New law means more federal money

CHICAGO (AP) – A new law will help the state get more federal money to pay hospitals that care for the poor.

The state is expecting to get more than $1.1 billion from Washington because the federal government has temporarily increased its Medicaid reimbursement rate as part of the stimulus package.

The money will help the state pay Medicaid bills owed to hospitals and some other providers, including pharmacists.

Gov. Pat Quinn signed the bill Friday at Chicago’s Children’s Memorial Hospital.

State Sen. Jeffrey Schoenberg of Evanston said the money can only be spent on health care and human services. It cannot be diverted to other projects in the cash-strapped state.

Schoenberg said the money should start flowing early next year.