Expected Cost for Illinois’ Noncitizen Health Care Program Grows to $1.1 billion

In the past four years our state has expanded health coverage to undocumented people starting in FY 20 age 65+, FY21 age 55-64, FY22 age 42-54. Each time these were slipped into last minute budget line items without debate. At the same time we’ve neglected adults with disabilities, our food insecure and our mental health services among other social service needs.

When I talk about expanding programs under democratic control this is a prime example. New spending in new ways take precedence over funding our current obligations. This year that decision will cost Illinois taxpayers $1.1 billion.

Here’s more: The estimated cost for Illinois to continue providing health care coverage to noncitizens who are otherwise ineligible for Medicaid benefits has been revised upward to $1.1 billion for the upcoming fiscal year.

As of the end of March, the Illinois Department of Healthcare and Family Services estimated it would cost $990 million to fund the program that provides state-funded health care to individuals age 42 and older who would otherwise qualify for Medicaid if not for their citizenship status.

The new estimate, shared by IDHFS Director Theresa Eagleson in testimony to a Senate appropriations committee Wednesday night, is now $880 million beyond the $220 million estimate included in Gov. JB Pritzker’s February budget proposal.

The administration also estimated the current-year expenditures for the program at $220 million, but it has cost over $400 million thus far with two months to go in the fiscal year.

IDHFS chief of staff Ben Winick told the committee that the original estimate relied on the Census Bureau’s American Community Survey data to estimate the eligible population, then assumed a certain percentage would enroll.

But both the cost of providing care and the number of enrollees have far outpaced estimates.

The projections are now based on the program’s current month-over-month growth rate of roughly 10 percent. The number of enrollees is expected to grow to over 120,000 in Fiscal Year 2024. The previous estimate was 98,500 enrollees.

The same Senate committee heard a proposal from Sen. Omar Aquino, D-Chicago, that would further expand Medicaid coverage to noncitizens age 19 and older. That would cost another $380 million, per IDHFS estimates.

Two weeks ago, Illinois House Republican leaders called for a moratorium on expansion and a State audit of Illinois’ billion-dollar health benefits program for undocumented immigrants.