Next: TBD, 11 a.m. Friday, BTN.
Title odds: +105.
Snip? If the ginormous frontcourt of Yaxel Lendeborg, Aday Mara and Morez Johnson Jr. brutalizes foes like it did Illinois in Champaign, it’s over-and-out for everybody else.
Or slip? Point guard Elliot Cadeau might wear down with injured L.J. Cason unable to spell him.
2. NEBRASKA (25-5, 15-5)
Next: TBD, 5:30 p.m. Friday, BTN.
Title odds: +1000.
Snip? No team plays harder at the defensive end, and the Huskers move the ball beautifully on offense. Is it shooter Pryce Sandfort’s time to shine?
Or slip? Is coach Fred Hoiberg allowed to win a championship at the UC? Asking for a few million friends.
3. MICHIGAN STATE (25-6, 15-5)
Next: TBD, approximately 8 p.m. Friday, BTN.
Title odds: +650.
Snip? Jeremy Fears is one of the best playmakers around, and we are bound by law to say it’s hard to beat Tom Izzo in March.
Or slip? As tough as this team is, it lacks the kind of star power we’ve often seen in green.
4. ILLINOIS (24-7, 15-5)
Next: TBD, approximately 1:30 p.m. Friday, BTN.
Title odds: +470.
Snip? If freshmen Keaton Wagler and David Mirkovic hold up to postseason competition, the shooters around them will give the Illini a shot to win it for the third time in the 2020s.
Or slip? The Illini likely would have to get past Michigan in the semis, and the first meeting was ugly.
5. WISCONSIN (22-9, 14-6)
Next: Washington-USC winner, approximately 1:30 p.m. Thursday, BTN.
Title odds: +3500.
Snip? The team that popped Purdue for 97 points to ruin the Boilermakers’ Senior Day can beat anybody.
Or slip? The team that ham-fisted its way through recent lopsided losses at Ohio State and Oregon isn’t going anywhere.
6. UCLA (21-10, 13-7)
Next: Minnesota-Rutgers winner, approximately 8 p.m. Thursday, BTN.
Title odds: +3500.
Snip? When point guard Donovan Dent is on his game, this offense — particularly shooter Tyler Bilodeau — is dangerous.
Or slip? The Bruins are a different team, and not in a good way, away from home.
7. PURDUE (23-8, 13-7)
Next: TBD, 5:30 p.m. Thursday, BTN.
Title odds: +550.
Snip? Braden Smith, Trey Kaufman-Renn and Fletcher Loyer have been there so many times before.
Or slip? Who would’ve believed the Boilers would tumble all the way to seventh? Something’s off with Matt Painter’s crew.
8. OHIO STATE (20-11, 12-8)
Next: TBD, 11 a.m. Thursday, BTN.
Title odds: +7500.
Snip? Bruce Thornton, the school’s career scoring leader, isn’t the only Buckeye who can fill it up.
Or slip? Statistically, this team is right down the middle in the conference. That has “also-ran” written all over it.
9. IOWA (20-11, 10-10)
Next: Oregon-Maryland winner, 11 a.m. Wednesday, Peacock.
Title odds: +5000.
Snip? Guard Bennett Stirtz is terrific, and first-year coach Ben McCollum’s postseason record (most of it at Northwest Missouri State) is unreal.
Or slip? Stirtz doesn’t have a whole lot in the way of sidekicks.
10. INDIANA (18-13, 9-11)
Next: Northwestern-Penn State winner, 5:30 p.m. Wednesday, BTN.
Title odds: +10000.
Snip? Guard Lamar Wilkerson led the Big Ten in scoring in league play and had multiple 40-plus-point games.
Or slip? Look, it’s a football school and the whole world knows it.
11. MINNESOTA (15-16, 8-12)
Next: Rutgers, approximately 8 p.m. Wednesday, BTN.
Title odds: +30000.
Snip? The Gophers have beaten three higher seeds, one of them Michigan State.
Or slip? Minnesota still hasn’t won this tournament. Why start now?
12. WASHINGTON (15-16, 7-13)
Next: USC, approximately 1:30 p.m. Wednesday, Peacock.
Title odds: +20000.
Snip? The Huskies went 3-3 down the stretch and had late leads in two of the losses.
Or slip? One NCAA win in the last 14 years kind of says it all.
13. USC (18-13, 7-13)
Next: Washington, approximately 1:30 p.m. Wednesday, Peacock.
Title odds: +30000.
Snip? A 4-1 stretch that began at Wisconsin looked really good.
Or slip? There have been seven straight losses since then, and star Chad Baker-Mazara was just booted from the program.
14. RUTGERS (13-18, 6-14)
Next: Minnesota, approximately 8 p.m. Wednesday, BTN.
Title odds: N/A.
Snip? A lot of steals and not many turnovers from this squad.
Or slip? Every league win came against Penn State, Maryland, Oregon or Northwestern.
Northwestern forward Nick Martinelli (2) celebrates with teammates after scoring the winning basket during overtime of an NCAA college basketball game against Maryland in Evanston, Ill., Thursday, Jan. 16, 2025. (AP Photo/Nam Y. Huh) ORG XMIT: ILNH117
15. NORTHWESTERN (13-18, 5-15)
Next: Penn State, approximately 6:30 p.m. Tuesday, Peacock.
Title odds: +30000.
Snip? The name’s Nick Martinelli. Perhaps you’ve heard of him.
Or slip? And then there are the rest of the Wildcats.
16. OREGON (12-19, 5-15)
Next: Maryland, 4 p.m. Tuesday, Peacock.
Title odds: +30000.
Snip? The Ducks won four of seven down the stretch. They aren’t total pushovers.
Or slip? Injured Jackson Shelstad isn’t entering the building. At least not in shorts.
17. MARYLAND (11-20, 4-16)
Next: Oregon, 4 p.m. Tuesday, Peacock.
Title odds: N/A.
Snip? Freshman guard Andre Mills has been going off and scored 39 at Northwestern.
Or slip? Uh, the Terrapins still lost in Evanston.
18. PENN STATE (12-19, 3-17)
Next: Northwestern, approximately 6:30 p.m. Tuesday, Peacock.
Title odds: N/A.
Snip? Aside from being utterly terrible at defense, rebounding and three-point shooting, the Nittany Lions are merely subpar.
Or slip? Gee, you think?
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