Illinois Hospital Association

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[This letter was signed by the entire Illinois Congressional Delegation]

August 31, 2005

Dr. Mark McClellan, Administrator
Centers for Medicare and Medicaid Services
United States Department of Health and Human Services
200 Independence Avenue, SW
Washington, DC 20201

Re: Illinois Hospital Assessment Program

Dear Administrator McClellan:

We are writing today as Members of the Illinois Congressional delegation with respect to the Illinois Hospital Assessment Program. The State of Illinois has submitted a Medicaid plan amendment to the Centers for Medicare and Medicaid Services in an effort to preserve and improve access to health care services for the state's low-income patients.

As you are aware, Illinois serves 4.5% of the nation's Medicaid beneficiaries, but receives only 3.6% of total Medicaid funding. To respond to this problem, Illinois last year enacted and CMS approved the creation of the Hospital Assessment Program to continue providing quality health care to Illinois citizens who need it most. Illinois is now seeking CMS’ approval to continue the Program.

This updated Hospital Assessment Program has been modified to resolve concerns raised by CMS when it approved the original Hospital Assessment Program last year. For example, under the new Program, the reliance on Medicaid Inpatient Utilization Rates and Medicaid Outpatient Utilization Rates has been eliminated.

These funds will help hospitals and other health care providers throughout Illinois provide quality medical services, recruit and retain qualified health care professionals, and continue to improve patient care.

The Illinois Department of Healthcare and Family Services (HFS) believes the Illinois Hospital Assessment Program meets all federal requirements as prescribed in 42 CFR 433.68. According to HFS, this program is: 1) broad-based, 2) uniform, 3) redistributive, and 4) does not contain a hold harmless.

We would appreciate your staff's prompt and close attention to this matter and respectfully request that you extend favorable consideration to the State of Illinois' application.