This notice could assist organizations with cash flow if they are going to experience
any lapsed funding for Fiscal Year 2015. See HFS Notice below from Director

I am still on vacation but I thought you should see this NOTICE.


Illinois begins FY 2016 (July 1, 2015 – June 30, 2016) without a State budget and
appropriation. While payments from the department will be impacted, beneficiaries
remain eligible and the department will be obligated to pay once appropriations are
available. Therefore, the department encourages our providers to continue providing
services as the following remains:

  1. Claims for dates of service prior to July 1, 2015, can be paid during the “Lapse
    Period” out of the appropriation for that fiscal year, i.e., FY 2015, so cash should
    continue to flow for a time from those services.
  2. Once a budget is enacted, pending claims with dates of service from FY 2016
    (July 1, 2015 – June 30, 2016) would be paid retroactively.
  3. Medicaid managed care plans are required to comply with their obligations to
    pay providers timely, unless the MCO has not received any capitation payment
    from the State for two consecutive months. MCOs have been paid for May and
    June. This means that since the MCOs were paid their capitation amounts for
    May and June, they are subject to the timely payment obligations under their
    contract with HFS for July and August.

We thank you all for your commitment to providing necessary health care services to
Illinois’ 3.2 million beneficiaries, even in this time of uncertainty.

Felicia F. Norwood

Tony Paulauski
Executive Director
The Arc of Illinois
20901 S. LaGrange Rd. Suite 209
Frankfort, IL 60423
815-464-1832 (OFFICE)
815-464-1832 (CELL)