Concern over looming budget, Medicaid cuts grows for local service agencies
Meredith Leon
“The good news,” began JUF Government Affairs Committee Chair David Golder at the group’s June 19 meeting, “is that we have Tony Arnold, National Public Radio’s state political reporter and Roberta Rakove, Sinai Health System’s senior vice president for external affairs as our speakers. There is no other good news.”
Golder went on to outline the impact that two years without a budget has had on Illinois, which includes mounting debt, being downgraded to near-junk bond status, a crumbling human service infrastructure, and most recently the closure of the lottery and road projects.
Arnold discussed next steps towards resolving the budget crisis, beginning with the convening of a “special session” of the General Assembly, which began June 21. There is still much speculation about what will force the Speaker and the Governor to reach an agreement.
One possible tipping point is the recent ruling from Judge Joan Lefkow of the U.S. District Court for the Northern District of Illinois on the $2 billion in unpaid Medicaid bills. Medical providers sued the state, demanding payment; now, per the judge’s order, attorneys for the State and those representing Medicaid recipients must negotiate how payments will go forward.
Lefkow asserted that the delayed payments, now more than seven months late, are beginning to limit Medicaid recipients’ access to care, an essential part of the original court order.
“It will be interesting to see if the money that currently goes to education and pensions or the debt service will be redirected to Medicaid,” Arnold said. “Without a budget, there are no easy options.”
Attention was then turned to the proposed federal American Healthcare Act (AHCA), specifically the potential changes to the Medicaid program, which currently provides $208 million in federal funding to many of the Jewish Federation’s health and human service agencies. The changes listed in the AHCA will result in the loss of 46,000 jobs and $40 billion dollars in federal funding in Illinois over the course of 10 years, and will put many of the services currently being provided by JUF agencies at risk.
The language of the bill, released by the Senate on June 22, confirmed what Rakove has speculated: 23 million people would lose their healthcare, leaving more people without coverage than before the Affordable Care Act was passed; it would be more difficult for people with preexisting healthcare conditions to receive medical care; the lifetime cap would be reinstated; and the federal share of Medicaid dollars would decrease.
Rakove’s concerns are being echoed by other national Jewish organizations including Jewish Federations of North America and the Jewish Council for Public Affairs, which are opposing the proposed changes to the Medicaid program due to the devastating impact they would have on millions of vulnerable Americans.
The meeting then shifted to a discussion of how President Trump’s proposed fiscal year 2018 budget would impact Jewish Federation agencies and the economically disadvantaged populations Federation serves. JUF Washington, D.C. Office Director Lisa Shuger Hublitz highlighted the key areas of concern.
Under this budget proposal, by 2027, the cuts to programs and services that states and localities deliver would reach as much as a $453 billion loss, or 37 percent of state budgets. In 2027, the total cut in four major entitlement programs — Medicaid, Temporary Assistance for Needy Families, Supplemental Nutrition Assistance Program (SNAP) and the Social Services Block Grant — would reach approximately $346 billion.
“Essentially, the president’s proposed budget is a big cost shift to the states,” Hublitz said, “which would force states to significantly scale back or eliminate services for children and families, seniors and people with disabilities.”
In addition to the cuts in the Medicaid program, another funding stream at risk is the Emergency Food and Shelter Program, which is slated for elimination. This program provides emergency food assistance, temporary shelter, and rental and utility assistance to households, and is a significant source of funding to JCFS, CJE SeniorLife, The ARK, and EZRA Multi-Service Center.
Furthermore, anticipated cuts of $150 million from the Office of Refugee Resettlement will impact refugee resettlement work done through JUF’s state contract and HIAS Chicago, which funds job training, counseling and rental, food and transportation assistance for newly arrived refugees.
“Although this proposed budget is viewed mostly as a ‘messaging’ document and the starting process of negotiations, we must remain vigilant,” Golder said. “With work locally and through JUF’s Washington, D.C. office we will continue our advocacy efforts with the Illinois congressional delegation urging members to protect these vital programs.”
Meredith Leon is the JUF Lewis Summer Intern in Public Affairs.