SPRINGFIELD – In response to decreased use of health care services through Medicaid managed care organizations throughout the COVID-19 pandemic, state Senate Assistant Majority Leader Dave Koehler, D-Peoria, and state House Assistant Majority Leader Fred Crespo, D-Hoffman Estates, filed legislation today to require companies to return excess profits and reallocate funding to critical health care services. 

“While insurance companies and managed care organizations see record-setting profits at the height of a global pandemic, rural communities across the state are experiencing unsustainable strain in their health care systems due to lack of resources,” Koehler said. “The money recouped through this legislation would provide immediate relief for Downstate hospitals that have been devastated by COVID-19.” 

Hospitals across the state are facing an unprecedented decline in outpatient procedures and elective surgeries as a result of the pandemic, contributing to severe financial strain on health care facilities that serve Illinois’ most vulnerable populations. Conversely, MCOs in Illinois have benefitted from these declines, as enrollment-based payments have continued despite decreased use of non-emergency health care services.

In response, Koehler and Crespo introduced Senate Bill 4207 House Bill 5867, respectively, which seeks to reallocatea portion of enrollment-based payments made to Medicaid MCOs throughout the pandemic. From an estimated monthly payment of $1.7 billion, a 20% return would yield $340 million per month that can provide needed relief to hospitals and other health care facilities that have been hit hardest by the COVID-19 crisis. In addition, recouping these funds can provide relief to health care service providers that may be impacted by state budget deficits. 

“While safety net and critical care providers are struggling to remain open and serve their communities, MCO’s are continuing to receive over a billion dollars in state and federal funding each month,” said Crespo. “Residents across Illinois are making significant sacrifices in order to protect themselves and their communities, and we’ve even seen the auto insurance and cable television industries return unused money to consumers. It is unacceptable that MCO’s are profiting off of taxpayer dollars that aren’t being used. Clawing back some of the funding that MCO’s have received throughout the pandemic and reallocating those dollars to health care providers in low-income and rural communities could help hospitals remain open amid ongoing financial instability that has been exacerbated by the pandemic.”

“Minority communities have been disproportionately affected by the pandemic and its devastating impact on their health and economic wellbeing,” said Jose Sanchez, President and CEO of Norwegian American Hospital in Chicago. “It’s only fair that the Medicaid managed care organizations provide desperately needed relief to our communities by sharing part of the record profits they have made during the COVID-19 pandemic.” 

For more information on Senate Bill 4207, please visit contact Senator Koehler’s office via email or by calling (309) 677-0120.

PEORIA – State Senator Dave Koehler (D-Peoria) wants to make sure all fire departments and ambulance services know that the Office of the State Fire Marshal is accepting applications for its Small Equipment Grant Program.

“During a time when local governments will rely on every last dollar, this grant program helps our firefighters and EMS providers buy vital equipment like masks and gloves,” Koehler said. “I encourage local fire departments and ambulance services to apply for this grant program.”

The program was created to help Illinois fire departments and not-for-profit ambulance services that struggle to afford the necessary equipment to do their jobs.

In June, the Small Equipment Grant Program awarded $3.5 million to 154 fire departments and EMS providers. Applicants can also apply for personal infection control items such as masks, gowns and gloves.

“We rely on our first responders, who have continued to work even during this pandemic,” Koehler said. “I’m thankful that the Office of the State Fire Marshal has this program to help them stay safe.”

Most Illinois fire departments, fire protection districts and township fire departments are eligible to apply. Stand-alone, not-for-profit ambulance service providers are eligible to apply as well.

For more information, visit the state fire marshal’s website.

PEORIA – The Greater Peoria Mass Transit District was named a recipient of a $16.7 million grant to improve Peoria’s mass transit system, State Senator Dave Koehler (D-Peoria) announced Friday.

“It’s an unfortunate truth that public transportation systems can easily fall into disrepair, which creates issues for people without reliable access to a vehicle,” Koehler said. “Whether it’s for commuting to work, making a trip to the grocery store, or picking up your child from school, people have to have reliable public transportation systems. This is an important investment to make in Peoria.”

Grant funds will be used for new or renovated buses, transit stations and maintenance facilities. This is the first of three grant cycles for mass transit projects through the Rebuild Illinois plan, with the next two set to occur in 2021 and 2023.

A complete list of local providers and awards can be viewed at https://idot.click/rbi-capital-plan-transit-grants.

PEORIA – State Senator Dave Koehler (D-Peoria) announced several local businesses will receive financial assistance from the Business Interruption Grant program to help offset financial losses caused by the COVID-19 pandemic.

“The BIG program has demonstrated what can be done when we lawmakers in Springfield put our heads together and proactively seek ways to help those we serve,” Koehler said. “Because of this, businesses that have served our communities for generations are able to continue operations.”

28 businesses in the tri-county area received a combined $1,425,000 in $5,000-$150,000 grants to help cover the costs of payroll, rent, utilities and other working capital during the time they have experienced interruptions due to the pandemic.

The Illinois Department of Commerce and Economic Opportunity awarded the grants this week, as part of the second round of BIG Grants. However, applications will remain open until all of the funding is spent.

“In order for our local business community to prosper through the winter we need them to take advantage of every opportunity available,” Koehler said. “There is still plenty of money available, but it won’t be there for long. I encourage all business owners to check their eligibility and apply as soon as possible.”

The BIG program is the largest state-run economic support program formed in response to the financial losses caused by the COVID-19 pandemic. Applications are available on the DCEO’s website.