An analysis of the role “intergovernmental transfers” and the “upper payment limit” play in financing Illinois’ Medicaid program. These financing mechanisms are critical to funding healthcare for poor and low-income individuals throughout the state. 

Medicaid spending is often misunderstood and misrepresented because of the complexities of its financing structure.This Report is intended to: (1) clarify how Illinois’ Medicaid program is funded, (2) highlight the benefits to the state of Medicaid’s financing structure, (3) identify the percentage of state, own-source general fund spending dedicated to the program and (4) demonstrate the economic impact Medicaid spending (or cuts) has on the state and local economy.